m case study (2)

docx

School

Herzing University *

*We aren’t endorsed by this school

Course

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by DeaconVulturePerson888

ASSIGNMENT 1 Case Study: Marquee: Reinventing the Business of Nightlife [Name of the Writer] [Name of the Institution] Course Number: Course name Name of the Instructor: Date

ASSIGNMENT 2 Case Study: Marquee: Reinventing the Business of Nightlife Identification of Problem The company in the case study, which operates Marquee New York City and other nightlife venues, faces several potential problems. There are various symptoms pointing to these issues. Based on the information provided, the main problems they may encounter include high dependence on high - priced DJs. Also, the net cost of the company is constantly rising while their net income is decreasing. They need to make a decision where they can reduce costs while increasing their profitability. The need to balance costs while generating revenue has led to varying ticket and cover prices, which can be challenging to manage. Also, an increasing demand for star DJs, both in New York City and Las Vegas, leads to a competitive environment for booking these talents. Symptoms include intense competition and the risk of other new electronic dance music clubs vying for the services of top DJs. The market preferences are shifting from the old bottle service model to an experience-focused model. It is a significant change that this company needs to cater to. The extensive renovation of Marquee New York City, with a cost of nearly $3.5 million, poses a significant financial commitment. This problem is brought forward because of the substantial investment needed to update the venue. The company must effectively balance the high costs of securing top DJs with other revenue streams, such as ticket sales, table reservations, and bar sales. the primary problem facing the company is the financial dependence on star DJs and the need to manage associated costs while providing a unique and engaging experience for patrons. This challenge is compounded by increasing competition, changing market preferences, and high renovation expenses.

ASSIGNMENT 3 Key stakeholders and decision-makers There are many stakeholders and decision-makers involved in this case study that will be affected due to the outcomes. The most important stakeholders are cofounders and owners of this company including Noah Tepperberg and Jason Strauss. They are responsible for setting the overall strategic direction of the business, making major investment decisions, and overseeing day-to-day operations. Also, the club managers and directors will be affected as they are responsible for the day-to-day operations of each venue. They make decisions related to staffing, promotions, and the customer experience at their respective locations. High-profile DJs, such as Kaskade and other electronic dance music artists, are critical stakeholders in this case. Other stakeholders include promoters, venue staff, customers, investors, competitors, suppliers, social media teams and event sponsors. The complete decision making process involves collaboration and input from all these stakeholders. It is important for the company to balance the interests and preferences of these various stakeholders to ensure the success of its nightlife venues. Criteria The first alternative of diversification of entertainment offerings follows the criteria of stress management, maximizing stakeholder wealth and competitive advantages. This alternative can help manage stress by reducing the company's reliance on a single genre, thereby lowering the risks associated with the EDM market's unpredictability. Diversifying entertainment offerings can enhance stakeholder wealth by tapping into new market segments, broadening the customer base, and reducing the risk of revenue fluctuations. Offering diverse entertainment options can provide a competitive edge by attracting a wider range of customers and differentiating the venues from competitors. Furthermore, this alternative contributes to customer satisfaction by

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

ASSIGNMENT 4 accommodating various musical tastes and preferences, leading to more enjoyable and inclusive experiences. The second alternative of leveraging data-driven analytics and customer insights also follows different criteria because utilizing data analytics helps in stress management by providing actionable insights into customer preferences, enabling data-driven decisions and reducing the uncertainty surrounding event planning and marketing. Data-driven decision-making improves the effectiveness of marketing and event planning, resulting in higher revenues and, consequently, greater stakeholder wealth. Effective use of data analytics can provide a competitive advantage by tailoring the customer experience, personalizing marketing strategies, and offering events that align with customer preferences. Leveraging data analytics enhances customer satisfaction by tailoring events and promotions to align with customer preferences, creating more enjoyable and relevant experiences. The third alternative of cost control and revenue optimization also follows these criteria. Cost control measures reduce financial stress by ensuring that the company operates efficiently and remains financially stable, mitigating the risks associated with excessive costs. By optimizing revenue streams and controlling costs, this alternative directly contributes to maximizing stakeholder wealth through increased profitability and financial stability. Efficient cost control and revenue optimization give the company a competitive edge by ensuring financial health and enabling the ability to invest in innovation and customer experience. When costs are managed efficiently, the company can allocate resources to enhance customer experiences, indirectly contributing to customer satisfaction.

