What does a SWOT analysis reveal about the overall attractiveness of Spotify’ situation?

Spotify is a popular digital music streaming service that provides access to a vast library of…

Answered: What does a SWOT analysis reveal about…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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For problems 1-3, please refer to this article on Ocado. https://www.bbc.co.uk/news/business-54352540 1. What can we say about existing rivalry in the market of online retailers? a. This force is week because of strong brands and stabile market shares. b. This force is medium level, because the market is quite concentrated but consumers are quite loyal. c. Existing rivalry is strong because the market is quite concentrated, switching costs are relatively low and the different firms' services are not especially differentiated. d. Rivalry is strong because suppliers and not concentrated and entry barriers are low. 2. How would you evaluate the threat of buyers in this market? a. It is relatively weak, because OCADO sells for final consumers who are not concentrated and have a weak bargaining power. b. It is strong, because Tesco and Amazon are large firms with larger market shares than Ocado. c. It is medium level, because OCADO cannot easily switch across its buyers.…
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