Submitted by: Submitted by jkirschner
Views: 10
Words: 330
Pages: 2
Category: Business and Industry
Date Submitted: 04/18/2016 04:49 PM
Of the six options provided in the case, it appears as if pursuing digital download is most aligned with Walder’s vision. Walder created UGHH with the idea of creating a community for the underground hip-hop scene. His platform would search for music, as well as provide a forum for fans to communicate. By focusing his efforts on a niche market and providing the availability of download rare or new music at the push button, with little competition, makes this option the best. Digital download does not require maintaining any inventory, and by focusing on this option would produce the highest sale and provide the greatest opportunity.
The other opportunities do not provide as much growth or would stretch company resources. Franchising removes Walder’s control of the company, and seems the least likely and does not fit with the vision, as does creating a talent management. Magazines and reality TV would stretch company resources and would require UGHH to enter into field that they have no experience in. While radio would be a natural evolution, it is also not true to Walder’s vision of expanding globally as he would have to choose a specific market. Digital downloads seems the most ideal and seems most inline with Walder’s vision.
In comparison to creating a reality TV show or developing a magazine, providing digital downloads would be low cost and would have more security and sustainability. Franchising doesn’t seem like it would be a good solution because of the high costs associated with rent and inventory. Additionally, franchising would mean giving control to a franchisee, which is something Adam and Lynn truly struggle with to begin with. The talent management idea could work since Adam is so well respected within the industry, but the expense and risk is high.
The digital download option would reduce the need to maintain high inventory. Focusing on an option that would produce the highest sales and in turn cash flow would be UGHH's best...