Nederlander Concerts: Case Study
Nederlander Concerts very existence is due to operating by the principles of Capitalism carefully practiced by the Nederlander Family for the last 100 years. They have survived the great depression of 1929 and the recession of 2008; obviously they are doing something right. Under Capitalism, David Nederlander was free to invest his money into a new business by leasing the Detroit Opera House back in 1912. David was not encumbered by Government or outside control in how he managed his business, how much he charged for ticket prices or how much he paid performers. From then on he and his family cultivated relationships with Artists, Musicians and Theater Groups. As his business grew so did his reputation as one of the best promoters in the
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They learned there is a subset of concert patrons willing to pay more for a smaller, more intimate concert setting over the crowded, stuffed to capacity stadium shows. If they provided state of the art lighting and sound systems, operated efficiently and sold the tickets at the right price point they could operate a niche market practically no one was marketing to. Armed with this information Nederlander formed Nederlander Concerts, "A boutique event promotion firm, whom exclusively operates and programs the most coveted and awarded small to mid-size venues in the Western United States" (2014). But like all businesses, this type of boutique firm can also experience the negative side of Capitalism, economic downturns. With no backing from an outside authority, drops in the economy, and the reduction of personal discretionary spending, can result in fewer people willing to pay the higher prices which in turn can spell lower profits. Since they are still promoting after the recession of 2008, it seems the people at Nederlander have charted a strong
They learned there is a subset of concert patrons willing to pay more for a smaller, more intimate concert setting over the crowded, stuffed to capacity stadium shows. If they provided state of the art lighting and sound systems, operated efficiently and sold the tickets at the right price point they could operate a niche market practically no one was marketing to. Armed with this information Nederlander formed Nederlander Concerts, "A boutique event promotion firm, whom exclusively operates and programs the most coveted and awarded small to mid-size venues in the Western United States" (2014). But like all businesses, this type of boutique firm can also experience the negative side of Capitalism, economic downturns. With no backing from an outside authority, drops in the economy, and the reduction of personal discretionary spending, can result in fewer people willing to pay the higher prices which in turn can spell lower profits. Since they are still promoting after the recession of 2008, it seems the people at Nederlander have charted a strong