Overview Of Sydney Symphony Orchestra: Marketing Analysis Assessment 1 Answer

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Question :

Assessment 1

  • Type:Individual assessment, A Report
  • Word Limit - 2000 + - 10% words, not including a cover page, reference and appendix
  • Value:20%

Case for the assignment

Read the case a few times carefully.

The Sydney Symphony Orchestra

Report Structure

  1. Title page,
  2. Executive summary,
  3. Table of contents,
  4. Introduction
  5. Suitable headings and subheadings,
  6. Conclusions,
  7. Reference list (Harvard – Anglia style)
  8. Appendix.

Use 12 pt Times New Roman or 11 pt Calibri fonts.

Single line spacing.

Executive Summary

  • The Executive Summary (approx. 60 words)
  • Quick overview of the key outcomes of the analysis

Introduction

Approx. 200 words

  1. Purpose(s) of the report
  2. Importance of the purpose(s), background
  3. Main plan of analytical process
  4. Key outcome(s) of the report.

Major Contents of the report

  1. Macro environmental analysis - factors which are changing or impacting on the company and/or the industry– include some discussion as to what they mean for the company
  2. Industry analysis
    • brief description of the life cycle stage of the industry

    • Porter’s 5 forces analysis – conclusion regarding attractiveness

Major Contents of the report

  1. Company analysis: resources and capabilities – core competencies – include some discussion of which ones are/will be most effective in achieving strategies and objectives or are most important to identified environmental factors – macro and/or industry. VRIO Framework.
  2. Competitor analysis:

  3. Conduct the market commonality and the resources similarity Analysis.
  4. Discuss the competitors’ future objectives,

current strategies, assumptions and capabilities.

Major Contents of the report

  1. Strategy analysis
  • Identify strategies - Business level
  • Analyse if working or not – why / why not
  • Suggestions for improving current strategies or suggestions for new strategies – link back to analysis and explain why you think they will work

Conclusion

  1. Summary of the analyses of factors

  2. Weigh up key arguments and counter- arguments and
  3. Reconcile them with rebuttal

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Answer :

Individual assessment, A Report

Executive Summary

The SSO which is named as Sydney Symphony Orchestra was built in the year 1932 and it consists of a total of twenty-four players and then expanded the number to eighty-two. The report mainly showcases all the analysis that is related to SSO. The macro-environment, the industry, the company, the competitor and the strategy analysis provide a proper overview of the company. 

1.0 Introduction

The main aim of the report is to make a proper overview of the company's marketing analysis with the help of the macro environment, the industry, the company, the competitor and the strategy analysis. All this analysis will make the report of the company more appropriate. It is seen that the basic marketplace for an orchestra is its home city. Sydney which was named Greater Sydney has a population of round about 5million individuals and is termed to be as one of the cultural centres of the globe (Case Study).

The importance that would be seen with the help of this analysis is that the company’s strength, weakness, future goals can properly be known. Also, with the help of this analysis, the company can easily aim in targeting all the problems and try to minimize it. The main plan of the analytical process is done through the macro-environmental analysis process.

The main plan of the analytical process is mainly to get and effective result for SSO by which they can easily gain knowledge about their competitors and also how to make their orchestra more prosperous in Australia.

The outcomes of this report give an overview of all the results by which the company can gain effective knowledge for withstanding. 

2.0 Macro Environmental Analysis

2.1 Political-The efficient regulatory environment of Australia provides stability and efficiency for carrying out business. The country occupies the tenth position in terms of the business legislation. This has created positive opportunity for SSO organize programs in Sydney as well as in different parts of the country (Australian Government, 2020).

2.2 Economic- The economic factor directly affects the profitability of theSSO. For instance, the income of the individuals plays a critical role in determining the business of SSO. The weekly income of the people has declined for Greater Sydney has declined over the year since 2011 which that of Sydney has increased. Thus, people in Sydney would be more interested for entertainment which would create positive growth opportunity for SSO.

 Average Income of Australia

Figure 1: Average Income of Australia 

(Source: Case Study) 

The economy of Australia is highly developed; its GDP was estimated at $ 1.89 trillion in the year 2019. Thus, it has been predicted the elected company can increase its profit(Austrade, 2020).  

2.3 Social- It has been observed that the people are living high standard means they like music and hanging around. This factor will influence the sales ratio of the selected organization(Bartleet et al.2019). Furthermore, SSO plays classical music which is mainly preferred by the aged population thereby restricting the target segment (Case Study).   

2.4 Technology- It refers to automation, research and development and technical awareness in the market which is essential for SSO. Australia market is a highly developed market, the SSO can use advanced technology on for developing its music instruments and offer experiences to the audiences.   

