Comparing Two Contrasting Companies
The aim of this report is to discuss and compare two entrepreneurs who have founded companies which have become successful and well know in their industry.
This report presents the success and obstacles of each entrepreneur as faced throughout the building of their companies.
Darren McKenna moved to Ireland 15 years ago from America. Academically he did do very well as in his leaving cert he only got 150 point. From there he went on to attend pulse college in Dublin for 2 years studying sound engineering. He spent 6 years working in sales and customer relations with Eircom. After deciding that he wanted to return to college, to studio Audio Visual Media Technologies in IADT, he built a recording studio …show more content…
The idea for this company arose as Darren felt that he would be able to do a better job than himself than other production companies he had previously worked for had been able to do and do it in a more efficient way than.
David Ek’s came up with the idea for Spotify when he realized that he could illegally download songs for free which where better quality than those he could download from iTunes. And with a drop in the music industry he wanted to bring music to people for free where the artists would also get royalties from every time their song was played.
Impact of entrepreneur’s background on company
Due to Darren’s previous employment he had built up contacts with in the industry. Darren’s college education also impacted the company as he had previous knowledge of thee equipment which the company would be using and also may have knowledge of using …show more content…
Spotify’s advantage is that at the time of launch it was the first of its kind and filled a gap in the market. Spotify allows users to be able to access music and create customized playlists while still allowing artist to merchandise to their audience and get paid royalties as Spotify pays 70% of its monthly earnings to the recording companies who will pay the artists. The service allows both free users and paying users to avail of the same content with only a few differences. One of these difference is that free users will have adverts come up whilst listening to music and paying users will not.
Strategy for competing
Part of Darren’s strategy for competing is becoming friends with his clients so a business meeting doesn’t feel as formal and boring but more enjoyable. He also says by doing this a client is more liking to recommend The Lightroom. Another strategy is that every production is treated equally no matter how much they have paid i.e. when a bigger company pays a lot for their production that money will be reinvest and put into producing content for companies whose budget may not have originally allowed for the kind of content The Lightroom would like to