The Kollection: From Music Hobby to Startup and Beyond
1. How did Lovin come to recognize the opportunity for his young venture? Of the three types of start-ups mentioned in Chapter 3, which one does The Kollection fit into? What was the source of this opportunity?
Lovin saw an opportunity in the market to share music “mashup”. There were already many different online music blogs, but they really lacked design and speed. He saw the opportunity to create a well-organized, visually appealing, and efficient website. The advantage that Lovin had on the other online music blogs was that he had web design experience. Unlike the blogs that were run by other high school or college students, he knew how to improve search results and…show more content… He has the opportunity to continue using the website for featuring new online artists, with this he can continue making money through his pay-per-click ad or merchandise. However, a possible threat is that he will lose web traffic due to the many large competitors and his loss of Soundcloud.
3. What broad-based strategy is Lovin following at The Kollection? Is this the only and best way to position the company? Why or why not?
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.
4. Conduct a feasibility analysis on the company, being sure to consider its market potential, industry attractiveness, and