The ALLTEL Pavilion in Raleigh, North Carolina is an outdoor amphitheater that provides live
concerts to the public from April through October each year, hosting as many as half a million
patrons a year. The seven-month season usually hosts an average of 40 concerts, and 12 year-round
staff plan and manage each season. SFX Entertainment Inc. SFX is one of the largest diversified
promoters, producers, and venue operators for live entertainment events in the United States. It has
71 venues either directly owned or operated under lease or exclusive booking arrangements in 29 of
the top 50 U.S. markets, including 14 amphitheaters or pavilions in 9 of the top 10 markets.
has two types of customers (paying ticket holders and free ticket holders) and earns profits from
three types of revenues (ticket revenues, concession revenues, and parking fees).
They have certain competitive advantages as they have beautiful ambience and technologically
advanced. Focusing on the 5 market regions in Marketing is working well for them and allows them
to target the right customer segments. They have a good market reputation still they are currently
failing to earn budgeted profit and goals. This could be due to several factors like artists charges
high fees due to the ongoing trends and as they lack a major entertainment complex. They still need
to resolve these problems if they want to generate higher profits. The world is moving fast and just
because they are earning above break-even point that does not ensure their long-term success. Our
analysis and recommendations will highlight these factors further.