A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses
For several decades, the classical music industry has been in decline with demand down, costs up and profits shrinking as many orchestras struggle for survival. Against this backdrop, AndrA? Rieu and his Johann Strauss Orchestra stand apart. Instead of competing like all the other orchestras, AndrA? Rieu has reconstructed market boundaries between classical music and pop concerts, creating a blue ocean of vast new demand. Rieu and his orchestra have stayed on the Billboard Top 25 Tours list for nearly 2 decades, right alongside the likes of Bruce Springsteen and Justin Bieber. His CDs and DVDs have sold more than 40 million copies versus 10,000 copies for a top classical music CD. This case reviews the competitive practice of the classical music industry and illustrates how Andre Rieu gained insight into unlocking new demand by looking to noncustomers of classical concerts, and how he reconstructed industry boundaries and created new market space, making the competition irrelevant. The case comes with a teaching note that reviews major concepts and frameworks of competitive strategy and blue ocean strategy in the context of the case and provides answers to the questions for class discussions.
Swot Analysis of "A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses" written by W. Chan Kim, Renee Mauborgne, Mi Ji includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rieu Classical facing as an external strategic factors. Some of the topics covered in A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses case study are - Strategic Management Strategies, Financial markets, Growth strategy, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses casestudy better are - – cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing commodity prices, geopolitical disruptions, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing,
increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rieu Classical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rieu Classical operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses can be done for the following purposes –
1. Strategic planning using facts provided in A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses case study
2. Improving business portfolio management of Rieu Classical
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Rieu Classical
Strengths A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rieu Classical in A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses Harvard Business Review case study are -
Ability to recruit top talent
– Rieu Classical is one of the leading recruiters in the industry. Managers in the A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Rieu Classical has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Rieu Classical is present in almost all the verticals within the industry. This has provided firm in A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Rieu Classical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rieu Classical has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Rieu Classical is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Rieu Classical is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by W. Chan Kim, Renee Mauborgne, Mi Ji can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High switching costs
– The high switching costs that Rieu Classical has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Rieu Classical has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rieu Classical to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Rieu Classical in the sector have low bargaining power. A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rieu Classical to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Rieu Classical is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Rieu Classical in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Rieu Classical digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rieu Classical has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Rieu Classical in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses, is just above the industry average. Rieu Classical needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Interest costs
– Compare to the competition, Rieu Classical has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Rieu Classical has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Rieu Classical even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Rieu Classical 's lucrative customers.
Aligning sales with marketing
– It come across in the case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses can leverage the sales team experience to cultivate customer relationships as Rieu Classical is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Rieu Classical supply chain. Even after few cautionary changes mentioned in the HBR case study - A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rieu Classical vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Rieu Classical has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Rieu Classical is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Rieu Classical needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rieu Classical to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Rieu Classical has relatively successful track record of launching new products.
Products dominated business model
– Even though Rieu Classical has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Rieu Classical has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rieu Classical can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rieu Classical in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Rieu Classical has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rieu Classical to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Rieu Classical can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rieu Classical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Rieu Classical in the consumer business. Now Rieu Classical can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Rieu Classical can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Rieu Classical can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rieu Classical is facing challenges because of the dominance of functional experts in the organization. A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Rieu Classical can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Rieu Classical can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Rieu Classical can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rieu Classical can use these opportunities to build new business models that can help the communities that Rieu Classical operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Rieu Classical needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Rieu Classical demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Rieu Classical has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Rieu Classical needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rieu Classical in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Rieu Classical business can come under increasing regulations regarding data privacy, data security, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Rieu Classical in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Rieu Classical
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Rieu Classical.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Rieu Classical can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rieu Classical with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Rieu Classical high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Rieu Classical needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rieu Classical can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses .
Weighted SWOT Analysis of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of A Maestro without Borders: How AndrA? Rieu Created the Classical Music Market for the Masses is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Rieu Classical needs to make to build a sustainable competitive advantage.
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