| CCM, Colorado Creative Music, is music
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| | Competitive strategy: company's strategy
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| recording studio, founded in 1995 by
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| | primarily focused on differentiation
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| Darren Curtis Skanson, primarily
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| | rather than cost leadership strategy,
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| established as vanity label for
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| | through internet distribution allows
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| producing, promoting and selling his own
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| | making the products of CCM cheaper than
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| records, and consequently developed into
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| | those of competitors.
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| microlabel with 4 product lines and 11
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| | Market segmentation, targeting,
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| different albums. In 2000, the company
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| | positioningThe music recording industry
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| sold 30,000 of Darren Curtis Skanson CDs
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| | has 4 clearly identifiable segments:
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| and received net profit of $4,292.00. The
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| | major recording studios, independent
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| company aims at expanding its customer
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| | labels, micro-labels and vanity labels.
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| base, acquire more popularity, and
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| | Major companies have large quantities of
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| develop the company from microlabel to
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| | artists under contracts, reaching the
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| the independent one.
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| | number of 100, specialize on multiple
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| History, development and growth of
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| | types of music - rock, country, jazz,
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| CCM over timeCCM, Colorado Creative
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| | classical, traditional and other, and
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| Music, is music recording studio, founded
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| | have formal and reliable national and
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| in 1995 by Darren Curtis Skanson,
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| | international channels of distribution.
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| primarily established as vanity label for
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| | Independent labels have 10-100 artists
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| producing, promoting and selling his own
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| | under contract, focus on recording of one
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| records, and consequently developed into
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| | or two major music styles and have either
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| microlabel with 4 product lines and 11
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| | national or most often regional
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| different albums. In 2000, the company
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| | distribution channels. Micro-labels have
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| sold 30,000 of Darren Curtis Skanson CDs
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| | less then 10 artists under contract and
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| and received net profit of $4,292.
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| | are tightly focused on definite style of
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| 00. The company aims at expanding its
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| | music. They are characterized by small
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| customer base, acquire more popularity,
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| | staff and manager performing as the
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| and develop the company from microlabel
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| | leading artist of the studio.
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| to the independent one. Vision
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| | Micro-labels have rarely formal
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| objectivesThe business vision of Colorado
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| | distribution system and heavily rely on
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| Creative Music consists of three
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| | direct sales to fans and wholesale to
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| components - Core Value, Core Purpose and
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| | clubs and specialty retailers. Vanity
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| Visionary Goals (Thompson, Strickland,
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| | labels segment is the fourth, the last
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| 2003). Core values of CCM are quality,
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| | and the most specialized segment of the
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| creativity, and excellent customer
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| | music recording industry. They are
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| service. The core purpose of this
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| | founded by independent artists for
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| organization is to make more people
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| | recording and selling their products
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| listen to classical and light acoustic
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| | (Darren& Winn, 2003). At present, CCM
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| music and admire it. As for the visionary
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| | is the micro-label that strives to
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| goals, the strategic dilemma of the
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| | convert into independent label.
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| business arises. Thus, one of the
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| | Therefore, CCM currently occupies rather
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| visionary goal is to make the music
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| | narrow market niche of classic and
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| produced, played and recorded by CCM
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| | traditional acoustic music admirers
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| musicians, heard by larger audience. The
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| | within the age of 40-60, predominantly
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| other visionary goal that doesn't
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| | white, middle class females throughout
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| completely go in line with the first one
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| | the territory of the United States,
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| is to win the large custom market for the
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| | though the major part of the customers is
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| company's products and services. The
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| | focused in Colorado region. This is the
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| collision here is in the primary value
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| | result of market targeting, when the
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| and target of the business: in the first
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| | studio developed the measure of segment
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| case the attention is attached to the
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| | attractiveness - loyal customers and fans
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| product, music, while the second one is
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| | of performers; music, and selected
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| focused on the development of the
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| | appropriate target segment. Today, the
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| organization. This dilemma is the subject
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| | company wishes to change the segment it
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| of strategic choice of the organization,
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| | operates into. To expand the company's
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| which will be outlined and discussed
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| | market segment it should develop product
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| later. At the present moment, the main
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| | differentiation aimed at selling various
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| objectives of the company are:
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| | products with different characteristics
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| positioning the business against its
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| | to different market segments. So far such
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| rivals, development of distribution
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| | differentiation is not developed. On the
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| channels, development of the products and
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| | basis thereof, the positioning approach
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| enhancement of the product line,
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| | now applied by the firm is
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| anticipating changes in demand and
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| | differentiation positioning, which lies
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| adjusting the firm's strategy to respond
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| | in filling less competitive, smaller
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| to them. Operating environmentThe firm
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| | market niche in which the firm locates
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| operates on American market which is
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| | its brand and attracts its customers.
