Current And Future Use of Technology Essay

Spotify has provided a federal agency for people to access and division harmony with services such as win over of selections and even wide-eyed awake access. In the process of providing these services, the habituaters entropy is acquired d one initial registration and this helps reason the commercialize. The main(prenominal) tar b other for Spotify is not registration of exchange premium accounts with come forward adverts but the dethaw use by the public where adverts can be played in between songs. at that place are umpteen issues handled by Spotify in the succinct letter including competition from existing on television channel euphony selling companies wish Sony and Apple, and challenges on fresh artists royalties with restrictions by copyrights in some regions. The e argument system is thoroughly established for Spotify as the society deals with practice of medicine producing companies and companies who look for a way to advertise brands. The peer to peer engine room use and the blow of perceive to symphony even when offline to sither with a simple user interface are all technological returns of Spotify that make it popular in the foodstuff.The prox of Spotify is based on integration of the software into hand held processing devices equivalent modern phones, and having a good relative with the sources of music. E-Business background Spotifys business idea was to create a intermediate through which to provide advertisers with a way of clearing a trace fit and response predictable market. By creating a digital library of a wide variety of music and an interface through which bewareers can register and take heed to music absolve, Spotify was able do just that. There are adverts pushed in between songs and outlast for between 15 and 30 seconds.The users that dont want to get interference from the audio adverts can pay a monthly conquerance to stop them. The portion of listeners who pay this fee is so small compared to t he free users, who puzzle out the main market idea for Spotify. The community has arrangement with the macrocosms study labels to provide their music and in return song an 18% stake in the company. The integration of the music producing companies, the listeners and the advertisers forms the e-business model for Spotify. There is competition from similar companies like Last.fm, Amazon (which sells music online), my space and facebook with the identify rival cosmos Last. fm. Spotify and Last. fm fetch integrated their systems though and this form a way to create an entry hardship in an reason to protect high profit business and raise competition advantage for both companies to realize. Porters Five Forces model Spotifys business faces the five forces from threats of substitute, barriers to entry, hand over indicator, buyers power and rivalry (Porter 1985). There are various ways that it has pitch up strategies to deal with this.First, in that respect is the presence of su bstitute firms like Last. com Spotify has be afterward to sing a deal in combined operations with the company in order to incr console the business opportunities for both sides. It was proposed that the advertisers/brands could then be able to buy advertising services across the platforms of the two companies (McCormick 2009). agree to the nature of the platform on which the adverts are run, Spotify has created a medium where the sum is teemline with the music being listened to.Apart from the major rival with whom Spotify agrees to merge business with, the brands entrust face a hard time expression for an alternative service of the kind. Thus the buyers power is low, considering that there are also many scattered brands to advertise through the electronic platform. Furthermore, the platform provides a way of major eternise labels availing their music to the users, reservation sure that brands can get the largest number of music fans at Spotify, which they cannot get from o nline music shops. On the suppliers power towards Spotifys business, there are many music producing labels that offer a variety of music.Also, the fact that the buyers of the service are somewhat weak, the suppliers are also put in the same line because advertisers has no much power over Spotify, they cannot demand of specific record labels. Since the entry of Spotify into the e-business, the key issue is to keep the prices offered virtually low in order to provide a barrier of entry of new competition. oneness strategy applied by firms to this effect is merging their markets and operations so that they can enjoy economies of scale and protect the high profit market from other entrants composition keeping the quality of services high.This was a showcase possible from the Spotifys deal with Last. fm. There is rivalry in the effort of e-business and trade through electronic heart and soul has been applied by many companies. The industry is disciplined though, from previous compe tition, the methods of enticing the music fans and through ease of use of platforms by the market forming population. The exertion streams music with no buffering times and provides a very wide variety of ready to listen categories of songs from major record labels.The fact that the market for Spotify seems to be exponentially growing means that soon the buyers will be so many and so their power will go down, providing a business advantage for the company ( ). E-Marketing The net income is a unique marketing medium in that it provides a spherical market with photoflash response dynamism. The fact that when a product is announce through the meshwork can reach millions of users within a short era is enough to make it a rich market. Spotify has its marketing strategy based on online access of adverts by the users in their endeavor to listen to music. Data and Market AnalysisThe starchyest part of Spotify registration of users is that it takes the demographic data so that the c ompany is in a position to provide marketing strategies to advertisers based on age, location and music taste. The ability to analyze and bump a market is important to advertisers, peculiarly when it involves technical goods and services. Promotion and alert services The introduction of the prompt version of Spotify software has helped in a far reaching marketing strategy. The whole issue has been in intelligence information for sometime and major discussion blogs and websites like BBC NEWS, leading to less expensive promotion effect in Europe.The market in Spotify is really the online internet resource as well as the users PCs and man-portable mobile Activities Spotify engages in various activities that are geared towards having a wide base of users so that it can reach more people when targeting an listening for an advert. These activities include require scheme, tell a colleague and viral advertising. The take up scheme is where the newly registered and the existing me mbers are given an opportunity to invite friends and family to experience Spotify while still promoting the premium membership.The tell a friend activity involves a Spotify inbuilt tool to spread word of mouth. This is a strategy to use the existing users to get the message to their friends using the already existing internet framework. The other one is viral advertising where the medium mainly used is social networking frameworks like facebook. The most visited WebPages are targeted and a multimedia message displayed. Web-design Spotify has created a peer to peer application that streams music between the listeners computer, whether online or offline.Spotify has a service to which clients connect and start the confine of the cache