Saregama India Ltd.: Repositioning the Value Proposition
(9 pages of text)
Saregama India Limited (Saregama), a 117-year-old music company, was on a growth trajectory. Its third-quarter financial results in 2017–2018 had shown unprecedented growth. Over the previous three years, Saregama had converted its conventional copyrighted music into high-quality digital formats and made a rare stretch from the business-to-business (B2B) to business-to-consumer (B2C) market. The company had added new intellectual properties (IP) in audio and video. Then in 2017, Saregama launched Carvaan, a portable music player with 5,000 evergreen songs. Cleverly created to meet the needs of its older target audience, the Carvaan was largely responsible for the company’s turnaround.
Saregama’s goal was to be a ?20 billion IP content company in the next five years. To make that happen in the context of rapidly evolving technologies and consumer trends, the company needed sharply defined short- and long-term strategies that addressed content acquisition, its success with Carvaan, and its pursuit of B2B and B2C markets.
The case is suitable for use in postgraduate-level courses in marketing and in advanced postgraduate-level courses on strategic product management and marketing strategy. The case illustrates how a business can rise from a downturn to reinvent itself, and using a blue ocean strategy, create a unique value proposition.
After working through the case and assignment questions students will be able to do the following:
- Describe the dynamic macro-environmental factors in the media and entertainment industry, and explain how they are changing the competitive landscape for forms in the sector.
- Describe the process of mapping customers’ stated and unstated needs to design innovative product offerings that create strategic blue ocean advantages for an existing firm.
- Review and rationalize the processes of new product innovation and innovation adoption.
- Identify and evaluate strategic alternatives to build on a company’s competitive advantage as part of its short- and long-term business goals.
Arts, Entertainment, Sports and Recreation
India, Large, 2018
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