ASSIGNMENT 5 Alternative solutions The three alternatives that will be considered in this situation include diversification of entertainment offerings, leveraging data analytics and customers’ insights; and cost control and revenue optimization. At first, the company should consider diversifying its entertainment offerings beyond electronic dance music (EDM). While EDM has been highly profitable, it is also highly competitive. By incorporating a variety of music genres or hosting different types of events, such as hip-hop nights, live music performances, or themed parties, the venues can attract a broader audience. This decision should be made because this approach reduces dependence on a single music genre and appeals to a wider demographic. Diversification can help mitigate the risk of shifting EDM trends and maintain customer interest over the long term. Secondly, they should implement a data-driven approach to understand customer preferences, behaviour, and trends. They should collect data on customer demographics, music preferences, spending habits, and attendance patterns. Further, they need to use this data to personalize marketing strategies, event planning, and promotions. Data analytics provides insights into what customers want and how to deliver a better customer experience. It allows the company to make informed decisions about event planning, pricing, and marketing, resulting in more successful and targeted strategies. Thirdly, they need to focus on rigorous cost control measures while optimizing revenue streams. They should negotiate more cost-effective contracts with DJs and suppliers, manage staff efficiently, and reduce operational costs. Also, increasing revenue streams by creating exclusive membership programs, offering premium experiences, and maximizing ticket sales and table reservations is very important. Implementing a cost-control strategy while optimizing revenue streams can improve the company's profitability. In a competitive industry, controlling

ASSIGNMENT 6 costs is essential for maintaining profitability, and exploring additional revenue sources can increase financial stability. Analysis SWOT Analysis Strengths The company has established itself as a renowned player in the nightlife and entertainment industry, known for operating successful venues in multiple cities. The company has secured exclusive partnerships with leading DJs in the electronic dance music (EDM) genre, allowing it to attract a dedicated fan base and host high-profile events. With a range of venues offering different experiences, from upscale nightclubs to beach clubs and rooftop lounges, the company diversifies its offerings to cater to various customer segments. The Marquee Las Vegas, in particular, has proven its ability to generate substantial revenues, becoming the highest-grossing club in North America. The company expanded its presence internationally by opening Marquee in Sydney, demonstrating its capacity for global growth. Weaknesses The business model relies heavily on star DJs, making it vulnerable to market fluctuations and competitive pressures for securing top talent. The company's commitment to high-profile DJs results in substantial expenses, including significant DJ fees, which can pose financial challenges and limit profitability. Increased competition and a growing number of venues hosting EDM events, especially in Las Vegas, may lead to market saturation and hinder the company's growth. Opportunities

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

ASSIGNMENT 7 The company can explore diversifying its offerings to include different music genres, live performances, or interactive experiences, reducing reliance on a single genre and attracting a broader audience. Leveraging data analytics and customer insights can enhance event planning, marketing, and customer experience personalization, leading to improved customer satisfaction and increased revenues. Implementing cost control measures and optimizing revenue streams can help improve profitability, financial stability, and the ability to invest in innovative customer experiences. Threats The availability of star DJs can be unpredictable, and their schedules may not align with the company's booking requirements, leading to event cancellations or higher costs to secure talent. Economic downturns can impact consumer spending on entertainment, leading to reduced revenues and profitability, as experienced during the global economic downturn in the late 2000s. Intense competition, particularly in the EDM space, could result in the loss of market share and a decrease in the exclusivity of DJ partnerships, making it harder to attract top talent. Nightclubs and entertainment venues often face regulatory challenges related to permits, licensing, and noise restrictions, which can impact operations and profitability. Porters 5 Forces model The threat of new entrants The company operates in a capital-intensive industry, requiring substantial investments for venue setup, marketing, and securing top DJs. This poses significant barriers to entry for newcomers. New entrants face challenges related to licensing, permits, and compliance with local regulations. Existing players may have an advantage in navigating these hurdles. The

ASSIGNMENT 8 company has a strong brand presence and customer loyalty. New entrants would need to invest time and resources to build a similar reputation. Bargaining power of suppliers The supplier in this case is Star JDs. The company heavily relies on star DJs as a key resource for its business model. These DJs have a strong bargaining position, demanding high fees and favourable contract terms. There are limited substitutes for top-tier star DJs, making it difficult for the company to easily switch suppliers. Bargaining power of buyers While customers have a degree of choice in selecting entertainment venues, the company's exclusive DJ partnerships and strong brand can limit customer options. Customers may be price- sensitive, particularly during economic downturns, affecting pricing strategies. Threat of Substitutes Substitutes like other nightclubs, live music venues, or alternative forms of entertainment exist. However, the unique experiences offered by the company, including its exclusive DJs and event concepts, make direct substitution less likely. Rivalry among existing competitors The nightlife and entertainment industry is highly competitive, especially in popular nightlife destinations like Las Vegas. Intense competition for star DJs and customer attention exists among established competitors, such as other high-end nightclubs and entertainment venues. The growth in the popularity of electronic dance music and increased competition for star DJs has led to market saturation. As competitors vie for top talent and customer share, the rivalry remains high.

