Case Analysis RealNetworks - RealNetworks still hot in business‪?‬

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?