In the article, “As Rivals Rise, Pandora May Consider Plan to Sell Itself,” Leslie Picker and Ben Sisario argue that Pandora is suffering due to the rise of competition. Pandora is “the largest Internet radio service,” (Picker, Sisario B1) but because they are spending on advertisement and promotions, their profits are greatly decreasing by the year. According to the authors, “the company had $336 million in revenue in the fourth quarter, but spent $143 million in ‘content acquisition costs,’ which indicates music licenses, and $112.6 million on sales and marketing,” (Picker, Sisario B1,B4). Due to the rise in competition, Pandora is not able to make profits even after their many efforts of advertising. The company spent over a 100 million
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Pandora has been struck hard by the negativity of competition. The industry is being crushed under Spotify and Apple. As hard as Pandora is working to promote their company, they are spending too much money on just one specific factor. Yes, advertising will lure customers into their stores, but since their profits are slim, they should cut down on advertisement. Maybe they should think outside of the box and try a different approach. Richard Greenfield, a media analyst notes that: “They are realizing they’re late in the fourth quarter… and they have to throw a Hail Mary pass,” (Greenfield B4). Pandora was late to the game in realizing their loss in the fourth quarter. Business should be conducted by always having a contingency plan. Companies should have a backup for when situations get rough. In Pandora’s case, they did not have one to save them from the peril they face. However, they can try to come out with a new piece of technology that is new and different, rather than sticking to old tactics. Instead of spending for Fall Out Boy to perform at Pandora’s Holiday concert, the sellers should respond to the demand of trending devices in the market now, (Picker, Sisario B1). An example of such devices could be wearable technology that is trending in today’s culture. Competition is uncontrollable and inevitable. Companies should be ready to face these obstacles if they
Pandora has been struck hard by the negativity of competition. The industry is being crushed under Spotify and Apple. As hard as Pandora is working to promote their company, they are spending too much money on just one specific factor. Yes, advertising will lure customers into their stores, but since their profits are slim, they should cut down on advertisement. Maybe they should think outside of the box and try a different approach. Richard Greenfield, a media analyst notes that: “They are realizing they’re late in the fourth quarter… and they have to throw a Hail Mary pass,” (Greenfield B4). Pandora was late to the game in realizing their loss in the fourth quarter. Business should be conducted by always having a contingency plan. Companies should have a backup for when situations get rough. In Pandora’s case, they did not have one to save them from the peril they face. However, they can try to come out with a new piece of technology that is new and different, rather than sticking to old tactics. Instead of spending for Fall Out Boy to perform at Pandora’s Holiday concert, the sellers should respond to the demand of trending devices in the market now, (Picker, Sisario B1). An example of such devices could be wearable technology that is trending in today’s culture. Competition is uncontrollable and inevitable. Companies should be ready to face these obstacles if they