Business Foundations

Capstone
Framework for Analysis
Company Name
Learner Name
Date
Situational Analysis
Product or Service–
Describe the product or service you are developing a strategy for

Shazam operates in the music identification and discovery industry, which is characterized by several competitive fronts:
• Quality: Shazam competes on the quality of its music identification algorithm. The accuracy and speed with which the app can
identify songs play a crucial role in user satisfaction. Improving the accuracy of song identification and reducing identification times
are key areas of focus for the company.
• Timing: Timing is also important in the music discovery industry. Shazam aims to provide real-time identification of songs, allowing
users to quickly identify music they hear and discover more about the artist and track. Ensuring fast and reliable identification
enhances the user experience and sets Shazam apart from competitors.
• Variety: Shazam competes on the variety of music it can identify. The app aims to recognize a wide range of songs across different
genres and languages. Continuously expanding its database to include new and popular music ensures that users can identify a
diverse selection of songs, enhancing the app's appeal and utility.
• Cost: While Shazam is a free app, it competes indirectly on cost by providing value to users at no charge. The app's revenue model
includes partnerships and advertising, where it can offer targeted advertising based on user music preferences. Keeping the app free
while providing valuable music identification services is key to its competitive position
External Environment –
Relevant economic, social, political, legal, technological trends

• Economic Trends:
• Growth: The economy has been experiencing moderate growth, driven by sectors such as technology, finance, and services.
• Inflation: Inflation rates have been stable, influenced by global commodity prices and domestic demand.
• Unemployment: Unemployment rates have been fluctuating, with efforts to improve job creation and skill development.
• Trade: The country has been actively engaging in international trade, with a focus on expanding export markets and diversifying trade partners.
• Social Trends:
• Population: The population is growing, with a trend towards urbanization and a youthful demographic.
• Education: Efforts are being made to improve access to education and enhance the quality of education at all levels.
• Healthcare: There is a focus on improving healthcare infrastructure and services, with an emphasis on preventive care and health promotion.
• Political Trends:
• Stability: The country has experienced political stability, with regular democratic elections and peaceful transitions of power.
• Governance: Efforts are being made to improve governance, transparency, and accountability in public institutions.
• International Relations: The country is actively engaging in regional and international diplomacy, seeking to strengthen ties and address global
challenges.
• Legal Trends:
• Regulatory Environment: The legal framework is evolving to adapt to changing economic, social, and technological trends.
• Business Environment: Efforts are being made to improve the ease of doing business, with reforms aimed at reducing bureaucratic hurdles and
promoting entrepreneurship.
• Technological Trends:
• Digitalization: There is a strong focus on digitalization, with investments in digital infrastructure and services.
• Innovation: Efforts are being made to foster innovation and entrepreneurship, with a focus on emerging technologies such as AI, blockchain, and
IoT.
• E-commerce: The country is experiencing growth in e-commerce, with increasing digital literacy and adoption of online shopping
External Environment –
Nature and extent of demand (demand elasticity & size of the market)
• Market Size: The market for music identification and discovery is substantial, with millions of users worldwide. As music streaming services continue to
grow in popularity, the demand for apps like Shazam that complement these services is expected to remain strong.
• Elasticity of Demand: The demand for music identification services is relatively elastic, meaning that users are responsive to changes in quality, features,
and pricing. By offering innovative features and personalized recommendations, Shazam can attract and retain users, thereby increasing its market share.
• User Engagement: Shazam's proposal to enhance user engagement through interactive content, personalized recommendations, and gamification aligns
with the market's preferences. Users are likely to respond positively to these features, leading to increased usage and loyalty.
• Integration with Streaming Services: Strengthening partnerships with music streaming services and integrating with smart devices can further enhance
Shazam's appeal to users. Seamless integration with popular streaming platforms can make it easier for users to discover and enjoy music, driving demand
for the app.
• Social Sharing Features: Enhancing social sharing capabilities can also contribute to market receptivity. Users often enjoy sharing their music discoveries
with friends and followers, and providing easy-to-use sharing options can increase engagement and attract new users.
