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Multimedia Industry: Case Study of Stormnetmedia Essay

Stormnetmedia is a leading multimedia company in the United Kingdom offering high quality CD and DVD duplication services at very competitive prices. The company has a strong customer base in London, Birmingham, Warwickshire and the Midlands. The video and DVD production are of broadcast quality. The company also provides encoding services for data protection. Other services provided include web designing, online education solutions and database applications.

The Management Team and Employee relations:

The company boasts of some of the best qualified veterans of the industry at the helm. The corporate culture within the business entity is also very advanced, especially the openness with which new team members are welcome. For example, in their own words the company “empowers our people, future team members will be recognized for their contributions and have the opportunity to grow their careers with the organization” The company is always striving to hire personnel from diverse ethnic and cultural backgrounds making work an enriching and highly rewarding experience. So this aspect of their business will fetch good rewards.

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Impressive financial results:

The results for the year 2006 are an invitation for further investments. The total Revenue for the group rose from $40,437 in 2005 to a whopping $80,162 millions the subsequent year. This is an increase of nearly 100%. Such growth figures are not usually seen in companies that started with a modest capital. It just goes to prove how the company is head and shoulders ahead of its competition when it comes to performance. During the same period, its operating income rose from 25,000 dollars to 35,274 dollars, again an increase of nearly 40%. So, this small scale firm has got all the ingredients to make it a successful player in the multimedia market. With such strong financial performance in the recent past and a likely trend to follow, Stormnetmedia can look forward to opening the company for public investment.

Strategic Branding:

It is not just that the Stormnetmedia’s brand is popular and well-respected, they represent market leadership in terms of quality in their respective segments of the industry. With a wide variety of services, it offers great range of choice for its clientele, which ultimately contributes significantly to the bottom-line. This is another area where the company had displayed leadership in the industry.

Strategic Advantage:

Even after achieving positive financial results, the top management is not complacent on past performances. The company had constantly re-invented its product and service range through innovative operational strategies. The management team is also constantly striving to simplify its structures and increase co-ordination between various branches and implement cost-cutting techniques. So Stormnetmedia is ahead of its competition in this aspect, which should persuade venture capitalists to back this company in the future.

The company always places the interests of customers above their own. This is reflected in its “approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators” (Annual Report, 2005-2006)). Considering all the above reasons, we can conclude that during the course of next five years or so, Stormnetmedia will reach new heights.

Other positive trends:

In the small-scale multimedia market, the company had managed to achieve the fastest rate of organic growth. For instance, between 2003 and 2005 the growth rate is 60 points, which is a clear 20 point lead over its closest competitor. The Stormnetmedia management is constantly looking for newer opportunities in the digital media industry. It has plans to increase globally co-ordinated innovation and break-out innovation. Plans have also been drawn to capture a larger share of smaller markets by catering to local preferences.

What lies ahead?

The company is very well placed for further market consolidation. Add to it a greater synergy potential, and we have a company that is strong in its fundamentals. These strategic advantages are backed by sound financials as well. For example, a cash flow margin of 50% and a total asset worth of $500,000, Stormnetmedia’s shares must be very lucrative for investors, when it will eventually graduate to a public company.


Bellotti, V. & Rogers, Y., 1997, From Web press to Web pressure: multimedia representations and multimedia publishing, Proceedings of the SIGCHI conference on Human factors in …, 1997 – portal.acm.org

Chiariglione, L., 1998, Impact of multimedia standards on multimedia industry, Proceedings of the IEEE, 1998.

Drew, M.S. & Li, Z.N., 2004, Fundamentals of Multimedia, School of Computer Science Publication, Canada, 2004

Multimedia Induatry, Annual reports from 2001–2006. [Online].
Available at: , accessed on 16th October 2007.

Stormnetmedia Online Interface, [online], available at: , accessed on 16th October, 2007.

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