Case Study 3: Soundbuzz’s Music Strategy for Asia-Pacific (pages 148-149)
CASE QUESTIONS
Q1 : Analyze Soundbuzz and its business strategy using the competitive forces models. What strategies did it develop for dealing with competitive forces?
Q2 : What are the critical elements for an online music service? Using the value chain model, analyze Soundbuzz's business processes.
Q3 : Why did Mototrola acquire Soundbuzz? What synergies will be created through the partnership?
Q4 : Explore the Soundbuzz Website (www.soundbuzz.com). Briefly describe its products, technology platform, payment methods and revenue models.
Q5 : Do you think Soundbuzz is successful? What are the things it can do to improve its business model? What can it learn from iTunes?
CASE ANSWERS
Q1:
There are four concepts of the competitive forces models:
1.New market entrants
2.Substitute products and services
3.Suppliers
4.Customers
In terms of customers, Soundbuzz were really well responded to situation that they faced. When they launched B2C model, they found that because of customers` behavior (customers are seeking to download music freely) they cannot make much margin compared with the time when they used B2B model. So they aim other business as their customers. In terms of products and service, they serviced new encrypted MP3 format which makes them be able to sell music in their web sites. Also, they started to treat the music video contents which never treated on-line before. Finally, they launched ISPs billing systems for customers, which makes customers easily purchase their products.
Q2:
Administration and Management : Online and Mobile music company.
Technology : Source from local and independent record label and content is secured using digital right management technologies consisting of web server , license server , database server and media server.
Procurement : Internet and finance industries
Q3:
(a) Through its motomusic service, Motorola has more than 2 year experience delivery mobile music to customers with its carrier customers in China, Hong Kong, and Taiwan. The acquisition of soundbuzz allows Motorola to expand motomusic beyond China into India, southeast Asia, Australia and New Zealand.
(b) With well over 90% of all digital music contain in Asia sold via mobile channel, Motorola strength in music delivery will help it carrier customer access growth opportunities.
(c) The synergies will be created between Motorola and Soundbuzz is future financial and operating result, benefit and synergies of transaction, future opportunities for the combine company and product will be effect include:
- The parties “ ability to consumed the transaction .
- The conditions to completion of the transaction may not be satisfied, or approvals required for the transaction may not be obtain on the term expected or on the anticipated schedule.
- The parties ability to meet expectation regarding the timing , completion and accounting and tax treatments and transaction.
- Revenues following the transaction maybe lower than expected.
- The retention of certain key employee at soundbuzz.
Q4:
Product :
- downloadable music and video.
- digit right clearance.
- acquisition of licenses from music publisher and recording company.
- music video.
Technology platform :
- bundled with creative 's MP3 players.
- Windows Media Player 10.
Payment methods :
- multiple billing channel through Internet Service Provider bills.
- mobiles operator bills to its customers.
- Trivnet payment solution.
- making micro payment.
Q5:
- yes, soundbuzz should do synergies core-competencies and network based strategies to improve its business model. It can learn from iTunes that software is parallel with its own device like iPhone and iPods.
- from this, iTunes had a unique application store only for those device.
- also the iphone , ipad, ipod users have to download music through iTunes only , so this let iTunes had his own market and also because of the special configuration of the device.
There are four concepts of the competitive forces models:
1.New market entrants
2.Substitute products and services
3.Suppliers
4.Customers
In terms of customers, Soundbuzz were really well responded to situation that they faced. When they launched B2C model, they found that because of customers` behavior (customers are seeking to download music freely) they cannot make much margin compared with the time when they used B2B model. So they aim other business as their customers. In terms of products and service, they serviced new encrypted MP3 format which makes them be able to sell music in their web sites. Also, they started to treat the music video contents which never treated on-line before. Finally, they launched ISPs billing systems for customers, which makes customers easily purchase their products.
Q2:
Administration and Management : Online and Mobile music company.
Technology : Source from local and independent record label and content is secured using digital right management technologies consisting of web server , license server , database server and media server.
Procurement : Internet and finance industries
Q3:
(a) Through its motomusic service, Motorola has more than 2 year experience delivery mobile music to customers with its carrier customers in China, Hong Kong, and Taiwan. The acquisition of soundbuzz allows Motorola to expand motomusic beyond China into India, southeast Asia, Australia and New Zealand.
(b) With well over 90% of all digital music contain in Asia sold via mobile channel, Motorola strength in music delivery will help it carrier customer access growth opportunities.
(c) The synergies will be created between Motorola and Soundbuzz is future financial and operating result, benefit and synergies of transaction, future opportunities for the combine company and product will be effect include:
- The parties “ ability to consumed the transaction .
- The conditions to completion of the transaction may not be satisfied, or approvals required for the transaction may not be obtain on the term expected or on the anticipated schedule.
- The parties ability to meet expectation regarding the timing , completion and accounting and tax treatments and transaction.
- Revenues following the transaction maybe lower than expected.
- The retention of certain key employee at soundbuzz.
Q4:
Product :
- downloadable music and video.
- digit right clearance.
- acquisition of licenses from music publisher and recording company.
- music video.
Technology platform :
- bundled with creative 's MP3 players.
- Windows Media Player 10.
Payment methods :
- multiple billing channel through Internet Service Provider bills.
- mobiles operator bills to its customers.
- Trivnet payment solution.
- making micro payment.
Q5:
- yes, soundbuzz should do synergies core-competencies and network based strategies to improve its business model. It can learn from iTunes that software is parallel with its own device like iPhone and iPods.
- from this, iTunes had a unique application store only for those device.
- also the iphone , ipad, ipod users have to download music through iTunes only , so this let iTunes had his own market and also because of the special configuration of the device.
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