Week 15

CASE STUDY: MADONNA

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 change in the external environment, why is she difficult to imitate?

Madonna is one of the very few pop-star who have remained at the top for decades in show business. Being able to manage to be one step ahead of everyone else, she had sustained her reign as the "Queen of pop" for a long time with huge number of fans. Not only in music but she has been a star on her professional activities in stage performance, television appearances, albums, Hollywood movies, books and charity.  This demonstrates her clear commitment to her super-star goal: to become the world's foremost female performer.

Likewise, Madonna's success has been underpinned through her deep and insightful appreciation of customers and understanding of music industry and she has shown her ability to tap into evolving trends. (esmt.org) 

The key sources for her sustainable competitive advantage are:

·     Madonna has been able to stay on the top through impressive ability to implement her strategy and measures. She has the sense of balance in using her sexuality, shock and controversy from the start.

·    Her commitment to be the world's foremost female performer and her chameleon like character to blend in to the emerging competitive trends accordingly.

·         Large number of loyal fans and customers.

·         Her fame and close connection with lot people in the industry.

·         Her ability to renew her popularity again and again.

·       She has been able to exploit her abilities to develop and project her image and to exploit emerging trends, while protecting areas of weaknesses. (www.esmt.org)

2.    What strategy directors could the artists pursue over the next ten years to continue her commercial success? Consider each of the four boxes from Ansoff matrix. What new products or markets could she enter? How might she diversify or continue to penetrate her existing market?

ANSOFF MATRIX

Market Penetration           Being already a famous star, she can always go with music videos, advertisement and movies.	New products and services            She can enhance her product line as in kid's  wear or beauty products.            She can do some reality shows as it is a trend now a days.
Market Development           She can expand her popularity the Asian market by starting with her concert tour.	Diversification            She can more open up to the kids customers like in video games, action figures or a girl doll.            Begin as a physical trainer.

 References:

Celebrity Central. Top 25 celeb. 2003. [Online] Available at: http://www.people.com/people/madonna/biography (Accessed on Oct 21st 2013)

esmt article (2007) Jamie Anderson and Martin Kupp [Online] Available at: http://www.esmt.org/fm/13/Madonna_article.pdf (Accessed on Oct 21st 2013)

Clever Jul 14, 2008. [Online] Available at: http://www.topix.com/forum/topstories/TT3PJG2FRGBAGIPDV (Accessed on Oct 21st 2013)