Group members
Zhang xuanting(1155082066)
Lun lixin(1155081992)
Yu yun(1155081003)
Sun li(1155084271)
Chen ye(1155082031)
http://www.slideshare.net/XuantingZHANG/group-discussion-netease-cloud-music
Group discussion- Netease Cloud Music from Xuanting ZHANG
SWOT
-
Strengths：
Personalized
recommendation; Active community-user stickness
-
Weaknesses:
Limited
copyright of music; Needs of internet flow
-
Opportunities:
More
and more people are willing to pay for copyright of music
-
Threats:
Too many
similar competitors in China; Privacy issue
Porter’s
Five Forces
-Threats
of new entry:
The
time and cost of entering this market is high because most of Chinese music’s
copyright has been bought by the big music APPs, and these APPs, including
Netease Cloud Music and Miami Cloud Music, have taken a large market share.
-Competitive
rivalry:
Quite a
large number of competitors, and users have weak loyalty to the APPs, mainly
focus on the resources. The switching cost is mainly about money and time.
-Buyer
power:
The Numbers
of users are large. There are two types of price sensitivity. Users are more
sensitive to monthly member fee and less sensitive towards the price of digital
albums or songs. The specialty of Netease is its comment community, users left
lots of stories related to the songs on it and this function is outstanding
than other APPs.
-Threats
of substitution:
As long
as the users cannot find the songs they want to listen to, they switch to other
APPs which have those songs easily.
-Supplier
power:
It
cooperates with a lot of famous music providers and has unique resources such
as The Voice of China and Singer.
Business
Model Canvas Framework
-Customer
Segments:
There
are four kinds of customer segments of Netease Cloud Music, including advertisers,
users (especially the young people who love music and enjoy sharing their own
taste with others), independent musicians and music companies that need
Internet channels to promote their songs.
-Key
partnership:
Users/ Advertiser/
Music company
Their key
partners are also their customers since the users generated content in community helps to keep the platform active. The advertisers provide enough financial
support for the battle of copyright and platform maintenance. Music companies
and musicians provides enough music resources. In all, these supports provide
key resources for NCM, except for the intellectual resources from NCM itself.
-Value
Proposition:
For
users: Good music resources; Social needs (sharing their comments on music)
For
adviser: To buy users ‘attention
For
musician & music company: An Internet sales channel to promote music
-Channel:
Advertisement/ Social media/ Recommendation of
application stores
-Customer
relationship:
NCM not
only wish more people register in the platform, download music, actively
participate in sharing community, but also wish users to recommend the app to
other friends so that it could increase more users, which helps them to keep
the attractiveness for advertisers.
-Revenue:
Subscription
fee/ Advertising/ Commission fee
-Key
resources:
Financial
support/ The intellectual resources to establish the platform
-Key
activities:
The key
activities include development and maintenance of platform, acquisition of
copyright, content management and marketing.
Acquisition
of copyright is the main and basic external activities and it plans to invest
more money in this part. On the other hand, it spends a lot in UI design which is
the outstanding feature of this app.
-Cost
structure:
Copyright/ Operating costs/ Marketing
Blue
Ocean Strategy& ERRC Grid
VS.
Kugou Music
-Eliminate:
Sound
effect (人声，低音，HIFI，丽音,
3D—simlilar to filter)
-Reduce:
The
emphasis on ranking list
-Raise:
Subscription/
UI design/ Personalized recommendation of song menu
-Create:
High quality user community
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