Pandora Radio has successfully penetrated a niche market since its launch in 2000, but the music service industry is ever changing and the company must be equipped to deal with the changing landscape. Pandora has a successful value chain that effectively distributes their music service. Pandora still faces both horizontal and vertical conflicts within its channels, and the company must be able to manage these conflicts appropriately in order to be successful. In order to be successful in the long term, Pandora Radio must implement new strategies in order to preserve its competitive edge.
Pandora Radio’s value chain effectively brings their listeners music from various types of artists. As a niche market, it has distinguished …show more content…
A large horizontal conflict that has occurred involves the advertising channels. The advertisers have complained that the advertisements online bring them less business than those on mobile devises. They now want their advertisements to be shown strictly online. This conflict impacts Pandora when cell phone and online companies complain that Pandora makes their advertisements smaller on line. Additionally, there have been vertical conflicts with the licensing of songs, different advertising channels, and disintermediation. With the development of the Pandora Application for iPhone and Android, Pandora was able to cut out computers as intermediaries and displace the traditional computer service. The various conflicts that Pandora is experiencing may cause major issues in the future if they are not addresses properly …show more content…
In order to keep Pandora out of the declining stage, the company must keep pace with the rapidly changing technological environment. Pandora helped revolutionize the music industry by providing variety and connivance as their points of difference to their customers. The company must be aware that that a newer company may be looking towards that same innovation and consequently put Pandora out of business. Pandora must continue to make sure they are broadly defining their service with an inclusive mission statement, and not limiting themselves by defining their service as simply just online music delivery. They need to be willing to diversify their products in order to meet the customer’s need. Pandora could also benefit from implementing a blue ocean strategy. Specifically, Pandora should expand through product development. Their current customer base is strong and loyal, as they have retain 51% of the market, but they could introduce a new product (such as wireless headphones that connect directly to Pandora) in order to stay ahead of the other competitors in their industry. Furthermore, Pandora could stay competitive in the long run by giving a discount to college students. It has been found that college students have extremely high levels of brand loyalty (Lucibello 5), and a price cut for financially
Pandora Radio’s value chain effectively brings their listeners music from various types of artists. As a niche market, it has distinguished …show more content…
A large horizontal conflict that has occurred involves the advertising channels. The advertisers have complained that the advertisements online bring them less business than those on mobile devises. They now want their advertisements to be shown strictly online. This conflict impacts Pandora when cell phone and online companies complain that Pandora makes their advertisements smaller on line. Additionally, there have been vertical conflicts with the licensing of songs, different advertising channels, and disintermediation. With the development of the Pandora Application for iPhone and Android, Pandora was able to cut out computers as intermediaries and displace the traditional computer service. The various conflicts that Pandora is experiencing may cause major issues in the future if they are not addresses properly …show more content…
In order to keep Pandora out of the declining stage, the company must keep pace with the rapidly changing technological environment. Pandora helped revolutionize the music industry by providing variety and connivance as their points of difference to their customers. The company must be aware that that a newer company may be looking towards that same innovation and consequently put Pandora out of business. Pandora must continue to make sure they are broadly defining their service with an inclusive mission statement, and not limiting themselves by defining their service as simply just online music delivery. They need to be willing to diversify their products in order to meet the customer’s need. Pandora could also benefit from implementing a blue ocean strategy. Specifically, Pandora should expand through product development. Their current customer base is strong and loyal, as they have retain 51% of the market, but they could introduce a new product (such as wireless headphones that connect directly to Pandora) in order to stay ahead of the other competitors in their industry. Furthermore, Pandora could stay competitive in the long run by giving a discount to college students. It has been found that college students have extremely high levels of brand loyalty (Lucibello 5), and a price cut for financially