Spotify SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: May 08, 2020

Spotify SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Spotify, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Spotify to benchmark its business & performance as compared to the competitors, and make strategic improvements. Spotify is one of the leading brands in the media & entertainment sector.

The article below lists the Spotify SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Spotify SWOT Analysis:

SWOT Analysis of Spotify

For Spotify, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Spotify Strengths

The strengths of Spotify looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Spotify :

1. Launched in 2008, Spotify has a library of more than 50 millions songs

2. Spotify is available on modern devices and smartphones

3. Spotify offers its music for free with advertisements but users have option to upgrade to listen high quality ad free music

4. It offers songs, podcasts, channels etc for users to listen to audio the way they like

5. It is available in all major countries

6. Spotify has high brand equity and is known across the world

7. Spotify is also available for artists as well along with users to see the insights

8. Spotify has sustained for more than 10 years in the industry which is definitely its strength

Spotify Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Spotify SWOT Analysis:

1. Spotify paid version can be costly for people

2. Free version does not allow offline music so internet is required all the time

3. Feature wise it is similar to other apps which offer similar features and music

Spotify Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Spotify SWOT Analysis:

1. Spotify can explore options of video also in future if viable

2. Spotify branded smartphone can help them establish their brand even more

Spotify Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Spotify are as mentioned:

1. Local players and downloads are still threats to app like Spotify

2. Licence and collaboration with music companies and artists is a sensitive issue and can impact business dsrastically 

Spotify Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 8 competitors of Spotify:

1. Apple Music

2. Prime Music

3. SoundCloud

4. Gaana

5. Wynk

6. Pandora


8. YouTube Music

Hence this concludes the Spotify SWOT analysis.

Continue reading more about the brand/company.

About Spotify

Spotify Overview
Parent Company

Spotify Technology SA


Music Streaming


Media & Entertainment

Tagline/ Slogan

Music for Everyone


One of the earliest and trusted music platform

Spotify STP

People with smartphones, devices and internet connection

Target Market

People looking for free quality music with various options and languages


Spotify offers millions of songs for free on various devices with option to upgrade

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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