Sample Business Paper on Application of Business Strategy of Sydney Symphony Orchestra

Introduction

Business strategy can also be termed as a high-level plan for an organisation so that the organisation can accomplish its specified objectives developed (Lei and Slocum, 2013). Business strategy can be termed as successful if that strategy leads to success and gaining competitive position by the organisation in the competitive business environment. In business strategy, objectives of the organisation are prioritised so that organisation can gain success (Lei and Slocum, 2013). In this report, the main focus is on the business strategy of Sydney Symphony Orchestra (SSO). It has been explored that SSO was formed in the year 1908 and with the opening up Sydney Opera House; SSO has gain its concert hall.

Within the broad music industry, SSO is a part of the classical music industry, which in the present time performs around 150 concerts every year having more than 350,000 people as their audience (Sydney Symphony, 2018). This makes the organisation a successful organisation in the classical music industry. Under the leadership of Edo de Waart growth was observed within SSO with the help of ABC Classics and Olympic Arts Festival. Under the current leadership of David Robertson, SSO has moved to contemporary space (Sydney Symphony, 2018). In this manner, the report focuses on the external and industry analysis for SSO, to gain insights into the external environment of the organisation as well as about the industry in which SSO operates. Further, in order to analyse whether SSO can survive with the help of its current business strategy, competitors, resources, capabilities and strategy of SSO are analysed in the report.

External Analysis

For external analysis, PESTEL analysis is used as a framework as it is beneficial in analysing the external environment and the external factors that impact SSO in its successful operation (Perera, 2017). Thus, PESTLE analysis of Sydney, Australia is given below:

Political Factors

Australia has maintained its political stability, which is helpful for the organisations in operating in the environment (The Global Economy, 2018). The federal government of Australia is divided into three major branches, namely the legislature, the judiciary and the executive. The legislature comprises the Queen, the House of Representatives and the Senate. The executive is also known as the executive council, and lastly, the judiciary includes the High Court of Australia, as well as federal courts in the country. The political environment of Australia makes it suitable for the organisations to invest in the country (IBP, Inc., 2015).

Economic Factors

Significant capital growth in Australia provides investment opportunity to the organisations, which provide a return on investment. The commercial property available in Australia is available at comparatively low cost, which attracts investment from around the world. Further, the cost of living in the country is also low, with economic stability (IBP, Inc., 2015). It has been analysed that the economy of Australia advanced by 0.4 percent in the last quadrant of the year 2017, which was less than the third quarter (Trading Economics, 2018).

Social Factors

Individuals living in Australia are divided into three classes, namely the working class, the middle-class people and the upper-class people. However, there are boundaries found in the country regarding the classification, which has been a matter of debate from past few years (Maggio, 2017). In Australia, the major employment opportunity is provided by higher education in the country and also the country is considered as a source of higher education given in the form of universities and institutions (Maggio, 2017). Sydney is found to be the most populated city in Australia having a total population of 5.37 million people, which increased by 2.29 percent from the year 2016 (Population Australia, 2018). The income level of people in Sydney is good. With respect to classical music, the people who prefer classical music are old-aged people, which might create difficulty for SSO to survive.

Technological Factors

There are two major governmental organisations running in the country that supports research and development in the country. These two organisations are Commonwealth Scientific and Industrial Research Organisation, and Defence Science and Technology Organisation. These organisations have helped the country in advancing regarding technological aspects (Maggio, 2017). This shows that technological factors can help SSO is using different methods to spread music.

Environmental Factors

In order to maintain environmental standards in the country, environmental policies are developed in the country in compliance with the environmental laws and legislation. Further, with the growing concerns regarding the natural resources in the country, effective measures are taken by the government, to save the natural resources (IBP, Inc., 2015).

Legal Factors

The legal framework of Australia is transparent and also efficient that helps in making the country open. In addition to this, the legal system is strong in the country, which makes balanced checks, law enforcement system and also a respected judicial system (IBP, Inc., 2015).

Industry Analysis

In order to analyse the industry of SSO, a strategic group that is classical music is analysed with the help of Porter’s five force analysis method.

Competitive Rivalry

In the broad industry of music, the competition has increased to a great extent; however, in the case of symphony music, a little rivalry can be observed (Homan, Cloonan and Cattermole, 2017). It can be stated that the little rivalry left for SSO, cannot affect the organisation due to its presence in the market.

Threat of Substitutes

It can be observed that in the music industry the competition has increased to a significant level; however, in the case of classical and symphonic music is little. Therefore, the pop and western music can pose a threat to SSO by being a substitute for the classical music. In this manner, it can be stated that the threat of substitutes in the classical music industry is high.

Threat of New Entrants

With respect to the classical music industry, it can be stated that the pool of profit is comparatively low to pop and western music, a majority of the people in Australia do not prefer classical music (Homan, Cloonan and Cattermole, 2017). Therefore, the threat of new entrants in the classical music industry is low, which is helpful for SSO in developing strategies and maintaining its position.

Bargaining Power of Customers

It has been analysed that the group preferring classical music is declining; therefore, the bargaining power of the customers with respect to classical music is low.

Bargaining Power of Suppliers

In the classical music industry, musicians are considered as the key aspect, and there are many musicians existing in the industry. Therefore, it is easy to replace the existing staff; however, for classical music, it will be difficult to hire skilled staff as before.

