Spotify

Vision│Mission│SWOT Analysis│Organization
Chart

:Name
Youssef Mohamed Refaat
:Number ID
20183151
:Supervised By
Dr. Mona Hammouda
 Introduction
Spotify’s vision, mission, and core values have established the
global image of the organization along with an emphasis
towards the effectiveness of their operation. Thus, through its
vision and statements, Spotify has obtained and identified a path
to command and strategize a large following as a network of
.online music streaming
From its early days in 2008, both Daniel Ek and Martin
Lorentzon, who are the founders of the company, incorporated
this element in the operational activities of the business. This
allowed the company to grow rapidly with 232 million monthly
.active users
Spotify transformed music listening forever when it launched in
2008. Discover, manage and share over 70 million tracks,
including more than 2.6 million podcast titles, for free, or
upgrade to Spotify Premium to access exclusive features for
music including improved sound quality and an on-demand,
.offline, and ad-free listening experience
Today, Spotify is the world’s most popular audio streaming
subscription service with 356m users, including 158m
.subscribers, across 178 markets
 Vision Statement
:The vision of Spotify is
We envision a cultural platform where professional “
creators can break free of their medium’s constraints
and where everyone can enjoy an immersive artistic
experience that enables us to empathize with each
.”other and to feel part of a greater whole
In this regard, the vision of Spotify is based on its objective to
ensure that its services result in a win-win situation for the fans
as well as the artists. This allows them to feel a sense of
belonging to the vision and bigger picture of the company, along
.with the feeling of being appreciated
According to our material, I see that the vision statement is
Inspiring because it inspires us to communicate with each other
and to be innovative. Also, it is unique, feasible and easy to
.communicate
The vision statement of Spotify is based upon the following
:points
 Stimulating Harmony and Empathy:
Spotify emphases on acquiring a more significant role rather
than merely identifying itself as a service provider. The focus of
the company seeks to perform a socially rooted role in society,
instead of only fulfilling the needs and requirements of the
industry by providing on-demand music.
The idea of Spotify lies in the fact of weaving and developing a
sense of linkage and connection between people in everything
that it does, which is highlighted from the incorporation of
.culturalism within the platform of the company
 Breaking from Medium Restrictions and Constraints:
The application of medium barriers has significantly hindered
the progress of the artists over the long term. However, the
model utilized by Spotify within the music industry addresses
and identifies this critical element.
To resolve this issue and offer better and improved opportunities
for growth, Spotify identified and adopted a well-regulated, yet
an open option that allowed the artists to test their creativity. As
Spotify monitored this element, therefore, it was adequately
taken care of without placing any pressure on the artists.

Mission Statement
The mission statement of Spotify is based upon the idea, which is as
follows:
“Our mission is to unlock the potential of human creativity –
by giving a million creative artists the opportunity to live off
their art and billions of fans the opportunity to enjoy and be
inspired by it.”
Spotify’s mission statement focuses on the transformation of these
goals into reality and directed towards the achievement of the goals of
the company from a broader perspective. In this regard, these are the
key features of their mission statement:
 Improving Lives of the General Public:
To ensure that the feature is satisfied, Spotify ensures that its
platform is up-to-date and interactive. In this regard, the need to
create sustainable livelihoods and providing a critical digital space
is for its target audience is acknowledged by the company
significantly.
Artists have a better chance to access and reach out to their
broader fan base more efficiently by utilizing the respective.
.platform of Spotify
Furthermore, to make sure that the digital content produced by
the artists reaches the appropriate audience through its criteria
of targeting, hence making it profitable for individuals. As a
result, the idea of enabling the artist “to live off their art” is
.echoed in the mission statement

 Global Presence:
 The management of Spotify implemented a strategic approach that
reaches out to as many users as possible so that the needs of the
users can be satisfied at a global level. The principle idea of this
approach is to ensure that their limitation for anyone, regardless of
being a fan or an artist upon using the app.
Regardless of genre, culture, or any other boundary, the company
focuses upon ensuring connectivity with everyone. This can be
identified from the fact that Spotify is proud of having coverage
for accessing billions of fans and millions of artists, which allows
it to reach its users on a global level.
Spotify’s Core Values:
 Innovation
 Passion
 Collaboration
 Transparency
 Fairness
As a result, everything is under check and in place in accordance
with the expectations of management as these guiding principles
are taken into consideration. Thus, Spotify’s management seeks to
attain alignment with the objectives and goals of the company for
.the overall success of the vision and mission statement
Spotify recognizes the fact that people do best upon their
.engagement with what they admire the most
As a result, new approaches and designs are developed from the
emergence of creativity according to the core values of the
organization. In addition, the emphasis on respect and sincerity is a
significant reflection on the success of Spotify as the company
promotes a culture of appropriate playfulness in its settings to avert
.boredom, while simultaneously interactive with everyone
:Characteristics of Mission Statement
  Broad in scope
 Inspiring
 Identify the utility of the firm’s products
 Less than 250 words
 Include three components from the nine, they are:

Customers, Markets and Services.

