Madonna Strategy

This case study covers the foundation of Madonna's Business Success & her ability to sustain her reign as 'Queen of Pop' throughout the last 20 years.

1. Describe & explain the strategy being followed by Madonna in terms of the explanation of competitive strategy given in Chapter 5.

Using Bowman's theory of the Strategy Clock, the competitive strategy option Madonna is following is 'Focused Differentiation'. She has products that are perceived as high quality, have a substantial price premium to them and target niche markets:

* Top selling Albums & Singles

* Worldwide Sell out Concerts

* Films

* Style Icon for Pepsi, Max Factor & GAP

* Author of top selling Children's books.

People are prepared to pay a premium to obtain Madonna's products, whether it is the latest album on the day of release or expensive tickets to her unobtainable worldwide tours. Companies launch large marketing & advertising campaigns using her image as many see her as iconic & a leader in fashion.

She started in a rebellious manner, promoting the importance of women's sexuality in the 1990's. Growing up in the public eye she is now sensitive to opinion and does not wish to offend - e.g. her withdrawal of a Che Gevara image during the Gulf war in 2003. Although she maintains importance and relevance to today's market she is still unpredictable and able to surprise her consumers - e.g. the "Britney kiss" - which gives her unique advantage and mass selling potential in the hypercompetitive music industry.

2. Why has she experienced sustained success over the past 2 decades?

Madonna is a phenomenon; some say the 'Smartest woman in Show Business'. Her success is due to differentiation: she constantly reinvents her persona and music style which targets new countries/markets and she develops skills in new niche areas to obtain a wider audience.

Madonna has a wide demographic target market: her music fans that have been with her from the beginning with new generations joining as she reinvents herself. Her films are for a wide audience & her iconic style caters for a wide range of young