Polygram/Universal Music Groups Star Search

Overview of Universal Music Group (UMG)

Universal Music Group (UMG) is the global music leader with strong market
positions in recorded music, music publishing, and merchandising.
The recorded music business discovers and develops recording artists and then
markets and promotes their music across a wide array of formats and platforms. UMG's
music publishing company, Universal Music Publishing Group, discovers and develops
songwriters, and owns and administers copyrights to musical compositions for use in
recordings, public performances, and related uses, such as films and advertisements.
Bravado, UMGs merchandising company, sells artist and music branded products via
multiple sales points including online, fashion retail, and live performances.
Strengths
-

Market Leadership
Strong Digital Offering
Global Reach and Diversified Operations

Weaknesses
-

Weak Performance in Europe and Asia

Declining Cash from Operations

Opportunities
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Acquisition of BMG Music Publishing

New Partnerships
Digital Music Market

Threats
-

Intense Competition
Piracy
Economic Slowdown in US and Eurozone
Declining US Consumer Spending

The Rise of Hainan Airlines

Overview of Hainan Airlines

Hainan Airlines Co., Ltd. (hereafter referred to as "Hainan Airlines") was founded
in January, 1993 in Hainan Province, the largest special economy zone in China. As one
of the fastest developing airlines in China, Hainan Airlines is committed to providing
passengers with holistic, seamless and high-quality service. With their eastern
hospitality, Hainan Airlines emphasize customer orientated services. By catering to all
our customers needs, we aim to create a new flying experience by paying attention to
even the smallest details, ensuring constant diligence, and exceeding your every
expectation. This way we can achieve our goal of becoming a world-class Chinese
airline and brand.
Analysis:
The great thing about Hainan Airlines is that they keep their costs to a minimum
so that they would be able to maximize profit. The example given shows how they are
dramatically ahead in cutting costs in terms of the ratio of employee-to-aircraft ratio
which they kept relatively low. They use two models of aircraft; the Boeing 737 for the
large markets and the Dornier, a smaller aircraft catering the smaller markets used
mostly for domestic flights.
Another contributing factor to the success of the Hainan Airline Aviation Industry
is that it stays away from direct, head-on competition. They entered the international
market by going to unfulfilled gaps. As stated, it does not take the popular but crowded
markets such as the US-China routes. In Asia, it flies to Bangkok, Kuala Lumpur,
Osaka, Seoul, and Singapore. They also fly to Budapest making them the first Chinese
airline to offer non-stop service to Central Europe.

Ateneo de Davao University

A. Jacinto St., Davao City

In partial fulfilment of a requirement in

Global Marketing
Opening and Closing Case
Chapter 4

Submitted by:
Ye, Jude Morriel T.

Submitted to:
Maam Abrina