This presentation was made for Strategy for Innovative Business class in KAIST School of Innovation. I enrolled this class on Fall 2013. Naxos, Changing The world of Classical Music , was one of case studies that we discussed in this class. Within this presentation, I try to sum up the word file. Providing Porter's 5 Forces analysis and adding some future strategy recommendation.

1. Changing The World
of
Classical Music
Submitted by : Riri Kusumarani (20124309)
Strategy for Innovative Business, Prof. JayYoung Ohm
Global ITTP, School of Innovation
Fall 2013

2. Industry Analysis
• High Entry Barriers,
•Low Chunk of Industry
offered
Bargaining
Power of Buyer
• High Purchasing Power, easy
to juggle between options.
• Seasonal preferences from
buyer
Threat of New
Entrants
Rivalry
Competition
Threat of
Substitutes
Competitors
owned
distribution channel,
Competitors owned more
stable capital
Bargaining
Power of
Supplier
• Easily swap between media types
•Lots of new talented musician available
•Low switching cost to change between
media types
• Youtube and similar streaming website as substitute

3. Competitive Advantage
 New Talented Musician
Non Overlapping Collection
of Classical Music
Audiobooks to promote
Classical Music
Superior
Efficiency
Early Adopter & First mover of
Technology
Superior
Quality
Competitive
Advantage
Superior
Innovation
 Unique & Non overlapping Collection of
Classical Music
Offer Same Quality with Cheaper Price
Simple, Easily Recognized CD design
Superior
Customer
Responsiveness
 Try to satisfy all kinds of
user
preferences
(
Streaming, CD, Audiobooks
etc)

4. Future Strategy Recommendation
Get Big,Fast
• Adding more collection of repertoires & Musicians
• Getting more customer with efficient one-click checkout process.
Re-build Website
• One-click checkout process
• Standardize all Naxos-family website design
Focus on Talent Searching Competence
• Initiate talent-searching for classical music industry
• Naxos differentiation point compared to other
Diversified to Traditional Music
• Not so many company explore this part
• Possibly doing M&A with local classical music labels
Licensed Music
• Utilize existing collection and licensed those to videogames, movies etc