Case Study: Vinyl Records Make a Comeback - Principles of Management

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 1. Why do you think vinyl records are appealing to customers?

  • Vinyl records appeal to customers for a few main reasons. First, there is a strong sense of nostalgia; vinyl has a "vintage" feel that transports people to earlier times. Second, some audiophiles argue that vinyl produces a “warmer” sound quality that digital formats can’t match, adding a unique audio experience. Additionally, the tangible aspect of vinyl—being able to hold, see, and display a record—gives it an aesthetic value that digital formats don’t offer. Finally, vinyl encourages listening to entire albums rather than single tracks, creating a more immersive experience with the artist’s work.

2. Do you think the sales growth will continue to be strong for vinyl sales? Why or why not?

  • The sales growth for vinyl could remain strong, particularly if driven by younger generations seeking unique, retro, or tangible music experiences. The recent double-digit growth reflects a rising trend, with millennials and Gen Z leading the resurgence. However, whether this growth will be sustainable long-term depends on whether vinyl remains more than a novelty and continues to provide perceived quality and aesthetic value that digital cannot. Factors such as the cost of vinyl, competing digital conveniences, and continued interest in tangible music formats will influence its growth.

3. What research would you want to conduct prior to making a decision to invest in new presses?

  • Before investing in new vinyl presses, it would be prudent to conduct market research on several fronts. First, analyzing trends in vinyl sales among different demographics and geographical areas could indicate whether growth will likely continue. Second, studying the cost-benefit analysis of maintaining old versus new presses, including projected demand and return on investment, is crucial. Competitor analysis, focusing on how other companies are investing in vinyl production, can also reveal industry expectations and demand stability. Additionally, a look at evolving consumer preferences and innovations in audio could help in understanding long-term vinyl demand.

Sources: Lee Barron, “Back on record – the reasons behind vinyl’s unlikely comeback,” The Conversation, April 17, 2015, https://theconversation.com/back-on-record-the-reasons-behind-vinyls-unlikely-comeback-39964. Hannah Ellis-Peterson, “Record sales: vinyl hits 25-year high,” The Guardian, January 3, 2017, https://www.theguardian.com/music/2017/jan/03/record-sales-vinyl-hits-25-year-high-and-outstripsstreaming. Allan Kozinn, “Weaned on CDs, They’re Reaching for Vinyl,” The New York Times, June 9, 2013. Rick Lyman, “Czech company, pressing hits for years on vinyl, finds it has become one,” The New York Times, August 6, 2015. Alec Macfarlane and Chie Kobayashi, “Vinyl comeback: Sony to produce records again after 28-year break,” CNN Money, June 30, 2017, http://money.cnn.com/2017/06/30/news/sony-music-brings-backvinyl-records/index.html. Kate Rogers, “Why millennials are buying more vinyl records,” CNBC.com, November 6, 2015. https://www.cnbc.com/2015/11/06/why-millennials-are-buying-more-vinyl-records.html. Robert Tait, “In the groove: Czech firm tops list of world’s vinyl record producers,” The Guardian, August 18, 2016.

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