Spotify Essay Example | Topics and Well Written Essays - 2000 words - 1

Spotify - Essay Example The strategic framework of SpotifyTM will help to implement technology to sustain competitive advantage in terms of cost and efficiency. Formulating other forms of strategies such as e-marketing, CRM, or SCM as part of organisation’s strategy helps a company to mange and utilise their resources optimally. Introduction SpotifyTM provides cloud based music streaming service delivered via internet mobile phones. Through cloud computing it offers subscribers access to its vast database of music. To maintain such large database the company would require effective managing of its information system. The information system is not isolated and constitutes interaction between hardware, software, data, people, and telecommunication. These components of an information system are built to create, assemble, and distribute important data and information to people across the globe (Lucey, 2004, p.31). From the information system hierarchy model it can be said that the strategic development i s a top down approach and it flows downwards from the top level management of organisation. The information system connects the top level management with people and process (Doyle, 2001, pp.2-14). ... he business strategy of SpotifyTM is to adapt to new technology of cloud computing and generate revenues through cloud based business model which will allow subscribers unlimited access to music database at least cost and shortest time. Using the five forces model, the relative attractiveness of cloud based technology industry can be analysed as follows: Threat of New Entrants - SpotifyTM offers its subscribers a vast database of music via cloud computing technology. As a result the subscribers will have faster access to music more conveniently and even from their mobile sets, at any place any time without having them to carry memory devices. At the same time multi-user interface will not slow down the server. The users will also get unlimited storage space and remote access even if their hard disk may have limited space. All these features and facilities provided by SpotifyTM are unlikely to face threat from the new entrants. Bargaining Power of Suppliers - The cost of cloud computi ng is economical since the database is centralised. It also requires less space, bandwidth and power. Thus, suppliers will have limited influence over SpotifyTM business model. Bargaining Power of Buyers - Cloud computing is very cost effective as it do not require subscribers to invest extra time and money to use standalone servers. Using cloud based computing the subscriber will get the opportunity to save money on data storage cost, management cost, and software updates. Threat of Substitutes – The only threat to cloud based technology is open source computing but it is much slower and requires the subscriber to have physical memory in order to store data which makes it more expensive compared to cloud based technology. Rivalry among Existing Competitors - SpotifyTM offers cloud based