Spotify versus Apple Music

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Strategic Options

▪ Should Spotify be worried about Apple’s entry

into streaming music? If so, how worried?
▪ At the first glance, facing a tough competitor in a
business seems to be terrifying for an enterprise.
Especially when it comes from a company which
have more resources and capability needed for
success. So normally, it is a stressful situation for
Spotify. On the other hand, it never does a
business succeed unless it beats serious
competitors and such a circumstance would be so
much inspiring for a business, which has the
mindset to compete. In a strategic view, I would
say Apple Music is what can drive Spotify
towards its future glory. If the organization is in a
competing setting, this is what they need to 2
expand different borders.
Strategy Formulation (Strategic Response)
DUAL SWOT Analysis
In order to make an appropriate response to Apple music, Spotify managers first start with a comparative SWOT analysis to clarify
the realities about the situation of these two competitors.
This approach is a competition focused strategy attachment, which will be influencing the organization at higher level of strategic
planning.

STRENGTHS WEAKNESSES
Apple Only: Plan to create / Plan to disrupt Apple Only: Plan to build on it to a Position
Spotify Only: Initiate Patterns to improve further to a Spotify Only + Mutual: Plan and Pattern to
Position diagnose
Mutual: Plan and Pattern to improve / Play to disrupt

Threats
Opportunities Apple Only: Plan to make an advantage
Apple Only: Plan to create equivalent or disrupt it Spotify Only: Plan and Pattern to resolve / Play to
Spotify Only: Plan, Pattern and Position to build on it overcome 3

Mutual: Plan and Pattern to exploit / Plan to dirupt Mutual: Plan to make advantages on
Strategy Formulation

PERSPECTIV
PLAN PATTERN PLOY POSITION
E

Grow user base User-centered view Adding long-shot Winning and holding Create a bottom-up
non-profitable the position of organization
Grow profit margin Independent teams features number one music
sharing and stream Shape the future of
Partnerships High integration Entering hard non- platform for music industry
promising markets producers and
Create market listeners Implement lean
processes
Build pure brand
image for music & 4
etc.
Strategy Implementation
•Balance Scorecard (BS)
In order to translate high-level
strategic objectives to day to day
routines, we can use balance
scorecard. In my proposed version of
it, each initiative becomes the lower
departments objective until reaching to
one or a group of employees in charge
for an action
Structure • The preferred structure would be a flat, team-based
structured, combined with a set of functional teams,
serving the product teams horizontally.
• Product owners and managers directly manage
project teams, and functional groups.
Culture • As a principal “JOY” would be the biggest value for the
organization, the core value proposed to customers.
• Clarity, openness, object orientation, and dedication,
alongside with “Autonomy, Relatedness, and
Competence” are the praised characteristics in the
organization
Goals, • Knowledge and Performance management systems
Metrics will be designed to deliver clear objectives for
and PMS individuals and ensure the transfer of knowledge
among the employees.
• Each week KPI’s will be checked and evaluated in
order to learn from organization’s behaviors. 5
Thanks for your
time!