Giel Bessels is one of the three founders of the Dutch classical music label called PentaTone Music BV (PentaTone), which produces all of its records to high-resolution audio format called Super Audio Compact Disc (SACD). Now, ten years, PentaTone experienced business failure SACD launch in 1999 and is characterized by adverse market constantly shrinking demand for classical music recording. However, the founders want to build their business on and know that they have to stimulate demand for their products, so that they can fund further record. Bessels and his team recognize the unique difficulties of educating consumers about the superior quality of high-resolution surround sound of classical music on SACD, which must be heard to be fully appreciated. The case invites students to think creatively about alternative methods of cultivation and protection of business PentaTone, including the novel use of social media and the ability to expand in China. The case also illustrates the rather unusual motive for the creation of a new company, which views the business as an asset that will be built to provide future capital gains through trade sale, and not as a means to create a stream of current and ongoing dividends (income). "Hide
by Simon Parker Source: Richard Ivey School of Business Foundation 6 pages. Publication Date: February 7, 2011. Prod. #: W11057-PDF-ENG
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