Has either Live Nation or Ticketmaster achieved any type of advantage based on the timing of its strategic moves?
LiveNation has gained a competitive advantage through horizontal acquisitions and mergers, which has strengthened its competitive position. Competitive advantage is an advantage achieved by a firm that offers great consumer value through high-quality products and services. The objectives of the horizontal merging are to boost the competitive advantage of the companies through efficient utilization of economies of scale, exploit revenue and cost-based synergies and increase the market power.
The horizontal merge with Ticketmaster was to cut down costs as well as expand their product offerings. Live Nation was able to increase its market share and reduce its competitive scope through lowering intense rivalry. The merge would reduce competition and offer control to various aspects of the industry since the two are big ticket-selling companies. In a market with fewer competitors, the merge would allow LiveNation to gain a competitive strength through eliminating their biggest competition. The company also gains everything from the former competitor, which builds the abilities of the company.
LiveNation would enjoy economies of scale after combining their operations with Ticketmaster to lower production costs, improve product quality and boost output. For instance, LiveNation merged with Ticketmaster to build more cost-effective operations such as ticket sales, global marketing and distribution, and ticket retail services. The competitive advantages linked to the strategic moves are based on how the firms improved their efficiency and product differentiation. LiveNation has boosted its e-commerce platform through the differentiation of its service and product offerings in the marketplace. The most effective aspect of this move by LiveNation is that through merging with Ticketmaster, they have been able to control their bargaining power over the customers and suppliers. This means that through developing a larger market share from acquisition and mergers, LiveNation has been able to control the ticket prices more competitively by lowering the market rivalries.
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