From the establishment of Blockbuster Entertainment in 1985 it has made business of nearly $5.5 billion, but in recent times it is suffering from break neck competition from new companies and also the technologies that have made movie and video downloading from the internet a click away. Though many new technologies are evolved for fighting anti piracy and such things, it one the other hand made the services slow and put financial burden on companies. Jim Keys, the CEO of the company since 2007 admits the situation. The company will take steps to bring back people to watching movies in rental videos.
In the beginning of the 90s, Blockbuster Entertainment was the leading video rental store of the country with more than 400 stores and also an efficient management. But after a short time the initial success began to melt down as the experts predicted that the success of the company will soon be challenged by the drastic development of technology in the field, and it happened. Though it was getting multinational, and tying with various entertainment companies like Viacom, but in the year 1996, the stock pricing for Blockbuster had fallen to the half of its peak time stock value. The problems went on and in 1998; the bankability of the concern was in question. It was in the year that Blockbuster made an agreement with America Online and developed blockbuster.com, a new distribution channel, with embracing the new marketing concept and technologies. But problems went on for the company and in 2005 they lost more than $ 500 million in late revenue fees only.
Competitors
Now the competitors in the market for Blockbuster Entertainment are:
Family Video.
Hastings Entertainment, Inc.
Movie Gallery, Inc.
Netflix, Inc.
Redbox Automated Retail, LLC
The products of Blockbuster Entertainment
One of the strengths of Blockbuster Entertainment is their collection and it consists of the very best of movies from the leading production companies like Fox Entertainment Group, Paramount Motion Pictures, Sony Pictures Entertainment, NBC Universal, Buena Vista Motion pictures, Lions Gate International and the Weinstein Company and all of the production companies have great movies under them from not only Hollywood but all over the World. Blockbuster Entertainment tries to cater to all the tastes of people and it strives to do that too (Vorhies 1310-1334).
Strategies used
Some of the recent strategies of the company are keepings prices low and growing in volume, diversifications and modern technologies, along with downloadable movie contents. Also they made partnerships with companies like Coca Cola, Food.com and other companies to make the movie watching experience more relaxing. Also they have grown internationally and in recent times they have expanded their market in Hong Kong, Australia, Costa Rica and other countries too. With a very good supply chain and some really exciting corporate tactics it promises to break new barriers in business.
The main strength of the company is its collection and also it is the pioneer in the industry. They also keep subsequent products like soft drinks and other toys in their outlets, which further enhance the business. And with their newly launched website they also give the options to download movies. The company is in a cross roads and they are really trying to break away from the losses of the past. With new business strategies and a very good management team, they can surely look forward to a very successful future ahead (Shuliang 231-254).
Works Cited
Shuliang, Li. ‘A multi-agent-based hybrid framework for international marketing planning under uncertainty’. Intelligent Systems in Accounting, Finance & Management 16.3, (2009): 231-254.
Vorhies, Douglas W. ‘Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and performance’. Strategic Management Journal 30.12, (2009): 1310-1334.
This paper will discuss the marketing strategy that will be adopted by Virtual Advertising and entertainment. This paper will explain the proposal by the company for the launch of its advertising campaign. Virtual Advertising &Entertainment LLC which is an advertising, entertainment dual marketing and a web based virtual reality company is seeking for a proposal amounting to $800000 for completion of its interactive digital medium.VAE has been an answer to advertising industry misfortunes through its provision of maximum exposure and increased internet, brick and mortal locations. Due to increased popularity of interactive and virtual usage of electronic media, access is becoming a necessity. Virtual Advertising and Entertainment has a mission of providing entertainment content that will drive traffic of the targeted audience to its advertisers. In realization for the need to success, VAE has identified various keys that will guide both its near and long-term objectives. These include creating dual advertising together with marketing mediums and develop new application products, driving internet traffic by establishing CD- Rom medium and Creation of a non novice user environment.
The financial plan for the anticipated fund is divided into three phases. Phase one amounts to $70795, phase two funds will cater for sale executive salaries for the first year. Phase three funding will cater for CD-Rom advertising and marketing initials campaign. The plan outline cost and time spun will also be in this phase.
Summary
Virtual Advertising &Entertainment LLC under the leadership of President Stephen Mathis will be incorporated as an llC corporation. This corporation is developed under marketing option inc.VAE works under the team of a very able staff. This organization has been faced with an opportunity of being the first multimedia virtual entertainment advertising to the consumer. Just like Mathis, belch emphasizes due to a decline in both print and television advertising, there has been a growing need for new media and internet advertising medium. “With increased multiple application of its products, VAE will be able to adapt to various industries with excellent results.” (Gerson and Gerson, 2008). The purpose VAE’s partnership with N’DIGO newspaper and Savoy magazine has to bypass traditional corporate sales cycle as well as unique distribution opportunity with branded partners
Evaluation
Like Stephen, Angelo point that an effective proposal should clearly outline the expected fund, give detailed information on the laid down procedure on how the resources will be utilized. This to a large extent has been the case to VAE proposal and this is likely receive a massive support.VAE undertook Agile’s approach as its methodology and approach, this involved traditional business and design approach. “This involved critical examination of the challenges they are facing and how to solving them.”(Parker, 2008). This approach has been successful taking VAE from a business shell and layout to a very detailed layout, which has captured all the possible billing opportunities available for its clients.
Conclusion
This paper has discussed Virtual Entertainment and Advertising, and its effects on the market. This form of marketing strategy has been given in details. In terms of positioning, VAE is unique in the market because it is the only one with a combination of entertainment, advertisement and marketing company enabling it to offer rich media dynamic of virtual component directly to the consumer. Most importantly, VAE sales strategy consists of promoting the unique entertainment and interactive nature of its products.
References
Gerson, S and Gerson, M. (2008). Workplace Writing. London: Prentice Hall.
Parker, G. (2008).Advertising and promotion: An intergraded marketing communication. London: McGraw hill.
Since World Wrestling Entertainment (WWE) was developed, it has faced competition from other wrestling companies. When it was bought by Vince in 1982 it faced competition with each competitor not encroaching on each other’s territory. Although Vince paid local television and did away with most of his competitors, completion still existed.
The competition intensified when Ted Turner bought World Championship Wrestling (WCW) in 1988. Turner spent much money in buying stars from WWE then known WWF.
Vince ended this competition by acquiring WCW which resulted to a significant increase in the number of wrestling stars. Even today WWE still faces competition from TV shows like soap operas. WWE has also been faced by competition from movie industry which has attracted some of its stars.
WWE has also been faced with the problem of maintaining fans all over the world (Connall). WWE has been caring out road shows from one city to another to attract more fans. Although these road shows have not been generating profits, WWE has maintained them as they attract fans.
WWE has also been forced to change its shows from pure wrestling to a form of wrestling with aspects borrowed from other favorite shows on TV like soap operas. WWE has also been faced with the problem of investing in new opportunities which attracts fans (Ramkissoon). We find the launched football league called XFL folding after one season after it fails.
