Since Rob Glaser founded RealNetworks in 1994 the company has been developed to one of the most innovative high quality network companies in the young history of commercial internet. One could say RealNetworks, its invent ion and development of real time internet media streaming such as videos and audio files paved the way for effective and consumer friendly use of internet content. “Real`s technology had become the dominant standard” and the company achieved an outstand ing market position and was `hot in business`. However since the last years the company is facing increasing competition.
As the first step of this management analysis, I examine the environment RealNetworks Rhapsody service is settled in. Afterwards I will give an overview regarding three internal aspects: resource situation, strength and weaknesses of the value chain and core competencies. In the third part I draw the line using the gained information of the SWOT analysis and the company’s current situation to explain the recent strategies and future prospect. The leading question will be: what are the key strengths, weaknesses, opportunities and threats the company has to deal with. Is the companies resource allocation and strategy still adequate to succeed the new challenges in a rapidly changing, competitive business environment and what are possible organizational and strategic alternatives?
Table of Contents
- Introduction
- Opportunities vs. Threats: Analysis of the environment the Real Networks company is settled in
- Macro environment
- Industry Analysis:
- Potential entrants
- Bargaining power of buyers
- Bargaining power of suppliers
- Closeness of substitutes to the industry's products
- Intensity of rivalry among strategic groups
- Strengths vs. Weaknesses: Internal aspects of RealNetworks
- Tangible resources
- Making the difference - Intangible resources as RealNetworks` Core Competencies
- Strategic Analysis
- Business level strategy
- Corporate level strategy
- Cooperation Approach
- Global strategy
- Conclusions: RealNetworks still hot in business?
- Under pressure: Recent standing in the industry
- Future outlook Turning challenges into profits
Objectives and Key Themes
This analysis aims to assess the current standing and future prospects of RealNetworks, focusing on its Rhapsody service. The paper examines the external environment surrounding RealNetworks, including macro-economic factors, industry structure, and competitive forces. It then delves into internal aspects such as resource situation, core competencies, and the company's strengths and weaknesses. Finally, the analysis synthesizes these elements to explore the company's recent strategic decisions and future outlook.
- Analyzing the macro and industry environment of online music streaming
- Evaluating the competitive forces within the industry using Porter's Five Forces model
- Exploring the strengths and weaknesses of RealNetworks' internal resources and core competencies
- Examining the strategic decisions taken by RealNetworks in response to the dynamic market environment
- Assessing the company's future prospects and potential challenges in the evolving online music market
Chapter Summaries
The analysis begins with an overview of RealNetworks' history and its role in developing internet media streaming. It then examines the external environment the company operates in, including macro-economic trends and the competitive forces shaping the online music industry. This analysis employs Porter's Five Forces model, assessing factors such as potential entrants, bargaining power of buyers and suppliers, and the intensity of rivalry.
The following chapters delve into the internal aspects of RealNetworks, focusing on its tangible and intangible resources, core competencies, and strengths and weaknesses. These insights are then used to evaluate the company's recent strategic decisions and explore potential alternatives. The analysis concludes by considering the company's current standing within the industry and exploring its future prospects.
Keywords
This analysis focuses on key concepts such as online music streaming, industry analysis, Porter's Five Forces model, competitive advantage, core competencies, strategic decisions, and future prospects. The analysis explores the dynamics of the online music market, focusing on companies like RealNetworks and its Rhapsody service, and considering the impact of factors like technological advancements, consumer behavior, and competition.
- Quote paper
- Malko Ebers (Author), 2004, Case Analysis RealNetworks - RealNetworks still hot in business?, Munich, GRIN Verlag, https://www.grin.com/document/30842
