Juan Carlos Campos

The Organization adopted by Live Nation grows by using different growth strategies. First, backward vertical integration, because it became its own supplier so it can control its inputs. Indeed, its CEO Michael Rapino seemed unsatisfied by towering a single market, the concert business, and intended to expand using the music stars since they constitute the most significant trump (input) of the live music industry. He offers a “one-stop operation that handles their every musical need” handling the total aspects of the music business (making their albums, selling their merchandise, running their web site, producing their video, etc.) in addition to already operating their tours. Second, forward vertical integration, since Live Nation became its own distributor with the acquisition of House of Blues chain avenues so it can connect artists with consumers/fans thereby control its outputs (live concerts, music venues, and festivals). Live Nation creates lasting bonds by connecting fans to their favorite music stars and constituted “valuable fans’ database” in order to offer them other music-related products. This strategy appears to be effective and efficient, thus constituting a significant competitive advantage, especially knowing that they wooed super-stars such as Jay-z, Madonna, Shakira, and Nickelback.

2. How might SWOT analysis be useful to Mike Rapino, CEO of Live Nation?

As a CEO, thus a top-level manager, Rapino might use SWOT analysis in order to formulate appropriate strategies that exploit the organization’s strengths and external opportunities (connect fans to artists/ expand the current market), buffer or overcome external possible threats (music streaming), or deal with weaknesses (chain of distribution/ stars handling);

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