Objectives
  The most important objective of Spotify is that they want to

become the world’s NO.1 audio platform through compelling new

 Spotify is planning a “sweeping expansion” that will

SWOT Analysis
 Strengths:
1. It carries a strong brand reputation.
Spotify is the leader in music streaming. It holds a majority of the
current market share and the highest share of music streaming
subscribers in the world due to its longevity, stability, a vast
selection of music content as well as audiobooks and podcasts.
Until other competitors establish and differentiate themselves,
Spotify will likely remain king of the hill.
Spotify was #1 in music streaming and the second most reputable
brand among all brands in 2019.
2. Spotify has the early mover advantage and a significant lead
over its competitors.
Spotify launched early in the “streaming wars,” and cemented
itself as a force to be reckoned with. It has continued to grow its
music library, as well as its international reach into new markets.
Early adopters helped create a strong brand reputation that has
continued to thrive in the face of competition, owing to the
simplicity of its business model, extensive content library
including podcasts, high quality, user interface, and high visibility.
Spotify launched in 2008, and had 138 million and 144 million
paid subscribers in the second and third quarters of 2020,
respectively. By comparison, Apple Music launched in 2015, and
its most recent data shows 72 million paid subscribers in the
second quarter of 2020.

 Weaknesses:
1. Licensing fees result in high royalty costs for Spotify.
In addition to its own operating costs, Spotify must pay to be
allowed to feature songs on its platform, and those payments are
made to a variety of entities. The artists themselves receive a
portion, but more ends up going to their label, their producers, the
writers, the copyright holders, and more.
In 2019, 74.54% of Spotify’s revenues were spent on royalty
payments.
2. Streaming requires an Internet connection.
As a streaming service, it shares a fundamental flaw with others
operating under this model: it requires an Internet connection. By
definition, content must be “streamed” from somewhere, and while
some subscribers can download and play songs on their devices,
the content must be first downloaded from the library. For those
outside of Wi-Fi range, streaming can be a hassle.
In 2019, 4.13 billion people around the globe had access to the
Internet, which is about 54% of the world’s population of
approximately 7.67 billion.
3. It is very similar to other music streaming apps.
At its core, Spotify does not differ that much from other similar
services. They all have a library of content that they make
available to their users, who pay a certain amount in order to
access it. The difference is in the premium features and brand
reputation, and while Spotify seems to have mastered the recipe
for user loyalty, that trend may shift over time.

 Opportunities:
1. New markets are ripe for expansion.
Spotify already has a worldwide presence, and, like many
streaming companies, is constantly negotiating access to even
more corners of the globe. Untapped markets will be the key to its
continued growth as current markets reach their saturation point, or
the cost of winning new users becomes too high to maintain profit
margins.
2. A big investment in video streaming could be the next step.
In July 2020, Spotify began experimenting with video podcasts. A
stronger push into this form of media could provide a whole new
avenue for service and revenue. Video streaming is already a
competitive market, but Spotify could rely on its brand and
reputation to gain access to this coveted spot.
The video streaming market is projected to be $71,237 million in
2021, with user penetration at 14.3%, hitting 29.0% by 2025.
3. Artist endorsements are an opportunity for Spotify to
increase its market share and customer loyalty.
Justin Bieber and Britney Spears have endorsed Spotify, and it
gained a lot of publicity by partnering with Barack Obama to
create his own personal playlist for the public to enjoy on Spotify.
With tech giants now in competition with Spotify, now would be a
good time to crank up the celebrity advocacy.
A celebrity endorsement can be expected to increase sales by 4%
on average, and stock value by 0.25%.

 Threats:
1. It has a number of competitors, some of which are tech
giants.
As with any streaming market, competitors come and go.
Companies previously focused on other areas have entered the
music streaming space, like Apple Music and YouTube Music.
Spotify’s other competitors also include Pandora, TIDAL, Google
Play Music, SoundCloud and Deezer.
Pandora often generates over $15 million per month in revenue,
the most of any music app in the Apple app store.
2. There are continued legal disputes over streaming rights.
Streaming rights frequently change, with permissions changing
hands at every new contract signing, which can affect access by
dozens of parties. There have been significant disputes over who
Spotify is allowed to stream from, depending on the copyright
holder, music label, or market.
Conclusion
Spotify is a power player in music streaming, boasting a vast array
of content and user features that support a massive audience.
However, issues over streaming rights, artist compensation, data
security, and competitors could weaken its position as the leader in
music streaming. There is always the threat that the next
innovation in content consumption could send Spotify the way of
the 8-track. It needs to continue to improve and grow itself to
continue to hold onto its market share.
Spotify doesn't operate in the traditional corporate structure - at
all. Instead, they have “squads”, “tribes”, and “guilds”, which
function as different ways of organizing and performing work
.with more accountability and autonomy

This is the organizational chart of Google Play Music “One of the