Sony Music Entertainment SWOT Analysis

Sony unison Entertainment SWOT AnalysisSony medical specialty EntertainmentSony harmony Entertainment, also known as Sony medication is controlled by Sony Corporation of America. Sony Music is one of the biggest four shew companies, ranked as the second biggest global record euphony companies. Sony has managed to debate at the level of being one the biggest melody companies in the world and remain at this show. Sony Music has collaborated with numerous of artists and others more to come.Sony Music Entertainment contains the melody labels Columbia, Columbia Nashville, Epic, Jive, RCA, Legacy Recordings, Victor Records, Masterworks, Arista, Arista Nashville, Bluebird Jazz, BNA Records Label, Burgundy Records, J Records, LaFace Records, Provident Label Group, U.S Latin, Verity Records and Windham Hill.Porters five forcesPorters five forces are the rivalry among competitors, the holy terror of potential entry, the bargaining power of suppliers, the bargaining powers of secur eers and the threat of substitutes.The most competitive force between Porters five forces is the rivalry between producers and sellers in the music industry. The music record industry constitutes 4 significant segments* Major recording studios Major companies are firms that have large numbers of artists under contracts with different types of music, such as hip-hop, rock, jazz, country, etc. Major companies may be EMI, Sony Music, Columbia and work internationally.* Independent labels Independent labels are companies that have fewer artists under contracts, recording one or two music styles and mostly work regionally.* Micro labels Micro labels have an amount 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 Univer sal 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, thus 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 promotion of the songs. There are a large number of competitors that are alike in size, consumer offerings, market and growth.Threat of potential entryThe threat of is the weakest force. Even if a new music recording company enters the market, its very difficult to reach the levels of the existing company. In the music industry there are millions of music record 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 economic crisis, people have difficulties on buying CDsThreat of substitutesPeople prefer listening songs through Internet (YouTube), on radio, on TV channels and other rather than buying the CD. Internet has become a substitute of CD records, through piracy and downloads. This is very an important numerate in music record industry, even if they try to fight it, there provide always be this competition.SWOTStrengthsThe second biggest major music companyGlobally known and recognizedA portfolio of successful artistsAn organized and clear websiteChannels of distribution radio, TV, Internet, music record shopsWeaknessesGlobal music piracy (its the biggest issue that worries all music record companies)OpportunitiesFuture successful CD releases w ith 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 may result staidly 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)ConclusionAccording 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 bridle 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 order to download a so ng 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 celestial latitude 2009 at http//en.wikipedia.org/wiki/Music_industry2. EMI SWOT, Music Piracy online. Bridgewell. Last accessed on 12 declination 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.com/ ass ay/marketing-essay/ccm-music-recording-company-step-analysis-swot-analysis-five-forces6. ITunes claims to be stopping teen 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. outside(a) Federation of the Phonographic Industry (IFPI). Last accessed on 12 December 2009 at http//www.ifpi.org/content/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