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?
Madonna is a
very famous American singer, writer, actress, dancer and entrepreneur. She is
one of the biggest and most successful artist and literally no one can be
compared with her. She has been ruling the music industry for more than 30
years, and it’s not an easy thing to do. The only reason she has been able to
do so is simply because of her strategy. She has been changing her strategy
with the change in time, this has helped her to survive and sustain successfully
in the industry.
Image Source: http://shaunproulxmedia.com/himbo/wp-content/uploads/2012/01/madonna-20photo-202009-small.jpg
Madonna’s early
image:
·
Punk-Pop
image
·
Highly
featured on MTV
·
A
very remarkable performance at the MTV VMAs of 1984
Strategy of high
fashion look is what Madonna was following in the 90s. Gay club scene and
emancipated women were the main target groups of Madonna during that time. And,
she was also awarded for her critically acclaimed role in the movie “Evita”.
Madonna’s key
sources of sustainable competitive advantage are as follows:-
·
Good Vision
She has always been considered as an artist
with good vision. She was always in the spotlight for her music, acting, and fashion.
She knew what kind of music people loves to hear and accordingly makes them.
·
Better
understanding of customers and industry
Madonna knew about “what it takes to
become successful in the industry and with customers”. Madonna knew about the
taste and preference of music lovers and made her music accordingly. Glamour,
fashion and nudity were an important element of her music and particularly in
her music videos and concerts, and she was very famous for all of this.
·
Continuous
renewal
As the time changes, she also changed her strategy in order to
sustain in the industry. This tendency of her continuous renewal is also a key
source of her sustainable competitive advantage.
·
Leveraging
competencies and addressing weaknesses
Leveraging her competencies and
addressing her weakness were a very major factors of Madonna’s sustainable competitive
advantage.
·
Consistent
implementation
Consistent implementation of her
strategies, vision, and goals made her the greatest and most successful music
artist as she is now.
Other:
·
Ability
to be a step ahead of others
·
Ability
to take chances
·
Self-confident
·
Independence
·
Ability
to create fabulous shows on scene and in life
·
Performer
talent
·
Recklessness
Competences
for competitive advantages
Resources/Capabilities:
·
Singing
capabilities (Voice) and her looks.
·
Sex
appeal and glamour (appearances, music video and concerts)
·
Style
(fashion) and dancing.
Strategies
from 1893-2010 by which Madonna has responded to change
·
No Frills (1983
A.D.)
Low added value/Low Price:
Being a new entrant in the industry, having
something more innovative and unique was very much important for Madonna to
establish in the industry. It was her voice, singing and dancing style, her
looks, style and glamour which became the unique resources for her.
·
Differentiation
(1984 A.D.)
The product/services which Madonna was
offering to the audiences were providing the audiences with benefits which were
very widely valued by the audiences and were different from those of her
competitors.
“Blue Ocean
strategy” – “Creating or searching for wide open spaces, free from existing
competition, and fill strategic gaps in the market, opportunities that are not
being fully exploited by competitors”
•
Focused
differentiation (1985-2013 A.D.)
Madonna as an image and a brand herself was very difficult to
imitate. Her songs are regarded as a premium products and are very heavily
branded. Her high perceived benefits justifying a sustained price premium usually
to a selected market segment helped her to be sustainable in the market.
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
Following could be the strategic direction that the artist could
pursue over the next ten years to continue her commercial success which I have
tried to show through Ansoff Matrix:-
|
Market Penetration
Target
different groups of people:
·
Different age groups and genders
·
Different demographic profiles from normal
customers.
·
Do musical tours in foreign countries so that the
audience can increase for her music.
|
New products and
services
·
Encourage and help other people to
come to music industry, this can help in building goodwill and public trust.
·
Involve in charity and other social
activities.
·
She can become music producer for
other established and upcoming artist.
|
|
Market Development
·
Promotions.
·
Advertise,
to encourage more people introduce a loyalty scheme.
·
Buy a
competitor company (reputed music company or production house)
·
Encourage and develop new talents.
·
Collaborate her music with all sorts of artists
from Rap and Hip-Hop to RNB, Rock, Metal, etc. It can help her expand her
audience reach and extend her career too.
|
Conglomerate Diversification
·
Launch music in foreign language for foreign
audience.
·
Expand concerts and stage shows in foreign
countries.
·
Collaborate with foreign artists, music directors,
producers so that she can reach to world-wide music audiences.
|
Reference:
MADONNA - THE SPICY DESSERT (11 February, 2010) [Online] Available from: http://flavor-of-success.com/success-stories-madonna-the-spicy-dessert/ [Accessed on 2 March, 2013]
MADONNA - AN UNLIKELY SUCCESS STORY (2010/2011) [Online] Available from: http://bornpowerful.com/2010/11/madonna-an-unlikely-success-story/ [Accessed on 2 March, 2013]
MADONNA'S REAL LIFE (28 April, 2003) [Online] Available from: http://www.people.com/people/archive/article/0,,20139887,00.html [Accessed on 3 March, 2013]
MADONNA BIOGRAPHY [Online] Available from: http://www.biography.com/people/madonna-9394994 [Accessed on 3 March, 2013]
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