Apple’s needs:
From the current situation of Apple, it seems it is seeking to reboot its business in order to recover the decline in its iPhone sales. The company is looking for a way to retain it fabulous growth and maintain its financial strengths. Thus, Apple is studying the idea of acquiring another business, particularly in a business in the music streaming, because that mostly will help the company in increasing and supporting Apple Music Services that they introduced in 2015. The company wants to purchase a company that strongly ties to popular artists. Therefore, Apple, Inc. is seeking to secure the relationships with recording artists while it provides a marketing assistance to them.
Frameworks:
Acquiring Tidal is considered as “Horizontal Integration” corporate-level strategy for Apple. There are many benefits for this strategy:
1. One of the main benefits is reducing the intensity of competitions in the market, and that is one of the Apple main goals for acquisition.
2. This strategy will help Apple to increase its differentiation over competitors by access more resources and capabilities.
3. The acquisition will allow Apple to reduce the gap with the music streaming leader, Spotify.
1. How would you value Tidal? Please try to arrive at a valuation number based on your assumptions. Is it appropriate to value Spotify …show more content…
According to Daily Telegraph in 2016 (Spotify’s revenue increased by 80% in 2015 to €1.95 billion (£1.5bn) as the service increases its number of paying subscribers. However, despite the revenue increase Spotify’s losses rose by 10% to €173 million). Thus, the valuation number based on my assumptions for Tidal is about $300 million and it is not appropriate to value Spotify at the same way because Tidal worth less than
From the current situation of Apple, it seems it is seeking to reboot its business in order to recover the decline in its iPhone sales. The company is looking for a way to retain it fabulous growth and maintain its financial strengths. Thus, Apple is studying the idea of acquiring another business, particularly in a business in the music streaming, because that mostly will help the company in increasing and supporting Apple Music Services that they introduced in 2015. The company wants to purchase a company that strongly ties to popular artists. Therefore, Apple, Inc. is seeking to secure the relationships with recording artists while it provides a marketing assistance to them.
Frameworks:
Acquiring Tidal is considered as “Horizontal Integration” corporate-level strategy for Apple. There are many benefits for this strategy:
1. One of the main benefits is reducing the intensity of competitions in the market, and that is one of the Apple main goals for acquisition.
2. This strategy will help Apple to increase its differentiation over competitors by access more resources and capabilities.
3. The acquisition will allow Apple to reduce the gap with the music streaming leader, Spotify.
1. How would you value Tidal? Please try to arrive at a valuation number based on your assumptions. Is it appropriate to value Spotify …show more content…
According to Daily Telegraph in 2016 (Spotify’s revenue increased by 80% in 2015 to €1.95 billion (£1.5bn) as the service increases its number of paying subscribers. However, despite the revenue increase Spotify’s losses rose by 10% to €173 million). Thus, the valuation number based on my assumptions for Tidal is about $300 million and it is not appropriate to value Spotify at the same way because Tidal worth less than