Ch1 case study - BUSINESS INTRODUCTION ASSIGNMENT PDF

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BUSINESS INTRODUCTION ASSIGNMENT...

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1. Ticketmaster, now part of Live Nation Entertainment, responded to the threat of the secondary ticket resale market (by firms like Craigslist and StubHub) by launching its own ticket marketplace. What impact, if any, will this have on the price of concert tickets? Discuss the pros and cons of this move. I think Ticketmaster as a part of Live Nation Entertainment plays an important role in the pricing of different types of tickets and also control of the market. Although this company has more competitors like the secondary ticket resale market (by firms like Craigslist and StubHub) now, launching its own ticket marketplace would impact the market considerably. The new company would have something close to a monopolist’s hand when it came to setting ticket fees, so the ticket prices will be high. As I read different articles, “Ticketmaster has roughly 70 percent of the concert ticket market in the United States and is known for the ever-rising cost of an assortment of tacked-on fees”. It means that this company is engaged in monopolization, and exclusive dealing in the music concert industry. Live Nation Entertainment could quietly threaten venue owners by hinting that if they dropped Ticketmaster, they would have a hard time booking Live Nation “tours or Front Line talent”. It leads other companies that deal with the resale market can’t compete with this company properly. They have only a few venues in a limited geographic area, so they can’t grow their business like Live Nation Entertainment. 2. Live Nation projects a double-digit increase in the number of concertgoers worldwide over the next several years. Discuss the factors that might contribute to the company’s anticipated growth. At first, they can benefit from ticket revenue from different events like concerts which they made during last year to contribute them to the company’s anticipated growth. As they have created an unparalleled business model in the industry which has made them be almost monopole in the market, building a platform that could bring considerable fans in different countries to live events will help them grow faster. Sponsorship and advertising also are other factors that can contribute to the company’s growth. They are leading the market in digital transformation, so it helps them facilitate the process of the consumer purchase process which definitely is a crucial factor in the company’s growth. Moreover, at the moment, which Coronavirus has stopped performing any live concerts or similar events like before, and indeed it was an unanticipated issue, performing virtual concerts could help them to grow their business somehow although it could not benefit them like live events. For sure, this pandemic has made them experienced a sales drop enormously! In the future, they should focus more on virtual atmosphere. As by 2020 there will be 5 billion internet users, they should focus more on using social media tools for their events and try to create some sort of ways of virtual performance or online events....