SACD

Giel Bessels is one of the three founders of a Dutch record company called PentaTone Classical Music BV (PentaTone), all of his published recordings on a high resolution audio format called Super Audio Compact Disc (SACD). Now a decade old, PentaTone survived the commercial failure of SACD start in 1999 and marked the unfavorable market conditions through an ever-shrinking demand for recordings of classical music. However, the founders hope to expand their business and know that … Read more »

Giel Bessels is one of the three founders of a Dutch record company called PentaTone Classical Music BV (PentaTone), all of his published recordings on a high resolution audio format called Super Audio Compact Disc (SACD). Now a decade old, PentaTone survived the commercial failure of SACD start in 1999 and marked the unfavorable market conditions through an ever-shrinking demand for recordings of classical music. However, the founders hope to expand their business and know that they will stimulate demand for their products so that they can finance further recordings. Bessel and his team recognize the unique difficulties of educating consumers about the high quality of high-definition surround sound classical music on SACD, which must be heard to be fully appreciated. The case invites students to think creatively about alternative ways of cultivation and protection PentaTone of the company, including novel applications of social media and possible expansion in China. The case also shows a relatively unusual design for new venture creation, a Business Views are set up as an asset to create a future capital gain through a trade sale rather than as a vehicle to (generate income), a stream of current and ongoing dividends .
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from
Simon Parker
Source: Ivey Publishing
6 pages.
Release Date: 7 March 2011. Prod #: W11057-PDF-ENG
SACD HBR case solution