Analyst | Jan - May 2023

Spotify Business Analysis

The goal of this project is to analyze Spotify’s business model and financial performance, ultimately providing insights on how they operate to provide an investment recommendation.

Role:

  • Led the team throughout the semester-long project, organizing research efforts, and ensuring we meet hard deadline checkpoints

  • Conducted detailed research on Spotify’s business operations, financial health, and industry environment to create a comprehensive understanding that supports an investment recommendation

  • Coordinated with teammates to divide, conquer, and synergize our analysis; allowing our group to work to their strengths and maximize our efficiency

Process:

  • Utilized frameworks like Porter’s Five Forces and VRIO to evaluate Spotify’s market position, resources, and core competencies.

  • Analyzed financial statements and stock market data to assess profitability, growth prospects, and overall financial health

  • Synthesized findings into clear, logical segments in a comprehensive report going into deep detail around the business model, market analysis, mergers and acquisitions, product lifecycle and innovations, strategy, and competitive advantages.

  • Created a presentation showcasing our findings to the class and to ultimately supporting our decision to not invest into Spotify

Results:

  • Determined that although Spotify dominates certain markets and leverages innovative strategies, it remains unprofitable, with high operating costs and heavy competition.

  • Concluded that, based on the research, Spotify’s current business model and financial outlook do not justify an investment recommendation.

  • Presented findings and the final decision not to recommend Spotify to the class, demonstrating our critical analysis and teamwork.

  • Gained experience in strategic analysis, collaboration, and communicating complex findings effectively in an academic setting.

Presentation Overview

The full presentation can be viewed here.

Full Report

This report can also be viewed directly in Google Docs, here.

Previous
Previous

Protolabs Inc. DCF Analysis

Next
Next

Personal Finance Tracker