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Nintendo and Spotify Business Strategy Analysis

In order to compete with Sony PlayStation Ps3 and Microsoft Xbox 360 during 2006, Nintendo also developed the Wii in hopes of recapturing some of its market share in the fixed console market. Their console had a compact design that relied on the use of easy to use want like controller. The controller was innovative in its simplicity but also able have the ability to translate the movements of the wand into in game action through build in motion sensors. Wii also let user to connect to their internet to access latest news and weather conditions in their which other game console did not have these kinds of feature implemented and makes Nintendo to get a huge win in their side.

An open connection to the world also allowed Nintendo to sell some of its classic games that were originally released for the Super NES and N64 systems. In June 2008, Nintendo had recorded a total of 10.9 million Wiis sold in the US. This was approximately 500,000 more units than the Xbox 360, which had been released a year prior to the Wii (Farhoomand et al.

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, 2009, p. 10).

In comparison, both Sony and Microsoft were losing money on their consoles upon initial release. Nintendo was having a profit of approximately $50 per system while Sony was incurring lost over $300 and Microsoft losing out on $125 with sale of each console. (Farhoomand et al., 2009, p. 24) In Conclusion, Nintendo have proved that their disruptive innovation able to let Nintendo grow back and create a new market value which made them able to compete with other gaming console company.

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Nintendo ability to put forward innovative system have helped them to increase both the quality and quantity of gaming titles being built for Nintendo platform.

Spotify

Moreover, Spotify was also a small company who able come with disruptive innovation to compete with music industry company such as Apple music. Spotify come was able to compete with Apple music when they started to implement some new features to their system that Apple music haven’t implemented by providing a lot of useful tools for finding new songs to suit user individual taste. Playlists like Release Radar and New Music Friday provide great opportunities for subscribers to catch up on to new music from artists they never stumbled across their own. Users could develop playlists of songs that fit with their interest, moods, and preferences. These playlists could be shared also so that user able to discover songs that are consistent with their musical taste. Likewise, users could integrate Facebook and Spotify, and in their Facebook news feed share details about their playlists and newly discovered songs. (Vroom & Boquet, 2014) also stated that these social media features that Spotify provided helped to drive the streaming of songs by new discovered artists, allowing these artists to gain exposure that they might not have received otherwise.

According to Passman (2015), “Spotify freemium users outnumber paid subscribers about three to one”. If user did not subscribe to Spotify, they will able to take advantage of these playlists with up to 15 playlists to choose. That adds up to about 40 hours of new music in total every day. The lists are curated based on the questionnaire you fill when you sign up for account that asks you to choose your favorite artists. Without subscribing to Spotify but able to listen to song for free make them able to attract a lot of user to use their product and increase their market value to compete with Apple music.

Spotify also have discovered Weekly feature which in particular deserves high praise in the streaming world (it’s so smart that Google copied the feature). It will be added to your new feed every Monday morning and delivered a playlist of personalized music recommendations based on your music preferences. Those playlists are often music that you haven’t heard before, as well as deep cuts from some of your favorite artists, thus broadening your listening repertoire with a collection of songs right up your alley. Spotify’s hands-off playlists, especially its fantastic Discover Weekly, give it the edge here because even Apple music also cannot compete with Spotify algorithm-based approach.

Many people listen to music while running. One of the intriguing features of Spotify mobile application is its ability to provide a playlist tailored to user running speed. User can choose from a variety of playlist from it. On smartphone with the appropriate sensors, Spotify also able to automatically estimate how quickly user is running and will select a playlist at a matching tempo. During use, Spotify seems to cut the intros and outros of songs, fading quickly into the next track.

On the other hand, Apple Music doesn’t have this feature dedicated for user to exercise which made a big win for Spotify to increase their market value. (Dredge, 2015) stated that In 2014, its revenues exceeded $1.37 billon, and it posted a 45% growth rate from 2013. Besides, (Roettgears, 2015) also stated that It is clear to see that Spotify is the most popular streaming service judging by the number of users its service has attracted. These proved that Spotify have come out with disruptive innovation by implementing new features to compete with Apple Music and win over the market value.

Based on the five company that I had explained, I can conclude that small company indeed able to come out with disruptive innovation with new market strategy to create a new market by creating a new product or implementing new features to their original product which make them able to compete with the big organization market and might eventually take over their business as well as the company start growing big. So, I am agreed with the statement I had made.

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Nintendo and Spotify Business Strategy Analysis. (2019, Dec 07). Retrieved from http://studymoose.com/nintendo-and-spotify-business-strategy-analysis-essay

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