Question

What is Spotify's business strategy? what is their operational strategy? How are these related to their acquisition of gimlet & anchor?

Answer 1

Spotify is an online music business platform operates from Sweden .Spotify mainly targets music lovers all over the world and encourage them take up subscription services from Spotify .

Its business strategies include 1) Access to millions of songs to its customers so that they can never think of any other music streaming companies 2) the company is innovative in its ideas of marketing 3) it operates via freemium model that fetch them the necessary revenue .This freemium is a combination of free services at first and premium charges later for the music services .During the free trial Spotify tries to attract customers and earns revenue by marketing and advertisements.after that premium charges will be applied and subscription is necessary.4) Spotify enables its artists best platform to earn income by tours and increasing their fandom 5) integrated global services of Spotify is the main reason for its millions of subscribers .

Operational strategies are essential for any company to realise its objectives Spotify introduces several strategies in order to rule the roost .1)wide network of songs ,play lists ,artists help increase its customers and subscriptions 2)its main target is to unleash the maximum potential of people for which it encourages many artists by enabling them required services and an interaction between artists and customers 3)artists verification and sign up services are maintained very easily avoiding complex ways 4) Spotify operates by providing right and original music to its subscribers which is one of the reasons for its growth 5) reforming stakeholders claims and continuous Vigil on old practices and encouraging new ideas 6) strive for business alignment and try to keep up with other music steaming companies like betas , rhapsody etc by continuously updating to the new trends.

The acquisition of gimlet and anchor by Spotify clearly shows how the company is adamant on growing podcast services to its customers .They wee acquired to serve millions of its customers with numerous episodes of playlists and songs .It's strategy to increase podcast services put the company in the second position in podcast services.since podcasts enable listeners better experience of listing and help build good relationship and great​ speaking skill among the audience companies look to increase/better its podcast services and it is a common business strategy for global enterprises.