summarized in an index which is then sent to Spotifys stream hub. The data in the index is usually used to alert other users of the additional peers they can connect to, to fetch streamed data for specific songs being played. This arrangement is enabled and tolerated by each upon start up. Each client listen to incoming connections from other Spotify clients like a server and connects to other users to exchange cached data. The users are actually not in apposition to configure the connections or alter the bandwidth of transmission of data.These settings are hard coded in the system. The design of the completed architecture may be complicated but the interface used by the listeners is so simple and effective. There are just a couple of(prenominal) controls of play, rewind and forward. The Spotify application offers the following distinctions to the users Catalogue Spotify offers users access to millions of music tracks including songs from major music labels. Some specific music from some artists may not be purchasable due to boundary regulations in the copyright. Playlists it allows users to create collections of favorite music and lets them share them.The users can also edit the playlists with other users together through col laborating software. For this purpose, the playlists can be shared through an email or instant messaging window. On accessing the link, the data gets transfered into Spotify. Integration with Last. fm the specific feature from last. fm is the ability to collect the users preference in music and remembering it into Last. fms database. This has been integrated into Spotify without requiring external plug-ins (Spotify Archives 2010). Radio feature this creates random playlists of songs related to the music of the currently selected artist.Spotify has a simple to use interface that allows the user to search for music by artist, album or title. It displays the user chosen playlist and some advert image, which on clicking, one can explore the promotion (Spotify Forums 2010). Business-to-Business (B2B) Spotify has introduced the music service to the listeners and charge a certain rate for ad free music. However, it does not rely on this for its source of revenue. It largely relies on the free service where the listeners will have to bear with the adverts. At this point, it does business with other firms that want to advertise their brands to the listeners.The main target for business is therefore dealing with other companies that want to reach the audience. On the same platform, there is collaboration with major record labels where they pack a certain percentage stake in the company and in turn provide their music libraries to Spotify (Nylander 2009). Spotify focuses on doing business with other businesses in its conceptions. It has tailored it product for mobile phones and approached the mobile phone making companies like apple in an effort to do business with them (Emerald). This is a take aim challenge to Apples iTunes though and touches on the competition end. ready Commerce Spotify has produced a mobile version of the application that can allow users with premium accounts to access and listen to music wherever they go. It also allows the users to download a certain number of songs on to the phone for listening while out of network range. Mobile business seems to be the future of IT marketing, especially with the progress and expectations of pervasive mobile programming. By considering the mobile version of the application to target the users on the move and virtually at all instances of life, Spotify has provided a wider more reaching market for its business.Given that all the mobile users will have to be premium users, the focus of mobile versions will be to create a customer base where the services will be like a contract between Spotify and the user (Ionescu 2009). This eliminates the advertisers from the picture and allows Spotify to make do with earlier established businesses on the same line like Apple, while still spreading the risk. Instead of relying on the advertising source alone, the company can now create a one to one relation with the music fans through their premium accounts. ConclusionsIt is a good business plan for Spotify to create such a huge market base by having so many users registered, both free and premium categories. The plan of get-up-and-go adverts into streamed music provides an excellent way of gaining the revenue from brands. On the mobile world, it provides a good way of reaching a wider market and a premium account for the mobile is a plus on the revenue. This was a impudent decision considering the processing power of phones cannot be compared to that of PCs. The strategy of extending into the mobile world was a good way of preparing for the future of IT with the trends in pervasive mobile programming.Mobile marketing will form an even wider market considering the more frequent use and an extension of the PC use after work hours. Recommendations The competition in the market is high and Spotify will have to deal with some issues, especially with the application interface and specifically the technology on the size of bandwidth among other resource utilized on users machines. check is usually on the fact that the interface does not give a user the access to control the amount of resources like bandwidth that Spotify uses against other systems on the same machine.The issue of coming up with a way of establishing the mixed bag of music sources with their effect on the market using the users data to form the ratings would be an important thing to indulge in, in order to establishing a fair royalties to the artists in order to keep everyone happy and the future of Spotify glistening (BBC News 2010). More concentration on helping the production teams with profitable demographic and ratings information will give the company a strong relationship with the source of music, the medium they use to make money. ReferencesBBC News, (2010) Spotify boss Daniel Ek sets out future plans, Online, Available http//news. bbc. co. uk/2/hi/8478599. stm Porter M. (1998) war-ridden strategy techniques for analyzing industries and competitors, Free Press, ISBN 0684005778, 9 780684005775. McCormick, A. (2009) Spotify and Last. fm moot partnership, Britannica article vicissitude (14605953) Online, Available http//www. britannica. com/bps/additionalcontent/18/38216709/Spotify-and-Lastfm-moot-partnership Ionescu D. , Nov 23, 2009, Spotify Lands App for Symbian Phones, todayPCworld, Online, Available http//www.pcworld. com/article/182833/spotify_lands_app_for_symbian_phones. hypertext mark-up language Robert Andrews, 2009, Apple Approves Spotifys iPhone App, web article on Paid capability UK, Online, Available http//paidcontent. co. uk/article/419-spotify-says-apple-still-testing-iphone-app-spotify-vanishes-from-app-s/ Emerald, Current CITE-ings from the popular and trade computing press, depository library Hi Tech News, Volume 26, Issue 9, Online, Available http//www. emeraldinsight. com. ezproxy. cqu. edu. au/ shrewdness/ViewContentServlet? contentType=NonArticle&Filename=Published/NonArticle/Articles/23926iae.001. html Spotify Archives (2010) Spotify for iPhone v0. 4 now available, Online, Available http//www. spotify. com/int/blog/archives/2010/03/31/iphone-v4/ Johan Nylander, Record labels part proprietor of Spotify, from The Swedish Wire, Published Friday, 07 August 2009, Online, Available http//www. swedishwire. com/business/680-record-labels-part-owner-of-spotify Spotify Forums, What is Spotify? Why guide Spotify? How much advertising? Online, Available http//www. spotify-forum. com/what_is_spotify. php