Case Study in Music Universe Essay


2 weeks . classic circumstance of a firm who has proved itself as inception it turned out built to last and how long term preparing of a firm can help this sustain against all odds. Music Universe is a section of the Rs. 65 billion Gajo Prasad Goenka [RPG] number of companies. In an exceedingly short span of time following its start in the nineties, Music Community had reportedly become a major factor that changed how music was sold in India. In establishing of Music World a whole lot of preparing and tactical thinking utilized like performing a review for the ambience of the store, number of location, appropriate mix of music, tie ups with music companies along with promotional businesses. QUESTION FOR DISCUSSIONS:

*Q1. Critically comment on RPG group's decision to focus on the retailing business inside the 1990s. Do you agree the fact that decision to build Music World was generally due to the living of Saregama* and its existing product stock portfolio? Give great support your stand. THE MAJOR REASONS FOR RPG GROUP TO FOCUS ON RETAILING BUSINESS IN THE 1990 WERE: Difference in Strategic emphasis: With liberalization & the global companies banging at the doorsteps of the American indian market, It was the right time pertaining to RPG to retailing. RPG was able to produce a strategy which will made these people diversify into Retailing in Grocery & Food Items

Retailing in Drugs, Makeup & Overall health Products

Retailing in Music

That they realized encouraging growth prospects in organized retailing sector in India. They were right in realizing this kind of. We can see the expansion rate in Indian retail from 1998 in the following graph. draw:frame

By gradually phasing out your under-performing as well as the loss-making sections from the main Retail business they wished to concentrate on certain core competencies. Moreover, Bradzino which was faring badly was attractive when it comes to An Undervalued Real Estate

Distribution System

Successful Travel Agency

Diversification of Business:

RPG (Rama Prasad Goenka) Number of Companies a new portfolio of highly varied businesses. RPG group has a history inside the retail organization dating returning to early 1865 when it joined the selling business through a company named Spencer's selling imported specialized items to the British & military population. Having misplaced focus in the mid 1970's having to offer off Spencer's, RPG re-entered the realtor mls database at the right time in 1989 by buying again Spencer via an entrepreneur. *Advantage of Division and Combating Piracy*: Syndication was the most profitable portion of the music business. The average price of a cassette for the distributor was Rs. nineteen which was sold to the customer for Rs. 60 to Rs. 60. Stage which arrived to consideration intended for the preparing of MusicWorld was the issue of piracy. Direct Distribution & Selling by the music companies empowered them to fight the nexus of music pirates head-on Existing Item Portfolio: One cannot acknowledge that the institution of MusicWorld was because of the existence of Saregama, while MusicWorld was established in the 1990's much later & therefore it was HMV which in turn made initially transition in to Saregama India Ltd. But one are unable to discount the very fact that it was the diverse merchandise portfolio kept by GCIL which offered them self confidence to enter the background music Retailing organization. SCENARIO THAT LED TO MUSIC WORLD –

In the middle 1990s, the Indian music industry had not been faring well with regards to quantity off-take. Whilst a majority of Hindi film tracks were flopping, the business in the non-movie music area experienced fallen beneath expectations. The company realized that the intellectual house base within the HMV manufacturer could be leveraged for great advantages. Gramophone Organization of India Ltd. or perhaps GCIL (a wholly owned or operated subsidiary of Electric and Music Industries or perhaps EMI previously and now generally known as Saregama India Ltd., since November, 2000) owned almost 50% of...