STRENGTH

Many people already use spotify, currently over 24 million active members, so the product will appeal to all those people.

People will like it as you won’t need to upload and download all of their songs again, they can just connect to spotify and all their music will be there. This will appeal massively to most people as it is a very time consuming task to download all your music onto devices.

We know that portable music devices are successful, with over 40 million iPods being sold in 2011.

The most popular products have internet as teens and young adults are very internet orientated.

People always want the newest thing, no matter what the product is, if it is new technology then people want it just so they can say they were one of the first to have it.

Spotify linking with Facebook brought the company many more users and spread the name around a lot more helping it gain in popularity. This product will receive the same kind of attention.

WEAKNESS

If you have no signal the product won’t work. You need signal to connect to the internet and stream the songs across. Maybe you could save your favourite songs or playlists on to the device so you don’t have to rely on internet connection to listen to music.

Only 20% of the users pay. You could let free users use the device but this will generate less profit than hoped. If a 50% off subscription voucher comes with the device then more people will join spotify. This also means that people don’t have to be existing user to buy the product. It opens up the market and attracts them with an offer too.

Memory, spotify accounts have thousands of songs on so you will need a lot of memory to support it all. If not the product could run slow and this will put people off, especially if you can get apps on the product it takes up a lot of space. However, most people have smartphones or tablets with all the apps on. This product’s USP could be that it is just about the music. This makes people who are very serious about music become more attracted to the product.

OPPORTUNITIES

If you partner up with spotify and say you have to be a paying member to stream the songs then you could share the profits as you are the reason they joined that package. Offers can be made, like a free £10 gift card when you buy the product or a special percentage off every so often. Maybe even a free song every month.

If you make the product cheaper than Apple’s then people are more likely to buy it.

If you can get apps then this will appeal more to the younger audience and will let the product have a chance against apple products.

THREATS

iTunes have over 600 million users. It is a very popular brand with very loyal customers all over the world, with over 1000 people queuing in Germany for the new iPhone 5S.

The iPod Touch and iPhones are very familiar. They are fashionable and have a good reputation. It will be had to overcome this. Apple also have lots of different versions of their products. This means that they have something for everyone.

There are apps for apple devices that relate to spotify, however they aren’t official ones and look a bit dodgy so the idea is still pretty new.