BMG entertainment & Music Industry SWOT analysis.

Topics: Record label, Music industry, Universal Music Group Pages: 4 (968 words) Published: October 5, 2005
SWOT Analysis and Recommendation if Music Industry

Strengths:

*First major record label to create websites branded towards different music genres.

First major record label to use downloading technology to promote sales of CD's and cassettes.

*Merged with AOL--AOL has the largest internet service provider in the industry.

*BMG was the largest music club in the world, and arguably the leader of the five major labels.

*BMG set up a series of websites dedicated to specific genres of music. These sites linked fans to the artist's websites, where they could download or purchase CD's. (Another innovative move from BMG)

Weaknesses:

* Through sites like CDNow and Amazon.com customers had the option of having CD's or cassettes mailed to them. Consumers may not want to "deal" with downloading music from the net. They may just stick with what they have. Many sites had illegal downloads, so the conventional consumer may not want to bother with this new type of technology.

* Although BMG was the first company to create branded websites for specific music genres, they only focused on promotional aspects here, rather than focusing on selling music and in turn making money.

Opportunities:

* The innovativeness and newness of the digital era could spark a surge of consumer interest in the music industry. For instance, the CD had a big impact on industry revenue; owners of tapes simply replaced their collections with CD's.

* ;BMG is arguably the leader in the music industry, and consequently has the influence to take its existing customers with them into the digital mp3 era.

* BMG had close relationships with all the players involved in setting tech standards for downloadable music. This could give BMG the heads up on newest technology, and an advantage for market entry.

* If BMG begins to sell music on the internet, they can reduce their costs greatly by doing away with distribution and manufacturing expenses.

Threats:

* -In 1929 the...
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