This costs WWE a loss amounting to $57 million. WWE has also been faced with the problem of generating more revenues while facing competition from other TV shows. This has led even to the production of movies by WWE as well as introduction of 24/7, a subscriber video-on-demand service.
Strengths
One of the WWE strengths is a good reputation among customers. WWE has ensured good and quality shows especially with introduction of borrowed aspects from soap operas. This has given the company a good image. The use of stars in their weekly shows also has promoted their image over their competitors.
Vince having admitted to the public that wrestling matches were scripted made wrestling fans to appreciate his honesty which created a good reputation for WWE. WWE is leading in the stock market which another strength for the company (Winters). Another WWE’s strength is good management.
WWE through management of Vince has developed to an international show. Vince with his aggressiveness bought WWC which was one of the WWE’s greatest competitors. Vince through innovation has also introduced borrowed aspects from other TV shows which have made it more famous and interesting to fans. Vince also ensured he owned the right to the characters that were played by his wrestlers.
Weaknesses
WWE on the other hand has been faced with weaknesses. One weakness it is facing is the high cost of producing shows and maintaining fans. The use of road shows to produce parts of the TV show and to attract fans is very expensive. This is because these road shows have not been generating any profits. Another weakness that WWE has encountered is poor investment on new opportunities.
The starting of a new football league XFL cost the company a loss of $57 million. Poor supply chain has also been a weakness to WWE (Management Paradise). Even though WWE has faced no hindrance in expanding internationally, it has been able to distribute its shows in Europe. Again it has not fully invented in the new area of digital media.
Opportunities
WWE is faced with opportunities of expanding in the abroad market. WWE has not been faced with any problems when investing internationally in others countries. Even with this advantage WWE has only expanded to Europe through a European sport show (Solomon, 46).
WWE needs to reach the global market via internet as well as digital media. Innovation also offers WWE with opportunities to produce a variety of TV shows like movies acted by wrestlers who are stars.
Threats
WWE is faced by the threat of changing customers’ preference and taste. Wrestling fans are been stolen away by soap opera TV shows which are becoming favorite among many people. Emergence of mixed martial arts, which is a growing form of combat sport that combines kickboxing and grappling, has been a threat to WWE. This is because been a similar show to wrestling it has been pulling away some wrestling fans.
Forces
WWE is still dominating in the industry of wrestling over its rivals. Through competitive rivalry WWE management has shown high level of innovation.
Through introduction of two different TV shows every week, 24/7; a subscriber video-on-demand service and incorporation of borrowed ideas from other TV shows has made WWE posses a competitive advantage over its competitions. WWE has had an advantage of having many star wrestlers thus have had no problems with its inputs due to high supply.
This has even given the company the right to have rights over characters played by these stars. Also the company has gained the advantage of not undergoing high inputs cost. WWE is faced with competition from other TV shows like soap operas which are absorbing most of its fans.
Again there is a high threat of its customers switching to mixed martial arts, which is a growing form of combat sport that combines kickboxing and grappling. WWE has a powerful bargaining power of its customers with its uniqueness in its wrestling TV shows. WWE has also had this power because it’s the best company in the industry with its own distribution channel.
Solutions
In solving its problems, WWE should consider producing a variety of TV shows besides wrestling. This will aid to accommodate different preferences and tastes by providing fans with a variety to choose from. This will also aid in competing with other firms. WWE should extend production of movies as well as start production so mixed martial arts.
This will enable it to retain its fans. WWE can also consider changing its management which is family based. This will help to avoid some mistakes made like the investment on FXL football league.
This will also promote innovation and creativity within the company. WWE can also consider the option of merging with its competitors as a way of avoiding competition. Like, it can merge in production of mixed martial arts as a way of trying to retain fans.
Work Cited
Connall, Chris. WWE: Problems With The Product, Part One. Bleacher Report, Inc. 21 July. 2010. Web.
Management Paradise. (2010). SWOT ANALYSIS ON World Wrestling Entertainment. Management Paradise. 1 December. 2010. Web.
Ramkissoon, Vanda. WWE’s Impatient Fan: Fast Paced Problems Facing Wrestling Today. Bleacher Report, Inc. 11 November. 2010. Web.
Solomon, Brian. WWE Legends. New York, NY: Simon and Schuster. 2006.
Winters, Nathan. SWOT Analysis: Total Non-Stop Action. Bleacher Report, Inc. 19 May. 2010. Web.
By examining the current level of business undertaken by Marvel Entertainment, it is undemanding to understand how the corporation is equipped with an effective strategy intended to uphold the company’s comprehensive products portfolio.
In fact, all the perspectives of business operations have been properly placed. That is, the company’s operational strategy was clear from the beginning. The company sought to be in command of a huge segment of its leisure output. The approach was in effort to create an ongoing super hero merchandise franchise.
There is link in the company products from animation and movie to consumer products including DVD, video games and toys. There is also an online version of the links utilizing animations, movies and classics (Collins 26).
Consumers’ Perceptions
The core idea of Marvel’s strategy reflects the foundation of the company business. In the company’s comic books, the main heroes emerge frequently in each other’s storyline.
Considering that the company initially depended on Spider-Man over a long time, the incorporation of key heroes was refreshing for the company’s core fans. The consumers of the corporation products view the company as one that can offer a wide range of entertainment products for individuals of all ages.
Indeed, this is particularly the case of families with young children. The company offers a wide range of products including shoes, bags and clothes that are designed to be associated with heroes in the company entertainment products.
Children who enjoy the entertainment products from the company can hence associate with other products such as clothes, shoes and bags. According to Collins (2011), this gives the interconnectivity between the basic requirements of the consumers and the entertainment portfolio.
By examining the profitability and financial performance of the company, it is easy to conclude that the company customers are receiving the positioning strategy adopted by the company positively. In recent years, major licensees and retailers have come on board to discuss the long-term ventures.
In 2008, the company earned international royalties of over 147 percent increase from the previous year. The consumers of the movie products are pleased that the company has presented them with linked, in-depth, and detailed story forming an umbrella narrative.
The company has created a niche in the younger audience. By bringing forward new brands including The Super Hero Squad, the company has managed to create a loyal base of consumers.
The initial young customers of the company since it opened its doors are now individuals with financial capability to purchase the consumer products from their own pockets. They do not need to rely on their parents to purchase the products.
As the company grows in both profitability and products, these customers get products that match their age such as the introduction of The Avengers.
In locations such as Japan, the company has managed to position itself locally to the benefit of local consumers. There are localized characters in its product line.
From study literature, this has received positive acknowledgement with consumers in other countries demanding the comic products to be availed in local dialect. The company responded to such demands in India by offering a Hindi-language version of the Spider-Man comic book.
The brand of the company conveys excitement, adventure, fun and power, which offers a broad appeal to everyone from young children to the middle-aged mothers (Cho, Corbett, and Dang 1).
