In terms of strategy development, our reading this week focuses on capitalizing on your industry's capabilities. For Spotify, it's main capability to provide users with a unlimited access to their favorite artists' music, while having the ability to customize playlists of their favorite songs has been the streaming music service's strategic plan for gaining and retaining users. By capitalizing on their talent as a unique-based, user-friendly streaming service, Spotify has been able to become a leader by assessing their productivity measures to motivate its users to stay, as noted within the article "Capitalizing on Capabilities" by authors Dave Ulrich and Norman Smallwood. In fact, Ulrich and Smallwood note that it is better to get focused and concentrate on a few targeted capabilities than to expand your network across too many boundaries. This is quite evident with the potential strategic moves that Apple, Google, and Amazon are willing to make. As such, Spotify has been able to focus its efforts on what it knows best, and as a result has been able to capitalize on the small market that it has created for itself through its refined direction.
My question to the class is, while Spotify has been able to focus on one area of concern within the
streaming music service, companies such as Apple, Google, and Amazon all began with a refined focus as well. At what point do you expand your boundaries without stretching yourself too far?
Spotify Aggressively Courting New Subscribers Before Google, Apple Enter Streaming Market