Does Pandora Radio Services Use Focus Strategies

There is a very popular app called Spotify. People can search up almost any artist and listen to their music, for free. The article, "The Changing Landscape of the Music Business" by Jacob Carter says, "in November of 2014, award-winning musician Taylor Swift pulled her entire music catalog from Spotify." Tons of artists have their music on this app, although like Taylor Swift, they don't have to. They choose

We really see Lovin use a mix of the strategies. Lovin is using a cost-based strategy to run his business, by providing free downloads to his site visitors. However many of his competitors offer these free downloads as well, so the advantage that he has is that he is able to operate his business with little expenses. To attract visitors to The Kollection, Lovin really uses both a focus strategy and differentiation strategy. We see the focus strategy due to the niche group of “mashup” music lovers. However, we see the differentiation strategy through the simplistic website and the speedy downloads. I think that Lovin really relies on having a mix of all of these strategies in order to be successful. Since the online music industry is becoming so large, it is really important for Lovin to position his business in many ways.

Thompson, Peteraf, Gamble, and Strickland (2012) found that competitive strategy depend on whether a company’s target market is narrow or broad, and whether a company is seeking competitive advantage through low-cost or product differentiation. These two factors reveal five generic competitive strategies. The five strategies are Overall Low-Cost Provider Strategy, Focused Low-Cost Strategy, Broad Differentiation Strategy, Focused Differentiation Strategy, and Best Cost

In the music industry, there are several methods of sharing content. Between playing live shows, producing physical records, and now, streaming over music streaming services, artists and musicians from around the world contribute to the entertainment industry each day; however, in light of today’s technological age, more and more content is being shared and consumed through the later. In 2015, music streaming services grew to 317 billion streams, doubling the record amount of streams from the year prior—a figure that is only projected to grow in the years to come (“Nielsen: Music Streams”, 2016). Any consumer with an Internet connection can access these services’ content with

I am with you, I am not a big iTunes fan. I just can’t seem to get the iTunes Radio to play the songs I like or new songs that I wouldn’t mind hearing consistently and this problem doesn’t exist for me on Pandora Radio. Plus Pandora cost less and it seems to work for me much better when I am out exercising or out and about.

The "business side of music is struggling to generate enough revenue because of the new technology" ("How the Internet Changed Music."). "Most of the people who are part of making a record are paid in royalties, and anytime music changes hands without money being involved, those royalties can’t be paid—which is why so much has been done in recent years to try and reduce music piracy"("How The Internet Changed Music."). iTunes and Amazon has helped by offering cheap downloads for single songs, which allows the customer to only purchase songs they like rather than the entire album ("How the Internet Changed Music."). Spotify and Pandora, who offer either ad-based or paid subscription streaming of their music libraries, are Internet radio stations which have also helped with the piracy problem ("How The Internet Changed

Fully focused business provides a very limited type of services to a narrow and specific market segment (Palmer, 2011). A market focus firm focus on a narrow market segment but provides wide range of services. Whereas service focus industry provides a narrow range of services to a broad

It is the firm belief of this analysis team that the most effective competitive strategy for Sonic to pursue in the release of its Sonic 1000 is a focus-oriented strategy. Textbook author Kevin Keller describes the strategy as one wherein “the business focuses on one or more narrow market segments” (Kotler & Keller, 2009). In the use of a focus strategy, “the firm gets to know these segments intimately and pursues either cost leadership or differentiation

Porter's focus strategy is a mix of both the differentiation and the cost leadership strategies i.e. difference or cost leadership within a small target market segment. For instance: a company should be able to differentiate its products based on a particular target market segment because if the differences in products does not appeal to consumers in that target market as opposed to consumers in broad market, there would be no basis for differentiation and competitive advantage will not have been achieved.

The Focus plan deals with one or more narrow segments and is a great entry barrier to develop the core specs for launching new products or services.

Their service is offered to users as an alternative to the traditional pay-per-track services such as iTunes. The idea is to allow music consumers to listen to on-demand music from a “cloud” on the internet, instead of possessing the digitalized files on a computer.

There are also some risks for each strategy. Upholding cost leadership can be risky because of the requirement of frequent capital investment to sustain cost advantage, then cost surges narrow price differentials and diminish ability to compete with other’s brand royalty. Differentiation strategy has some threats, such as imitation decreases alleged differentiation, buyers need for differentiation falls. Meanwhile, the risks for focus or niche strategy are the differences in preferred products or services between the strategic market and target as a whole narrows, the cost discrepancy between wide ranged competitors and the focused firms broadens to eradicate the cost advantages of allocating a narrow target or to offset the

Today in the global business world we know that strategic changes are fundamental in order to

The focused low cost strategy purposed to create a price advantage for the company. Usually, a company that use this kind of strategy more focus on a specific market niche, offering products to a narrow market segment instead of a broad one. The company then aims to be the cheapest supplier in the particular niche but not necessarily in the overall market.

We have chosen to build our strategy upon a focused strategy, since it allows a much more narrow approach towards the market segment. In this case we have chosen focused differentiation.