The product and its influence on the corporate image
The products offered by Marvel Entertainment help in raising its public profile. It offers products that function as intended. The products give the customers value for money. The quality of the products presents the company as a genuine business entity intended to give its customers more than demanded.
State of PLC
Marvel Entertainment including its franchises is a branched out global entertainment firm. It operates in five business segments under the Walt Disney Company. The segments include Interactive Media, Consumer Products, Studio Entertainment, Parks and Resorts, as well as Media Networks.
The products offered by the company are of high quality and auger well with its strategic objective of being a leader in various areas of business.
The company is profitable according to previous audit reports. The public perceive the corporate image of the company positively considering that it performs well at the NYSE (Collins, 2011).
Characteristics of Marvel Entertainment as a PLC
The shares of the company are freely traded at the NYSE. The shareholders of the company are shielded from potential losses made by the company.
The company over the years used its PLC status to raise capital through issuing corporate shares to the public at the NYSE. Such an event occurred in 1996 when the company sold shares worth $350 million to the public.
Classification of Marvel Entertainment
Marvel Entertainment made its initial public offer in July 1991. It offered 40 percent of its shares to the public. Besides, the company became a public limited corporation given that private ownership ended with the above move.
Position of the organization in its environment and effect of this on brand strength
Competitive Position
The entertainment industry has a wide range of competitors that compete with Marvel in the United States and other market locations worldwide. However, Marvel Entertainment managed to create a market position that allows it to have a competitive advantage.
Any company offering a wide range of main products that are interlinked with other entertainment products achieves this goal (Cho, Corbett, and Dang 1). The main competitors of the company include DC Comics Incorporated, Hasbro Incorporated, and Mattel Incorporated.
Technological Position
The advancement in technology has not spared marvel Entertainment. For the last two decades, the entertainment industry has experienced significant changes effected by technology. The company originally produced hardcopy comic series.
As technology advanced, it became essential for the company to digitalize these products. Most of the company customers were in a position to afford electric gadgets enabling them to access the company products in digital formats including comic books.
Marvel Entertainment advances its strategic objective of developing the company as the leader in the field of creating high value recognized content using technology. The use of technology ensures that the content of its products is very persuasive.
It also ensures that the products reach the consumers in diverse ways (Cho, Corbett, and Dang 1). By digitalizing the product line, the company is able to reach a wide base of consumers globally by allowing customers to place orders on the internet and downloading products such as movies.
Customers in far locations are hence able to get the desired products promptly without visiting the company outlets physically.
Physical Position
Marvel ensures that its franchise and outlets are strategically located for easy access by customers. The outlets are located in areas near the entertainment spots including theme parks. In fact, this effort ensures that the company reaches its target customers also dubbed the entertainment seekers.
The company covers a wide geographical market by extending into the international markets such as Japan, China, Canada, and Latin America. In pursuit of the expansion strategy, Marvel focuses on confronting challenges presented by the physical locations via incorporating technology into its operations.
The location of Magic Kingdom at Walt Disney World, Hong Kong Disneyland and the Disney’s California Adventure ensures that the company captures the attention of families on vacation.
Social-cultural Position
Marvel Entertainment has successfully integrated its core business with the growth strategy. The company, founded in the United States, has grown significantly to offer consumers in other cultural backgrounds with entertainment products including South Africa, Japan, and India.
The company has intentions to expand its business in Canada, Latin America and China. The management plans to create and develop localized programs that will fit the culture of the consumer base.
It also intends to create tailored initiatives for particular markets in order to increase product awareness that will allow it to establish its business in line with the social and cultural settings of the targeted market and audience (Cho, Corbett, and Dang 1).
The company ensures that it meets its social corporate responsibility in all its operations and locations.
Legal Position
Inherently, companies face legal challenges in establishing businesses as well as when operating. To overcome these challenges, the management must ensure that the company complies with all the set laws, legislations and regulations.
The entertainment industry poses challenges to many organizations given the high rate of infringement of patent, copyright issues, piracy and trademarks (Collins 2011).
Since the establishment of the company, Marvel Entertainment ensures that it complies with all the legal aspects that ensure smooth operation without breaching laws and regulations set by the authorities.
Besides, to ensure that the company corporate image is positively received in the market, the corporation accepts to streamline all legal aspects when entering into contracts, franchising or acquisitions.
Such moves help in displaying the company as one that follows the laid down procedures for conducting business. The Federal Communications Commission (FCC) must and has licensed all the media owned by the company.
Works Cited
Cho, Eunice, Jennifer Corbett and Alfred Dang. “Marvel Brand Audit Project.” Journal of Brand Management. 63.15 (2012): 1-28. Slideshare. Web.
Regal Entertainment Group is considered to be the American chain in the theater industry development of the country. It is a powerful corporation dealing with strong movie leaders of US cinematography. Regal Entertainment Group operates based on a diversification Ownership structure; the senior management is under the impact of easy changes through its consistent structure. Strategic development of the organization is concentrated on the motion picture industrial growth and opportunities consolidation through the construction of new theatres and existing base expansion with the involvement of new technologies.
Analytical analysis results
Analytical analysis of organization strategic management demonstrates the central mission directed at continuous improvement of business operations at the lowest risk. Financial support is reached through BGG Matrix usage; this opportunity is closely connected with the current market growth of the organization leading to financial prosperity. Regal Entertainment Group settles internal financial operations through the following basic issues: ticket sales, admissions, and business cooperation with other representatives of the theatre industry. It is necessary to underline the fact that organizational growth is stimulated by market share and position on the market. The expansion of business segments is reached through industry consolidating based on building new theatres, cooperating with other strong trends, and improving the quality of the service. The creation of joint ventures appeared to be an important step made to the industrial progress; the organization is to develop its strategies by technological involvement for market segments increase.
The development of competitive planning is to be connected with the analytical analysis of the organization’s principal competitors, such as AMC, Cinemark, and Carmike, which faced the problem of demographic challenges. The opportunity to adapt to innovational, technological, and market changes makes the organization take a leadership position among the competitors taking into account the fact that the weak economic climate on the international level affecting the cinema industry.
The maintenance of leadership position and increase of competitiveness is to be reached through the threats and weaknesses analysis of the competitors, being caused by new entrants, substitutes, buyers, and suppliers in the form of distributive agencies controlling the release of the company’s films. The central strategy to be involved in the organization’s management planning is aimed at opening new beneficial chains of products promotion and consumers; attraction. (Thompson and Martin, 2005).
Strategic Issues Ranking
The key strategies of Regal Entertainment Group impacting its competitive level are concentrated on the following steps and measures to be taken in management development:
Strong advertising campaign;
Service opportunities expansion;
The enlargement of misc business activities.
