CCM Music Recording Company Case Study Part 2
Keenan Wright
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Value chain analysis
The value chain analysis consists of the following components arranged in sequence: artists and repertoire development, recording, manufacturing, marketing, distribution and finally retail. Such chains as manufacture, recording and retail are very often outsourced, even by the Great Five (Warner Mus 
ic group, EMI Recorded Music, Universal, BMG Entertainment and Sony Music Group).
A thorough analysis and review of CCM's operations has been completed by reviewing the current and long-term problems in both the internal and external environments.
Artists and Repertoire Development: Recording companies put as much available money as possible into developing their groups and music, the musical repertoire and quality, to promote concerts and organize tours, to prepare the merchandising. CCM plans to expand its product line to include more musicians and albums and to expand the musical genre the company operates into.
Recording: Usually major labels have their own recording studios, though still outsourcing this link of the value chain is possible even by such premier companies as Columbia and EMI. Primary costs come from the equipment and mixing, which in the case of Colorado Creative Music were the cheapest quality equipment from all possible.
Manufacturing: Manufacturing a CD usually takes 10% of its cost. There are not too much CD manufacturers in the world, since the costs of the process make the market very limited with serious entry barriers. CCM's manufacturing is not very costly process due to the technology employed, though the company didn't manufacture actually CDs, it bought them from the relevant producers, and then just duplicated them.
The value chain analysis consists of the following components arranged in sequence: artists and repertoire development, recording, manufacturing, marketing, distribution and finally retail. Such chains as manufacture, recording and retail are very often outsourced, even by the Great Five (Warner Mus
A thorough analysis and review of CCM's operations has been completed by reviewing the current and long-term problems in both the internal and external environments.
Artists and Repertoire Development: Recording companies put as much available money as possible into developing their groups and music, the musical repertoire and quality, to promote concerts and organize tours, to prepare the merchandising. CCM plans to expand its product line to include more musicians and albums and to expand the musical genre the company operates into.
Recording: Usually major labels have their own recording studios, though still outsourcing this link of the value chain is possible even by such premier companies as Columbia and EMI. Primary costs come from the equipment and mixing, which in the case of Colorado Creative Music were the cheapest quality equipment from all possible.
Manufacturing: Manufacturing a CD usually takes 10% of its cost. There are not too much CD manufacturers in the world, since the costs of the process make the market very limited with serious entry barriers. CCM's manufacturing is not very costly process due to the technology employed, though the company didn't manufacture actually CDs, it bought them from the relevant producers, and then just duplicated them.