Sony Music Entertainment SWOT Analysis

Sony melody Entertainment SWOT AnalysisSony Music EntertainmentSony Music Entertainment, also known as Sony Music is controlled by Sony Corporation of America. Sony Music is ane of the biggest four put down companies, ranked as the second biggest global register music companies. Sony has managed to reach at the level of being one the biggest music companies in the world and remain at this stage. Sony Music has collaborated with numerous of artists and early(a)s more to come.Sony Music Entertainment contains the music labels Columbia, Columbia Nashville, Epic, Jive, RCA, Legacy written texts, Victor Records, Masterworks, Arista, Arista Nashville, Bluebird Jazz, BNA Records Label, Burgundy Records, J Records, LaFace Records, foresighted Label Group, U.S Latin, Verity Records and Windham Hill.Porters five forcesPorters five forces ar the rivalry among competitors, the threat of potential entry, the bargaining baron of suppliers, the bargaining powers of buyers and the threat o f substitutes.The most competitive force between Porters five forces is the rivalry between producers and sellers in the music industry. The music eternalize industry constitutes 4 significant segments* Major put down studios Major companies are firms that fill large numbers of artists under contracts with different types of music, such as hip-hop, rock, jazz, country, etc. Major companies whitethorn be EMI, Sony Music, Columbia and work internationally.* Independent labels Independent labels are companies that have fewer artists under contracts, move intoing one or two music styles and mostly work regionally.* Micro labels Micro labels have an sum up of about 10 artists and focus on a particular music style.* Vanity labels Vanity labels are companies that focus on independent artists. It is the last segment of the music industry that struggles to become one of the other segments.Rivalry among competitorsSony Music has 3 biggest competitors EMI, Warner Music Group and Universal Music Group. The competition of these four companies depends on the popularity of the artist and their songs. On this case, if the artist is very popular and promises reassured sales, then the price doesnt play a significant role. On the other hand, if the artists are not known enough then the price is at the same stage of importance as the competition. Furthermore, the rivalry between the competitors is affected by the advertisement and forwarding of the songs. There are a large number of competitors that are similar in size, consumer offerings, market and growth. flagellum of potential entryThe threat of is the weakest force. Even if a new music drop offing company enters the market, its very difficult to reach the levels of the existing company. In the music industry there are millions of music demean firms globally but still the top four remain unbeatable.dicker power of suppliersThe power of suppliers depends on the popularity of artists. Sony specializes on already famous artists, therefore is difficult to compete, except the other three big organizations.Bargaining power of Buyers* In August 2005 Sony Music was accounted as 32.8% out of 71.7% of retail music sales. (http//en.wikipedia.org/wiki/Music_industry)* Due to economical crisis, people have difficulties on buying CDsThreat of substitutes nation prefer listening songs through net income (YouTube), on radio, on TV channels and other rather than buying the CD. profits has become a substitute of CD embarks, through piracy and downloads. This is very an important matter in music record industry, even if they try to fight it, there will always be this competition.SWOTStrengthsThe second biggest study music companyGlobally known and recognizedA portfolio of successful artistsAn organized and clear website take of distribution radio, TV, Internet, music record shopsWeaknessesGlobal music piracy (its the biggest issue that worries all music record companies)OpportunitiesFuture successful CD rele ases with existing artistsReleasing MP3 songsThreatsThe music pirates will drive music record companies to a decrease of their salesNowadays, music is fashion-obsessed. A wrong selection of an album release whitethorn result badly to the companyPhysical sales are decreasing due to digital music. People are more attracted to download a song rather than buy the whole album.The music record industry has lost 180m last year in UK. The 95% of music on the Internet is downloaded illegally. (IFPI) end pointAccording to statistics, Sony Music Entertainment is one of the most successful companies in the music record industry. despite the music piracy that arises in the present time, Sony Music strives to handle this matter legally and commercially by persuading the people especially young to stop and avoid piracy. This is a big threat to the music record industry and it has to be dealt with strategic manner. Companies such as iTunes (Apple) have reduced music piracy, since in station to do wnload a song it has to be bought first. In order to stop this crime, so that the music record companies can function properly and get back on their feet with their sales increasing, some services (Kazaa, Limewire, Bearshare) has to be shut down. The 45% of users of such services has dropped after all US and international legal actions have taken place.References1. Music Industry online. Wikipedia. Last accessed on 10 December 2009 at http//en.wikipedia.org/wiki/Music_industry2. EMI SWOT, Music plagiarisation online. Bridgewell. Last accessed on 12 December 2009 at http//miranda.hemscott.com/ir/sgp/pdf/INI_Music_downloading_September_6th_2004.pdf3. Sony Music Entertainment online. Wikipedia. Last accessed on 12 December 2009 at http//en.wikipedia.org/wiki/Sony_Music_Entertainment4. Facts and Figures online. Sony Music. Last accessed on 13 December 2009 at http//www.sonymusic.com/5. CCM Music Recording Company online. Last accessed on 11 December 2009 at http//www.personal-writer.co m/sample/marketing-essay/ccm-music-recording-company-step-analysis-swot-analysis-five-forces6. ITunes claims to be stopping puerile music piracy online. Gadgetell. Last accessed on 12 December 2009 at http//www.gadgetell.com/tech/comment/itunes-claims-to-be-stopping-teen-music-piracy/7. Internet Piracy The facts online. International Federation of the Phonographic Industry (IFPI). Last accessed on 12 December 2009 at http//www.ifpi.org/ subject/section_news/20050412c.html8. Online Piracy online Guardian. Last accessed on 11 December 2009 at http//www.guardian.co.uk/music/2009/jan/17/music-piracy