THE WIGGLES
The Wiggles'
Peter Liesch, Matthew Steen, Stuart Middleton, Jay Weerawardena
COMPANY AND INDUSTRY OVERVIEW
While still often perceived as simply a music group, The Wiggles are an international business that provides family entertainment through concerts, CDs, DVDs, television programs, toys, play centres, theme parks and online communities. The Wiggles began their international activity by touring with the support of business partners; today they also export merchandise, conduct foreign direct investment in the US and are active in New Zealand, the UK, Ireland, Canada and Taiwan. They have plans to enter South America, and are considering additional markets in Asia. For this born global firm, foreign expansion—notably into the US—was part of a conscious strategy to sustain the business. Indeed, 75 to 80 per cent of The Wiggles' total revenue now comes from overseas markets.
ELEMENTS OF COMPETITIVE ADVANTAGE
Ignoring discouraging criticism from many in the childhood entertainment industry, The Wiggles pursued a novel business model in which children's entertainment was made accessible to adults. To inform their undertaking, the individual members obtained tertiary qualifications in early childhood development. A decade and a half later, The Wiggles are recognised as Australia's highest-earning entertainers. They have conquered much of the English-speaking world and are now turning their attention to markets with other languages. Despite emerging competition from other children's grotips, such as Hi-5 and the Hooley Dooleys, The Wiggles have proved-winners in developing and promoting a strong brand name on a global level.
EVOLUTION OF THE COMPANY
The Wiggles were formed in 1991 by two members of the Sydney rock band The Cockroaches. Initially, The Wiggles played at children's birthday parties and shopping centres as a support act for Dorothy the Dinosaur, but they soon discovered that both children and adults were highly receptive to their performance in its own right. A fundamental component of The Wiggles' success is that they offer an innovative approach to children's entertainment. The fact that the music is derived from rock 'n' roll means that it appeals not only to children but also to their parents and carers. By 2000, The Wiggles were touring English-speaking countries, where their commodity could be sold with little modification. In 2001 they gained exposure to about 65 million Americans by participating in the Macy's Thanksgiving Day Parade in New York City. Owing to the recent September 11 terrorist attacks of that year, many people were reluctant to fly, so The Wiggles were embraced by US viewers as a foreign act that had taken the risk of travelling to entertain them on US soil. The year was also significant because it marked the arrival of Mike Conway as the group's general manager for business affairs. Previously the group had operated informally, in accordance with the founding members' background in rock 'n' roll and their focus on playing gigs. However, the founding members recognised that further growth and development required formal business management. They also saw The Wiggles as a brand that could continue even if the founding members all left. The correctness of this judgment has been confirmed by the effective use of `substitute' Wiggles in Australia and abroad, as well as the successful replacement of Greg the Yellow Wiggle after his retirement.
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