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Case Study: Collecting and Analyzing Marketing Information

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Case Starts on Pg 64-Please see attached.

1) In a narrative format, discuss the key facts and critical issues presented in the case
2) Briefly describe the internal environment, customer environment, and external environment of Napster
3) How can Napster use a SWOT analysis to develop a competitive advantage
4) As the Director of Marketing for Napster, how would you refine the marketing plan to expand the customer base for the company in 2009?

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1) In a narrative format, discuss the key facts and critical issues presented in the case

The key facts and critical issues presented in the case are related to the provision of music to the public and the issue of copyright infringement. The major issue was the business model that Napster apparently was using by offering its consumers free software that would enable them to look for songs and subsequently downloads these into their computers' hard drives. Once these songs were stores, users would be able to swap songs with each other from the stored songs on the hard drives in MP3 format.

The case examines that fact that violation of copyright laws was being done by Napster through the transfer of MP3 files onto hard drives and subsequently offering these to other people, actions that denied musicians compensation for their work. But on the other hand, one of the outstanding issues is the fact that the practice of sharing digital music files amongst users over the internet is almost an impossible feat to achieve. Still, many of the aggrieved claiming copyright infringement continued to ignore the fact that Napster's offering of their music online actually benefited many of them by making their songs easily available for sampling by consumers, with the sale of many albums as a result of this.

Of the most critical issue presented in the case was the aspect of file sharing amongst users. The weight of the evidence produced by the allegations was that file-sharing reduced the marginal revenues collectable by the music recording industry. Of particular weight, there are two main facts evidences that come out from this. One of them is the relative linkage of the growth of file-sharing and the decline of record sales. However, file-sharing ...

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The solution discusses the case study regarding collecting and analyzing marketing information.