ALLTEL Pavilion Case_JKoch - Jason Koch CWID 890931132 ACCT...

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Jason Koch CWID: 890931132 ACCT 511 - Case 2 7/20/16 CVP Analysis and Strategy – The ALLTEL Pavilion 1.ALLTEL Pavilion Competitive StrategyWhen looking at the competitive strategy of ALLTEL Pavilion, we really must look at thecompetitive strategy of SFX Entertainment Inc. To compete in the live entertainment industry, SFX uses a differentiation strategy combined with some monopolistic tendencies. While it is true that SFX offers a differentiated, unique concert experience as opposed to operating with a cost leadership strategy, they are able to stay competitive and profitable because they have minimized or eliminated most competition though years of mergers and acquisitions of complementary and competitive firms. This allows them to focus on the operational excellence of their core competencies – marketing, and event production. From astrategy standpoint, it is also important to point out the fact that they outsource activities at which they are not experts that do not fall within their core competencies. Examples of these types of activities include parking, concessions, and clean-up. 2.Breakeven AnalysisFor the KFBS Allstars show, the ALLTEL Pavilion must sell 6,656 tickets. Said another way, the ALLTEL Pavilion will make $0 in profit if it sells 6656 tickets to the KFBS show. We know from the data that 8,251 tickets were actually sold. This gave the ALLTEL Paviliona margin of safety of 1,595 tickets. It is important to note that in addition to the tickets sold,

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