Pandora Reflection

Hello Pandora Team,

As I had time to reflect about the presentation by the consulting team on Saturday, I believe that the recommendation that Capgemini Consulting has provided fits well with our current problem. To develop a spread of solutions that contribute to our problem is ideal in order to test the market with our potential solutions and slowly use our capital to spend. As stated, the immediate action would be the change in advertising strategy. This will allow more revenue to come in just by doubling the ad time in between plays. Compared to our competitors on the satellite radio sector, this is still very low ad time and higher music listening time. Another immediate action would be to develop an APP for users to allow immediate access on the go. Many users are always on the go and need to be able have access to music on their phones rather than on the computer. This will enable greater revenue intake from consumers.

What caught my eye was the Open Mic feature where we can allow consumers gain exposure by becoming self-starting stars. As a company that provides service to consumers, we need to be able to provide new innovative features to attract not just the listening segment, but the artist segment as well. This would generate far greater customers for the short-term and spread the word quickly. Allowing those to participate with Pandora, can allow a far more use of our system and our future app.

What needs to be enforced as an idea is the potential of re-branding and globalizing to the extent of greatness. As the consulting group mentioned, the continent of Europe are currently waiting for internet radio to emerge and I believe we can be that company who will take the competitive advantage by being the first to enter their market. Not only can we enter music, but the other features such as comedy and sports’ broadcasting was also an idea worth taking. This again, will allow new customers to be interested in obtaining our service. In the sense of re-branding, we can create the community and social media features that those tech savvy individuals would acknowledge with open arms. This would generate great word and spread across the globe.

All, in all, we should consider all three approaches with time deadlines in order to overcome the problem of  no effectively monetizing our larger user, advertising covering our costs, and the ability to have expenditure offset revenue. With the proposed solutions, we will be able to solve these existing problems and would surely enable the immediate actions first to allow a more faster approach to raise or intake cash flow.

Sincerely,

Jim Lozada

Pandora Senior Executive