External Environment –
Industry structure (entry/exit barriers)
• Shazam: Shazam is one of the pioneers in the music identification industry and has a large user base worldwide. It is known for its accurate song
identification algorithm and user-friendly interface.
• SoundHound: SoundHound is another major player in the industry, offering a music identification app similar to Shazam. It differentiates itself by offering
voice-controlled music search and identification.
• Apple Music: Apple Music, a music streaming service, also offers music identification functionality through its Siri voice assistant. While not a standalone
identification app, it competes with Shazam and SoundHound in the music discovery space.
• Google Assistant: Google Assistant, Google's virtual assistant, includes music identification features similar to Shazam and SoundHound. It is integrated into
various Google products and services, making it a strong competitor in the industry.
• Spotify: Spotify, a leading music streaming service, also offers music discovery features, including song identification. While not a dedicated identification
app, Spotify competes with Shazam and others in providing music discovery services to its users.
Barriers to market entry in the music identification and discovery industry include:
• Technology: Developing an accurate and fast music identification algorithm requires significant technological expertise and resources, which can be a
barrier for new entrants.
• Brand Recognition: Established players like Shazam and SoundHound have strong brand recognition and a large user base, making it challenging for new
entrants to compete.
• Partnerships: Building partnerships with music labels, artists, and streaming services is crucial for success in the industry. Established players already have
these partnerships in place, making it difficult for new entrants to compete.
• User Base: Building a large user base is essential for success in the industry, as it increases the accuracy of the music identification algorithm. Established
players already have a large user base, making it challenging for new entrants to attract users.
Barriers to market exit in the industry include:
• Investments in Technology: Companies that have invested heavily in developing music identification technology may find it challenging to exit the market,
as they may not be able to recoup their investments.
• Brand Loyalty: Users may develop strong brand loyalty to a particular music identification app, making it difficult for companies to exit the market without
losing their user base.
• Partnerships: Companies that have established partnerships with music labels, artists, and streaming services may find it challenging to exit the market
without disrupting these partnerships.
External Environment –
Industry structure – Competition (nature of competition, profile of competitors (background, resources,
etc.), market shares, & stage of product life cycle)
• Shazam:
• Background: Shazam was founded in 1999 and is one of the pioneers in the music identification industry. It has a strong brand presence and a
large user base worldwide.
• Resources: Shazam has significant resources, including advanced music identification technology, partnerships with music labels and streaming
services, and a team of experienced professionals.
• Market Share: Shazam has a significant market share in the music identification industry, thanks to its accurate song identification algorithm and
user-friendly interface.
• Stage of Product Life Cycle: Shazam is in the maturity stage of the product life cycle, with a well-established user base and a focus on enhancing
user engagement and features.
• SoundHound:
• Background: SoundHound was founded in 2005 and is known for its voice-controlled music search and identification features.
• Resources: SoundHound has invested heavily in developing its music identification technology and has partnerships with major music labels and
streaming services.
• Market Share: SoundHound has a smaller market share compared to Shazam but has a loyal user base that appreciates its unique features.
• Stage of Product Life Cycle: SoundHound is also in the maturity stage of the product life cycle, with a focus on differentiation through innovative
features.
• Apple Music:
• Background: Apple Music is a leading music streaming service that offers music identification features through its Siri voice assistant.
• Resources: Apple Music benefits from Apple's extensive resources, including its brand recognition, user base, and financial strength.
• Market Share: While not a standalone identification app, Apple Music competes with Shazam and others in the music discovery space, leveraging
its integration with Apple devices.
• Stage of Product Life Cycle: Apple Music is in the growth stage of the product life cycle, with a focus on expanding its user base and enhancing its
music discovery features.
• Google Assistant:
• Background: Google Assistant is Google's virtual assistant that offers music identification features similar to Shazam and SoundHound.
• Resources: Google Assistant benefits from Google's vast resources, including its technology expertise and global reach.
• Market Share: Google Assistant competes with other music identification apps by offering seamless integration with Google products and services.
