Assignment
Case Study: LIVING LARGE
Although the music business is struggling, Live Nation is sitting pretty. It's the world's largest events and live music promoter, with more than 64 million people attending some 28,000 of those events each year. The company also owns the House of Blues chain of venues, where customers can enjoy different genres of live music.. CEO Michael Rapino has guided the company since it was spun off as a separate business in 2005 from radio giant Clear Channel Communications.
On its Web site, Live Nation describes itself as the "future of the music business", through live concerts, music venues and festivals, and the most comprehensive concert search engine on the Web, Live Nation is revolutionizing the music industry both onstage and online. Its strategy is to connect the artists to the fans. And Rapino is not satisfied with dominating only the concert business. Although Live Nation will continue to focus on its live music assets, Rapino is going after the record labels' most important assets-the music stars. He's offering them a one-stop operation that handles their every musical need. That offer is: "We already operate your tours. Why not let us make your albums, sell your merchandise, run your web site and produce your videos and a range of other products you haven't yet thought of." In October 2007, Rapino landed a big name when he signed a first-of-its-kind deal with Madonna, who left her longtime label Warner Records and signed a 10-year contract estimated at $120 million to let Live Nation handle every part of her business except publishing. Madonna's manager said, "The labels' are in a jam. For a company to do well in music now, it's got to be in all aspects of the business. And Live Nation is the risk-taker. It's leading the charge." Live Nation has signed Shakira, Jay-Z and Nickel back to similar deals and hopes to add more superstars to its roster.
The key to Live Nation's growth strategy is the stability to connect to those millions of people who attend shows every year. The company's valuable database containing contact information for those fans gives it an efficient way to offer them additional music-related products and services. Will Rapino's Strategy live or die?
Assignment tasks:
1. Discuss the Bowman's clock and critically evaluate the strategic position of Live Nation based on Bowman's Clock.
2. Analyze the changing environment trends in the industry using PESTEL framework which could impact Live Nation to maintain its strategic position.
Word Limit: 2000-2200 Words.