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Executive Summary
Napster is the creation of Massachusetts native Shawn Fanning who at the age of eighteen turned an understanding of peer-to-peer computer network technology into a company that generated two million dollars from investors in just two months. Napster took the world by storm virtually overnight and just over a year from its inception boasted over 800,000 users logged on at any one time and over 32 million users who had downloaded the company’s software.
Napster’s strengths are in peer-to-peer computing technology, brand equity, and word-of-mouth marketing. ...
Napster has potential opportunities in joint ventures, strategic alliances, and new markets. Imminent threats faced by Napster include lawsuits, government regulations, political events, and industry competition. ...
It is recommended that Napster recreate its business plan to include subscription services, leverage its brand equity, and pursue strategic alliances. Specifically, Napster should seek opportunities to share costs and risks with an established recording company in an effort to minimize lawsuits and to further strengthen the company’s brand presence. ... Shawn Fanning had no idea that his desire to help his roommate find a better way to download and share MP3 files would become what we all know as Napster. ... Shawn incorporated two internet friends to help him develop the program necessary to run Napster.
By spring 1999 Shawn had dropped out of college and had continued his work on Napster full time, sometimes working around the clock. Shawn sent out the first version of Napster to approximately thirty friends asking them not to share this with anyone. A few did not listen and within a few days 3000 to 4000 people had downloaded the software and assisted in the improvements of Napster. By May 1999 Shawn incorporated Napster with the help of his uncle, and they started looking for investors to help fund the project. By October 1999 Napster had raised over 2 million dollars in series B venture capital funding.
Napster was formally launched in June 1999. Within one month, without advertising, Napster estimated that 4. ... In October 2000 Napster estimated that over 32 million users had downloaded the software; they also were growing at a rate of over one million users per week. Napster experienced over 800,000 users logged on at one time .
In April 2000 the band Metallica filed suit against Napster under the Racketeering Influenced and Corrupt Organizations Act. The Recording Industry Association of America (RIAA) followed up with an injunction to halt Napster on June 12, 2000 . In July of the same year the court ruled against Napster and shut the service down. ... Technology
• Napster’s clear-cut strength is in the area of peer-to-peer computing technology.
Approximate Word count = 2187
Approximate Pages = 8.7
(250 words per page double spaced)
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