Strategic Management and Live Nation
Live Nation may be using two kinds of growth strategies;Concentration, which focuses in its primary line of business (in this case the musicindustry), and “increasing the number of products and services offered or markets served in that primary business”(Robbins & Coulter, 2009), and horizontal integration by combining with competitors. In 2009, Live Nation announced they were merging with ticketmaster to “expand into a complimentary business” (Rapino, 2009).
With the concentration growth strategy, Rapino is able to offer many products such as concert tickets, merchandise, videos, and albums when other companies only offer one or a couple of these products. Using the horizontal integration growth strategy Rapino is able to eliminate competition and keep profit inside the company. “The key to Live Nation’s growth strategy is the ability to connect to those millions of people who attend shows every year”.
By keeping a database that includes contact information for every fan (or client) that Live Nation has ever had,Live Nation is able to “connect” fans to their artists with greater ease. By strengthening the artist to fan connection, the purchase of merchandise and tickets is easier and helps Live Nation to keep growing and profiting. How might SWOT analysis be useful to Mike Rapino? A SWOT analysis is an analysis of the organization’s strengths, weaknesses,opportunities, and threats (Robbins and Coulter, 2009).
The SWOT analysis proved be very useful to Mike Rapino. He would be able to identify what his mission, goals, and strategies are for the current company. Mike currently states Live Nation is the “future of the business”. His current strategy is to connect the artists to the fans. He is not satisfied with just this strategy. Mike is now starting to focus on creating a new strategy. He wants to create a one-stop operation that would handle all the musical needs of the artist (Robbins and Coulter, 2009).
In a SWOT analysis Mike would be able to see the external and internal factors thatwould affect the corporation. An external analysis would examine the trends and changes in the environment. He would then list his opportunities. The focus of the organization is primarily on its live music assets , the company is exploring various opportunities to position itself as a one window operation that handles every music need of the artists.