It is necessary to stress that the strategic steps described above are to be outlined in the strategic planning of the organization, allowing having a privileged position among the competitors. Advertising is considered to be the basic step to balancing supply and demand within Regal Entertainment Group’s service promotion. One should stress that the organization management is to be built on effective service presentation to involve and increase the customers’ base by attractiveness, profoundness, and high quality developed by the company and expressed through a strong advertising campaign. The involvement of technological innovations and spread sources of information, as well as the media role, can contribute to the service promotion. (Drury, 2004).
The next step is dedicated to the organization’s expansion of its business opportunities, introducing additional sources of giving the service to the customers; it is necessary to underline the fact that the organization can provide wider access to the customers’ seeing the movies of Regal Entertainment Group. The consumers are to have opportunities to see the works of the organization; the involvement of the internet opportunities and the careful analysis of market segments with the partial involvement in the cooperation with their representatives can allow enlarging the sources of service supply, increasing the number of consumers, competitive level and position on the state market. The company Cash Cow can be analyzed as a concession, being aimed at costs covering and consumers’ market expansion through providing some additional products, such as food and drink.
The third step stimulating the competitiveness strengthening is considered to be concentrated on the ability to attract new consumers; this strategy can be reached through the introduction of additional misc business activities. This issue covers the following services: private screening, gift and credit card services, and easy access to the desired product.
Сonclusion
The ranking of strategies priorities appeared to be concentrated on the three basic strategic steps to be strictly followed for the company’s business effectiveness, industrial and financial growth. (Barney, and Hesterly, 2009)
References
Barney, J and Hesterly, W. (2009). Strategic Management and Competitive Advantage. Prentice Hall.
Drury, C. (2004). Management and cost accounting. Cengage Learning EMEA.
Thompson, J. and Martin, F. (2005). Strategic management: awareness and change. 5th Edition. Cengage Learning EMEA.
In the contemporary globalizing world the competition in the sphere of business is very high. Some of the world’s countries are known to be more active than others, these countries tend to have very high speed of development, they are involved into various international interactions and relations that help them develop their business and prosper.
The biggest cities of India such as Delhi, Mumbai, Bangalore, Pune, Kolkata and Ahmedabad are called the hotspots and occupy various positions in the list of the most competitive places of the world (Current Business Trends in India, par. 6).
Indian retail business is filled with smaller companies that belong to different families. Knowing the size of India and its population, it is easy to imagine how difficult it would be for small family businesses to survive the competition in that country. At the same time, the opportunities for development are multiple; this is why a good businessman in India can find many ways to save the business.
Indians call themselves a nation of shopkeepers for a reason (Bijoor, par. 14). Another rapidly developing business trend in India is mobile phone industry. The number of phones in the urban areas exceeds the number of people living there almost by fifty per cent.
In the rural areas it is lower, but the general number of cell phones owned by the residents of India is close to nine hundred million pieces. Mobile connection providers and cell phone stores make huge money with the help of so many subscribers.
It goes without saying that one of the most prospering industries in the Indian business world is the sphere of hotel business and entertainment. According to the data obtained by the ministry of tourism of India, at least forty four million of tourists visited their country last year.
This popularity of India as a resort and a place of interest makes this country a great target for the hotel chains that are willing to expand (Hotel Industry in India, par. 2). In order to comfortably receive the growing number of visitors the hotel industry in India needs to increase the number of rooms it is able to offer. International global hotel chains are interested in starting their work in India as it is a very cost effective destination.
In the contemporary age of information and digital technologies the Internet has become one of the major marketing trends for all types of businesses. Hotel business and entertainment in India is not an exception.
Advertising through social networks and websites designed especially for travelers is extremely popular and effective nowadays. The websites of the modern hotels have to be mobile friendly, visually attractive, have their content updated frequently, present the special offers and allow an option of direct mobile booking (Bhatnagar, par. 8).
In the contemporary Indian hospitality business is one of the fastest growing industries. According to the projects of the experts, it is expected to grow by eight per cent between 2007 and 2016 (Kumar, 2). Indian hospitality is based on a belief that “the guest is God”, this way of thinking comes from ancient times.
The entertainment industry in India is currently facing a crisis. The number of dancers is getting lower, this is why the industry starts actively looking for talents today.
Dancing is a very significant aspect of Indian culture, ethnical dancers are commonly employed in the sphere of hospitality, and the lack of dancers may create an issue for the tourism, as Indian dancing is well known all around the world. The rapid growth of hotel business makes the lack of dancers even more significant.
Works Cited
Bhatnagar, M. Top 10 Marketing Trends for the Indian Hospitality Industry. 2014. Web.
Bijoor, H. Fashion Retail Comes of Age. 2014. Web.
As a leading commercial hub, Dubai is bulging with vast world-class business opportunities that have enabled it to become a major business attraction for both established and upcoming entrepreneurs in the world.
As a matter of fact, the UAE business centre provides vast business opportunities to both local and foreign investors planning to invest in the UAE region (Marchal 2005). As a result of its strong economical platform, the centre enjoys all the advantages that come with highly developed economies around the world.
The centre is also known for its well ordered business climate that offers entrepreneurs attractive environments to conduct their businesses.
Among other key developments, Dubai enjoys a sophisticated financial sector, modern telecommunications, first class hospitality facilities, highly developed transport and communication infrastructure, and reliable power utilities (Michael et al. 2011).
All these opportunities have continued to play a significant role in facilitating quality and efficiency business activities in the UAE region, thus making Dubai a pro-business environment. Based on these reasons, Dubai has emerged as a key business attraction for many investors planning to do business in the Middle East.
For the purpose of exposing the vast business opportunities that can be found in Dubai, this paper provides a business strategy guide for an organization that plans to establish a shopping mall in the region.
In this regard, I have been hired together with other four people to serve as strategic consultants for the company in its investment plan. Each one of us is expected to handle a specific component of the feasibility study and I am responsible for the kids’ entertainment zone that will feature a Franchise Lego.
This paper will address four key elements of feasibility study in regard with my choice of brand. The four elements are brand analysis and choice, market analysis and segmentation, operating model, and performance measures.
Brand Analysis and Choice
As it would be observed, entertainment zones for both adults and children in malls are emerging as hotspots for many people across the world today (Keivani, Parsa & Younis 2003). These zones provide all sorts of entertainment to different categories of people visiting the malls for various reasons.
There is no doubt that children entertainment zones feed off the traffic in the shopping malls and vice versa, thus serving as key attraction for different types of consumers visiting the malls (El-Adly 2007). In this regard, indoor entertainment and gaming for young children act as crowd pullers for other businesses in the malls.
This clearly explains the reason why most mall developers have turned to entertainment zones currently. The idea of building malls with entertainment zones for young children has been taking place in many developed countries across the world, and Dubai has now embraced the trend in its development plans (Rashid 2007).
The business centre in the UAE has been placing considerable focus on indoor entertainment zones as a core requirement that should be integrated in their state-of-the-art architectural designs and plans (Rehman 2008).
As a matter of fact, mall developers in the region will rarely erect a modern business premise without including a one-stop entertainment and recreation zone for children. The brand chosen for this assignment is a Kid’s entertainment zone that will form part of the new shopping mall.
