The education sector in the USA is booming. According to research by Zion Market Research, the industry was worth USD 1,350 billion in 2017 and is projected to increase to USD 2,040 billion by 2026 (John). The projected growth is due to the rise in demand for e-learning and more emphasis on quality standards by the government. The private and public sector have taken advantage of the rising technology to improve learning techniques, which has translated to higher
Admissions and revenue. Correspondingly, the biggest players in this sector include Cisco systems, Desire2learn, Pearson PLC, Smart technologies, ABCmouse.com, and McGraw-Hill Education. The input of these firms has played a significant impact in growing this sector.
Education in the USA traces its origin to the 17th century. The primary function of the school was to teach boys how to read the Bible (Singer). By the 1970s, education was available to women who came from affluent social backgrounds. Slavery and racism also determined education, which was segregated racially. During the 19th centuries, teaching was a temporary job that was pursued by single women and men awaiting employment in other fields. However, when education became compulsory in the 20th century, teachers had more permanent jobs, and more children had access to education.
The industry is stable in the presence of consolidation. The surging population accessing education, compounded by the availability of funds have stabilized the education sector. Regarding consolidation, there is a surging rate of this practice in high schools and colleges mainly due to financial pressure (Azziz). Consolidation also yields a competitive advantage, efficient performance, and higher student reach. The USA education industry is stable despite consolidation activities.
1.2.1 Parallels: For-profit and Non-Profit
The profit and non-profit players in the education industry have varying traits and conduct. The for-profit faction tailors its services to those who want to improve their professional and economic status (Roubides). Forthwith, these privately-owned institutions conduct a lot of marketing campaigns to attract clients, without appearing like they are driven by financial success. To survive the cut-throat competition and intense government scrutiny, most private institutions resort to strategies like mergers, selling out, and even shifting to nonprofit. In contrast, non-profit education is mainly funded by the government and offers educational services for students without the profit motive.
There are profit-and no-profit sectors in the music industry too. A majority of the players consider music business, as noted by the $8.72 billion growth (Christman). The primary source of income for the industry is the streaming services and paid subscriptions. Companies like Apple and Amazon make more than $1 billion from subscriptions annually. Touring and royalties are also an essential element in gaining money. A lot of marketing is also done in the industry across various platforms like social media, print media, and audio-visual modes. The non-profit element of music mainly entails arts administration, which has to do with orchestras, ballet, performing arts, and operas. These activities heavily rely on donations and funds from organizations.
The profit and nonprofit elements can benefit the music industry. Players can make money from starting their education and training institutions. Other profit ventures include artist association and marketing firms. Notably, many musicians have started their record labels and other products. The Beatles have Apple Records, Kanye West has Good Music, and Sean Combs owns Bad Boy Records (Wythe). Before selling it to Apple, Musician Dre was known as one of the owners of Beats by Dr. Dre, which manufactured music equipment. These establishments made the musicians famous and wealthy. On the non-profit aspect, holding charity events like the Acoustic Charity Concert and Charity Baby Shower. The music industry and learn to incorporate the profit-driven element and non-profit element of the education sector.
1.2.2: Parallels: Use of Virtual Reality
The education sector has exploited virtual and augmented realities. Institutions of higher learning like the University of Illinois and the University of Missouri have already incorporated virtual reality (VR) in researching (Lee). The two universities collaborated to use in the study of the Harlem Renaissance. In addition to studies, VR is used to give campus tours as a marketing strategy. Numerous universities have already incorporated VR and partnered with firms like Campus Tours inside campus buildings. Schools are also relying less on traditional presentational methods like use of PowerPoint to teach. VR is not just restricted to higher learning institutions; even elementary schools are embracing the idea. In effect, students have become more analytical of the content they study (Yron). It also boosts the engagement of students during class time. In the event of a field trip, VR acts as a prerequisite, which aids students in preparing the necessary questions. Again, it boosts the creativity of students, especially in story-telling.
The music industry is also gaining from virtual reality. Some groups like Queen have collaborated with Google and Enosis VR to create an unprecedented video for their 1975 hit record. There are also interactive apps that use 2D and 3D animations to create lucrative marketing and distribution tools that are set to transform the music industry. The 360-degree experience is deemed better than viewing music from other outlets like television. Companies like Live Nation, Universal Music Group, Warner Music Group, and AEG have exploited the VR extensions and are working with startups like NextVR and TribeXR (Hu). Through VR, the companies have raised their yearly concerts and ticketing revenues.
The Music industry should adopt the approach used by the education sector. Activities like music concerts would greatly benefit from the VR. Fans feel like they have a front row experience when they use VR. So popular has VR become in music concerts that companies like MelodyVR have acquired deals with three record labels and worked with 650 international artists (Hu). MelodyVR allows users even to select the spots that they want to situate themselves in sold-out concerts for only $10. The music industry will benefit from giving users the real-life experience that VR gives to learners. Since the trend is already growing, the industry should exploit it.
