CCM Music Recording Company Case Study Part 3

CCM Music Recording Company Case Study Part 3 AnalysisThe value chain, value chain analysis consists of the following components, in sequence: artists and repertoire development, recording, production, marketing, distribution and finally retail. These chains of production, registration and retail sales are often outsourced, including the Big Five (Waer Music Group, EMI Recorded Music, Universal and Sony BMG Music Entertainment Group). A thorough analysis and review of CCM operations by reviewing the current and long-term problems of the inteal and exteal development and repertoire environments.Artists: Recording Company to provide as much money as possible for the development of their group and music, musical repertoire and quality in order to promote concerts and tours to organize, prepare merchandising. CCM plans to expand the range of products for the album and more musicians and expansion of musical genres, the company operates into.Recording: In general, the major record companies have their own studies, but the removal of this chain is also possible this first by companies such as Columbia and EMI. Primary cost of the device and mixing plant, in the case of Colorado Creative Music has been the cheapest of all devices possible.Manufacturing: production of a CD usually takes 10% of the cost. There are too many CD manufacturers in the world, as the cost of the process, the market is very limited, with serious barriers to entry. CCM production is not very expensive because of the technology used, although the company did not actually manufacture of CDs purchased by the respective producers, and then played them.Marketing: activities related to marketing and advertising, which traditionally are responsible for 30% of the total cost of the CD. The marketing costs combine radio and TV advertisements, printed catalogs and press releases, promotional tours and other events. In addition, marketing costs include preparation of PR tours and music videos. CCM Marketing Events include: Live performances, shopping centers, concerts and festivals of art, website, website promotion, in particular, and new programs to acquire and lea the advertising, which consists of radio airplay, TV, inteet radio, live interviews on radio and TV, print press releases and reviews a list of events, promotion - in camps, competitions, sponsorship, Giveaway and e-mail marketing methods, the monthly newsletters.Distribution: The stage of distribution represents approximately 40% of the total cost of the product. This process involves physical transport and packaging of a CD from production to distributors or retailers directly. Since there are few manufacturing facilities, supply of these places in every coer of the world can be very expensive. Moreover, as the supply is often in short, the distribution costs grow even higher. MCC, the distribution is the direct sale of live performances, about 800-number to discuss the website or e-mail for catalog. Indirect sales channels, which the company can be traditional and unconventional. Traditional music channels include chain stores, chain bookstores and independent music stores. Non-traditional methods include catalogs, retail chains, gift shops, independent bookstores, Christian chain and independent. The inclusion of indirect methods of selling in distributional CCM tactic is advisable, as the company distinguishes itself from its competitors and is designed to attract potential still intact markets.Retailing: retailers are generally characterized by the major labels and Inteet super markets, such as Amazon . com and CD now. With CCM products particularly popular with the public sector, the company can not benefit from these costs service.Strategic retail analysisStrategic analysis aims to compare the costs of the company compared to its major competitors in business activities for raw materials until the price paid by the customer. (Hill & Jones, 1995) In this case, the analysis conducted in terms of the MCC and the representatives of the major market segments such as EMI, Sony Music. In 2000, the total income for the production of $ 216, 614.05, the primary source of which was directly Gig sales, accounting for $ 181, 451.92, over 80 percent. Large companies derive their main income from traditional indirect sales channels, such as music stores retail. Other important sources of income from MCC wholesale ($ 12,238.83), mail and telephone orders ($ 11, 442.24), and website sales ($ 6,419.35). The traditional distribution channels, along with other sales, just $ 1,758.79. This figure is micro labels, but not absolutely independent, characteristic of major labels. The cost of products sold up to $ 22,034,33, therefore, gross profit of the company in 2000 at $ 194,579.72. This figure is the highest in the period 1997-2000 and the relatively low cost of production of goods (10%) is typical for the whole sector. On the expenditure side, 2000 was the first year if the company had a lot (up to $ 500) for equipment rental. Until then, the company uses its own equipment. Equipment rental and outsourcing of production is a typical practice for the big record companies and whether they have a lot of expensive devices, sometimes paying huge sums for the rental of unique, exclusive and equipment for the needs of each registration. It should be noted that the costs of the company, which is the price for the staff, the increase on an annual basis, which means that the company each year, the increasingly active policy of staff, the employment of more professionals, technicians, musicians and artists. This is a good index and the cost (in 2000 have made up to $ 29,719.26) should be every year if the company wants to be in size and prestige. Major labels employ tens or even hundreds of first-class engineers, manufacturers and producers of sound and to pay them tens of thousands of dollars a year. In addition to large companies conclude contracts with well known artists with a higher cost, often several hundred thousand dollars. Another feature that should be entered in the