2. How do horizontal and vertical conflict impact Pandora?
2. Horizontal conflict impacts Pandora by the number of alternative radio streaming companies and “players” available to the market. Because the radio market is no longer a closed loop network that is dictated by area codes or other geographic locations, Pandora risks losing its listeners among the competitors like Spotify, the radio, online streaming, iTunes, or even YouTube.
The Vertical conflicts impacting Pandora are the licensing to songs, the audio quality available to the company, the effectiveness of channels to stream their music, their intermodal transportation networks, Pandora’s add-free listening with contracts could bolster their listening audience, but also impact their profits due to the loss in advertising sales. However, these two conflicts impact Pandora’s profits, quality, and exposer to the consumers
3.How does Pandora add value for customers through its distribution functions? 3. Pandora adds value for customers through its distribution functions by implementing the vertical marketing system. Ultimately, the producers of the music have the most hold over Pandora, for if they do not give Pandora the rights to play the songs, then Pandora would be at a loss without those tracks. However, the producers benefit from being on Pandora because people get to listen to the music and may ultimately buy the song because it is made easy through the app. This benefits customers because it gives them what they want. The greater the selection of music, the more likely customers are to stay.