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Medium Profitability

High Strung

#Entertainment
ProHub Comment

This case requires candidates to diagnose a profitability decline through revenue analysis (not cost control), identify subscription holders as the primary driver, and recognize that orchestra quality is the key lever to improve subscription revenue. The case tests quantitative rigor, customer insight synthesis, and strategic recommendation skills.

Estimated Time 15 minutes
Difficulty Medium
Source Duke
50 / 100
The Carolina Symphony Orchestra is in trouble. Despite recently doubling down on marketing & advertising, the orchestra’s profitability has consistently dropped for the last several years. The executive board has enlisted your help to diagnose the cause of this nosedive and reverse it. CSO must find a sustainable method to generate net-new profits over the next two years to hit its strategic growth goals.

Clarifying Information

  1. Industry: the CSO is the only professional symphony in the area, but competes with other high-caliber entertainment providers; it plays mainly classical music but does incorporate some popular music
  2. Product: the CSO provides a range of offerings including group, single, and subscription tickets in addition to community education & engagement events and public concerts
  3. Value Chain/Revenue: revenue is split into three categories: earned (ticket & concession sales), contributed (donations, grants), and investment (securities)
  4. Audience: Main segment consists of older, wealthier consumers, although there is a burgeoning interest in the orchestra among younger subscribers.
  5. Overall goal: incremental profit of $3M over next two years