How Globalization and Technology Changes Have Impacted the Corporation You Researched.
Assess how globalization and technology changes have impacted the corporation you researched.
The company researched was Universal Music Group because the music industry is ever growing and I wanted to know more about the company. As we all know, technology has been a major part of the music industry both good and bad. Technology has helped plenty of artists and hurt others. Since the introduction of the mp3 and the popularity of the IPOD device, compact disc sales have declined and more music is being released without the record company’s permission. Some may view this as a major problem to the other major record labels that distribute music globally. But some are using the mp3 to their advantage. A while ago an artist could not walk out of a studio and release a record in ten minutes. Now artists can get the music to their fans in record time and the fans can then download the song a lot faster than a drive to the local record store. Overall sales are down in the music industry, but according to sources “Universal Music Group, the biggest of the world’s four major music companies, made the most money percentage and dollar wise from digital sales in 2008 (Lewis, 2009).” Because it’s believed that music is a global language, Universal Music Group makes money from all across the world. The company has artists and labels from multiple countries that are very successful in generating record sales. There are American artists that were at a point in their careers where their music was not selling as it once was, but now they are touring overseas. Technology and globalization have been a driving force in the music industry and Universal Music Group is reaping the benefits of both. It took the major labels a long time to embrace the digital age of music and they almost missed out on major money. Universal Music Group is thriving in a declining music industry that has gone from analog to digital right before our eyes.
Apply the industrial organization model and the
The company researched was Universal Music Group because the music industry is ever growing and I wanted to know more about the company. As we all know, technology has been a major part of the music industry both good and bad. Technology has helped plenty of artists and hurt others. Since the introduction of the mp3 and the popularity of the IPOD device, compact disc sales have declined and more music is being released without the record company’s permission. Some may view this as a major problem to the other major record labels that distribute music globally. But some are using the mp3 to their advantage. A while ago an artist could not walk out of a studio and release a record in ten minutes. Now artists can get the music to their fans in record time and the fans can then download the song a lot faster than a drive to the local record store. Overall sales are down in the music industry, but according to sources “Universal Music Group, the biggest of the world’s four major music companies, made the most money percentage and dollar wise from digital sales in 2008 (Lewis, 2009).” Because it’s believed that music is a global language, Universal Music Group makes money from all across the world. The company has artists and labels from multiple countries that are very successful in generating record sales. There are American artists that were at a point in their careers where their music was not selling as it once was, but now they are touring overseas. Technology and globalization have been a driving force in the music industry and Universal Music Group is reaping the benefits of both. It took the major labels a long time to embrace the digital age of music and they almost missed out on major money. Universal Music Group is thriving in a declining music industry that has gone from analog to digital right before our eyes.
Apply the industrial organization model and the
References: Lewis, H. (2009, March 30). Universal music group dominating digital sales. Retrieved July 15, 2012, from Business insider: http://articles.businessinsider.com/2009-03-30/entertainment/29954318_1_digital-sales-umg-warner-music-and-emi Michael A. Hitt, R. D. (2013). Strategic Management. Cengage learning. Overview. (n.d.). Retrieved July 16, 2012, from Universal Music Group: http://www.universalmusic.com/company