Buad 3010 Assignment

1148 Words5 Pages
Jiali Yuan BUAD3010 Assignment 5 12/06/2013 * Read “Company Case 10” “ Pandora: Disinter mediator or Disinter mediated?” found on page A18-A20 of your textbook. * Write full paragraphs using complete sentence structure and appropriate marketing terminology. 1. Use Figure 3.1 and Figure 3.2 and identify 4 major forces in the marketing environment that have affected Pandora. (Figure 3.1 identifies 6 major forces; Figure 3.2 identifies 6 major forces) 2. For each of the 4 major forces identified explain the implications or impacts those forces have had on a critical marketing decision. (2.5 pts. each-10 pts. total) 3. For each of the 4 major forces implications or impacts provide a recommendation that you believe will benefit Pandora’s ability to continue to attract listeners and a revenue stream that will lead to financial success and ultimately profits.(2.5 pts. each-10 pts. total) The company: Pandora was founded just over a decade ago. And be a biggest player rapidly in Internet radio with explosion of Internet usage. Pandora’s decision to be a consumer-oriented music discovery service, specifically a non-interactive radio station, has had significant implications with respect to its business model. Pandora’s cost structure is highly variable. There are three main costs associated with content acquisition. First, Sound Exchange collects content fees on behalf of labels or artists on the recording themselves. These are by far the largest content acquisition costs. Second, Pandora pays licensing fees to agencies such as BMI, ASCAP, or in order to compensate composers, songwriters and publishers. Lastly, Pandora also pays Rovi for song and artist information, and this has recently been structured as a flat monthly fee. High variable costs mean that Pandora does not have significant operating leverage, and in the next couple years might
Open Document