Colorado Created Music (CCM) is a micro label producer of music specializing as a creative and business outlet for classical and acoustic musicians. The company started as a vision for musician and entrepreneur Darren Curtis Skanson.
Colorado Creative Music has been able to compete due partly in response to the new digital technological revolution sweeping the music industry. In 2000, CCM’s catalog had 4 product lines and 11 records. The majority of CCM’s sales come from Gig’s, followed by wholesale, mail and phone orders, and then Website sales.
Total sales for the year 2000 were $213,311. 13, an increase from total sales in 1997 of $141,591. 86. The Gross Profit Margin rose from 74% to 90% over the years 1997 through 2000. Identification of Primary and Secondary problem One of the biggest problems facing CCM is their lack of retail outlets and distribution problems.
Also, from 1999 to 2000 CCM showed a decrease net income due to a huge increase in advertising, professional fees, payroll costs, supplies, royalties, and travel and entertainment costs. Beside that there are several other secondary problems.
The company must learn to make use of new technologies, such as the internet, in generating interest in the product, as well as of assuring sellers of the marketability and desirability of some of his lesser-known artists (Canetta & Winn, 2002) Develop a strategic vision and business strategy supported by well-defined financial and strategic objectives. Colorado Creative Music needs to target itself as establishing a niche in the market, rather than out and out domination of any particular sector of the music market (Feldman, 1998).
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