Αναρτήσεις

Προβολή αναρτήσεων από Μάϊος, 2009

Music Business & the Boston Matrix

The matrix created by the Boston Consulting Group, visualizes the product/service cycle of a company in a vertical & horizontal axis divided in four quadrants. I came up with the morning impulse about relating this to the current state of the major music corporations around the world.

It is already known that these firms have been running into harsh financial problems due to the fact that technological advancements & the digital age are turning everything "upside down", forcing them to restructure their whole industrial organization. The latter established them profitable, viable & sustainable over the past years.

K(n)ow what? Now I am wondering if these firms experience hard times because they are running short in (short term) cash flows or because of (long term) failed capitalized assets (artists) or assets that don't work anymore due to massive changes in the industry. This signifies an overly poor negative cash flow portfolio, threatening their present su…