analysis of ad spending is low. In the case of MCC is $ 10,423, which is only 5% of total income. This figure shows poor advertising and promotional campaigns, as is usually recorded music for the big label companies share at least 8-10%. Overall, revenue and revenue structure is typical for micro enterprises with a low cost label allocated for advertising, distribution of their products and in particular the fees. In large enterprises and the self-employed, the structure of expenditure is different. The main emphasis will be remembered, updating and maintenance of equipment (large companies are very expensive equipment based on analog, it must be maintained), the taxes that are characterized by high popularity and prestige of performers and high level training, advertising and promotion campaign and distribution channels. MCC is the share tax, together with the wage bill of $ 45,000, most of the cost of the total income statement.Key success in the competition factorsKey concrete measures of success are the vision, mission and values of organization on an annual basis with the objective to achieve improvements to achieve the ideal vision of the future (Gerry, Kevan, 1997). The most important factors of success for Colorado Creative Music, values, assessment, member satisfaction, financial viability, effective performance management system, customer satisfaction and recognition, development of technologies and improve the range of marks. The music industry has a number of forces that are the determining factors for the success of companies like CCM. These forces, which directly affect the CCM, including: * a significant reduction in the cost of recording and playback of digital music on the base. Without this, in fact, that MCC is very doubtful .* distribution and downloading music on the Inteet is virtual. Accessibility for people around and bu your own CD has revolutionized the impact on the structure of distribution channels in the music and lowers the price of a single CD. Inteet has proved highly effective, novel, affordable and now critically important tool for informal, direct and indirect (through libraries) as the channel of distribution .* The relative ease of the website for reservations on the Inteet and the introduction of online sales of their music. Inteet not only facilitates the spread of music, but also encouraging. Promotions on the Inteet site of some of the music, taking into account the growing number of Inteet users, is by far one of the most effective advertising media .* Small informal distribution of music is possible. The company has a few channels of distribution, even if it is without the possibility of access to traditional indirect channels.All these factors together, the ability of the CCM, the music recording industry, accessible and attractive to small studios.At this for the success the company focuses on developing these areas of activity such as production, distribution and marketing, but to continue to grow and at another level the indie label, the company also expanded repertoire The number I recorded musicians, and work on the popularity of the artists whose works it records, promotes and distributes.Competitive advantage over the competition can be achieved through cost leadership, in order, if the company lowers its prices products and makes them cheaper than the competitors, and the strategy of differentiation, which means that there is competition from products or services. There is also focused strategy, but if the company aims to grow from micro independent label, it needs to expand its customer base and new market segments in addition to the already has.Therefore, strategy of differentiation is by far the most effective to obtain a competitive advantage for CCM although some elements of cost leadership, including the reduction of the purchase price of music on the Inteet, or the preparation of saturated tariff structure is also possible. These two strategies are key elements of competitive advantage based on the position of the company, including the advantages of position. There is also a different concept for the success of the contest, called the resource perspective, which is for use by businesses to pool their resources and capabilities to gain competitive advantage over their competitors. In this regard, MCC is to focus on these success factors as a customer installed, reputation and brand equity, the very special skills to enable innovation, quality, efficiency and growth responsiveness.BCG matrixBCG particular matrix Conceing the distribution of resources among firms in the business units. The business units that are identified within CCM record division, department, sales department, finance and accounting, management and personnel department. Currently the company is not such functional units, as their staff are not very numerous and Darren Skanson, top manager, artist and producer, while working as accounting, desktop publishing, database manager, newsletter editor, website designer, copywriter The main artists and managers. But the company aims to grow from micro independent labels in the recording studio and that they need more staff and the allocation of working time between the functional units of directions. After BCG Matrix, almost all units of society are cats and questions, as the market share of the company has some 'small compared to its competitors, the company has its niche, which has limited its customers. These units, such as the inclusion, financial management and accounting can be defined as a dog areas, while the promotion, distribution and human resources are conceed marks.For remaining parts of this series is music discografica StudyAnastasia Kurdina case a person's gifts. Almost all his writing is followed by extensive references of satisfied customers. Anastasia specializes in marketing, management, world cultures and art. Anastasia is not an essay writer in a sense. E 'a poet, an analyst, an artist, critic ... You know better her time of custom search service to try to write new customers online. Our task is to manage your time as you want ...