• Stage of Product Life Cycle: Google Assistant is also in the growth stage of the product life cycle, with a focus on expanding its user base and
enhancing its features.
External Environment –
Marketing Channels
Shazam primarily markets its products and services through digital channels, leveraging its mobile app and website to reach users. Some of the key marketing
channels used by Shazam include:
• Mobile App: The Shazam app itself serves as a key marketing channel, as users interact with the app to identify songs and discover new music. Shazam
uses in-app notifications and messages to promote features and engage users.
• Social Media: Shazam has a strong presence on social media platforms such as Facebook, Twitter, and Instagram. The company uses these platforms to
share music discoveries, engage with users, and promote its app and features.
• Partnerships: Shazam has partnerships with music labels, artists, and streaming services, which serve as marketing channels to reach a wider audience. For
example, Shazam integrates with Apple Music and Spotify, allowing users to listen to identified songs directly from the app.
• Digital Advertising: Shazam uses digital advertising channels such as display ads, video ads, and search ads to promote its app and features. These ads are
targeted to reach users interested in music and entertainment.
• Email Marketing: Shazam uses email marketing to communicate with its users, providing updates on new features, music trends, and promotions. Email
campaigns are used to engage users and encourage them to use the app more frequently.
• Content Marketing: Shazam creates and shares content related to music, artists, and music trends to engage users and attract new users. This content is
shared on the Shazam app, website, and social media channels.
Internal Environment –
Resources (Top management, Marketing, Production, Finance, research & development)
To support the opportunity of enhancing user engagement and personalized recommendations in the music identification and discovery industry, Shazam can
tap into various company resources across different departments:
• Top Management: Top management can provide strategic direction and support for the implementation of new features and initiatives. They can also
allocate resources and budget for research and development.
• Marketing: The marketing department can help promote the new features to users through various channels such as the app, website, social media, and
partnerships. They can also conduct market research to understand user preferences and trends.
• Production: The production department can work on implementing the new features in the app, ensuring they are user-friendly, reliable, and enhance the
overall user experience. They can also work on integrating with music streaming services and smart devices.
• Finance: The finance department can provide budgetary support for the development and implementation of the new features. They can also conduct
financial analysis to assess the potential impact of the new features on revenue and profitability.
• Research & Development: The research and development department can lead the development of new features such as interactive content, personalized
recommendations, and gamification. They can also collaborate with external partners and experts to enhance the app's capabilities.
Internal Environment –
Brand diagnosis (current brand positioning, current pricing strategy, current distribution strategy, & current
promotions strategy)
As of my last update, Shazam's brand positioning, pricing, distribution, and promotions strategies were as follows:
• Brand Positioning:
• Shazam positioned itself as a leading music identification and discovery app, focusing on its accuracy, speed, and user-friendly interface.
• The brand emphasized its ability to help users identify songs in real-time and discover new music based on their preferences.
• Pricing Strategy:
• Shazam offered its app for free to users, allowing them to identify an unlimited number of songs.
• The app monetized through partnerships and advertising, offering targeted advertising based on user music preferences.
• Distribution Strategy:
• Shazam distributed its app primarily through app stores such as Apple App Store and Google Play Store, making it easily accessible to users on
both iOS and Android platforms.
• The app was also pre-installed on some devices, further expanding its reach.
• Promotions Strategy:
• Shazam promoted its app through various channels, including in-app promotions, social media, partnerships with music labels and artists, and
digital advertising.
• The brand also ran promotional campaigns and contests to engage users and encourage them to use the app more frequently.
Internal Environment –
Problem definition & Critical Factors
Factors within the organization that will help the proposal to enhance user engagement and personalized recommendations in the music identification
and discovery industry include:
• Technology and Expertise: Shazam has a strong technological foundation and expertise in music identification, which will be crucial for developing and
implementing the proposed features.
• Brand Recognition: Shazam has a strong brand presence and a large user base, which can be leveraged to promote the new features and attract users.
• Partnerships: Shazam has partnerships with music labels, artists, and streaming services, which can provide valuable resources and support for the
proposal.
