Value Chain: The kind of relationships you form will make or break you

Lavatory Records

While growing up you may have heard sayings like “birds of a feather flock together”, “you are who you surround yourself with” etc. These sayings, pertaining to the company one chooses to keep, may be cliched but never get tired. The fundamental principle is that those who value the same things and share the same interests will find each other; and therefore naturally add value to one another. The concept of value adding is very important in trade and commerce and can be applied in music too.

Lavatory Records


According to Investopedia: “Value added is the enhancement a company gives its product or service before offering the product to customers”. In the context of the artist operating within the music industry, this would entail the artist having to take the role of being a producer in the economic sense. Your music composition would be adversely affected by your band mates, featured artists, music producer/ beatmaker, your post production audio engineer, and the publishing house that manufacture your CDs – all these people would be established as adding value to your final song as a product. These inputs ultimately affect the final outcome of the song you compose, to which you (as a composer) would find hard to quantify. This means, for as long as you as the composer/producer and your fans are happy with the final product, how much you spent into creating that piece of art is of little importance. Bearing in mind that the entire process of the creation of your work does not leave you in a pool of debt and you are staying within your means.

Lavatory Records

Image Credit: Investopedia

The concept of Gestalt could also apply, where it is implied that the whole is a greater sum of all parts. In this case this means that the final composition of a song is worth more than any of the individual factors that would been incorporated into making the song. Your fan who buys your complete song off a digital store would not be left astounded by just the “mixing” alone by the audio engineer. Therefore the song would have to have great lyrics, melodic production, thumping bass, etc – all in one symphony (as unified whole) to quantify total greatness. This also applies to the “business end” of the music industry, where the packaging and delivery to the final consumer may prove invaluable rather than just downloading the MP3. Various aspects and factors go into the concept of “value” which is an intangible dimension.

Lavatory Records


Building your company starts with the company you keep, this is why relationships are so important. The concept of value adding starts from the onset, before you have even created any sort of product or creative works. Value addition is the building block of a winning mentality and setting the organisational  psychology. The nature of value may be an intangible concept, but it is one that is not to be taken for granted. The reason why establishing the Value Chain is called that, is due to the alignment of the set of activities from your relationships. The Value Adding components of your associates ultimately form a “link” and become integrated into a chain-like fashion.

Putting this principle of Value Creation and establishing Value Chains in the greater economic sense, one would be able to see how multiple sets of value chains of music producers and composers contribute to a greater functioning system. The more Value Chains are being incubated and formed, the more cohesive a musical society/economy would ultimately be accomplished.

Lavatory Records


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