Napester Case Study

Case Study Analysis


Challenges faced by Napster:
1. Legal suits which forced the compaany to shut down.
2. Negative Publicity because of the lawsuits
3. Many players have entered this segment which has intensified the competition.
4. Relying on third party content providers which may not be legal
5. LAck of availability of popular content.
6. Subject to intellectual property right infringement
7. Growth depends largely on growth of internet, broadband services, e-commerce etc.

Factors responsible for Success:
1. Innovation 2. Far more cheaper than music records
3. Easy download siiting at home.
4. Large content library, more than 2 million sound tracks.
5. Startegic partnership with software programmers Microsoft and Intel, H/w developers Dell, Toshiba, IBM, retailersBest Buy, Block Buster, Dixons Group etc.
6. Low cost of employees, only 135 employees in 2005.


Marketing Strategies:
1. Increasing awareness about brand
2. Promoting subscription service.
3. Negative publicity also gained market for Napster.
4. Online and offline catering to market
5. Advertising on TV, radio, websites, search engines, print ads etc.
6. Strategic partnering with retail stores.