Soundbuzz's

Soundbuzz’s Music Strategy for Asia-Pacific
Management Information Systems

05.11.2012

Outline
1. Analyze Soundbuzz and its business strategy. What strategies did it develop for dealing with the competition?

2. What are the critical elements for an online music service?
Using the value chain model, analyze Soundbuzz’s business processes. 3. Why did Motorola acquire Soundbuzz? What synergies will be created through this partnership?
4. What else could Soundbuzz do to improve its business model? What can it learn from iTunes?

Porter’s competitive forces model
New market entrants

Substitute products
Soundbuzz

Competitors

Customers

Suppliers

New market entrants
 Licensing deals
 Launch of an online music store

Strategies
 Lycos Asia
 Licensing agreements with record labels
 B2B model

Substitute products
 Music files provided illegally

 Freely shared files
 Digital music for a monthly fee
 CDs
 TV and radio

Strategies
 Big database/ mediabase

 Partnerships with mp3 player manufacturers

Customers
 Individuals
 Mp3 player manufacturers
 Music portals

Strategies
 B2C model
 Diversification

 Partnerships with Trivnet and ISPs
 Partnerships with mp3 player manufacturers

Suppliers
 Record companies
 Independent labels
 Unsigned artists
Strategies
 Partnerships with recording companies
 Digital rights management technology
 Artist-upload interface

Competitors
 Nokia music store
 Sony Ericsson music store
 Companies with a monthly fee (e.g. Spotify)
 Possible: iTunes and Amazon.com
Strategies
 Partnerships
 Big database/mediabase
 B2C and B2B models

Main strategies
Product differentiation
 B2B and B2C models
 Wireless and device areas
Focus on market niche
 Asia-Pacific region
 Lycos Asia promotion
Customer and supplier intimacy
 Partnerships

 Web-site
 Multiple-billing channels

Critical elements
 Big and