Music Retail - CHANGE IS CERTAIN!

During the last decade, the traditional music retail business has been fighting against the grain of a series of changes. Ultimately, many methods applied by retailers for facing the challenges of changes in the industry lead to bankruptcies and store closings.  The closing of music retailers like Virgin Music and Tower Records were indications of the inevitable paradigm shift in selling pre-recorded music; however, suppliers of pre-recorded music like Super D are banking on factors like strategic positioning, sales channels, and operational / technological edges to ensure their success.

 Super D, a California-based music distributor, is an example of changing some of the factors for achieving success in music retailing.  The recent acquisition of another music entity by Super D was a means to reach several forms of success in the retailing business.

By positioning the company to get consumer products from the studios producing DVDs, the ability to provide on-demand services placed Super D in a greater service capacity.  Along with manufacturing, the ability to improve their customer call center was an enhancement to their operational and technological advantages. Moreover, although the company provides web services through its web site, the ability to offer web hosting services was an advancement for Super D’s 3^rd person logistics capabilities.

Although Super D was servicing retailers with over 300,000 music and DVD titles, the acquisition makes them able to provide a greater selection of products, as well as, a greater position in the marketplace – number two.  In the end, the ability to plan for gaining a greater market share by way of operational enhancements, and, the improvement of customer service by creating more title selections and more call service capabilities are the ways in which Super D has accepted that change is certain, therefore, why not change in order to keep achieving success I music retail.     

REFERENCES:

1) Ed Christman; Super D Acquires Infinity Resources; Billboard Magazine; 11/05/2010.  http://www.billboard.biz/bbbiz/content_display/industry/e3i4ef51a35fea2a26d6fe09c7b722c4adc

2) Rhonda Abrams; Strategic Position & Risk Assessment; Successful Business Plan: Secrets & Strategies; pp.136-142.

The Transitional Team Player

In today’s era of digital social networks like Twitter, Facebook and Myspace, there is an often “over rated” value placed on the lack of a need for a “major record label”.  Although promotional, marketing and advertising efforts can be enhanced and in some cases replaced by technology, the need for a great team is an essential need that can’t be abandoned. A case in point, the greatest home studio equipment is no replacement for the keen and discipline ears of a master engineer - a vital team player for producing a quality product for the buying public.  Despite the advantages of inter net viral marketing, essential team players like lawyers, music publishers, sales and distribution staff are vital to success in the music business.  The concept of the competent team is as vital for major labels as it is for independents (if not more so for small labels).  In a time when downsizing, restructuring and layoffs of executives are a constant occurrence at major labels like Warner Music Group and Sony Entertainment, the idea of the indispensable team player may need to be transformed into the transitional team player.  A flexible approach to career advancement in a record company or music industry must be constantly reexamined in order to create an effective strategy for career advancement.  Understanding how or how long you may be able to grow in a company is becoming just as important as knowing how much your work will contribute to being promoted. Whether it is for promotion or preparing for a transition between jobs, keeping a transitional team player frame of mind can be likened to possessing an insurance policy for pursuing careers; keep it handy because you may never know when it may be needed.

REFERENCES: 

1) Warner brothers Shake Up Top Ranks, Layoff Staffers ; Billboard Magazine, Nov. 5, 2010, Ann Donahue. http://www.billboard.biz/bbbiz/content_display/industry/e3i7f28928d88ce98bcad5ce1a0a8768ce2

2) Sony Music Cuts Staff; Billboard Magazine, Oct. 29, 2010; Ed Christman 

http://www.billboard.biz/bbbiz/content_display/industry/e3if5ddbe1f0bbd42ec140a478d93d359d3