Case Study 3: 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?

The competitive force models have four concepts which are as follows:

1. new market entrants
2. substitute product and services
3. suppliers and;
4. customer

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.

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

Inbound Logistic	Operation	Sales and Marketing	Service	Outbound Logistic
-Mobile Music Company	-Headquarters in Singapore has more than 750,000 tracks and 500,000 mobile music derivatives in database. -Source form about 60 local and independent record labels.	-Internet -Finance Industries -Partnership	-Download Music (MP3 Format )	-Operate is market under own brand -Partnership with digital music player manufacture Broadband provided

Q3 : Why did Mototrola acquire Soundbuzz? What synergies will be created through the partnership?

The acquisition of Soundbuzz allows Motorola to expand Motomusic beyond China, into India, Southeast Asia, Australia and New Zealand, because Motorola has more than two years’ experience delivering mobile music to customer through this partnership, its represents management current judgment of future event. Motorola and Soundbuzz will be cooperating which is will seek a big risk and uncertainties that could cause actual results; they have to consider the future financial and so on. It is depending on how the way they cooperate with each other.

Q4 : Explore the Soundbuzz Website (www.soundbuzz.com). Briefly describe its products, technology platform, payment methods and revenue models.

Product :
- downloadable music and video.
- digit right clearance.
- acquisition of licenses from music publisher and recording company.
- music video.

Technology platform :
- bundled with creative 's MP3 players.
- Windows Media Player 10.

Payment methods :
- multiple billing channel through Internet Service Provider bills.
- mobiles operator bills to its customers.
- Trivnet payment solution.
- making micro payment.

Q5 : Do you think Soundbuzz is successful? What are the things it can do to improve its business model? What can it learn from iTunes?

No. Along with the dramatic demise of Motorola’s mobile phone business in the past two years, Soundbuzz now also faces closure of its own. It’s an ironic end for a company that seemed ahead of its time when it came out selling legit music in 1999 - at the century of illegal downloads.

Many were surprised at the time, when Soundbuzz CEO SudhanshuSarronwala, a former MTV stalwart, managed to court the music labels even when they were more interested in blocking people from ripping CDs. Its music collection was built up very fast, providing users in Singapore with a legit alternative to pirated songs.

But soon, the competition came for “Suds” and his company. Though Apple iTunes is still not officially here in Singapore now, Nokia has launched its own music store and Sony Ericson has partnered with SingTel to offer a direct-to-mobile music download service too.

Soundbuzz, meanwhile, was a much smaller player and had a less extensive music collection. Plus, it somehow only supported the Internet Explorer browser, likely because of its Windows Media back-end, which kept out a lot of users.

The final mistakes is the sale to Motorola, a company that invented the cellphone, but somehow failed to manage its own cellphone business due to poor management and decision making .

Soundbuzz shall support the popular browser like Google chrome, Mozilla Firefox, Opera and Safari and expand its music collection. This will attract more users since most internet users are no more using Internet Explorer due to it slow performance.

iTunesoffers a catalogue of albums, user reviews, album art, Internet radio, and podcast listings for free. Consumers can benefit from iTunes' content and services without ever making an online digital purchase. Apple even gives away new content every week, so users can expand their music collection without any commitment to buy anything.Soundbuzz shall synchronize and reform a convenient and fresh look to attract consumers.