You are on page 1of 2

Spotify versus Apple Music

Strategy Formulation
Should Spotify be worried about Apple’s entry into streaming music? If so,
how worried?
Spotify is a streaming platform that has been created since 2008. Comparing
with Apple Music, Spotify is older than apple music for about six years.
However, with the emergence of Apple Music, there are several factors that
Spotify should be worried about. Firstly, even though Spotify was established
about six years before Apple Music, it only has about 50 million songs; 10
millions less than those of Apple Music. Moreover, artists started to sign
exclusivity deals with Apple. Spotify reportedlyhas a history of altering search
rankings for artists who release theri music through Apple first; thus, this has
ruined the name of the big company, Spotify. Besides, Apple Music lets the
listeners download music for offline playback across 10 different devices at
oncewith the upper limit to 100,000 songs while Spotify only allows the
restriction up to 10,000 on up to five devices. Essentially, Apple Music has
reached to 108 countries while ther are only 58 countries could use Spotify.
However, there are several factors that make Spotify to still be superior to
Apple Music. First, Spotify can be downloaded either on Andriod devices or
IOS devices while Apple Music obvioucsly can only be used on IOS devices.
Moreover, since Spotify has been established way longer than Apple Music, it
will have more fan base and more popularity than Apple Music. All in all,
Spotify should be worried about the existance of Apple Music; however, they
shouldnt be panic but trying to fidn strategies to improve themselves instead. 
If you were Spotify’s CEO, what would be your strategic responses to
Apple Music? Suggest 2 to 3 specific strategic initiatives.
If I were Spotify's CEO, there would be 2 strategic improvement to Spotify
services. 
- Spotify would increase its range to many other countries in the globe. Since
only 58 countries can access to Spotify currently, it has already limited the users
in other a hundred countries. 
- Signing exclusivity deals with artists when they first announce their new
comebacks is very important. Each artist will have a lots of fan. Thus, this deal
would bring more customers for Spotify.

Strategy Implementation
How would you implement these initiatives? Suggest an implementation
plan that elaborates on at least 3 specific areas of implementation (e.g.,
culture, structure, metrics).
To the implement the strategies mentioned above, we first need to research
whether there are many music listioners in the countries that we plan to expand
our reach into. Research about the population and about those who used other
streaming platforms such as Apple Music. It is also important to research about
the culture of those countries such the genres that they like to listen to in order
to promote our music features efficiently. Likewise, another plan we need to
consider is to research about the artists on trend today in order to consider the
costs and benefits of signing the contracts with them. If one artist agreed to let
us stream their new songs before other platforms, it does not only attract that
artist's fans but also the other artists' fans since they will have the expectation
that their artists will upload their songs in Spotify before other platforms too. 

You might also like