The more I read about Tom Dobrzanski’s business, the more I realize how ingenious it is. The business model involved investing in a one-time cost that allowed Monarch Studios to profit for many years. After the initial cost was covered, revenue was very similar to profit due to the limited variable costs. This business is a prime example of Porter’s product differentiation strategy. Prior to this company, there were only top studios. Bands that did not use them had little choice but to record in their homes. Dobrzanski realized this, and created a studio that was professional yet affordable. He business helped create value for his customers, and as a result, his business is highly profitable.

It is very admirable how Dobrzanski was able to turn his passion for music into a business. His use of networking and his excellent business model helped turn Monarch Studios into a success story. Furthermore, the idea of combining living space and work space was incredible. It would not be surprising to see Monarch studios expand due to the increasing demand and relatively low startup cost. As a current Sauder student, I am very proud of his ingenuity and achievement.

Work Cited

Kroeker, Jeff. “How to Build a World-class Recording Studio on the Cheap.”The Globe and Mail. N.p., 5 Oct. 2012. Web. 23 Oct. 2014.

Picture: Marie, Issha. Monarch Studios Owner Tom Dobrzanski. N.d. Monarch Studios, Vancouver.