Strategic Plan for Digital Music Organization EMI Essay

Strategic Plan for Digital Music Organization EMI - Essay ExampleAccording to a comprehend by Cimilluca and Colchester (2011), in November 2011, the Citigroup announced a deal to sell EMIs recorded melody problem to Universal Music Group for $1.9 billion and music publishing business to Sony/ATV consortium for 2.2 billion. This paper will suggest a strategic plan for this digital music organisation by referring to a telephone number of strategic management theories including PESTLE analysis, Porters five forces model, SWOT analysis, and BCG matrix. PESTLE analysis Political factors The EMI maintains good relationship with overseas counties with intent to fatten out its business operations spherically. Since the company offers extensive employee benefits including flexible work schedule, family friendly policies, and other flexible benefits it gets full support from political environment. Economic factors The recent global economic recession has dreadfully affected economies wo rldwide and many of those economies are still under the process of recovery. Hence, the current economic environment is not well-disposed for the company. Socio-cultural factors Historically, music is present everywhere regardless of cultural variables such as customs, lifestyle, language, values, and beliefs. Hence, socio cultural factors provide the company with potential business environment. Technological factors The technology orbit has been dramatically improving for the last two decades. The emergence of internet was a milestone in the history of music entertainment industry (BBC News, 2000). Therefore, current technical landscape is better for EMIs business growth. Legal factors Governments worldwide have developed strict intellectual property laws and many of them specifically deal with music piracy issues. Thus, music entertainment industry is encouraged globally. Environmental factors People today are postgraduately concerned about environmental sustainability. Therefo re, increasing environmental concerns raise some sorts of challenges to every sector, and music entertainment industry is not an exception. Hence, EMI has to invest more on environmental sustainability so as to enhance its business growth. Porters five forces Degree of rivalry While analyzing the music entertainment industry, it seems that degree of competitive rivalry is very high. Since EMI is a multinational company, it struggles to live with regionally focused rivals that are more knowledgeable about peoples music tastes. Hence, the company is forced to depend upon price cutting and M&A strategies to survive market competition. Buyer power In music entertainment industry, buyer power is relatively high since there are legion(predicate) potential sellers. In addition, market giants like Sony offers quality products to customers at cheaper rates this situation compels EMI to cut its prices in order retain its customers. Supplier power EMI has high bargaining power over its provi ders as the organisation is well reputed for its quality music products and services. Since there are large number of potential suppliers in the industry, supplier price changes would not affect EMIs business activities. Moreover, supplier switching cost is very low in the music entertainment industry. Threat of naked as a jaybird entrants Threat of new entrants is very high in the industry, particularly because of the