Entrepreneurship Quiz 1 Study Guide MAMMA MIA THE LITTLE SHOW THAT COULD CASE OVERVIEW 1988 Poor Broadway review marked beginning of end of Chess Think about what OTHER factors contributed to failure How was she going to resurrect her career Convinced there was a musical to be created out of the ABBA songs Overview Why was Mamma Mia such a great success and not Chess Was it due to ABBA or her Would it ever be on level with Les Miserables or Cats Decade later Craymer got approval of ABBA to plan a musical based around songs 2001 Craymer had Mamma Mia In London Toronto and on tour in US Decided to bring it to Broadway Fall 06 Anxious flop would lose momentum of other productions Advance Sales 27 million prior to Oct 18 2nd highest advance sale ever Facts on the show to date by 2002 How many productions are there Was the Show successful on Broadway What was its return on investment What is the overall return on investment Answers Mamma Mia Where is it in the life cycle Which single goal is most important Who sets the tone for each production Anatomy of an Entrepreneur 27million in advance sales 2nd highest 10 million to produce recouped all costs within 6 months Show had grossed 400 million by the end of 2002 5 concurrent productions in US Canada and the UK with 4 international versions licensed 700 actors and staff What skills does July Craymer possess that has enabled Mamma Mia to become so successful Was she good or just lucky Skills She s good Show Management Determination Pitched idea for 10 yrs Patience Waited till proven on the road Delegation Outsourced key elements Frugality Craymer relied on word of mouth advertising instead of utilizing large marketing budget Payroll No real star 5 lead actors and ensemble only Servicing Unmet Need This is a cross between a musical and a concert unlike other Broadway shows Diversification Road shows cover multiple cities in the US and only stay in short time Experience Apply lessons from Chess Why do some shows spend lots on advertising while others rely on word of mouth Compared with Hollywood to what extent are theatrical stars in a production a draw to get people to come see it Why is Mamma Mia so successful Is it just luck or what are the business factors that contributed Success Factors Definition of a blockbuster theater production and soundtrack success Audience Participation Involved audience at the end of each production 3 song mega mix at the end of each night Demographic Appeal ABBA s songs young and old Songs have a lifespan outside of the Theater life outside 4 walls of theater Short stay in each city guaranteeing seats in demand Universal Appeal of the storyline it s a feel good show Quality of the show Is it on the same level as classic shows like Cat s Les Miserables Lion King Gross receipts sold out shows like classics Generates word of mouth advertising like classics Classic songs The Show is a home run does it matter how it s categorized Pros Epilogue Continues to hit box office records despite economic stagnation Show signed 8 yr Lease with Mandalay Bay Hotel in Las Vegas with in kind elaborate sets and permanent fixtures Case Study A Monroe Lock and Security Systems Summary Ray Monroe started the locksmith company A Monroe Lock and Security Systems AMLSS in the Boston area His company targeted 3 local communities which combined had a population of close to 140 000 Ray s parents were entrepreneurs after working for a security alarm business after college he decided he wanted to be his own boss Upon starting his own business he decided to cover all areas of security and locksmith other than alarm installations because he felt that the larger companies in the market already had a strangle hold on this product There was a lot of competition in the locksmith industry many were small operated business with 60 percent consisting of one owner and employee There were already well established family businesses that had been serving the community for generations and the number of small operators continued to grow dramatically The Boston area had 160 locksmiths advertising and 37 in the 3 communities where AMLSS was concentrated Monroe worked out of the company van he communicated on a cell phone and beeper but once 5 pm rolled around he would refuse to take calls With numbers struggling he decided to advertise in the yellow pages where many of his competitors did and added the A to the business name in order to be at the top of the locksmith list This turned into a 4 000 dollar profit but once again his numbers flattened as he struggled to find ways to increase business It was hard to separate himself from his competitors in the yellow pages advertising as many of the ads were very similar Monroe tried to think of other businesses to enter in order to establish a more routine life and questioned his decision on entering the locksmith industry Problem Solution 1 Lack of Commitment to Success Entrepreneurial Mind set Cognitive Adaptability Learn from Failures Commitment of Resources Human Resources Merger Acquisition Horizontal Integration Hiring and Training Financial Resources Personal Funding Debt Financing Equity Financing Acquisition Horizontal Integration Hiring and Training 2 Limited Hours of Operation Human Resources Merger Market Analysis Weakness Levels of Service Charge Premium 3 Limited Product Offerings Product Line Extension Market Analysis Weakness 4 Inefficient Advertising Management of Expenses Spent 4 200 Added Revenue 2 000 Word of Mouth Advertising Customer Referral Program 5 Low Entry Barriers Differentiation Increase Switching Costs Contracts Compatibility Recommendations To make a profit in a market that already has a lot of players Monroe Lock and Security Systems needs to offer a service unique to others Research other companies to find out which of their strategies work best such as 24 hour emergency service security system installation and or guarantees on product services all of which were not services available by Monroe Lock and Security Systems Once Monroe Lock and Security Systems match their competitors they can focus on setting themselves apart from the competition by either launching a new product diversify advertising by going into the target communities and promoting throughout the neighborhood in high traffic locations and or offering coupons rebates or any other price saving techniques to attract consumers Conclusion Competition Advertisement Availability Passion Ethical Congruence is the