week 15

Week 15

1.      Why has the artist been successful? What are her key sources of sustainable competitive advantage?

In the scenario of the global entertainment in out of celebrities are common but to remain in top position for years and years is very big deal. Madonna is one the singing star who is able to remain in top position with massive fan following. Her record breaking 300 million sales of record has listed her name in Guinness World Records. She is also one of the most earning celebrities in the universe. (www.contactmusic.com)

Fig: Madonna

Reasons of Madonna’s success and sources of competitive advantage are listed below:

Ø  Bringing change on her style with the time.

Ø  Excellent innovation and creativity.

Ø  Strategy of making songs to get fan from all age group.

Ø  Effective network with big music houses.

Ø  Ability of overcoming the weakness.

Ø  Electrifying business mind. (www.aceshowbiz.com)

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

Market penetration

In this form of strategy the existing product is allocated in well manner and the volume of market share is increased. In case of Madonna she can bring some collection albums of the hit numbers to remain competitive in the market. And also she can continue to bring the same genre of the songs to the market.

Product development

At the stage of product development readjustment of existing product is done or new segment of product line is introduced to the market. Madonna can follow latest trend of music and come up with new album. Else she also can enter in the business of music production house or she can start giving music to other artists and movies.

Market Development

In market development, there will be hunt for new market for existing product. Madonna can endorse herself in the untouched market area by making planned marketing policy. She also can create many buzzes to remain the lime light of the news.

Diversification

It is a strategy that involves diversifying the scope of produce or services by an organization. For Madonna she can also restart her career as the movie artist and she also can make huge profit from bringing her fashion line in market in proper way. Along with these things she also can produce some music for the purpose of endorsing new artist in market. (www.strategyanalytics.com)

References:

(n.d.). Retrieved from www.contactmusic.com: http://www.contactmusic.com/info/madonna

(n.d.). Retrieved from www.aceshowbiz.com: http://www.aceshowbiz.com/celebrity/madonna/profile.html

(n.d.). Retrieved from www.strategyanalytics.com: http://www.strategyanalytics.com/

 

week 14

Week 14

1.      In your own words and using referenced quotes describe the difference between ‘business unit level’ strategy and ‘corporate level’ strategy.

  An autonomous division or organizational unit, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance.

Because strategic business units are more agile (and usually have independent missions and objectives), they allow the owning conglomerate to respond quickly to changing economic or market situations. (www.businessdictonary.com)

 The most widespread view is that improving the competitive strategies of the operating units is the essence of corporate strategy. The corporate office should be focused on, for example, the identification and capture of synergies between operating units. There remains considerable debate about how best to do this. But the underlying assumption – that corporate strategy supplements competitive strategy – goes unchallenged, begging the question whether the corporate office can make any other kind of contribution. (www.iveybusinessjournal.com)

2)  Discuss the corporate parenting style of Virgin group.

1)      What type of corporate parent is Virgin? (portfolio manager, synergy manager or parental developer)

Virgin group falls under parental developers. As virgin group always give emphasis to add value to their business from their own innovation and capabilities. The brand name and reputation of Sir Richard Branson has been the key reason of the success of the Virgin group. These are some factors that add value to the business of virgin group.  And also Virgin group provides the complete authority to its business unit to operate in their respective way which clearly explains that the company follows the developer type of corporate parent.

2) How does the Virgin Group, as a corporate parent, add value to its businesses?

As the Virgin Company is the parent company and its competitiveness add value to the entire brand image. In addition to that their unrivalled network of friends, Sir Richard Branson’s personal reputation, management style, contacts and partners add extreme level of value for the business. Each and every company under the Virgin group shares the common type of ideas, interests, values and goals.  And the most important thing is that they solve the problem of one unit with joint effort and which helps to make the warm rapport with one another. These things are the reasons behind the electrifying and successful companies under virgin group.

3) What is the logic of portfolio? Why do you think they are in mobile telephony, travel, financial services, leisure, music, holidays and health & wellness?

Every business house and investor wants to make their level of risk low and return high. And for that purpose portfolio is the best way. When  business firm maintains the portfolio than it will help them to recover from the loss of one business as profit from other business will give a support.  Another aspect is that the company want to be in every segment of business to make the brand image strong in the market.

As Virgin is the brand name renowned to the consumers, the Virgin Group may gain profit from the loyalty of the consumers. So, they are in mobile telephony, travel, financial services, leisure, music, holidays and health and wellness. (www.virgin.com)

4) What are the main risks facing Virgin Group as a result of their strategy? How might they be reduced?

Brand image of Virgin group is very strong in the market and the full credit goes for the Sir Richard Branson. If something unexpected happens to Sir Branson than company will lose the greatest assets resulting decrement in the image and brand value. Though Virgin group have a very strong team of management expert but they are not able to endorse themselves in the market as Sir Branson.

References:

 

(n.d.). Retrieved from www.businessdictonary.com: http://www.businessdictionary.com/definition/strategic-business-unit-SBU.html

(n.d.). Retrieved from www.iveybusinessjournal.com: http://iveybusinessjournal.com/topics/strategy/what-is-corporate-strategy-really#.Up59kNIW384

(n.d.). Retrieved from www.virgin.com: http://www.virgin.com/about-us