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| characterized by political and economical
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| | ProductsAt present, the company disposes
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| stability, technical advancements in
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| | of 4 product lines and 11 different
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| producing and distribution processes,
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| | records. The brand names of the Company
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| large number of potential customers,
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| | are: Darren Curtis Skanson,
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| broad demand and intense competition.
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| | Acoustictherapy, Andrew Thomas Harling
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| Business modelBusiness model is the
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| | and Music for Candles. The style of the
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| mechanism for the company to generate the
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| | music offered is the same throughout all
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| revenues and profits. It includes
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| | the brands: light classical guitar.
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| strategy and implementation thereof and
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| | Distribution channelsThe distribution
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| should answer such questions as how the
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| | channels of CCM are predominantly direct
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| firm selects its customers, how it
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| | sales. These include sales in the gig,
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| differentiates its products from those or
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| | shopping mall distribution and in the
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| rivals, how it creates utility for the
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| | back end (which includes CD order through
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| customers, how it acquires and preserves
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| | 800 number, website sales, mail order).
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| them, promotion and distribution
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| | In 2000 CCM sold 30,000 Darren Curtis
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| strategies, how it allocates its
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| | Skanson CDs, predominantly through direct
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| resources and derives profit. As for
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| | sales. Though, traditional chains of
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| promotion and distribution techniques for
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| | distribution are more effective and they
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| Colorado Creative Music, the particular
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| | include major distributors, one-stop
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| attention is attached to Internet aspect
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| | distributors, independent record stores
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| of the distribution and its capabilities.
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| | and major chain record stores. Developing
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| Internet is not only alternative way to
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| | traditional distribution methods is one
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| traditional methods of music
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| | of CCM's primary tasks. Financial
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| distribution, but also a great
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| | positionsCCM is a micro-label, the third
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| opportunity for artists and
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| | of the four segments in music recording
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| music-recording companies to expose these
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| | industry. Therefore, in contrast to the
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| products to broad public. The advantages
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| | premier recording studios as Columbia,
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| of such means are low cost of entrance
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| | Sony Music, EMI and BMG, which possess
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| and enormous size of potential customers
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| | enormous financial actives, financial
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| market. Traditional chain of music
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| | position of CCM is rather modest. In
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| distribution includes such components as
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| | 2000, the company reached total income
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| writer/performer, publisher, musical
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| | number of $216,614.05 and net income of
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| instruments company, live performances,
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| | $4,292.00, which, though, was 4 times
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| venue equipment and services, recording,
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| | less than net income in 1998 (amounting
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| studio equipment and services, recorded
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| | to 20,626.70) and nearly the same as in
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| performances such as night clubs, bars,
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| | 1997 and 1999. Major strategic
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| business music, broadcast, film and music
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| | issuesMajor strategic issues of the
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| videos, and retail. These are traditional
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| | company are formulated by the manager of
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| stages through which the song or other
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| | the company, Darren Skanson, in the Case
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| musical product must pass to get to the
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| | Study for Colorado Creative Music (Darren
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| final customer. Internet makes this chain
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| | & Winn, 2003) and include the
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| of distribution shorter and simpler, and
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| | following:
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| therefore internet-based promotion,
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| | - create a profitable music recording
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| advertisement and distribution can be
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| | label with expanded range of artists and
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| considered a new business model to base
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| | performers;- position Darren Curtis
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| the business on. Further information on
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| | Skanson label to compete with major
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| virtual distribution will be discussed in
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| | artists who have contracts to Sony
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| relevant section.
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| | Classical. For this, acquiring
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| CCM business model includes following
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| | traditional distribution methods is
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| components: Value Proposition:
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| | necessary; - create new product line
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| satisfaction of customers' needs in
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| | similar to Acoustcitherpay which would be
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| quality classic music;Market Segment:
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| | saleable and provide funds for the
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| white females (predominantly) and males
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| | previous two goals. The strategic tasks
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| of 40-60 age range. The market segment
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| | and ways of their implementation are not
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| needs to be further expanded.
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| | uniform and completely complementary.
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| Value Chain Structure: structure of the
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| | Thus, the first aim of growing the
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| firm to be described belowRevenue
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| | company contradicts the easiest and most
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| generation: through sales, direct sales
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| | possible way of accomplishing the second
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| in particular; revenue generation roots
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| | goal - promote the music by selling CCM's
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| need to be expanded.
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| | product lines to recording studio larger
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| Position in the value network: enters the
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| | then CCM, independent of major label with
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| most specialized industry segment. A
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| | access to traditional outlets. Thus, the
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| large number of competitors from all 4
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| | company has to define its prerogative -
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| segments of the industry; business may be
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| | develop the recording label or promote
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| complemented through alliance with larger
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| | the music by means other than within CCM
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| recording company.
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| | capabilities.
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