UNIVERSIDAD ESAN

FACULTAD DE CIENCIAS SOCIALES Y DERECHO

Carrera de Derecho Corporativo

A MAESTRO WITHOUT BORDERS: HOW ANDRE RIEU

CREATED THE CLASSICAL MUSIC MARKET FOR THE
MASSES

Trabajo que como parte del curso de Estrategia presentan

los alumnos:

Rodríguez Pereda, Diego

Arana Jurado, Lesly
De la Cruz Rojas, Daniel
Pérez Zegarra, Dennis

Profesor: Marco Ríos-Pita Ruiz

Lima, 21 de septiembre de 2019

GROUP CASE QUESTIONS:

1. Is the classical music industry attractive? If you were head of an orchestra set on
beating the competition, what strategic options could you have? What would be the
likely results?

2. How do you feel about attending a classical musical concert based on what you
have seen in the first video and / or your personal experiences versus how do you
think the average person feels? What are the pain points of such concert – going
experiences? Who are the noncustomers of traditional classical concerts?

3. Some critics and hard – core classical music lovers don’t see André Rieu’s music
as authentic classical music. In your opinion, what genre of music does his fit into? In
what way did he change and reconstruct the classical music industry?

4. What is the key logic underlying André Rieu’s business success?

5. Despite his impressive achievements over the years André Rieu suffered a financial
downfall at one point in his career, as described in the case. Seen from bl u e ocean
strategy perspective, what did he do wrong there?

ANSWERS:

1.In the set scenario in the first question, our strategic option, would be the
"differentiation". We choose this option because when you are trying to create a market
interest and popular, you have to create a concept that differentiates from other normal
classical orchestras. Classical music has always been a very selective type of music and
more than a type of music it involves culture, education, social class and many other variants
that make it very selective, but always related to a small group and not to the large masses.
The differentiation starts with creating a personal marketing, with a different image than the
rest of typical classical music artists and also, try to stablish something different in the music
that is provided to the industry. In the following case, Andre Rieu did a very different type
of show and even was listening in some pop radio in the US, so the image was totally
different from typical.
The likely result of implement the strategic option of the differentiation will be an approach
of another type of commercial public and major masses, which will be strongly interested
in knowing the proposal, inserting and becoming progressively part of the popular musical
culture of many people.

2. In my personal experience I feel that I have close tastes and I enjoy classical music very
much, I don't find it strange at all, I have repeatedly attended piano recitals in conservatories
or instrumental music presentations; I think that contrasting my experience with that of most
people, I can conclude that some musical knowledge is needed and prior to attending this
type of concert, since many pieces that are played are reinterpretations or colloquially called
"covers" in commercial music. Also, unlike pop music, a piece of classical music usually
has much longer durations without the intervention of human voices, which makes it an
experience much more open to subjectivity and tastes. I believe that the average person does
not tend to attend a classical music concert because most people in music like what is in
fashion. Today the market segment of classical music is very small and not very close
through the common media and channels through which people tend to receive and acquire
entertainment. It is because of this the little or no knowledge or rejection of this type of
music today, especially by young people.

The pain points of this type of concert experiences, the places where the presentations are
given, are usually much more reserved and sometimes exclusive, also the public cannot
participate or accompany the musician in the presentation, which makes it an experience of
less interaction and a different type of entertainment. Because of this we can conclude that
the noncustomers of traditional classical concerts It is the new generations that do not listen
to this type of music and also the people who are accustomed to participate in concerts and
have more interaction with musicians.

3. In our opinion, Andre Rieu remains part of the classical music genre, with an advantage
and approach to pop music that allows it to be more attractive to young people and amplify
itself to different market segments. Andre Rieu and his orchestra, instead of competing like
other orchestras, rebuilt the market boundaries between pop music concerts and classical
concerts, creating a blue ocean for people to be interested. His CDs and DVDs have sold
more than 40 million copies. It created a new industry limit, or a new market space that
makes competition seem irrelevant. It makes classical music look great.

4.The key is that case study recommendation memo is one page or at max two-page
document (not including the exhibits) that recommends the course of action and provide its
rationale in brief. The popularity of the format is because of the limited time available to
most leaders and managers in today’s corporations.
According to survey by Harvard Business Review, recommendation memo is the most used
document in fortune 500 firms and extensively preferred by CEOs of transnational
organizations. The greatest advantage of recommendation memo is that it cuts the slab out
of communication and makes the writer focus on the most critical aspects. Like all other
forms of communication, writing case study recommendation memo requires practice and
clear insight into what is required.

5. Seen from the perspective of the blue ocean strategy, the ruling is reflected in the
following aspects:
 High cost of replacing existing experts within the organization. Few employees are
responsible for the Rieu Classical knowledge base and replacing them will be
extremely difficult in the present conditions.

 Loyalty among suppliers is low - Based on the evidence provided in the case study,
it seems that there is low level of allegiance among the members of supply chain
partners.
 Business Model of Rieu Classical can be easily imitated by the competitors in the
industry name industry. To overcome these challenges company name needs to build
a platform model that can integrate suppliers, vendors and end users.

 Extra cost of building new supply chain and logistics network - Internet and
Artificial Intelligence has significantly altered the business model in the Financial
markets, Growth strategy, International business industry and given the decreasing
significance of the dealer network Rieu Classical has to build a new robust supply
chain network. That can be extremely expensive.

 Low investments into Rieu Classical customer oriented services - This can lead to
gaining advantage in near future.

 Declining market share of Rieu Classical with increasing revenues - the Strategy
Execution industry is growing faster than the company. In such a scenario Rieu
Classical has to carefully analyze the various trends within the Financial markets,
Growth strategy, International business sector and figure out what it needs to do to
drive future growth.