Strategic tools for the practising manager

KIT

THIS WEEK: THE INDIAN MUSIC INDUSTRY

The size of the Indian music industry is estimated at Rs 11,070 million, of which organised music retailing constitutes about 14 per cent, equivalent to Rs 1,550 million.

Non-film music is growing at 15-20 per cent, but the overall industry growth is sluggish at 3-4 per cent.

Losses due to piracy are estimated at Rs 4,340 million.

Domestic repertoire consistently accounts for more than 90 per cent of the total music market in India with international repertoire topping it off at 7 per cent.

On an average, 70 per cent of the merchandise mix in organised retail format comprises of domestic repertoire versus 30 per cent English/international music.

Strong regional genre sales is witnessed in the organised retail formats with approximately 30-35 per cent of the sales for stores come from the regional and the classical (Indian in north while Carnatic in south).

Digital downloads are not a major contributor to music sales due to lack of high speed Internet connection.

Selections from management journals
NUGGETS

Do Indian CEOs and business leaders operate in a way that is markedly different from those in other parts of the world? What is the source of their competitive advantage? Can other managers learn from their experiences? Four Wharton management professors "" Peter Cappelli, Harbir Singh, Jitendra Singh and Michael Useem "" set out to answer these questions. Their findings are summarised in a new study titled, "The DNA of Indian Leadership: The Governance, Management and Leadership of Leading Indian Firms," co-sponsored by India's National Human Resources Development Network. The researchers spoke to India Knowledge@ Wharton about their key findings.

Are Indian business leaders different?
India Knowledge@Wharton
November 01, 2007
Read this article at http://knowledge.wharton.upenn.edu/india/

A price-benefit positioning map helps you see, through your customers' eyes, how your product compares with all its competitors in a market. You can draw such a map quickly and objectively, without having to resort to costly, time-consuming consumer surveys. Creating a positioning map involves three steps: first, define your market to include everything your customers might consider to be your product's competitors or substitutes. Second, track the price your customers actually pay and identify what your customers see as your offering's primary benefit. This is done through regression analysis, determining which of the product's attributes explains most of the variance in its price. Third, draw the map by plotting on a graph the position of every product in the market you've selected according to its price and its level of primary benefit.

Mapping your competitive position
Richard A D'Aveni
Harvard Business Review,
November 2007
Subscribe to this article at www.hbr.com