2.5 Legal- It includes health and safety, equivalent prospects, maintains standards, consumer rights and law, product labelling and employee safety. It is apparent that firms need to recognize what is and is not legal to do business successfully. Hence, it affects the policy, rules, and regulation of the SSO.

2.6 Environment- These aspects are linked to the collision of the surrounding environment and the ecological facet. With the augment in the significance of CSR (Corporate Sustainability Responsibility), this factor is becoming more important (Robinson, 2019). The company needs to enhance its CSR activities for making its brand value.

3.0 Industry Analysis  

3.1 Industry Life Cycle Analysis:

The importance of the industry life cycle clearly depicts the growth of SSO over time. There are certain stages of industry lifecycle and those are introduction, growth, maturity and decline. This industry life cycle helps in making choices for SSO and mainly makes implication in the whole chain of the SSO lifecycle (Kozlowski, Bardecki & Searcy, 2012).

 Industry Life Cycle of SSO

Fig: Industry Life Cycle of SSO

Source: (Case Study)


SSO is operating from over the decades, which means they have strong relationships with the community. It has been found that the company's resources are valuable, scarce and unusable, which means, the firm has a high potential to gain a competitive advantage that is sustainable over time (Case Study). However, SSO is in maturity stage and thus it is seen that the sales are making expansion and there is growth in earning from the products which are termed to be as “cash cow”. In this stage the rate gets slowed down from the growth stage. Also, the rate of expansion in sales is very much equal to the growth rate of the economy. SSO in this stage might have efficient cash to pay effective dividend to its shareholders (Sydney Symphony, 2020).

3.2 Porter Five forces

This theory is based on the theory that five forces find out the competitive intensity and effectiveness of a market. Porter's five powers aid SSO in recognizing the strength of an entity's present competitive position, and the strength of a position to move an organization (Eltham & Verhoeven, 2020).

3.2 Supplier power – The suppliers have higher power as the quality of the venue and instruments in the music industry play a critical role in satisfying the audiences. Consequently, SSO needs to pay higher process for obtaining best instrument and selecting the best location that are preferred by the audiences (Elliott, Silverman & McPherson, 2019).

3.3 Buyer power- According to the case study the buyer power is low because the SSO is very well in his work and has brand name but they can decide the price of the tickets. The pricing strategy should be fixed as per the industry standard (Case Study).  

3.4 Competitive Rivalry- The power of the competitive rivalry is moderate. Yet they manage to succeed with the company's brand value. The main competitors of the SSO are Melbourne Symphony, Pacific Symphony, and Opera Australia (Zoominfo, 2020). 

3.5 Threat of substitutes- the threat substitute is high in music industry because there are many options for the customer according to the preferences they can select (Wikström, 2020)However, in case of the SSO, the substitute power is moderate due to the uniqueness in its quality and experiences (Case Study).  

3.6 New entry threat- It is low in power because SSO large in size and well establish serving from the over the decade. It is next to impossible to enter new threats even if one can come will never compete with SSO.

4.0 Company Analysis:

VRIO framework is utilized to analyze the internal resources. The valuable aspect from the framework will help the business in identity is its resources are valuable or not. Based on this framework. 


 VRIO Framework


Table 1: VRIO Framework

(Source: Music in Australia, 2020; Case Study)

SSO has sustained competitive advantage due to the uniqueness of their brand, quality and experience it provide to the audiences with their high skilled professional musicians. It has been seen that Sydney symphony orchestra resources are valuable enough. It helps the company to improve its efficiency and effectiveness by exploring opportunities or it aids the firms in reducing mitigating the threats. Through resources, SSO increase supposed customer value(Brown, 2019).The skills and talent of the player are rare sources. This is the competitive advantage of the firm. It will help the company to enhance its brand value (Music in Australia, 2020; Case Study). As pointed out by Müller (2020) that valuable and scarce resources can assist firms to engage in strategies that other entities cannot chase only since other firms lack relevant resources. Thus, it is no assurance for long-lasting competitive benefit. Further, it is usually expensive to emulate resources developed due to historical events or long periods. Founded in 1932, SSO has well-known brand and unique historical condition.Resource can't do anything alone they need well-structured organization, enhance management, procedure, policies and many more. Hence only these firms can have a constant competitive advantage. It is recognized that SSOs are probably strong internal resources that make a business unique.