ASSIGNMENT 9 In summary, the company operates in an industry with high entry barriers, strong supplier power, and a degree of buyer loyalty. However, competition among existing players is intense, and there is a risk of market saturation. To maintain a competitive edge, the company needs to focus on building and leveraging its brand, exploring diversification, and implementing strategies for cost control and customer experience enhancement. Decision Matrix The decision matrix for this case includes rating all the possible alternative options in terms of preference. Criteria Alternative 1 Alternative 2 Alternative 3 Stress Management 3 4 5 Maximize Stakeholder Wealth 4 3 5 Competitive Advantages 3 5 4 Total Score (15) 10 12 14 Based on the decision matrix and criteria, Alternative 3: Cost Control and Customer Experience Enhancement appears to be the most favourable choice as it scores the highest. It addresses stress management, maximizes stakeholder wealth, and maintains competitive advantages, making it the preferred option. Alternative 2: Diversification is a close second and might be a viable choice for the company's long-term growth, but it may carry some risks. Alternative 1: Status Quo scores the lowest and doesn't provide significant benefits in terms of addressing stress, wealth maximization, or competitive advantages. Implementation plan Short Term Plan

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

ASSIGNMENT 10 The best option among all alternatives is rebranding and refocusing the music experience. The short-term implementation plan of this option includes rebranding and repositioning in a 1-2 month time period. The company should take the following steps to fulfil these goals.  Hire a professional branding agency to help with the rebranding process.  Develop a new brand identity that emphasizes the club's commitment to music experience, top DJs, and state-of-the-art audio-visual systems.  Update the club's logo, website, and marketing materials to reflect the new brand image.  Communicate the rebranding efforts to the club's current customer base through email, social media, and promotional events. Furthermore, the company needs to conduct DJ recruitment and agreements in a period of 2 to 3 months. For this purpose, the following steps should be taken:  Identify and reach out to high-profile DJs who align with the club's new music-focused direction.  Negotiate contracts and agreements with the selected DJs, specifying performance schedules and compensation.  Ensure that DJ schedules are well-promoted through social media and the club's website. The next goal is a soft opening and grand opening that will take time between 4 to 6 months. It includes hosting a "soft opening" event for loyal customers to introduce the rebranded club and organizing a grand reopening event to generate buzz and attract new customers. This short-term implementation plan outlines the key steps needed to rebrand and refocus the club on the music experience, which is the best alternative based on the provided criteria. It is essential to remain flexible and adaptive throughout the process to respond to changing market dynamics and customer preferences.

ASSIGNMENT 11 Medium Term Plan In the medium-term plan, for the first year, the company will focus on consistent branding and marketing. They will continue marketing efforts to maintain a consistent brand image and increase brand awareness. Regularly updating the club's website and social media with upcoming DJ line-ups, events, and promotions. Exploring partnerships with music-related media and influencers to expand the club's reach will be the main priority. The following steps will be taken by the company to promote better working during the first year:  Establish collaborations with record labels, artists, and other music-related entities to create exclusive events.  Analyze customer data to segment the audience based on preferences and demographics.  Create targeted events and promotions tailored to different customer segments, such as theme nights, special performances, or loyalty programs.  Monitor financial performance and adjust pricing, promotions, and expenses to maintain profitability.  Focus on revenue diversification through merchandise sales, online content, or streaming partnerships. For year two, the company will take the following steps:  Launch a customer loyalty program to reward repeat visitors with exclusive benefits, discounts, and early access to events.  Collaborate with local artists, visual designers, and creative talents to enhance the club's visual and artistic appeal.  Host art exhibitions or installations that complement the music experience.

ASSIGNMENT 12  Engage with the local community by participating in charitable events, supporting local causes, and being an active member of the neighbourhood. For year three, the company will take the following steps:  Stay at the forefront of technology and innovation in the music and entertainment industry.  Incorporate emerging technologies like virtual reality experiences, interactive apps, or AI-driven music recommendations.  Implement sustainable practices in the club's operations, such as reducing energy consumption, minimizing waste, and supporting eco-friendly initiatives.  Continuously analyze customer data to refine the club's offerings, marketing strategies, and customer experiences.  Use data to predict trends and stay ahead of market shifts.  Explore the possibility of opening new locations in other cities or countries, replicating the successful model of the rebranded club. Long Term Plan The long-term plan focuses on maintaining the club's status as a music destination, expanding its reach, and securing its future. It will include the following steps.  Evaluate potential international markets for expansion based on market research, demand, and the competitive landscape.  Open new club locations in key global cities with a focus on vibrant music scenes.  Develop community engagement programs by partnering with local schools, music organizations, and charities.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

ASSIGNMENT 13  Organize music-related events and workshops to nurture the local music community.  Continue to push the boundaries of the music experience through innovative technologies.  Experiment with augmented reality, virtual reality, and immersive sound experiences.  Position the club as a leader in sustainable nightlife by implementing eco-friendly practices.  Obtain certifications and recognition for sustainability efforts.  Establish a music education program within the club, offering classes, workshops, and mentorship opportunities.  Support aspiring musicians and DJs in their career development.  Expand into event and festival production, organizing large-scale electronic music festivals.  Leverage the club's industry connections and expertise to create successful events.  Launch a music label under the club's brand, producing and releasing music by resident and emerging artists.  Develop a revenue stream through music distribution and artist management. This long-term plan is focused on expanding the club's global presence, contributing to music education and community development, and diversifying revenue streams through music production, education, and events. It aims to create a lasting legacy and ensure the club remains relevant and influential in the music and entertainment industry.

ASSIGNMENT 14

ASSIGNMENT 15 References Elberse, Anita; Barlow, Ryan & Wong, Sheldon, (2019). Marquee: Reinventing the Business of Nightlife. Harvard Business School .

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

m case study (2)

Related Documents