Benedictine University
International Marketing
INTB 350

A Proposal
For Spotify
To Open a Fully-Owned Subsidiary in Canada

By Michael T. OSTROWSKI Vincent PETRINI-POLI
December 9, 2013 Senior Lecturer

Table of Contents
Introduction 2
About the Author 3
Spotify 4
The Spotify Service 8
Target Markets 11
Comparison Matrix 15
Entry Strategies 20
Market Responsiveness vs. Cost Responsiveness 22
Financial Aspects 24
Conclusion and Recommendations 26

Exhibits Ex. 1 – Resume 27 Ex. 2 – Company Information 30 Ex. 3 – Service Information 31 Ex. 4 – Country Information from Cia.gov Canada 34 Russia 35 Japan 36 Ex. 5 – Cultural Aspects 37 Ex. 6 – Country Selection Matrix 37 Ex. 7 – Political/Economic Risks Diagram 38 Ex. 8 –Entry Strategies 39 Ex. 9 – Cost Responsiveness vs. Market Responsiveness 39 Ex. 10 – Financial Aspects 40 Ex. 11 – Internet/Media Excerpts 41 Ex. 12 – Power Point Presentation 43 Bibliography 44

Introduction As the world population continues to grow, technology continues to progress, and innovation starts to reach new heights, the need for globalization increases every day. Thanks to advances in modern communication, production is now a global process and aims to reach new consumers across the globe. All consumers tend to want the same things, be it a luxury good, or a staple in their everyday lives. As a rather ethnocentric country, the United States of America has a great influence upon the rest of the world. However, the entire North American population (United States and Canada) takes up only about 5% of the 7 billion people in the world. That means, international