• Marketing and Promotion: Shazam has a well-established marketing and promotion strategy, which can be used to effectively promote the new features to
users.
• Financial Resources: Shazam has financial resources to invest in the development and implementation of the proposed features.

Factors within the organization that may hinder the proposal include:
• Competitive Pressure: The music identification and discovery industry is highly competitive, and Shazam will need to differentiate itself effectively to
attract users.
• Resource Constraints: Developing and implementing the proposed features will require significant resources, and Shazam may face constraints in terms of
budget and manpower.
• Technical Challenges: Developing accurate and reliable personalized recommendations can be technically challenging, and Shazam will need to overcome
these challenges to successfully implement the proposal.
• User Adoption: There is always a risk that users may not adopt the new features as expected, which could impact the success of the proposal.
• Integration Issues: Integrating the new features with existing systems and platforms may present challenges and require careful planning and execution.
Segmentation, Targeting &
Positioning
Market Analysis & Segmentation –
Who is/are the market?
The market for music identification and discovery apps like Shazam is diverse and includes a wide range of users. The demographic breakdown of the market
can vary based on factors such as age, gender, location, and interests. However, some general demographic trends among users of music identification
apps may include:
• Age: Users of music identification apps are often younger, with a significant portion being in the 18-34 age group. This age group is typically more tech-
savvy and interested in discovering new music.
• Gender: Music identification apps are used by both males and females, with a fairly even distribution between the two.
• Location: Music identification apps are used worldwide, but they may be more popular in urban areas with access to a wide range of music and cultural
events.
• Interests: Users of music identification apps are typically interested in music and may have diverse musical tastes, ranging from pop and hip-hop to rock
and electronic music.
Market Analysis & Segmentation –
• What does the market buy?: The market for music identification and discovery apps buys convenience, accuracy, and access to a wide range of music.
Users are looking for a tool that can quickly and accurately identify songs they hear and provide them with information about the artist and track.
• When does the market buy?: The market for music identification and discovery apps buys continuously, as users often use these apps in real-time to
identify songs they hear. However, there may be peaks in usage during events such as music festivals, concerts, or when new music is released.
• Where does the market buy?: The market for music identification and discovery apps buys primarily through app stores such as the Apple App Store and
Google Play Store. Users can download the app onto their smartphones or tablets and use it wherever they are to identify songs.
• Why does the market buy?: The market buys music identification and discovery apps for several reasons, including:
• Convenience: Users can quickly identify songs they hear without having to search for them manually.
• Discovery: Users can discover new music and artists based on their identified songs and preferences.
• Engagement: Users enjoy the interactive nature of the apps and the ability to share their music discoveries with others.
• Enhanced Music Experience: Users use these apps to enhance their overall music listening experience by learning more about the music they love.
Market Targeting –
Who is/are the target audience(s)?
The target audience for music identification and discovery apps like Shazam includes:
• Music Enthusiasts: These are individuals who have a passion for music and are constantly seeking new songs and artists to listen to. They enjoy exploring
different genres and discovering hidden gems.
• Tech-Savvy Users: This group is comfortable using technology and relies on apps for various aspects of their life, including music discovery. They appreciate
the convenience and functionality that apps like Shazam offer.
• Socially Active Users: These users enjoy sharing their music discoveries with friends and followers on social media. They use music identification apps as a
way to connect with others and showcase their musical tastes.
• Event-Goers: People who attend live music events such as concerts, festivals, or parties often use music identification apps to identify songs they hear at
these events. They use these apps to enhance their overall event experience.
• Curious Individuals: This group includes individuals who are curious about the music they hear in movies, TV shows, commercials, or public places. They
use music identification apps to satisfy their curiosity and learn more about the songs and artists.
• Travelers: Travelers often use music identification apps to discover local music and artists while exploring new destinations. They use these apps to
immerse themselves in the local culture and music scene.
• Students and Professionals: Students and professionals use music identification apps as a tool for productivity and relaxation. They use these apps to
create playlists, discover new music for studying or work, and unwind after a long day.
