Sony Bmg Case Study

Topics: Sony Music Entertainment, Marketing plan, Sony BMG Pages: 10 (2595 words) Published: May 4, 2011
Sony BMG Music Entertainment, the second largest record music company in the world. This study is about the Sony BMG's Market Entry into Second Life, as Virtual World of Second Life becomes increasingly popular. It started as a little 3D online community in 2003 developed into a sophisticated virtual world with more than 4 million users from around the globe and with an economy larger than that of a small real-world country. As part of its search for new revenue streams in an industry that has frequently failed to keep pace with its customers, Sony BMG wants to Second Life, and presumably to facilitate shared music experiences. This marketing plan will help the company in achieving its strategic marketing objectives. Sony BMG's Market Entry into Second Life:

Mission Statement:

“To experience the joy of advancing and applying technology for the benefit of the public. To be leader in virtual world."

External Environmental Analysis
The external review can be done using PESTEL analysis, Porter’s five forces and by analysing the competitors and the customers.

Macro Environmental Analysis (PESTEL)
Macro environment analysis is done for both country and virtual world. Political:

USA is politically stable country and present government is working to improve the condition of business. Government is providing subsidies on some businesses as well. Such conditions are good for business and will encourage new investors and will benefit sony BMG.

In virtual world there is no political government .It’s a community which connect different people. Such conditions are good for business and will encourage new investors. If we look at Sony bmg politically they don’t have any pressure.


During recent recession many companies have turned down. The condition for doing businesses is getting very tough. It was estimated that the annual sales of Sony BMG has dropped down due to the current climate.

Second Life was an economy of its own. Linden Lab encouraged Second Life start-ups and supported companies to open subsidiaries, e.g. by recommending competent developers. There were many ways of doing business. Technological:

There are many technological factors that affect the industry Sony BMG clearly have adopted them self to new technology and but ways of approaching to people are changing very fast. Music sale is going down day by day, people don’t want to spend money on buying music, and instead they prefer to copy it from someone or get it free. With the establishment of the Internet, the personal computer considerably changed the way people in all parts of the world consumed entertainment % content including music. For Sony BMG this implied a constant transformation of the way its core products were distributed and consumed even though the centre of the business - artists and their music - remained the same. Sony BMG was forced to adapt to these challenges by creating new revenue streams through innovations. Even though Sony BMG's strong position within the music video business and the Internet represented one step in the adaptation process of the modified music business, further ideas had to be developed and implemented to keep track with the pace of change.

Sony BMG adheres with all the environment rules and regulations. Legal:

There were certain rules every "inhabitant" had to agree to. Members had to follow the 6 Second Life rules, known as the "The Big Six" A violation of these behavioural standards resulted in suspension or eviction from the community. However, there were no legal regulations, laws or courts Sony BMG mission is promote music and to prevent all types of piracy within the music industry. For that purpose it’s finding new ways of promoting music. . It is also important to follow the Code of Ethics recommended by industry while doing this business for safe practices

The Market:

Online virtual worlds are rapidly becoming recognized as an important new channel...
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