As a leading business hub in the world, Dubai offers a wide range of entertainment for all categories of people in the family, including children and toddlers (Hill & Jain 2007).
Business investors in Dubai understand the many benefits associated with leisure for kids, thus ensuring there are as many modern children entertainment zones as possible to cater for the needs of the young ones in the society.
As it would be observed, children in Dubai enjoy all kinds of indoor funfair from various places of interest in the region, with malls forming the largest part of the zones offering these services (Duane & Webb 2007).
Apart from fun, these entertainment zones also provide excellent and unique children educational activities to the participants in a more engaging manner, thus helping them to master important lessons that will see them through the initial developmental stages of life.
Entertainment and gaming for young children is gaining much popularity in Dubai nowadays, probably as a result of the many benefits associated with the trend.
As a matter of fact, this popularity has attracted the interest of many entrepreneurs planning to invest in the region, who have been setting up entertainment zones in malls and other strategic points of the city (Ong 2011).
The choice for the children entertainment centre is an indoor Franchise Lego land that would comprise of various kid activities. Here, toddlers will have access of all activities meant to amuse children of all ages.
Among the main areas that will make up the centre is an indoor soft play area where activities such as amusement riding, biking, and driving can take place. There will also a bowling alley and a video game arcade that would feature both motion-gaming and console-gaming.
The facility will also feature a Baby Gym nursery that will enable kids to enjoy maximum fitness from various play materials, a First Aid kid clinic to take care of minor injuries resulting from careless play, and a children’s bookstore from where the youngsters can practice reading.
All these gaming activities will provide children with a unique and fascinating learning experience in a number of ways (Grodal 2000). For example, this will enable the kids establish their individual as well as social identities that are essential for perfect child development.
Moreover, the activities will play a key role in enhancing the thought processes of the participants, thus stimulating their desire to experience and seek knowledge.
Market Analysis and Segmentation
We are living in a changing world, and it is therefore important for modern day investors to be familiar with all the aspects that would tend to influence the trends of consumers and competitors so as to maximize their business operations in the market.
As it would be observed, the gaming and entertainment industry is at its top stage currently, and this provides great business opportunities for the investors in the field.
Investment in the gaming and entertainment sector has become a norm for many developing and developed countries in the world, considering the vast economical benefits associated with the trend.
As a leading international business centre, Dubai has been making substantial efforts to match other developed regions of the world in providing business opportunities to the people in the industry by promoting the idea of children entertainment centres in malls (Saxena 2011).
Just like any other business, Franchise of children’s activity is fetching a lot of income for the investors taking place in the field within the UAE’s business centre.
The trend of gaming and entertainment for kids is gripping in Dubai as a result of the centre’s outstanding status as a global business hub as well as a pro-business environment that welcomes all kind of commercial activities.
Among other economic advantages, Dubai is at the centre of one of the richest regions of the world today (Darby, Jones & Al Madani 2003). In this regard, the region provides a unique value added platform for all types of businesses, including the ones specializing in gaming and entertainment for children.
Dubai is a busy business hub characterized with all sorts of economic activities that can be found in a global business hub (Vogel 2010). This will have the meaning that most people in the region are ever busy in their areas of accountability and this makes it hard for them to find extra moments for their young ones.
In this respect, children amusement zones in malls, high-street areas, and residential places serve as a convenient option for many parents in Dubai, who will opt to leave their young ones in the entertainment zones as they take care of other businesses.
For instance, parents can leave their young ones under the care of the staff in children’s play areas in malls as they go off to conduct their shopping without worrying about them.
This makes children entertainment centres in malls a better choice for many parents and guardians intending to stay free from the bother of their children as they attend to important business or personal missions in the malls.
As a broadly diversified economy that attracts players from allover the world, Dubai has enhanced its attractiveness in many ways, with entertainment and gaming facilities topping the list of the City’s priorities when it comes to matters regarding leisure (Noack 2007).
In this regard, the city provides a superior quality lifestyle with excellent entertainment and gaming opportunities for both children and adults. Most of these entertainment zones are situated in malls, where security for toddlers is guaranteed even when their parents or guardians are away.
More importantly, some children entertainment zones in Dubai also act as party centres, thus serving as key attractions for parents wishing to give their young ones a special treat during special moments.
Here, parents and guardians can celebrate their children’s special moments such as birthday or graduation ceremonies with party celebrations that are relevant to the occasion being marked.
Everything appears to have taken a different course as far as the gaming and entertainment for toddlers is concerned. This transformation, however, has come as a result of the current innovations and technologies that have played a key role in making next generation gaming accessible to all people across the world.
Being one of the most advanced regions in the world today, Dubai enjoys a wide range of user-friendly gaming and entertainment programs and activities that would appeal to children of all ages (Kaplan & Norton 2001).
Most of these entertainment and gaming programs are tailored to fit the needs of a franchise model, thus making children entertainment more substantial.
The nature of the gaming and entertainment programs is rapidly being modified using modern technologies to suit the playing needs of the current generation (Venaik, Midgley & Devinney 2005).
Parents and guardians in Dubai are keeping with the times and are doing everything to ensure that their children enjoy the latest brands in the entertainment industry.
In that case, the parents will tend to make frequent visits to children entertainment centres in malls to see if there are any latest arrivals that will amuse their children. This is a clear indication that there is a promising potential in this market segment in Dubai.
Market segmentation is very important, since it helps to determine the success of a business within a particular region (Acuto 2010). In this regard, the company should conduct a thorough analysis of the market in order to come up with an informed identification of the existing market needs as far as this type of business is concerned.
Even though it is impossible for the company to transfer the mall to a feasible location after it has being established, it will be easy for the management to establish effective marketing strategies that will enable the business to succeed. One way by which this objective can be attained is through effective market segmentation.
Competitors are just allover in the region, and they will tend to impact the way the company performs. However, through a thorough market segmentation analysis, the company will manage to do things in a different manner, thus beating the obstacle of competitors in the market.
On the same note, the company can go for those gaming programs and equipment that are not very common in the local market as a way of differentiating itself from the competitors. More importantly, the organization can make use of incentives such as discounts and bonuses to attract and retain more customers.
Operating Model
The model of operation for the business is very important for it will play a crucial role in determining the end goal.
In most cases, children entertainment centres tend to operate within certain guidelines depending on a number of determinants that include things such as the age of the children being served and their playing needs, among other key aspects. Following is a plan of the operating model for the Franchise Lego land.
Opening Time and Hours of Operation
Like all other businesses in the mall, the gaming and entertainment centre should be opened in the mornings and operate through the normal hours of the day. However, this may change on the weekends and during public holidays to fit the requirements of the company or the people in charge of the entertainment business.
Cost of Services
As it is the case with most entertainment and gaming zones, charges in the Franchise Lego land should be variable depending on the type of gaming or entertainment services offered and the average amount of time spend per visit.
