Case 2 - Final.docx - Case 2 – Cost Volume Profit Analysis...

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Case 2 – Cost Volume Profit Analysis and Strategy:The ALLTEL PavilionCase #2Cost Volume Profit Analysis and Strategy:The ALLTEL PavilionJohnny AciertoAccounting 511Dr. Vijay KaranApril 04, 2016
Case 2 – Cost Volume Profit Analysis and Strategy:The ALLTEL Pavilion1ALLTEL PAVILION’S COMPETIVE STRATEGYSFX Entertainment operates ALLTEL Pavilion which is an outdoor amphitheater that provideslive concerts. SFX sets itself apart from its competitors by using a differentiation competitivestrategy.The venue tries to differentiate itself by providing a high end experience that is notoffered by other venues in the geographic region.Marketing is focused on making eachALLTEL Pavilion as highly visible as possible.There is a marketing budget of $20,000 perevent and the marketing team analyzes sales and demographics in order to get a betterunderstanding on how to spend the money.Along with making each event as profitable aspossible, there is a focus to generate visibility for the venue.It is important not to just rely solely on the differentiation strategy.Each artist that performs atthe venue should bring a different experience.For example, the cost of marketing andadvertising can be reduced for a popular artist who will sell out tickets due to their popularity

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