Mireia Bastida
NIUB: 20165272
CLASSWORK 5
1. What are the main elements of Spotify’s competitive advantage? Do you think that Spotify
has real core competences, which are more powerful than competitors competences?
Spotify is an on-demand music service that utilizes big data and artificial intelligence
to stand out in a crowded music streaming space. The use of this strategies it’s what
enables Spotify to have competitive advantage over its main rivals.
One key element that makes Spotify stand out is their machine generated playlists
which are personalized to the users tastes and preferences.This is possible thanks to
the apps ability to collect user data.
Another element is their freemium model in which basic services are free , while
additional features are offered via paid subscriptions. This enables users to make a
choice of wether to pay for its premium service or stay for free.
2. Describe the main stages in the consumers buying process, ending up with a paying subscriber
of Spotify’s music streaming.
There are five stages a consumer goes through when they are considering a purchase:
1. Need recognition
2. Information search
3. Evaluation of alternatives
they are satisfied or dissatisfied with their purchase.