EMI Group PLC.
April 8, 2013
The purpose of this report is to conduct a strategic analysis on the British music group, EMI. For this the broad environment will be appraised to identify the major trends impacting the industry and the factors affecting its structure. Following this EMI’s current strategy will be identified and its financial performance evaluated. In order to highlight EMI’s strengths and weaknesses the firm’s key resources and capabilities will be appraised. The effectiveness of the firm’s current strategy will then be assessed to determine whether this strategy is exploiting strengths in terms of resources and capabilities. Recommendations will be offered to enhance the company’s strategy with suggestions made for possible organizational change.For this analysis it is important to understand the concept of the music industry’s content and structure. The Standard Industrial Classification (SIC) offers a description of the music industry as involving “businesses and organizations that record, produce, publish, distribute and market recorded music.”1In addition to these, four main stakeholders characterizes the music industry-the artist, the consumers, the music agents and the distributors. However, in seeking to define the industry it is acknowledged that no one definition can capture its diverse nature in terms of musical activity and commerce.”2In commercial terms the global music industry “is a multibillion dollar segment of the media industries” and has reached a stage of maturity in its lifecycle. However with the rise of the digital era, it is undergoing significant transformation. With a core business sector comprising the record companies and music publishers, the global music industry transcends national boundaries and “pervades virtually every culture and every society.”
How EMI Group, PLC has to access and response to the likely impact of UMG's pricing initiative action on the recorded music industry.
EMI’s key strengths are: Intellectual Property EMI possesses one of the strongest and most recognizable brands in the entertainment industry and also has one of the most important music catalogues and archives in the world, with the artists that include The Beatles, David Bowie, Queen and many others.EMI Music Publishing has a catalogue of over 3m track and the world’s largest catalogue of musical arrangements with over 1m copyrights owned, controlled or administered. It is imperative that Global Sales team continue to ensure that this fantastic resource is brought to the widest possible audience. Human Resources the vast pool of artist and songwriters, who are found and nurtured by the A&R, represent another key strength of the company. Guy Moot, former EMI Music Publishing managing director commented,’ Music and great songs remain the foundation on which everything is built in this rapidly changing digital world.’32 EMI Group independent on identifying, signing and retaining talented artists and songwriters whose music helps to generate great revenues. Therefore, the company continues to invest a great deal of money in discovering the very best musical talent from around the world. Marketing Know-how .31Please refer to appendix for the analysis of the resources and capabilities.32Article entitled EMI Music Publishing songwriters win top honors at the 52nd Ivory Novello Awards’ Published on the 24thof May 2007 on EMI Group website. Http://www.emigroup.com/Press/2007/press36.htmcited 7/3/0813 Weaknesses
Management System Management system is one of the weaknesses that company is experiencing right now. Whilst the company has good policies in place they are very often ignored by a number of employees through the whole management system. However, Terra Firma is planning a major restructuring of company’s internal structure which will hopefully lead to some great changes in the near future....