Essay Mustang Music Case Analysis
Mustang Music is a music store. Its president and chief executive officer (CEO) is Arthur Weber. He “graduated from a well-known performing arts conservatory with a master’s degree in music, double majoring in classical guitar and composition.” He opened the store three years ago.
Weber’s emerging vision was not merely to operate a music store and earn a living. Mustang Music’s strategy from the start concentrated more on quality of its services and the richness of its product. Weber “wanted to provide a world-class musical education and high quality instruments to the general population and perhaps in the process, help to identify and develop the next gifted Hendrix,” Santana, …show more content…
Weber’s strategic layout for Mustang Music seemed to have worked perfectly. With the quality of mentors, usage of only high quality musical instruments, giving excellent deals for its instruments in the form of trade-up services its reputation skyrocketed. They reputation was further advanced to the outside world by its students winning local and national level awards. To the point most schools recommended Mustang Music as a place for excellent instruments. The work ethics at Mustang Music was highly regarded by its employees and some even aspired for a full time posts. Its popularity was well captured where every public and private schools boards were beginning to source all their musical goods from them. By the end of Year1, Mustang Music has reached 50% of its theoretical lesson slot capacity. This climbed to 70% by the end of year 2, and 82% in the most recent year. Product sales had more than tripled in three years. Average markup on cost was 33%. Mustang was generating nearly $2.4 M in net sales and almost 0.5 M earnings.
Mustang Music grew leaps and bounds, but only from monetary point of view. The company did great financially and was