Colorado Creative Music Case Study

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COLORADO CREATIVE MUSIC

Company overview
music recording studio ¨  founded in 1995 by Darren Curtis Skanson ¨  established for producing, promoting and selling his own records ¨  developed into microlabel with 4 product lines and 11 different albums ¨ 

Leading CCM
Vision, passion in Music ¨  Cousin’s business internship at CCM ¨  Knowledge -> Ted -> processes ¨  Waiving day to day operations down the chain ¨  Unexpected concert ¨  Andy signed up with CCM ¨ 

CCM vs. competition
Passion for art (music) ¨  Technological limits changed Tapes, Vinyls -> CDs (Truly a revolution) ¨  Large differences among competitors (advertisement) ¨  Necessity of touring across the country (more personal approach) ¨ 

Driving forces
Financial - Lowered initial investment (technology) - Easy to enter the market - Digitalization (fixed costs) ¨  Non-financial (art) - To create a better piece of art - Essential for business to happen ¨ 

Attractiveness of the industry from the standpoint of good long-term profit prospects Health problems of Mr. Darren Skanson ¨  Instead of 2 planned CDs only 1new CD ¨  He found new musicians ¨  Need to sell more CDs (no more sales, no profit) for acceptation of the CDs by distributors ¨  Direct sales are big part of sales ¨  Finding of some responsible and skilful person ¨ 

SWOT analysis
strengths
decreased expenses due to digital revolution ¨  position on the market ¨  Darren’s presence at shows - the direct sale ¨ 

weaknesses
lack of managerial skills ¨  insufficient distribution channel ¨  reducing profit ¨ 

SWOT analysis con’t
opportunities
reaching broader audience with promoting various artists and music styles ¨  music events outside Colorado ¨  cooperation with retail outlets nationwide ¨ 

threats
new entrants ¨  existing competition ¨  minor position on the market ¨  piracy ¨ 

Assessment of CCM’s financial performance
Not very various financial performance of the...
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