The luxury goods market has exponentially in the USA and globally in overall. The textile, apparel, and luxury industry was valued at 254 billion euros in 2017 (Statista). Correspondingly, the USA remains the largest consumer of the good, making 74 billion euros in 2017. The Louis Vuitton brand was the most profitable luxury brand in the USA in 2018 at a value of $41 billion. The apparel industry was valued at 292 billion dollars in the USA, making it the largest market in the industry. The industry has grown globally, but this surge is most notable in the USA, which is the largest player in the market.
The luxury, accessory, and textile industry boomed after the World War and the rise of baby boomers and Generation X. The industry grew in the 1980s and has evolved into an entirely new approach. The millennials are significantly responsible for the reinvention of the industry. Many players turn to technology and influencers to sell their products (Anna). Moreover, the industry regularly updates its designs, a phenomenon called fast fashion to stay ahead of the competition and keep up with the demands of the millennials. The luxury industry also made changes like creating online stores and heightening pleasant experiences in their stores to keep millennials coming back.
There is little stability in the industry amidst a high degree of consolidation. The industry heavily relies on the gross domestic product (GDP) of the country, which has a high fluctuation rate (Statista). Moreover, many luxury brands struggle to establish brand equity and maintain customer relationships. With regards to consolidation, many companies rely on this strategy for survival. Firms like Coach and Michael Kors have acquired other giants like Kate Spade and Jimmy Choo respectively (Danziger). Koch industries acquired Shandong Ruyi Group, a Chiese firm that makes skinny jeans and workout clothes after nearly a two-year delay (Chan). Another notable consolidation giant is LVMH Moët Hennessy Louis Vuitton that has managed to retain a significant market share due to sheer size. Consolidation is a part of this industry especially now that luxury brands are facing stiff competition from their traditional rivals and new market entrants. Consolidation also avails technology that this industry requires to retain its market share and impress its demanding customer base.
2.2.2. Parallels: Hunger Marketing Strategy
The fashion industry relies on the hunger marketing strategy to heighten its sale. Most turn to the limited edition strategy to convince buyers that an item is harder to find than is the case. Designer labels like Louis Vuitton have perfected this craft note by their 1896 limited edition Mukarami bags, which raked in 300 million dollars (Radon 108). Chanel also tried the same strategy with their apparels that got instant attention from the market to the point of buyers leaving their numbers in case of a restock. Some designer items even have waiting lists as in the case of Hermes and Dior. Some accessories like the Pepsi-bezel GMT Master II by Rolex is so exclusive and popular that the waiting list has officially been closed (Wallis). The hunger marketing strategy has not only raised more demand for these luxury items but retained their exclusivity.
By comparison, the music industry also uses the technique. For instance, collector’s albums have been sought out like the Gummy Song Skull and In Rainbows Album. The same strategy also applies to ticket sales for concerts. These tickets are usually sold out in seconds after they have been purchased from various outlets like Ticket master (Cross). Notably, the promoters and artists hype up their shows and even give previews of what fans should expect. Musicians also use their social media platforms to amass followers when they release a new song. Fans desire to be the first to listen to their latest songs and eagerly await the release or album launches.
The music industry should leverage this strategy as adopted by the luxury goods industry. Players should use this formula to promote their music and merchandise. Concerning music, having sold out concerts and limiting the ticket sales will increase their public demand (Cross). Comparatively, promoting one’s products or endorsement deals with designer labels or one’s firm by releasing limited editions or luxurious items works best. Just as fashion brands have limited access, so must the music industry restrict the availability of its products to increase value.
2.2.3. Parallels: A Taste for Exclusivity and the Ultimate Experience
People purchase luxury goods and apparels because they want to feel unique and exclusive. Famous designer brands like Gucci, Givenchy, and Luis Vuitton have hinged their success on their ability to avail highly sought-after items (Radon).
Research, however, reveals the opposite: Whether we intend to or not, we tend to be more inclined to assist a stranger wearing brand-name clothes. Research also shows that people are willing to help strangers wearing designer clothes (Patric). People wearing luxurious clothes also have a lot of power during negotiation. Regarding the ultimate experience, people feel good what they splurge on expensive shoes or accessories. Further, they derive a lot of pleasure from wearing these garments and accessories.
Correspondingly, the music industry leverages exclusivity and the ultimate experience. The concert tickets demonstrate how exclusivity works. People scramble to get tickets to a show because most of them are always sold out (Cross). That it is difficult even to get them makes those who attend the concert stand out from others. At the same time, people hope to experience memorable moments while attending such events. Hence, there are various ticket rates, with the most expensive ones giving the attendees closer proximity to the stage or a better vantage point. Concerts demonstrate exclusivity and an unforgettable experience to the attendees.
The music industry should use the strategy in promoting their music and products. Music industry icons are adored by their followers, who would willingly buy their music or any product that they endorse simply because their favorite celebrity owns it. Beyoncé, for instance, has partnered with Adidas to endorse shoes and drive up the sales (Pfanner & Bhasin). Leveraging on her status, she can influence her legion of fans to not only promote her music but wear the same outfits as she does. Being in close contact with a music icon is a rare occurrence, which celebrities should maximize for their gain.
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