Explain the role of capitalism in the 100-year growth of Undermanned Concerts. How does Undermanned benefit from each of the fundamental rights of capitalism? 1 . Capitalism Is a free market system, based on private ownership, economic freedom, and fair competition. This economic system creates great possibilities for economic growth and wealth for businesses, countries and societies.
Endangered Concerts Is one of the companies that had successful growth during the past 100 years by operating in the free market system.
Let’s take a look at what the role of capitalism in heir success is and how Undermanned benefits from each of the fundamental rights of capitalism. Undermanned Concerts is a family-owned company located in LA, one of the two biggest markets In the concert industry. The right to own a business allowed Interlarded Concerts to start a business in the USA back in 1926. Being free to make choices on what to produce, Undermanned Concerts became an expert at producing and presenting the best concert events in small venues.
The company owns and runs the Greek Theatre, the San Jose Civic and Barbara Bowl, which is supported by the right to private property. To be competitive In the concert Industry, Undermanned has created their own practical economic model, which allows them to acquire top talent, delivers great concerts and keeps all parties (tickets buyers, artists, own team) satisfied. The right to keep after-tax profit allowed Interlarded Concerts to Invest, to grow and to become one of the most respected, recognized and successful concert management companies.
In general, to succeed in the free market system, companies strive to attract the best resources and offer the best values to their customers, employees and suppliers. Undermanned venues are much smaller than popular stadiums but the company manages to attract famous artists and deliver spectacular shows while attaining a financial goal. Why is Undermanned able to charge higher prices for small theatre performances when audiences could pay less at stadium concerts? Would you expect the current slump In the U.
S. Economy to affect Meanderer’s ticket sales? Why or why not? 2.
Now a days, concerts of famous artists are usually held In big stadiums and theaters, which brings a huge crowd of fans for affordable ticket prices and the same time, satisfies the high demanded payment for the top artists and earns a profit for the organizers of the shows. However, there are concert management companies, like Undermanned, that manages to charge higher ticket prices for small theater performances and to deliver a “sellout crowd night after night”(Video Case: Undermanned, p. L). Why is Undermanned able to do that when audiences could pay less at stadium concerts?
Operating in a free market system makes Undermanned work hard and find their way to succeed.
Their tactic is “to match the right band with the right target audience” (Video Case: Undermanned, p. L). Believing that each artist or band has their unique audience, the marketing apartment of Undermanned is publicizing the shows by executive targeting a definite customer sector. Another Important factor of the success of Undermanned Is that they have learned “to make money based on precise economic calculation” (Video Case: Undermanned, p. ). By matching the high demand for top artists with the low supply of tickets for Undermanned small venues, they find out the equilibrium price, the price equilibrium price and taking into consideration the price demanded by the artist and the price the fan is willing to pay, Undermanned can negotiate the deal and make an offer.
Their main goal is to deliver an incredible show, make the fans happy and artists satisfied, and, of course, to gain a profit. What could affect Meanderer’s ticket sales?
Meanderer’s business model focuses in a local region, dominating in the West Coast. Any change in the U. S economy that shifts the demand or supply lines and results in a change of the equilibrium price will affect the business. The entertainment industry is affected by recession, as well as Undermanned Concerts.
During the period of economic downturn, people decrease their spending by buying ore basic needed products and less wanted luxuries. The demand for top artists is not so high during the slum in the U.
S. Economy while the supply of the tickets does not change and is low for Undermanned venues. The company may decrease the ticket price because the equilibrium price is lower due to decrease in demand.
Responding in time to the changes in the U. S. Economy and applying fundamental principles of a free market system in their business model, Undermanned Concerts will continue to grow successfully, which will bring prosperity to them, to country and society.