Week 15 Journal

Week 15

CASE STUDY

1)        Why has this artist been so successful? What are her key sources of sustainable competitive   advantage?

Think about her unique resources and core competencies, think about how she has responded to changes in the external environment, why is she difficult to imitate?

           

2)       What strategy directions could the artist pursue over the next ten years to continue her    commercial success?

Consider each of the four boxes from the Ansoff matrix. What new products or markets could she enter? How might she diversify or continue to penetrate her existing market? Try to think logically but also creatively and innovatively.

Answers

1)      Madonna is an American singer, songwriter, actress, dancer and entrepreneur. She is well known for continuous reinventing both her music and image and for retaining a standard of autonomy within the record industry. She has sold more than 300 million records worldwide and is recognized as the best selling female recording artist of all time by Guinness World Record.

The main reason beyond for the successful career of Madonna is her sustainability and adaptability strategy with the flow of time. She has been able to maintain her fame with in the audience by updating herself with the music industry.

The key sources of sustainable competitive advantage of Madonna are:

a)      Madonna has a vision for the success in the music industry. Her hard work in the music industry proves she is motivated for her vision and finally she achieves the success.

b)      Every established artist faces the dilemma of maintaining their importance and relevance but Madonna never fails to be relevant. Her chameleon like ability to change persona, change her music genre with it and yet achieving success.

c)      She has been able to target the different groups of audience and all of them have warmly accepted her. Her subsequently changing image styles in the industry also help her to remain in the top of charts.

d)     Her outstanding threshold capabilities such as voice and looks, dancing styles, sex appeal, skilled support, scandal management ability and versatility makes unique among various artist.

2)       

Ansoff matrix of Madonna

Market Penetration       ·   Target different geographical markets at home or abroad.        ·  Target different groups of people, perhaps with different age groups, genders or demographic profiles from normal customers.	New products and services        ·      Involve in new business.
Market Development       ·  Advertise, to encourage more people within an existing market to choose your product, or to use more of it.          ·    Introduce a loyalty scheme.        ·     Promotions.         ·    Increase sales force activities.    · Buy a competitor company (reputed music company or production house)	Conglomerate Diversification    ·  Launch music in foreign language for foreign audience.        ·         Active involvement in politics.

References

·        Online available from http://www.studymode.com/doc/12456190/Madonnaandherways [Accessed March 12, 2013]

·         H.I. Ansoff, Corporate Strategy, Penguin, 1988, Chapter 6 / [Accessed March 3, 2013]