To: Pandora Senior Management
From: Jared Krehel
Date: 5/3/14
Re: Pandora Recommendation
This memo is being written in response to the consultant meeting held last Tuesday with TANK consulting. The meeting, which served to identify how Pandora should move forward with its growth strategy, showed senior management that a 'pedal to the metal' strategy would be the best fit for the company after analyzing all alternative courses of action and finding a 'best fit' with aligns with Pandora's future goals.
The future Pandora would like is clear. They aspire to expand market share, customer base, capital, products, and also investors. The clear path to these goals are to apply an aggressive strategy where they are able to continue to grow at their current rate. Right now, at current growth, Pandora is on track to run out of money by 2008. This would certainly cripple the company so it is of the utmost importance that they create a strategy where they raise more money through multiple avenues such as:
- Premium subscriptions
- Expanding ad space
- Solicitation of new investors
- Finding and leveraging new talent for exclusive rights to generate more customers
- Charge per play
- Mobile APP
If Pandora is able to sell itself to more investors, they can pave the way to the IPO where the addition of shareholders will give the company the sorely needed capital injection it needs to expand and thrive in the internet radio market. Ultimately, the aggressive strategy is the only choice because without it, the company will run out of money.
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