Market Positioning –
Proposed brand positioning
The proposed brand positioning for Shazam's opportunity to enhance user engagement and personalized recommendations is to be the ultimate companion
for music discovery and enjoyment. Shazam aims to position itself as more than just a music identification app but as a platform that deeply understands
and connects with users' music preferences, enriching their overall music experience.
This opportunity expands Shazam's existing brand by adding a layer of personalization and interactivity. By offering personalized recommendations based on
users' music tastes and behaviors, Shazam can deepen its relationship with users and become a more integral part of their music discovery journey. This
not only enhances user engagement but also strengthens brand loyalty and advocacy.
Furthermore, this opportunity positions Shazam as a leader in music discovery and curation, setting it apart from competitors by offering a more tailored and
engaging experience. By continuously innovating and improving its features, Shazam can solidify its position as the go-to app for music enthusiasts who are
looking for a more personalized and immersive music discovery experience.
Market Positioning –
Communication objectives
The goals and objectives of the communications for Shazam's opportunity to enhance user engagement and personalized recommendations in the music
identification and discovery industry are as follows:
• Increase User Engagement: The primary goal is to increase user engagement with the app by providing personalized recommendations and interactive
features that encourage users to spend more time using Shazam.
• Enhance User Experience: Another goal is to enhance the overall user experience by offering features that make music discovery more enjoyable and
personalized, such as curated playlists and real-time updates on new music releases.
• Improve Brand Perception: The communications will aim to improve the brand perception of Shazam by positioning it as a leader in music discovery and
curation, offering a more personalized and engaging experience than competitors.
• Drive App Downloads and Retention: The communications will also aim to drive app downloads and retention by highlighting the new features and
benefits of using Shazam, such as personalized recommendations and enhanced music discovery.

To achieve these goals and objectives, Shazam will implement a comprehensive communications strategy that includes the following tactics:
• Social Media Campaigns: Shazam will launch targeted social media campaigns to promote the new features and encourage user engagement. These
campaigns will include interactive content, such as polls and quizzes, to drive user interaction.
• Email Marketing: Shazam will use email marketing to communicate with users and provide them with personalized recommendations and updates on new
music releases. This will help to keep users engaged and encourage them to continue using the app.
• In-App Messaging: Shazam will use in-app messaging to promote the new features and encourage users to explore them. This will help to drive app
engagement and retention.
• Partnerships and Collaborations: Shazam will collaborate with music labels, artists, and streaming services to promote the new features and reach a wider
audience. This will help to increase brand awareness and drive app downloads.
• Public Relations: Shazam will work with media outlets and influencers to generate buzz and excitement around the new features. This will help to enhance
brand perception and drive user engagement
Operations Plan
Operations Plans –
Describe your plan for cost, quality, variety and responsiveness of the new line
To maximize cost efficiency, quality, variety, and responsiveness, the operational flow will be designed as follows:
• Cost Efficiency:
• Utilize existing technology and infrastructure to minimize development costs.
• Implement efficient data management and processing techniques to reduce operational costs.
• Leverage partnerships and collaborations for marketing and promotion to reduce advertising costs.
• Quality:
• Conduct rigorous testing and quality assurance processes to ensure the accuracy and reliability of personalized recommendations.
• Continuously monitor and analyze user feedback to identify areas for improvement and make necessary adjustments to enhance the quality of
the service.
• Variety:
• Expand the music database to include a wide range of songs across different genres and languages.
• Collaborate with music labels, artists, and streaming services to ensure access to the latest and most popular music.
• Responsiveness:
• Implement real-time updates and notifications to provide users with timely information about new music releases and personalized
recommendations.
• Develop a responsive customer support system to address user inquiries and issues promptly.
Financial Plan
Financial Plan –
Estimate of costs and revenue for the new line
For Shazam's new line to enhance user engagement and personalized recommendations, the offer will be free to users, as Shazam's revenue model primarily
relies on partnerships and advertising. The income is derived from advertising revenue, where Shazam can offer targeted advertising based on user music
preferences.
