sydney symphony orchestra
The Sydney Symphony Orchestra
Established in 1932, The Sydney Symphony Ochestra (SSO) is a full ninety-member Orchestra based in Sydney. The SSO have enjoyed good profitability in recent years through both strong government support and high concert attendance. However, the music industry they operate in has a constantly changing external environment making future profitability a frequently asked question. This essay seeks to predict the future profitability of SSO within this competitive environment. Through segmenting the SSO’s general environment framework, and conducting an environmental analysis utilising Porters five forces model of competition an educated prediction is concluded.
The general environment is a collection of dimensions influencing an industry and the firms within it (Hanson et al, 2014 p. 38). These dimension are made up of the Demographic, Economic, Political, Socio-cultural, Technological and Global, all of which heavily impact the SSO. The political dimension of the SSO is strongly correlated with the large amount of support by the government through heavy funding. The economic environment of SSO is positive, having reported a surplus of $1.022 million along with a bequest of $500,000 in 2011 (Hanson et al, 2014 p. 421). Apart from government funding, 65% of the revenue earned by the SSO was generated through profits. The Socio-cultural and demographic dimensions on the other hand, are inevitably linked with the location of Sydney and its unique features. Sydney is often regarded as one of the most liveable cities in the world possessing a large population of 4.5 million. The residents are economically well off, enjoying a high per capita income with a large middle class who are able to afford expensive inner city housing. A ticket to a SSO concert is priced between $50 and $71, and is considered affordable for many. Technology another segment of the general environment, has heavily impacted the profitability of music with websites such
Established in 1932, The Sydney Symphony Ochestra (SSO) is a full ninety-member Orchestra based in Sydney. The SSO have enjoyed good profitability in recent years through both strong government support and high concert attendance. However, the music industry they operate in has a constantly changing external environment making future profitability a frequently asked question. This essay seeks to predict the future profitability of SSO within this competitive environment. Through segmenting the SSO’s general environment framework, and conducting an environmental analysis utilising Porters five forces model of competition an educated prediction is concluded.
The general environment is a collection of dimensions influencing an industry and the firms within it (Hanson et al, 2014 p. 38). These dimension are made up of the Demographic, Economic, Political, Socio-cultural, Technological and Global, all of which heavily impact the SSO. The political dimension of the SSO is strongly correlated with the large amount of support by the government through heavy funding. The economic environment of SSO is positive, having reported a surplus of $1.022 million along with a bequest of $500,000 in 2011 (Hanson et al, 2014 p. 421). Apart from government funding, 65% of the revenue earned by the SSO was generated through profits. The Socio-cultural and demographic dimensions on the other hand, are inevitably linked with the location of Sydney and its unique features. Sydney is often regarded as one of the most liveable cities in the world possessing a large population of 4.5 million. The residents are economically well off, enjoying a high per capita income with a large middle class who are able to afford expensive inner city housing. A ticket to a SSO concert is priced between $50 and $71, and is considered affordable for many. Technology another segment of the general environment, has heavily impacted the profitability of music with websites such
Bibliography: Hanson, D., Hitt, M., Ireland, r., and Hoskisson, R. 2014, Strategic Management competitiveness and globalization, Cengage Learning Australia Pty, Australia. Hitt, M., Ireland and Hoskissson, R. 2011, Strategic management 9th addition, Australia. Porter, M. 1998, On competition, Harvard Business Press, Bostan.