Additional services offered on top of the normal gaming and entertainment services could also apply in determining the cost of services in the centre. Examples of additional services may include things such as recreational services, birthday parties, and special treatment for kids.
Charges may also vary depending on the nature of the services offered. For example, supervised children engagement in the centre whereby the kids are accompanied by their parents or guardians will not cost the same as unsupervised engagements where a staff aligned to the centre is given the responsibility to take care of the children.
Obviously, charges for the latter should be a bit higher compared to the ones in those scenarios where children play under the watch of their parents or guardians.
More importantly, the children entertainment centre should operate on both peak and off-peak costs based on the days of operation. There is no doubt that the business will tend to attract varied numbers of customers on different times.
For instance, while the number of children visiting the centre may remain constant during weekdays, it is likely to go up on weekends and during public holidays when most parents are free to take their children out for leisure.
As it would be observed, the price of commodities and services in the market depends on a number of variables (Mellahi, Demirbag & Riddle 2011). For example, the price for both commodities and services are likely to rise when demand increases and fall when the demand falls.
On the same note, the cost of charges for different gaming programs in the entertainment centre should be a bit higher on weekends and during public holidays when the number of visitors is high, compared to the weekdays when the number is down.
Performance Measures
The children entertainment centre should adopt various performance measures that would enable it survive in today’s competitive business environment. There is no doubt that every business in today’s business world is focused on utilizing all available resources to stay ahead of competitors in the market.
While offering excellent services to customers is likely to offer a strong competitive advantage to the gaming and entertainment business, doing things in a different manner will steer the business to greater heights in the market.
This objective can be attained through the provision of gaming concepts that appeal most to children during this era of modern technological advancements.
More importantly, the provision of a wide array of customizable entertainment experiences that comprise of friendly and intuitive playing options will play a crucial role in enhancing the performance of the business (Voelpel, Leibold & Tekie 2004).
Another way through which the business can operate differently and stabilize itself in the market is by offering its entertainment services for children at a lowered cost. This objective can be achieved by offering gaming services at a cost slightly lower than the ones provided by competitors in the market.
There are various approaches that can be used to measure the performance of businesses to determine whether they are making a progress in the market (Kochan et al. 2003).
For instance, the management of the children entertainment centre can apply the observation method to read the facial expressions of the customers and try to determine their perceptions about the services they have received. This approach can also be used to assess people’s satisfaction based on how frequent they visit the centre.
The business can also supply customers and clients with survey templates which they can fill up and return to the company expressing their views about the services their children have received from the entertainment centre.
Brief oral interviews can also be carried out randomly on parents to determine their views and suggestions on the services provided. All these interventions will play a significant role in helping the business achieve great success in the UAE business centre.
Reference List
Acuto, M 2010, ‘High-rise Dubai urban entrepreneurialism and the technology of symbolic power’, Cities, vol. 27, no. 4, pp. 272-284.
Darby, R, Jones, J & Al Madani, G 2003, ‘E-commerce marketing: fad or fiction? Management competency in mastering emerging technology. An international case analysis in the UAE’, Logistics Information Management, vol. 16, no. 2, pp. 106-113.
Duane, R & Webb, J 2007, ‘Strategic entrepreneurship: Creating competitive advantage through streams of innovation’, Business Horizons, vol. 50, no.1, pp. 49-59.
El-Adly, M 2007, ‘Shopping malls attractiveness: a segmentation approach’, International Journal of Retail & Distribution Management, vol. 35, no. 11, pp. 936-950.
Grodal, T 2000, ‘Video games and the pleasures of control’, Media Entertainment: The Psychology of Its Appeal, vol. 35, no. 26, pp. 197-213.
Hill, C & Jain, A 2007, International business: Competing in the global marketplace, McGraw-Hill/Irwin, New York, NY.
Kaplan, R & Norton, D 2001, The strategy-focused organization: How balanced scorecard companies thrive in the new business environment, Harvard Business Press, Boston, USA.
Keivani, R, Parsa, A & Younis, B 2003, ‘Development of the ICT sector and urban competitiveness: the case of Dubai’, Journal of Urban Technology, vol. 10, no. 2, pp. 19-46.
Kochan, T, Bezrukova, K, Ely, R, Jackson, S, Joshi, A, Jehn, K & Thomas, D 2003, ‘The effects of diversity on business performance: Report of the diversity research network’, Human resource management, vol. 42, no. 1, pp. 3-21.
Marchal, R 2005, ‘Dubai: global city and transnational hub’, Transnational connections and the Arab Gulf, vol. 16, no. 7, pp. 93.
Mellahi, K, Demirbag, M & Riddle, L 2011, ‘Multinationals in the Middle East: Challenges and opportunities’, Journal of World Business, vol. 46, no. 4, pp. 406-410.
Michael, I., Armstrong, A., Badran, B., & King, B 2011, ‘Dubai outbound tourism: An exploratory study of Emiratis and expatriates’, Journal of Vacation Marketing, vol. 17, no. 1, pp. 83-91.
Noack, S 2007, Doing business in Dubai and the United Arab Emirates, McGraw-Hill, New York.
Ong, A 2011, Introduction: worlding cities, or the art of being global, Wiley‐Blackwell, New York.
Rashid, H 2007, ‘Performing Elegance’, Architectural Design, vol. 77, no. 1, pp. 76-81.
Rehman, A 2008, Dubai & Co: global strategies for doing business in the Gulf states, McGraw-Hill, New York.
Saxena, R 2011, Dubai mall: a multipurpose destination in the Middle East, Wiley‐Blackwell, New York.
Venaik, S, Midgley, D & Devinney, T 2005, ‘Dual paths to performance: The impact of global pressures on MNC subsidiary conduct and performance’, Journal of International Business Studies, vol. 36, no. 6, pp. 655-675.
Voelpel, S, Leibold, M & Tekie, E 2004, ‘The wheel of business model reinvention: how to reshape your business model to leapfrog competitors, Journal of Change Management, vol. 4, no. 3, pp. 259-276.
Vogel, H 2010, Entertainment industry economics: A guide for financial analysis, Cambridge University Press, United Kingdom.
World Wrestling Entertainment, (WWE) is a public global company. It deals in professional wrestling. Apart from this, the company obtains revenue from product licensing, films and music production. It is the leading professional wrestling organization in the world. It has over 200 million global followers.
The WWE shows appear in 30 languages. The shows reach viewers in 145 countries. In addition, the company offers viewers with a variety of products. These include SmackDown and Raw. The company also offers “Extreme Championship Wrestling” (Black, 2011). These shows mostly attract male viewers. They also feature popular wrestlers like Stone Cold, The Rock and the Undertaker.
The company faced a crisis in 2009. It signed a deal with a leading company in the entertainment industry. The company, WGN America, was to air WWE superstars. It also signed another deal with a leading sports and entertainment company. It signed a circulation deal with Euro-sport.
