Giel Bessels is one of the three creators of a Dutch classical music record label called PentaTone Music BV (PentaTone), which releases all its records on a high resolution audio format called Super Audio Compact Disc (SACD). Now a decade old, PentaTone has endured the commercial failure of the unfavorable marketplace characterized by a consistently shrinking demand for classical music recordings and also the SACD's launch in 1999.
But, understand that they have to stimulate demand for their products to allow them to finance further records and the creators wish to build their business further. Bessels and his team comprehend the unique problems of educating consumers about the outstanding quality of high-resolution, surround-sound classical music on SACD, which must be heard to be completely recognized.
The case invites students to think about alternative methods of growing and shielding the business of PentaTone, including possible expansion into China and novel uses of social networking. The case also exemplifies a comparatively uncommon motive for new enterprise creation, which sees a business as an advantage to be built up to supply a future capital gain through a trade sale as opposed to as a vehicle to create a stream of current and ongoing dividends (incomes).
PUBLICATION DATE: March 07, 2011 PRODUCT #: W11057-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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