Competitors of SSO

In order to analyse the sustainability of an organisation and develop new business strategies, it is important that the competitors existing in the market are analysed so that the competitors can be identified with their strengths and weaknesses in the market (Fleisher and Bensoussan, 2015). This provides the organisation with an advantage to develop new strategies based on the analysis of strengths and weaknesses of the competitors. Further, it can also help in taking preventive measures in the market based on the weaknesses of the competitors, which helps in running the organisation successfully in the competitive environment and gaining success (Fleisher and Bensoussan, 2015). Therefore, in the case of SSO, competitors are analysed to understand the competitive position of the organisation in the classical music industry. In Sydney, there is no direct competition existing for SSO, and competition for symphony also does not exist. However, a little competition can be observed in Sydney regarding recording. This little competition in the market cannot affect the operation of SSO. There is an indirect competition that exists for SSO regarding the music, which is Chamber music. Further, competition is high for SSO outside Sydney, which can impact the organisation and its profitability.

Resources and Capabilities of SSO

There are two types of resources that an organisation can have, in order to operate and succeed in the competitive business environment. These two types of resources are tangible and intangible resources. It has been explored that both tangible and intangible resources of SSO are strong and effective for the organisation. Tangible resources of SSO include the Sydney Opera House, which is considered as the concert hall of the SSO, financial reserves of the organisations are strong, and lastly, SSO accepts donations through a website and also an organisation, which makes the organisation strong (Sydney Symphony, 2018). In addition to this, intangible resources of SSO includes attraction of government funds, technological advancements, which help SSO in recording music on different platforms, and attraction of solicits. Further, SSO also has the capability to play best symphonic music and have best symphony orchestra (Sydney Symphony, 2018). These resources and capabilities are the major reason that the organisation is able to survive in the competitive music industry and declining classical music industry within the music industry.

Strategies of SSO

It has been explored that SSO is a leading organisation, providing its customers with classical music. Further, the differentiation that is created by SSO is using Sydney Opera House as their concert hall, which is an international tourist attraction, providing SSO with around 350,000 of the audience every year (Chan, Driscoll and Ackermann, 2013). Therefore, the major strategy of SSO can be stated as differentiation strategy, which is helping the organisation in leading in the competitive music industry. Further, under the differentiation strategy, SSO has hired the best players in the organisation and also have the best orchestra. Strategies of SSO also includes the embracement of new technology by the organisation (Chan, Driscoll and Ackermann, 2013). It has been explored that SSO performs the music on different technological platforms, which differentiates SSO from other music organisations running in Sydney. By focusing on the general public of Sydney, SSO has reached out the majority of the population in Australia, which has also helped SSO in gaining donations for the organisation (Chan, Driscoll and Ackermann, 2013).

Strategic Problem of SSO

It has been analysed that SSO has focused on differentiation as a strategy in the music industry, in order to sustain in the market and gain success. The differentiation is regarding the use of different technological platforms for recording music, playing classical music for the people of Sydney and having the best orchestra. This differentiation strategy is helpful for SSO in succeeding in the environment; therefore, it is important that SSO continues to be differentiators in the classical music industry. However, as the market of SSO is declining; therefore, despite strong resources and lack of competition in the market for SSO, the organisation can face difficulty in surviving in the market. The major issue identifier for SSO is how the organisation can maintain its competitive position and produce world-class music for its audience. Further, another issue that can be faced by SSO is government support for the organisation in the future. In the current scenario, it has been observed that the organisation gets funds from the government; however, it is possible that the government stops funding SSO for the classical music developed by the organisation. Therefore, it is essential for SSO that the organisation gets funds from the government and also the donor list is maintained so that they can successfully operate in the music industry.

Conclusion

SSO is a part of the classical music industry, which performs around 150 concerts in a year and produces world-class music in Sydney. The main attraction of SSO is the Sydney Opera House, which is used by the organisation as a concert hall. From the external and industry analysis, it has been observed that SSO does not has any direct competition in Sydney; however, the people listening to classical music are declining, which poses a threat for the organisation. The strategy adopted by SSO is being differentiators in the market, by producing world-class music and having the best orchestra. In addition to this, the resources and capabilities of SSO are strong, as they have donors and strong funding, which is beneficial in the successful operation of SSO. String resources of SSO include the best music, use of technological platforms of record music and best solicits. It can be stated that in order to survive in the market and music industry, it is important that SSO maintains its differentiation strategy and focuses on the government funding.

 

 

References

Chan, C., Driscoll, T. and Ackermann, B. 2013. Development of a specific exercise programme for professional orchestral musicians. Injury Prevention 19(4), pp. 257-263.

Fleisher, C.S. and Bensoussan, B.E. 2015. Business and Competitive Analysis: Effective Application of New and Classic Methods. FT Press.

Homan, S., Cloonan, M. and Cattermole, J. 2017. Popular Music and Cultural Policy. London: Routledge.

IBP, Inc. 2015. Australia Business and Investment Opportunities Yearbook Volume 1 Practical Information, Opportunities, Contacts. Lulu.com.

Lei, D. and Slocum, J.W. 2013. Demystifying Your Business Strategy. London: Routledge.

Maggio, M. 2017. Mobility Patterns and Experiences of the Middle Classes in a Globalizing Age: The Case of Mexican Migrants in Australia. London: Springer.

Perera, R. 2017. The PESTLE Analysis. Nerdynaut.

Population Australia. 2018. Sydney Population 2018. [Online]. Available at: http://www.population.net.au/sydney-population/ [Accessed on: 25 May 2018].

Sydney Symphony. 2018. Our History. [Online]. Available at: https://www.sydneysymphony.com/about-us/history/our-history [Accessed on: 25 May 2018].

The Global Economy. 2018. Australia: Political stability. [Online]. Available at: https://www.theglobaleconomy.com/Australia/wb_political_stability/ [Accessed on: 25 May 2018].

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