This was to distribute WWE shows twice a week in Europe. Euro-sport had to broadcast “WWE Vintage” collection and “This Week in WWE” to European countries. The deals aimed at enabling the company to recover from the slumps it faced in 2001 and 2005. The deals were to increase the number of advertisers and enable the company achieve high revenue returns (Fried, Shapiro & DeSchriver, 2008).
However, the company failed to attain this objective. The football league failed and many viewers turned to watching reality television shows. The company has invented new methods for rebuilding its fan base. This paper discusses the problems facing the company. In addition, it examines the strategies and alternatives that the company can adopt to become more competitive.
The Problem
The world wrestling entertainment used a potent mix in the 1990s. This enabled it to claim millions of fans worldwide. Shaved, scantily clad, pierced and pumped up wrestlers attracted many viewers. The WWE shows attracted viewers of all ages. These were mostly males aged between 12 and 34 years.
Many advertisers of different products target this segment of the market. The large number of viewers enabled the company to raise high revenues (Phadtare, 2011). However, the number of viewers of WWE shows has been dwindling since the year 2001. A combination of factors resulted in the reduction in the number of viewers.
After only one season, the football league failed in 2001. Additionally, the number of viewers declined with the rise of reality TV shows. The shows became popular in 2000. Shows like the Survivor and Fear Factor were broadcast daily and became addictive to WWE show viewers. Indicatively, the change in logo from WWF to WWE had negative impacts. A decline in revenues marked the overall result of these challenges.
The company faces a challenge in improving its competitive edge. In order to attract viewers, it has to find effective strategies. This also applies to improving its revenue. The company seeks to be a leader in the industry worldwide. Attainment of competitive advantage will enable the firm to experience sustained growth in a competitive environment (Dess, Lumpkin & Eisner, 2012).
This might allow the organization to comply with flexibilities eminent within the general market. WWE must adopt management strategies that enable effective operations within the market.
The Analysis
WWE has observed various approaches to attain an adequate performance. The company strives to attain notable strategic issues. These include improvement of revenues, competitiveness and increase in the fan base. In 2005, the company’s total revenue was $366,430,000. This improved gradually over the years. In 2008, the total revenue for the company was $526,460,000. This shows an increase of 30 percent in revenue over the four-year period.
The company began rebuilding its fan base in 2005. The increase in the number of fans resulted in an increase in revenue earned in the subsequent years. Live shows, the internet and television programs helped to increase the fan base. In 2006, the company used $400,100,000 in televised entertainment and consumer products.
This also included internet sales and films. However, in 2008, it used $526,500,000. This enabled it TO increase the fan base and revenues. The company considered the external and internal environments in designing this strategy (Black, 2011). The external environments, such as reality TV shows are highly considered. It also used its resources adequately. It signed deals to sell DVDs and toys. These initiatives improved the revenue base of the company.
WWE developed effective performance by improving on the notable strengths and potential factors. There was an eminent analysis of weaknesses, opportunities and threats. The company has the creativity. It is innovative enough to develop programs and products that capture many viewers (Phadtare, 2011).
The development of scripts that are whacky and story oriented also gives the company more strength. The company identified weaknesses that affected performance and adopted effective solutions. The change in the name from WWF to WWE is one such weakness. The company used vigorous marketing to overcome this challenge. Despite the change in name, the company managed to perform profitably. The gross profit continued to increase gradually from $153,140,000 in 2005 to $214,670,000 in 2008.
It also identified novel opportunities in the industry. It launched a football league, XFL. This was to increase its competitive advantage (Fried, Shapiro & DeSchriver, 2008). However, the football league failed after one season. It has adopted the use of live shows around the globe. This enabled it to increase international revenue to $120 millions in 2007 from $45 million in 2002. In addition, the launch of WWE 24/7 assisted the company to increase the number of fans.
Further, the company has recognized the contribution that digital media and the internet makes to business performance. The company adopted an e-commerce platform. This attracts approximately 16 million fans monthly. Lastly, it started producing movies to increase its revenue. It has already produced movies such as “The Marine” and “The Condemned.” The company has also identified its basic threats. It has tackled competitors such as WCW.
Alternatives
The application of various social networking sites might help in the marketing strategies. Social networking sites such as Twitter have become popular since 2003. Companies in various industries have used the sites to market products and services. The company can use these sites to market its television programs.
Additionally, these can also market live shows and the wrestlers. The company is able to increase the number of its fans. Consequently, there might be increases in revenue (Black, 2011). It is important to increase the number of fans and raise more revenue.
The company may adopt a dynamic business approach. This enables it to sustain a high level of competitive advantage. The business environment is ever flexible. The dynamic approach enables the company to deal with these transformations. WWE can also develop its dynamic competencies.
It is also vital for the company to adequately allocate and manage its resources. The processes enable the company to follow a given path of competence. Dynamic capabilities of the company may also depict its competency to be innovative (Sanchez & Heene, 2010). The company may hire management consultants to assist in positive transformation. The outsourcing of experienced professionals ensures higher performance rates.
Recommendations
WWE MUST adopt strategic management practices. The method ensures adjustment to changes in the business environment. Moreover, it enhances optimal resource use. The strategy is more likely to increase innovation. The approach considers all business aspects. It involves the use of knowledge management techniques.
Knowledge management employs repetition and experimentation of different techniques to enable efficiency in processes (Phadtare, 2011). There is need for an adoption of appropriate and transformational leadership. Transformational leadership enables the company to make strategic alliances.
Conclusions
WWE is a leading global company that deals in professional wrestling. It has experienced a considerable decline in the number of fans and revenues over the past years. The company adopted various strategies to revive its performance. These include the development of scripts.
These strategies enabled the company to improve its revenues. However, there is eminent space for considerable improvement. For instance, it might be beneficial to use social networks and apply strategic approach in business operations. The company might also outsource qualified and expert personnel for its operations. Strategic collaborations with potential corporations and other competitors may also help. The company must recognize the significance of exploiting information technology.
References
Black, J. (2011). The ultimate guide to WWE. New York, NY: Grosset & Dunlap.
Dess, G., Lumpkin, T. & Eisner, A. (2012). Strategic Management: Creating Competitive Advantages. New York, NY: McGraw-Hill/Irwin.
Fried, G., Shapiro, S. J. & DeSchriver, T. D. (2008). Sport finance. Champaign, IL: Human Kinetics.
Phadtare, M. T. (2011). Strategic management: Concepts and cases. New Delhi, India: PHI Learning.
Sanchez, R. & Heene, A. (2010). Enhancing competences for competitive advantage. Bingley, UK: Emerald Group.
In the contemporary globalizing world the competition in the sphere of business is very high. Some of the world’s countries are known to be more active than others, these countries tend to have very high speed of development, they are involved into various international interactions and relations that help them develop their business and prosper.
The biggest cities of India such as Delhi, Mumbai, Bangalore, Pune, Kolkata and Ahmedabad are called the hotspots and occupy various positions in the list of the most competitive places of the world (Current Business Trends in India, par. 6).
