These days, the dominant competitors within music industry are Warner Music Group, EMI GROUP, Sony BMG, Universal Music Group and Independent Labels. With the rapidly development of information technology and increasing entertainment requirement of costumers, they not only push conventional records and concerts to buyers but more focus on digital-orientated product model and this kind of style of services to cater consumers. Formed in 1930, Universal Music Group has become one of the 21st century largest record corporations. Based on its international operational and planning strategy, It has been operating a great number of subsidiaries around worldwide especially on Asian, European and Northern American areas. Meanwhile it owns a host of such well-known brands as Universal Hot Brother and Walt Disney in the world of music. Therefore, for better analysing and synthesizing music industry and IS strategy utilization applied on firms to reach competitive advantages in term of five forces analysis model, Universal Music Group will be the best and suitable option. That is also the main objective and goal for this report to research. From this report, it will firstly present a necessary change in music industry. Then, it explains whether there is a definitely link between sale decline and P2P. Next, it fully introduces a newly value chain that illustrates certain information about digital music industry, facilitating to better understand Five Forces that form strategy within an organization. In the following, report will demonstrate that based on five competitive forces analysis, how Universal Music Group achieves competitive advantages through the strategic utilize of IS. Finally, the present position and recommendations on possibly future development of Universal Music Group will be present.
2. A necessary change in music industry
Porter notes that with the coming of Internet era, it not only breeds new-typed industry like e-business but... [continues]
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