Video Case Study Essay

775 Words Oct 21st, 2014 4 Pages
Explain the role of capitalism in the 100-year growth of Nederlander Concerts. How does Nederlander 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. Nedrelander 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 their success is and how Nederlander benefits from each of the fundamental rights of capitalism.
Nederlander Concerts is a family-owned company located in LA, one of the
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economy to affect Nederlander’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 Nederlander, that manages to charge higher ticket prices for small theater performances and to deliver a “sellout crowd night after night”(Video Case: Nederlander, p.1). Why is Nederlander able to do that when audiences could pay less at stadium concerts?
Operating in a free market system makes Nederlander work hard and find their way to succeed. Their tactic is “to match the right band with the right target audience” (Video Case: Nederlander, p.1). Believing that each artist or band has their unique audience, the marketing department of Nederlander is publicizing the shows by executive targeting a definite customer sector. Another important factor of the success of Nederlander is that they have learned “to make money based on precise economic calculation” (Video Case: Nederlander, p.1). By matching the high demand for top artists with the low supply of tickets for Nederlander small venues, they find out the equilibrium price, the price where the quantity demanded equals the quantity supplied. Knowing the equilibrium price and taking into consideration the price
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