Can the Music Industry Change Its Tune?
Case Study 1B ¡V The questions
The online downloading of music from the Internet has ripped apart the old business model of record companies controlling the production of albums which are purchased through record shops. The last few turbulent years have seen many high profile law suits; some of which went in favour of the music industry and some of which went against.
1. Apply the value chain and competitive forces models to the music recording industry.
2. What role did the Internet play in changing value propositions and the competitive environment? To what extent has it been responsible for declining CD sales? Explain your answer.
3. Analyse the response of the music recording industry to these changes. What management, organization, and technology issues affected this response?
4. What is the current business strategy of the music industry? Do you think it is viable? Explain your answer.
5. What is the effect on an author if people download copyrighted material from the web? If you were an author how would you feel?
Introduction:
For many years the recording industry has been threatened by the impact of technology. Before the CD and the internet, in the 1970¡¦s there was the cassette tape, which began the issue of illegally copying music by individuals.
Steven Hannaford (2003) says that music is in transition from being a tangible commodity to becoming an intangible one and ¡¥This ¡§de-materialization¡¨ of music has the big five companies worried, and with good reason.¡¦
To address the issues in the recording industry it is necessary to describe the industry business models bearing in mind the managerial, organisational and technological impacts in today¡¦s society.
The value chain model is an organization's set of linked, value-creating activities, ranging from securing basic raw materials and energy to the ultimate delivery of products and services. The model is used to address specific business activities where strategies can be used to the
The online downloading of music from the Internet has ripped apart the old business model of record companies controlling the production of albums which are purchased through record shops. The last few turbulent years have seen many high profile law suits; some of which went in favour of the music industry and some of which went against.
1. Apply the value chain and competitive forces models to the music recording industry.
2. What role did the Internet play in changing value propositions and the competitive environment? To what extent has it been responsible for declining CD sales? Explain your answer.
3. Analyse the response of the music recording industry to these changes. What management, organization, and technology issues affected this response?
4. What is the current business strategy of the music industry? Do you think it is viable? Explain your answer.
5. What is the effect on an author if people download copyrighted material from the web? If you were an author how would you feel?
Introduction:
For many years the recording industry has been threatened by the impact of technology. Before the CD and the internet, in the 1970¡¦s there was the cassette tape, which began the issue of illegally copying music by individuals.
Steven Hannaford (2003) says that music is in transition from being a tangible commodity to becoming an intangible one and ¡¥This ¡§de-materialization¡¨ of music has the big five companies worried, and with good reason.¡¦
To address the issues in the recording industry it is necessary to describe the industry business models bearing in mind the managerial, organisational and technological impacts in today¡¦s society.
The value chain model is an organization's set of linked, value-creating activities, ranging from securing basic raw materials and energy to the ultimate delivery of products and services. The model is used to address specific business activities where strategies can be used to the