ASSIGNMENT OF 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?

Sources: http://www.wallpapershdi.com/wallpaper/1636/face-of-madonna-widescreen.html

Sources:http://hollywoodbuzz.buzznet.com/user/journal/17295049/fans-walk-out-madonna-concert/

Madonna is an American singer, actress, writer, dancer and entrepreneur. She is so successful that no one can be compared with Madonna.  Ruling the music industry for 30 years is not a small thing. Simply, she was successful because of her strategy. As the time changes, she also changed her strategy in order to sustain in the industry.

The early image of Madonna:

·         Punk-pop image

·         Notable performance at the 1984 MTV VMAs

·         Prominently featured on MTV

In 90s Madonna was following the strategy of High fashion look. During that time her main target groups were gay club scene and emancipated women. Further she was awarded for the Critical acclaim for her role in Evita.

Followings are the bases for Madonna sustainable success:

Vision:

The vision of Madonna was to rule the world and she proved it that she is a ruler in the music industry. So, her vision motivated her to become a successful person.

Deep understanding of customers and industry:  

Madonna was also very much aware of the industry and her audience. As time is constant, she adapted different strategy according to the environment. Her MTV co-specialization, club tests, politics/religion shows that she has a deep understanding of customers and industry.

Leveraging competences and addressing weaknesses:

She is a strategist and she was able to determine which strategy to follow in a given environment. Further she was a person who does not hide their weakness. She tried her best to improve her weakness.

Continuous renewal: 

She was innovative and flexible. In addition, she was difficult to imitate.

Consistent implementation

Madonna's Competences for competitive advantage

Threshold capabilities / resources

•         Voice and looks

•         Dancing and style

•         Sex appeal 

•         Skilled support

•         Scandal management

  Core competences / unique resources

·            Versatility

·            The brand Madonna

    Madonna’s strategy from 1893-2010 by which she has responded to change

•      No frills (1983 A.D.)

Low price/Low added value

An opportunity for a new entrant to carve out a niche or to use no frills as a bridgehead to build volume before moving to other strategies” As Madonna was new to the industry it was important for her to have something unique and innovative. Her voice, looks and dancing style were her unique resources for her.

•      Differentiation (1984 A.D.)

She provides products/services that offer benefits different from those of competitors and widely valued by the audiences.

•      Focused differentiation (1985-2013 A.D.)

Her high perceived benefits justifying a sustained price premium usually to a selected market segment made her to be a sustainable in the market. Her songs are regarded as a premium product and they are heavily branded. Also the image and brand of Madonna was 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.

ANSOFF MATRIX FOR 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:

• H.I. Ansoff, Corporate Strategy, Penguin, 1988, Chapter 6

• Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 7

• ‘Bennett takes the reins at Maverick’, Billboard Magazine, 7 August (1999); ‘Warner Bros expects Madonna to light up international markets’, Billboard Magazine, 21 February (1998).

• ‘Maverick builds on early success’, Billboard Magazine, 12 November (1994)

• 1994); A., Jardine ‘Max Factor strikes gold with Madonna’, Marketing, vol. 29, (1999), pp. 14-15

• S. Kirschner and D. Kirschner, ‘MTV, adolescence and Madonna: a discourse analysis’, in Perspectives on Psychology & the Media, American Psychological Association, Washington, DC,1997.

•  ‘Warner to buy out maverick co-founder’, Los Angeles Times, 2 March (1999).

• ‘Why Madonna is back in Vogue’, New Statesman, 18 September (2000)