Projected Costs:
• Development Costs: $500,000 - $1,000,000 (for developing and implementing new features)
• Marketing and Promotion: $200,000 - $500,000 (for promoting new features through various channels)
• Operational Costs: $100,000 - $300,000 (for maintaining and managing the new features)
• Total Projected Costs: $800,000 - $1,800,000
Projected Revenue:
• Advertising Revenue: $1,000,000 - $3,000,000 (based on increased user engagement and targeted advertising)
• Total Projected Revenue: $1,000,000 - $3,000,000
Overall, the estimated costs for implementing the new line to enhance user engagement and personalized recommendations for Shazam are between
$800,000 and $1,800,000, with projected revenue of $1,000,000 to $3,000,000.
Integration & Evaluation
Timetable of Activities
Here is a timeline for the market entry of Shazam's new line to enhance user engagement and personalized recommendations in the music identification and
discovery industry:
• Month 1-2: Research and Planning
• Conduct market research to understand user preferences and trends.
• Develop a detailed plan for the new features and enhancements.
• Month 3-6: Development and Testing
• Develop the new features and enhancements based on the research and plan.
• Conduct rigorous testing to ensure the accuracy and reliability of the new features.
• Month 7-8: Marketing and Promotion
• Develop a marketing and promotion strategy to promote the new features.
• Launch targeted marketing campaigns to generate buzz and excitement.
• Month 9: Launch
• Officially launch the new features and enhancements to the public.
• Monitor user feedback and make necessary adjustments.
• Month 10-12: Optimization and Expansion
• Continuously optimize the new features based on user feedback and usage data.
• Explore opportunities for expansion and partnerships to further enhance the user experience.
Evaluation
To evaluate the success of Shazam's new line to enhance user engagement and personalized recommendations, the following criteria will be used:
• User Engagement: Measure the increase in user engagement metrics, such as app usage frequency, time spent on the app, and number of songs identified
per user.
• User Satisfaction: Conduct user surveys and feedback analysis to measure user satisfaction with the new features and enhancements.
• Revenue Growth: Track the increase in advertising revenue generated from the new features, as well as any potential growth in partnerships and
collaborations.
• Market Share: Monitor Shazam's market share in the music identification and discovery industry, comparing it to competitors and tracking any changes
over time.
• Retention Rate: Measure the retention rate of users who have adopted the new features, compared to those who have not.

Data will be collected through various methods, including:

• In-app analytics to track user behavior and engagement metrics.
• User surveys and feedback forms to gather qualitative feedback on user satisfaction.
• Financial reports to track advertising revenue and revenue growth.
• Market research and competitor analysis to assess market share and competitive positioning.
• Data will be collected continuously throughout the implementation and post-launch phases, with regular intervals for analysis and review. This will allow
Shazam to make informed decisions and adjustments to optimize the new features and ensure their long-term success
Evaluation
Some reasonable scenarios for failure of Shazam's new line to enhance user engagement and personalized recommendations could include:
• Low User Adoption: If users do not adopt the new features as expected, it could indicate a failure to meet user needs or expectations.
• Address: Shazam can address this by conducting user research to understand why the new features are not resonating with users and making
necessary adjustments to improve them.
• Technical Issues: If the new features are plagued by technical issues, such as bugs or glitches, it could lead to a poor user experience.
• Address: Shazam can address this by conducting thorough testing and quality assurance before launching the new features, as well as by providing
prompt updates and fixes for any issues that arise.
• Lack of Differentiation: If the new features do not differentiate Shazam from competitors, it could lead to a lack of interest from users.
• Address: Shazam can address this by focusing on unique and innovative features that set it apart from competitors, as well as by effectively
communicating the value proposition of the new features to users.
• Negative User Feedback: If the new features receive negative feedback from users, it could indicate a failure to meet user needs or expectations.
• Address: Shazam can address this by listening to user feedback and making necessary adjustments to improve the new features based on user
input.
• Poor Marketing and Promotion: If the new features are not effectively marketed and promoted, it could lead to a lack of awareness and adoption among
users.
• Address: Shazam can address this by developing a comprehensive marketing and promotion strategy that effectively communicates the benefits of
the new features to users and drives engagement.