Business Strategies for Sydney Symphony Orchestra

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Competitive Strategy
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Table of Contents
Executive Summary................................................................................................... 3
Introduction................................................................................................................ 4
Identification of strategic issues.................................................................................5
Business strategy....................................................................................................... 5
Growth of new products strategy............................................................................6
Finding new markets............................................................................................... 6
Product differentiation strategy...............................................................................6
Acquisition strategy................................................................................................. 7
Cost differentiation.................................................................................................. 7
Customer relationship management business strategy..........................................7
Strategy development and Implementation...............................................................8
Cost leadership....................................................................................................... 9
Differentiation strategy........................................................................................... 9
Cost focus strategy................................................................................................. 9
Differentiation focus strategy.................................................................................. 9
Conclusion................................................................................................................ 10
Bibliography............................................................................................................. 11

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Executive Summary
The Sydney Symphony Orchestra was established in 1932. Currently, the Orchestra has
over 90 members. SSO has over the years enjoyed a good government support and funding
through philanthropy and patron support. However, it has become increasingly difficult for the
Orchestra house to tap into the younger demographics who are attracted to contemporary music
genre. SSO faces a myriad of challenges such as huge competition from other music genres and
Chamber music groups. Additionally, SSO has to meet high production and operation cost. The
analysis of the business strategies can enable SSO to come up with better methods to address the
challenges that it faces. The business strategies include product differentiation, cost
differentiation, growth strategies, mergers and acquisitions and customer relationship
management. SSO can also use online distribution channels to attract millennial consumers. SSO
can apply Porter generic strategies to gain a competitive advantage in the market.

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Introduction
The Sydney Symphony Orchestra (SSO) was established in 1932 and started with 24
players. After the Second World War, SSO expanded to become one of the leading orchestras in
the world. The primary market for the orchestra is the city of Sydney in Australia. Sydney has a
population of about 5 million people and has high per capita income. A classical concert is
totally different from the current pop or rock concert, with the audience formally dressed and
exhibit discretion in their behavior. This has made it hard for it to appeal to the younger
generations who are used to lively events. Classical music is also an expensive affair due to the
many players needed for performance and the cost of hiring the halls. However, SSO has made
tickets to its event affordable; for instance, in 2016, the tickets were ranging between 95 and 140
Australian dollars (Anon, 2019). Some of the problems encountered in the classical music
industry include piracy, with websites such as ‘The pirate bay’ making it easier for people to
steal music. Many orchestra houses have shut down due to low revenues. The Australian
government has offered support to orchestras through the Australian Council for the Arts. The
SSO in 2014 received 71 million Australian dollars from government funding. Currently, SSO is
a full orchestra with over 90 musicians and a world-renowned conductor. The players are also
well paid as compared to other orchestra houses. SSO engages in a number of CSR programs
such as music education programs and artist development programs. SSO offers an annual free
concert at the Opera house. It also has a good hiring policy and has first-rate musicians.
Although the total operating profits have been declining over the years, SSO generates
significant income from its own activities. In 2014, the total revenue including government
funding was 393 million Australian dollars (Scharff, 2015, pp.102). SSO partners with Emirates,
Credit Suisse, and Visions of Vienna. However, SSO faces strong competition from other forms
of music such as pop, rock, and Jazz. These substitutes appeal to a larger demographic than