The paper "Market Situations of Music Industry: Case of EMI" is a perfect example of a case study on marketing. The case gives an introduction about the market situations of the music industry which are drastically changed over a period of time. Due to the innovation in the technologies, the industry has seen significant changes in the mode of providing and distributing music. Earlier the music was recorded in the vinyl LP forms then it has seen the fastest growth in CD sales to the digitally accessing music over the internet but now this has seen a steep decline due to the introduction of digital music.
In terms of distributing music, penetration of internet and social community sites have changed the complete scenario. Pirated music has taken the whole business of copyrighted music. This case also describes the current market situation of music company EMI and the factors affected the business of EMI. Rather than trying to change the effect of the intervention of the internet into the music industry, companies have adopted this technology and they are seeing potential opportunities in this market. Business Purpose The business purpose of EMI is to provide music to the customer in any format and through any distribution channel because the consumers want to enjoy music anyhow and anywhere. Marketing Audit of EMI business To judge the current market position, it’ s positioning and its strategies, it is imperative to understand the internal and external factors affecting the business environment, the strength and weaknesses, and the competitive environment.
To understand all these, there are several strategy models like - PESTEL (Political, Economic, Social, Technological, Environmental and legislation) analysis, Porter’ s five force model, SWOT Analysis, Ansoff matrix, etc.
We will use these models to judge the current position and EMI Company and how it has arrived here. External Analysis PESTEL Analysis – Political, economic, social, technological, environmental and legal analysis A PESTEL analysis is useful to evaluate the macro-economic environment of the industry. This analysis becomes important when the industry is going through the globalization phase and key drivers for the industry had undergone a sudden change. There are certainly key drivers to this industry which might lead to change in the macroeconomic environment.
PESTEL framework gives an idea about the failure and success of any strategies. PESTEL includes six different perspectives on any strategy which are political, economic, social, technological, environmental and legal aspects. It is imperative to evaluate future changes in these aspects. PESTEL framework helps us to figure out which factors should give the most priority. In this case, also it is vital to evaluate the macroeconomic perspectives. As per the data are given in this case, we can not analyze it from all perspectives; we can only apply the economical, social, technological and legal aspects.