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C/B/2618. Pandora Radio: Fire unprofitable customers? Harvard Business School case study

WORDS:
2450
DATE:
2010
PRICE:
29.99 GBP

The fortunes of Pandora Radio are discussed in this paper, an analysis of the Harvard Business School case study “Pandora Radio: Fire unprofitable customers?” by Willy Shih and Halle Tecco. Pandora Radio an internet music stream site, and its rapidly growing user base, loves the free customizable music stream under an advertising supported model. Pandora has to pay royalties for every song streamed, and has other variable costs that scale linearly with hours consumed, but it has taken no steps to restrict the amount of usage among its heaviest and most loyal users. Can Pandora make its model work when a significant percentage of its users cause it to lose money? A strategic analysis is made, starting with a problem analysis, a problem statement then leading to an evaluation of alternative solutions and strategic recommendations to get the company back on its feet.

 

KEYWORDS: Pandora radio, Harvard, case study, internet radio, customers, revenue generation, problem statement, strategic recommendations, problem analysis, evaluation of alternatives, corporate strategy, music industry, streaming, royalties, Tim Westergren,

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