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Lo and Wong had built a good choice in choosing music as there online start-up business, because of the nature of music alone is info rich, simple to distribute, usage experience are indifferent between digital or physical product, as well, without the space limitation of any physical retail outlet, MusicJuice. net can provide a large amount of selection intended for user to pick. In addition , net landscape empowers the business model of Crowd-Sourcing, in which millions of straight interest group can form their own communities, share and support each other within the internet.

And such business structure has confirmed to be very good in Europe, theoretically, MusicJuice. net also needs to be successful in North America where potential market size was approximately 240, 000 performers. However , the organization has been losing money month after month seeing that launched in April 08, only 70 artistes has signed up in July 08 and non-e of them acquired reached the fundraising target, and of course, not any premium people at all. Both co-founders need to decide what could be done to save MusicJuice. ou or whether they should close the business once and for all. Before jumping into conclusion, discussing examine the specific situation with the a few Forces research. First of all, the threats of recent entrants are very high, the same as their rival , Slicethepie. com premiered one month after MusicJuice. net began the development. Building such music portal requires relatively low capital investment, and there is no customer or perhaps brand dedication at all, because the users will only loyalty for the musicians. The threats of substitute items for MusicJuice. et is also very high, as people will relish and obtain the background music they like in many different sources, CD Shop, radio, youtube, iTunes, showing between friends, or even down load from piracy websites! Not only facing the threats of new entrants and substitute, what really troubles MusicJuice. net is the excessive bargaining power of supplier, i actually. e. the musicians. The business enterprise of MusicJuice. net is definitely bet on the quality with their signed artists, but what music artists really loves you is to increase their fans network, but not to build any romance with a particular platform.

Although the bargaining benefits of customers is comparatively low when the user addicted into any sole musician, nevertheless such benefits is certainly not sustainable when the musician go for other program. And the biggest force impacting MusicJuice. net is the intensity of competitive rivalry, many organisations including individuals major music labels and big IT businesses e. g. Microsoft likewise attempted to use MySpace to slice the pie in the profitable music industry, let alone those leaders like iTunes and Amazon . com.

Even thought in such negative situation, MusicJuice. net can still do something to rescue all their business, not merely working on marketing strategy or functional enhancement, but to focus on building the natural music community by developing strategic lovers with indie band and independent music labels, fall into line with quality musicians to make few showcases of effective stories, previously mentioned, their business is wager on the quality of their suppliers, they should supply a reason for the musicians to register on their platform.

After all, folks are looking for music as a great enjoyment, rather than an investment, MusicJuice. net will need to provide more interesting free content material for you enjoy music, but not just invest in music. (end)