Friday, January 31, 2020
Colorado Creative Music Case Study Essay Example for Free
Colorado Creative Music Case Study Essay Large differences among competitors (advertisement) Necessity of touring across the country (more personal approach) Driving forces Financial Lowered initial investment (technology) Easy to enter the market Digitalization (fixed costs) Non-financial (art) To create a better piece of art Essential for business to happen Attractiveness of the industry from the standpoint of good long-term profit prospects Health problems of Mr. Darren Skanson Instead of 2 planned CDs only 1new CD He found new musicians Need to sell more CDs (no more sales, no profit) for acceptation of the CDs by distributors Direct sales are big part of sales Finding of some responsible and skilful person SWOT analysis strengths decreased expenses due to digital revolution position on the market DarrenÃ¢â¬â¢s presence at shows the direct sale weaknesses lack of managerial skills insufficient distribution channel reducing profit SWOT analysis conÃ¢â¬â¢t opportunities reaching broader audience with promoting various artists and music styles music events outside Colorado cooperation with retail outlets nationwide threats new entrants existing competition minor position on the market iracy Assessment of CCMÃ¢â¬â¢s financial performance Not very various financial performance of the company Trends in each year: increasing gross profit of the company/expenses are increasing/net income is decreasing except 1998/sales are increasing Ã¢â¬â but not very Ã¢â¬â problem Increased number of work Ã¢â¬â increased number of money for hiring of new people. He need to sell more CDs if the company wants to be a part of national distribution he had several options: 1. To have several artists and to play as record label 2. Compete with artists on a recording label with Sony Classical 3. To make a new good selling product and to use money from sales for first two goals He found out that needs to increase promotion and publicity process (not quality but image) The biggest dilemma Ã¢â¬â after having health problems Ã¢â¬â need to find responsible and skilful person Uncertainties Ã¢â¬â manager on his position can be weak and not such good as Darren Ã¢â¬â not beneficial for the company Ã¢â¬â no profit.