SOUNDBUZZ’S MUSIC STRATEGY FOR ASIA PACIFIC
Q1 : Analyze Soundbuzz and its business strategy using the
competitive forces models. What strategies did it develop for dealing
with competitive forces?
Answer :
There are four concepts of the competitive forces models:
1.New market
entrants
2.Substitute products and services
3.Suppliers
4.Customers
In
terms of customers, Soundbuzz were really well responded to situation
that they faced. When they launched B2C model, they found that because
of customers` behavior (customers are seeking to download music freely)
they cannot make much margin compared with the time when they used B2B
model. So they aim other business as their customers. In terms of
products and service, they serviced new encrypted MP3 format which makes
them be able to sell music in their web sites. Also, they started to
treat the music video contents which never treated on-line before.
Finally, they launched ISPs billing systems for customers, which makes
customers easily purchase their products.
Q2 : What are the critical elements for an online music service?
Using the value chain model, analyze Soundbuzz's business processes.
Answer :
Administration and Management : Online and Mobile music company.
Technology : Source from local and independent record label and content
is secured using digital right management technologies consisting of web
server , license server , database server and media server.
Procurement : Internet and finance industries
Q3 : Why did Motorola acquire Soundbuzz? What synergies will be created through the partnership?
Through its MOTOMUSIC service, Motorola has more than two years
experience delivering mobile music to consumers with its carrier
customers in China, Hong Kong and Taiwan. The acquisition of Soundbuzz
allows Motorola to expand MOTOMUSIC beyond China, into India, Southeast
Asia, Australia and New Zealand. With well over 90 percent of all
digital music content in Asia sold via mobile channels, a level expected
to remain in the coming years, Motorola's strength in music delivery
will help its carrier customers access this growth opportunity.
The expected timetable for completing the proposed transaction between
Motorola and Soundbuzz, future financial and operating results, benefits
and synergies of the transaction, future opportunities for the combined
company and products, any other statements regarding Motorola's or
Soundbuzz's future expectations, beliefs, goals or prospects and any
statements that are not statements of historical facts might be
considered forward-looking statements. While these forward-looking
statements represent managements' current judgement of future events,
they are subject to risks and uncertainties that could cause actual
results to differ materially from those stated in the forward-looking
statements. Important factors that could cause actual results or events
to differ materially from those indicated by such forward-looking
statements, include:
1. the parties' ability to consummate the transaction.
2. the conditions to the completion of the transaction may not be
satisfied, or the approvals required for the transaction may not be
obtained on the terms expected or on the anticipated schedule.
3. the parties' ability to meet expectations regarding the
timing, completion and accounting and tax treatments of the transaction.
4. the possibility that the parties may be unable to achieve
expected synergies and operating efficiencies within the expected
time-frames or at all.
5. revenues following the transaction may be lower than expected.
6. the retention of certain key employees at Soundbuzz.
4. Explore the Soundbuzz Web site (www.soundbuzz.com). Briefly describe its products, technology platform, payment methods and revenue model.
PRODUCTS
Providing downloadable music and videos, retailer of selling the music accessories online such as MP3 player, sound blaster, speakers, headphones and web cameras.
TECHNOLOGY PLATFORM
Digital music store, portable device integration, PacNet and SingNet.
PAYMENT METHODS
Online purchase through individual account via credit card such as visa and master card.
REVENUE MODEL
Revenue from partnerships, sponsorships of various kinds in Asia and licensing digital media.
5. Do you think Soundbuzz is successful? What are the things it can do to improve its business model? What can it learn from iTunes?
Yes, Soundbuzz should do synergies, core-competencies and network based strategies to improve its business model. It can learn from iTunes that it software is parallel with its own device like iphone, ipad, and ipod. From this, iTunes had a unique application store only for those devices. Also, the iphone, ipad and ipod user have to download music through iTunes only, so this let iTunes had its own market and also because of the special configuration of the devices.
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