Indian retail business is filled with smaller companies that belong to different families. Knowing the size of India and its population, it is easy to imagine how difficult it would be for small family businesses to survive the competition in that country. At the same time, the opportunities for development are multiple; this is why a good businessman in India can find many ways to save the business.
Indians call themselves a nation of shopkeepers for a reason (Bijoor, par. 14). Another rapidly developing business trend in India is mobile phone industry. The number of phones in the urban areas exceeds the number of people living there almost by fifty per cent.
In the rural areas it is lower, but the general number of cell phones owned by the residents of India is close to nine hundred million pieces. Mobile connection providers and cell phone stores make huge money with the help of so many subscribers.
It goes without saying that one of the most prospering industries in the Indian business world is the sphere of hotel business and entertainment. According to the data obtained by the ministry of tourism of India, at least forty four million of tourists visited their country last year.
This popularity of India as a resort and a place of interest makes this country a great target for the hotel chains that are willing to expand (Hotel Industry in India, par. 2). In order to comfortably receive the growing number of visitors the hotel industry in India needs to increase the number of rooms it is able to offer. International global hotel chains are interested in starting their work in India as it is a very cost effective destination.
In the contemporary age of information and digital technologies the Internet has become one of the major marketing trends for all types of businesses. Hotel business and entertainment in India is not an exception.
Advertising through social networks and websites designed especially for travelers is extremely popular and effective nowadays. The websites of the modern hotels have to be mobile friendly, visually attractive, have their content updated frequently, present the special offers and allow an option of direct mobile booking (Bhatnagar, par. 8).
In the contemporary Indian hospitality business is one of the fastest growing industries. According to the projects of the experts, it is expected to grow by eight per cent between 2007 and 2016 (Kumar, 2). Indian hospitality is based on a belief that “the guest is God”, this way of thinking comes from ancient times.
The entertainment industry in India is currently facing a crisis. The number of dancers is getting lower, this is why the industry starts actively looking for talents today.
Dancing is a very significant aspect of Indian culture, ethnical dancers are commonly employed in the sphere of hospitality, and the lack of dancers may create an issue for the tourism, as Indian dancing is well known all around the world. The rapid growth of hotel business makes the lack of dancers even more significant.
Works Cited
Bhatnagar, M. Top 10 Marketing Trends for the Indian Hospitality Industry. 2014. Web.
Bijoor, H. Fashion Retail Comes of Age. 2014. Web.
The live music industry for the gross concert revenue increased from $3.9 billion in 2007 to $4.6 billion in 2009, which was a compound annual growth rate of approximately 9%. The industry growth was primarily due to increasing ticket prices for top-grossing acts. Booking agents need to directly contract with performers to represent them for defined periods hence initiating live music events (Harrison, 2014). Promoters earn revenue from the sale of tickets while the promoters pay performers (Bernstein, Sekine & Weissman, 2013).
The company Live Nation Entertainment was formed through acquisitions of entertainment businesses and assets (Live Nation Entertainment Schedules fourth quarter and full year 2014 earnings release and teleconference, 2015). It became a public traded company after its separation from Clear Channel and the name was changed to Live Nation. Since the company went public, it now has to take into account the needs of its shareholders. The CEO of the company is Michael Rapino.
Key financial results for the fiscal year were as follows
2010
2009
Variance
(in millions)
HK$
HK$
HK$
Revenues
3,013
2,541
472
Costs and expenses
2,792
2,611
181
Earnings/(loss) before interest, taxes, depreciation and amortisation
221
(70)
291
Depreciation and amortisation
833
858
(25)
Net finance costs
106
387
(281)
SHAREHOLDERS’ EQUITY
9,750
9,442
308
The company has a database, which provides the means to efficiently market shows to fans (Wikström, 2014). Presence of online website is designed to promote ticket sales for live events (Arditi, 2014). Full-time employees provide first class service to artists and corporate sponsors (Allen, 2014; Weiss & Gaffney, 2013). It is crucial for operators to have appropriate licensing that is associated with copyright, synchronisation (music and background), performing rights, broadcast and so on.
Global music platform is increased hence the quality of the product offered improved (Burgess, 2014). Promoter presence is expanded that includes the top music markets and centres around the world (Choi & Maliangkay, 2014). Customers expect to get numerous services including high quality venues, ticket availability, numerous online services (Anderton, Dubber & James, 2013). Comprehensive information about live concerts and access to tickets can be regarded as key requirements of customers.
Arenas are able to offer amenities such as luxury suites and premium club membership. This is subject to audience size limitations. Music theatres that have a capacity of 1,000 and 6500 are there to generate annual profits and present fewer risks to concert promoters because of lower fixed costs. There is the ability to predict occupancy of the attractions. There is no rigid seasonality.
During 2009, the music business generated approximately $2.6 billion. Cost is reduced by using humans as performers. Revenue is generated from the sale of food and beverages, parking and rental income. Normal operations are maintained by having teams. Revenue generated from venue operations has a higher margin due to a more direct relationship to operating income.
ECHO: A Music-Centered Journal is a peer reviewed journal that focuses on issues of the music industry. The journal was first published in 1999. This is a web-based resource and it can be accessed free of charge, which makes it a good opportunity for all stakeholders (fans, performers, music companies, promoters) learn more about recent trends and news (Strachan, 2014).
The power of the brand has brought about financial support and investments from certain partners in business. Motivated performers are part of the event (Leslie & Rantisi, 2011). Shows are supposed to be on full-time basis. There is an increased population of artistic communities and associations. The key to success is massive investment into the industry and companies.
Reference List
Allen, P. (2014). Artist management for the music business. Burlington, MA: CRC Press.
Anderton, C., Dubber, A., & James, M. (2013). Understanding the music industries. Thousand Oaks, CA: SAGE.
Arditi, D. (2014). Itake-over: The recording industry in the digital era. New York, NY: Rowman & Littlefield Pub Incorporated.
Bernstein, A., Sekine, N., & Weissman, D. (2013). The global music industry: Three perspectives. New York, NY: Routledge.
Burgess, R. J. (2014). The history of music production. New York, NY: Oxford University Press.
Choi, J. B. & Maliangkay, R. (2014). K-pop – The international rise of the Korean music industry. New York, NY: Routledge.
Harrison, A. (2014). Music: The business. Croydon, UK: Random House.
Leslie, D. & Rantisi, N. M. (2011). Creativity and place in the evolution of a cultural industry the case of Cirque du Soleil. Urban Studies, 48(9), 1771-1787.
Strachan, J. (2014). Extermination music nights: Reanimating Toronto’s lost geographies in sound and art. ECHO, 12(1).
Weiss, M. & Gaffney, P. (2013). Managing artists in pop music: What every artist and manager must know to succeed. New York, NY: Skyhorse Publishing, Inc.
Wikström, P. (2014). The music industry: Music in the cloud. Malden, MA: John Wiley & Sons.
