Case Study Ministry of Sound
Ministry of Sound London, is a nightclub, based in London, England and an associated record label. Ministry was ranked sixth in the 2009 DJ Magazine top 100 clubs poll 2009. As well as the nightclub in London, there is another in Egypt. The Ministry of Sound brand also includes various other products such as dance music compilations and clothing. Ministry of Sound is owned by MSHK Group Limited, which has offices in London, Sydney, Berlin and New York. The Chairman of MSHK Group is James Palumbo who is also the majority shareholder; a small minority share-holding having been sold to private equity house 3i in 2001. The Chief Executive Officer of MSHK Group is Lohan Presencer. MSHK Group has global sales of £80 million and employs up to 500 personnel worldwide Within only 15 years the Ministry of sound has grown from a start-up with a primal investment of £ 340.000 into an enterprise with a worth of £ 150.000.000. The ministry of sound turned from a dance-club into a corporate enterprise with and within a couple of years it became even the most recognisable and successful dance music brand in the world. Strategic position means identifying the impact on strategy of the external environment and an organization’s strategic capability.
Dance music has its origins in so called acid house, which has its roots in the electronic music scene of the gay clubs in New York and Chicago. Dance music in the beginning was associated with drugs such as ecstasy. The Ministry of sound dissociated itself from the drug movement and had security staff which was not linked to local drug gangs. James Palumbo founder of the Ministry of sound created a safer and cleaner environment, which is a competitive advantage to other clubs. The Ministry of sound was intentionally placed in an area far away from the typical London nightclub locations. The initial strategy behind that was among other things to drive down costs for the location....
Please join StudyMode to read the full document