5.0 Competitor Analysis

5.1 Market Commonality and Resource Similarity Analysis

Market Commonality and Resource Similarity Analysis

Figure 3: Market Commonality and Resource Similarity Analysis

(Source: Zoominfo, 2020)

Market commonality can be referred to as the number and significance of markets that a firm contends with competitors. Resource similarity is the degree to which the sort and magnitude of internal resources of a firm are a contrast to contenders. It helps the organization to identify what similarity will become a threat to the near future or what distinctive will give benefit to the firm. Opera Australia, Melbourne Symphony Orchestra (MSO) and Menslink incorporated are the major competitors of SSO. They have market commonalty as they operate in same market attracting the similar customers.  These three companies have professional musicians and offer artistic excellence likes SSO. Chamber Music indirect competitor owing to the different form of classical music played with different instrument (Zoominfo, 2020)


5.2 Competitor Analysis 


Future Objectives
Current Strategies
Assumption and Capabilities
Melbourne Symphony Orchestra (MSO)
To become a Famous Orchestra of Sydney
Work in an effective manner with the employees and attain more consumers
High skills musicians
Opera Australia
Making effective consumers 
To bring innovation to give world-class music experience to the audience
Effective Technology
Menslink incorporated
Having Skilled Workforce
Satisfying Consumers with proper music
Skilled Management Body
Chamber Music
Proper management body
Helping the skilled musicians of the band and making consumers happy
Effective musicians

Table 2: Competitor Analysis

(Source: Zoominfo, 2020)

Market commonality and resource similarity are employed to swot up the rivalry between competitors. It is also advantageous because it will help the business to modify reform their resource and make them exclusive (Xue, 2019). It also helps in making strategy, policies, and procedures of the business.  Hence, the cited firm after conducting market commonality and resources similar found that their competitors in its business has some similarities as well as the difference in its resources.  

Further, one of the leading rivals of SSO is the Melbourne Symphony Orchestra (MSO). It works strongly with its partners and communities to intent to augment people's lives through momentous musical experiences. The MSO develops its resources to enthuse and engage audiences in Victoria, Australia and internationally. The diversity of MSO stakeholders is to remain pertinent, effervescent and inclusive and connect all aspects of the Victorian community. The present strategy of the Melbourne Symphony Orchestra is working fruitfully with its colleagues and employees to achieve objectives. MSO always looks for new customs to be creative and motivate (Melbourne Symphony Orchestra, 2020). Another, a rival of the SSO is Opera Australia is one of the largest orchestras in the nation. The main purpose of the firm is to represent opera to audiences in metropolitan and regional Australia. The current strategy of the business is to bring innovation to give world-class music experience to the audience (Layton, 2019). Its main ability of Opera Australia is to identify whatever they do they do it with excellence.  Further, Melbourne Symphony Orchestra (MSO),Opera Australia, Menslink incorporated, Chamber Music competitors have their unique characteristics and distinctive in their business. The foremost similarity that has been determined is giving pleasing music to the audience. Thus, the cited company should bring innovation and creativity to make their resources and business exclusive.

6.0 Strategy Analysis

6.1 Current Strategy of SSO and analyses 

The current strategy that is used by SSO for making the company more effective is innovation with technology. All the operation that is done by SSO are getting very much effective with this process. This strategy creates a major impact in efficiency, culture and relationships of SSO. The company is reforming business strategy, process, resources to alter the way they representing coming from over the decades. This strategy gets prepared according to investigating the audiences while examining audience segmentation, programming, and communication. They are working closely with their associates and shareholder to reform the organization to make the innovation with technology strategy more effective in nature. Also, the firm is making efforts to redefine the interior visualization and outside image of the organization. This strategy is now used by SSO as it helps the organization in many ways and is considered to be working by offering numerous benefit. All the advancements of SSO get encouraged with the help of this strategy (Sydney Symphony Orchestra, 2018).

6.2 Recommendation 

Further, the company is pretty well in its transformation of the organization. There are some recommendation to which will help the cited company in their modification procedures and they are as follow-

  • SSO should try to change the perspective of the audience, showing them still orchestral performance is germane art, through providing momentous cultural experiences.
  • The SSO should determine new market segments to increase its customer base. It is because the audience is not limited to one age group or social status(Brown, 2020).
  • The firms should modify their strategy in a way, where digital age or rich heritage combine and their work gives them valuable experience of the orchestra to the audience. 

Yes, this above suggestion will improve work in the reformation process (Petrocelli, 2019). It is because it will create a new vision into a strategy and uniqueness that will reverberate with both the old and the new segments, whereas attracting a previously untouched audience.

7.0 Conclusion

The above research is focused on the case study; it is about the Sydney Symphony Orchestra (SSO). The firm is founded in the year 1932 with twenty-four players. The report shows all analyzes related to SSO. As such macro analysis through analyzing by the PESTLE model, has been beneficial for conducting business in Australia because the economy is well, the political environment is stable, the living standard of people is also high. Melbourne Symphony Orchestra, Pacific Orchestra, and Opera Australia are the leading rivals of the cited firm which will be identified through porter fives force. Further, the company has exclusive resources that make them unique and also create competitive advantages. Through the VRIO framework, it has been founded that their resources are viable, rare, and inimitable and organize to capture value. Moreover, competitor and strategy analysis is also done in the current report.