Colorado's Creative Music Step Analysis Directs Analysis of Macro Environmental Factors in the Music Business the company is engaged in. These factors are divided into political, economic, social and technical groups. ..
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Colorado creative music, ccm case studies, music marketing, record labels, music labels
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Step analysis
Colorado's Creative Music Step Analysis Directs Analysis of Macro Environmental Factors in the Music Business the company is engaged in. These factors are divided into political, economic, social and technical groups (Pearce, Robinson, 2000).
Legal and political issues affecting the music business in the whole and CCM in particular: strong political stability in the United States; music business regulations and legal issues Audio, including copyright laws for both writing and recording of music Home Recording Act (1992), "No Electronic Theft", etc. Environmental regulations and employment requirements do not affect the business that CCM is engaged in. For tax policy, in 2000, from a total revenue of $ 216,614.05 The company had to pay $ 4,744,97 for taxes reaching nearly 2 percent from total income, not high rates Overall noted that political factors are particularly advantageous to the music recording industry and CCM It should.
Economic factors include macroeconomic indicators that may affect the music recording industry. Here too, macroeconomic factors such as economic growth, interest rates and inflation rates favor CCM. Thus, the US economy has steadily grown since 1995. The CPI falls in 1997 and 1998. The unemployment rate fell gradually from 1995 to 2000.
The social factors covering the demographic and cultural aspects of the music recording industry's external environment are population growth rates, age distribution and career attitudes. Population growth in the United States is stable, and age distribution favors the music recording industry. It should be noted that for the entire music industry, teenagers and 20-year-olds are the major customer segments, but CCM gathered people in the 40- to 60-year-old range, so the American population A significant share of will fit into this target market.
Technological advances in music recording, promotion and distribution have several effects on the recording industry. One of the most important issues in is the creation and distribution of the main recorded labels that do not depend on their communicativeness. The alternative to MP3 software on CD (Viljoen & Dan, 2000) will be more popular since 1998. 12-15 audio tracks to match traditional audio in space; MP3 software can store about 150 songs. "The move towards MP3 as a new format, CD, vinyl album is being accelerated by the rush of new portable MP3 players in the market" (Viljoen & Dan 2000, p. 173). Meanwhile, new digital technology that appeared in the second half of the twentieth century not only eases the process of music recording, but also multiple companies with limited resources enter the market. Therefore, in the 1980s, all recording equipment and professionals Recording studios worked on vinyl and tape carriers, costing millions of dollars, but all equipment and hardware were for the average artist and business man, due to the worldwide advancement of technology It is much more affordable.
SWOT analysis
Strength
* Benefits of new technology costs arising from the digital revolution. Not only is it necessary to assemble all the necessary equipment and hardware and studios, but Cd, storage and shipping duplication are equally cheap. Low cost of production, duplication (500 Cd duplicates range from $ 1.90 to $ 3.63; 2000 Cd duplicates cost about one dollar per CD), shipping and storage end products
* CCM position in a distinctive market niche. CCM is a microlabel recording company that specializes in classical traditional musical instrument music.
* Growth customer base and customer loyalty within the target group. Customer base growth through product line expansion (already four new product lines emerge each year), and geographic coverage of listeners.
* Good customer service shows through direct contact between Darren and his fans.
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* No clear strategic vision: CCM needs a long-term vision that includes all areas of the business, from marketing and management, to distribution and human resources At the moment, the company, through the possibilities of other companies, Strengthen or develop a record company, or focus on either a more aggressive promotion or product distribution)
* Competitive disadvantage: CCM can not enter the retail market because of current sales level. Competitors like major labels have advantages because they have the power and influence of major markets. Such companies can specify when music should be played on the radio and negotiate large-scale contracts with agencies and retailers.
* Limited channels of distribution: At the moment, the company is selling at gigs, shopping mall distribution, selling at the back end (800 number ordering, website order processing, these channels are the company's profit Nevertheless, in order to expand its consumer base, the company, such as through traditional music distribution networks such as formal distribution channels such as sales
* CCM lacks resources to pursue new opportunities. Profits are thin, meaning that new opportunities are not available and long-term improvements may not be given for initial costs. To enter into a contract with a major label that provides the company with access to the distribution of traditional products, the company needs to sell at least 15,000 copies of the product annually, while high sales numbers are a good traditional distribution channel It is impossible to get without.
* CCM is losing ground to larger companies due to limited exposure. Current CCMs do not reach global or national audiences such as independent or major labels. CCM needs to expand its scope and expand its customer base.
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* A group of serving additional customers by expanding collaboration with other artists and expanding the Acoustictherapy and other product lines of the new marketing strategy.
* Internet by expanding e-commerce and releasing MP3s.
* Expand a wide selling country.
* Acquisition of traditional distribution channels to reach wider customer exposure
* Development of new technologies to cope with the driving force of the industry.
* Release editorial artists are popular. One strategy is to assemble a song (such as Accustictherapy) in a studio and sell the finished disc to a hometown performer at a discounted rate. This method covers the costs in advance and gives the player a stimulus to push the product.
* Push sales to non-traditional areas like weddings, shopping center music etc.
threat
* Growth of other small labels due to the large number of newcomers and the digital revolution. In addition, major labels or independent labels can be entered into the CCM domestic market and try to drive smaller labels from the market.
* Download alternative products to lost sales mp3 or internet
* Because the vulnerability to the industry driving force of CCM's weak position in the industry, in consideration of the company's microlabel segment of the market, taking into account the low cost of digital recording mainly
Five-force model competition
The Michael-Porter competition model (Porter, 1980), when applied to the music recording industry, consists of the following elements:
Perhaps the strongest competitive edge belongs to factors such as the competition between producers and sellers of music products. The music recording industry is a major recording studio of four clearly identifiable segments, independent labels, microlabels and vanity labels.
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