BOC, Spring 2019 Group Presentation with Selina, Mae, Lynette, Artin

1. SONY MUSIC
ENTERTAINMENT
A SWOT Analysis
By Artin, Lynette, Mae, Selina

2. Outline
Market Overview SWOT Analysis TOWS Matrix
W
Weakness
S
Strength
O
Opportunity
T
Threat
PESTLE Analysis
Corresponding
Strategies

3. Global Recorded Music Industry
Resource: IFPI
Revenues Grow 9.7%
Stream Powered

4. 3 competitors
V.S
21%
31%
18%

5. Strengths
High Market Share
Strong Brand
Awareness
Successful Artists

6. Strengths
Channels of
Distribution
Co-create a new daily satirical podcast focused on current events called “The Topical”

7. Strengths
Channels of
Distribution
Social Media
Marketing

8. Strengths
Channels of
Distribution
Social Media
Marketing

9. One Sony Dream
Strengths
Channels of
Distribution
Social Media
Marketing
Internal Resources
Integration

10. Strengths
High Market Share
Strong Brand
Awareness
Successful Artists
Channels of
Distribution
Social Media
Marketing
Internal Resources
Integration

11. Weaknesses
❏ High Cost of Media Production

12. Weaknesses
❏ High Cost of Media Production
❏ Copyright Issues

13. Weaknesses
❏ High Cost of Media Production
❏ Copyright Issues
❏ Artists Management (Negative Image)
Sony Music Waste $750Million on
Buying Michael Jackson’s Copyright

14. Opportunities
❏ The legislation of protecting digital rights
❏ Music industry is prosperous worldwide
❏ The possibility of seeking profits in merchandising

15. Political Factors
Government Stability
○Public expenditure controls
○Value-Added Tax (VAT)
○It will affect
■company incomes
■consumer preferences

16. Political Factors
Legislation
● The Music Modernization Act (US)
● Modernisation of the EU copyright rules
○ Copyright Directives

17. Economical Factors
Consumer Confidence for music is up worldwide
❏the market of music industry is expanding in a
global scale

18. Global Music Markets 2018 in Numbers
+9.7%
According to IFPI Global
Music Report 2019, Global
revenue growth +9.7%

19. Social-cultural Factors
❏Changing lifestyles
❏People are replacing the conventional way of
enjoying music
❏highly dependent of the Internet: youtube
❏Smartphones are very common now: Spotify,
itune

20. Social-cultural Factors
❏ Consumers focus on artists’ styles and images.
❏Merchandise
❏T-shirt, vinyls, etc

21. Threats
❏ Piracy will drive music record companies to a decrease of their
sales
❏ Physical sales are decreasing due to streaming music
❏ Huge cost of live performance stage set
❏ Violation of customer’s privacy

22. Technology Factors
Streaming music ( decreasing of pyhsical sales)
Recording Industry Association of America (RIAA)

23. Technology Factors
❏ Company earn their major income through
life performances, concert and merchandise
❏ Cost 23-31 Million 2019 / 7-15 Million 2012

24. Environment Factors
❏ Waste and Pollution of Music Concert, Music Festival
❏ Generates more than 679 tons of waste = nearly twice the average amount a U.S.
consumer uses daily.
❏ Where do the stage set go after the show is over?

25. Legal Factors
❏ Violation of Customer Privacy through software(XCP) installation
software that could secretly get your IP address
unremovable
left computer vulnerble to virus and spyware
❏ 2012 Sue and Shut down illegal digital music website(IsoHut)

26. PESTEL ANALYSIS
Technology Factors
Streaming music platforms
Live performance stage upgrade
competition
Environmental Factors
Waste and Pollution after music
concert or festival
Legal Factors
illegal digital music website
Invasion of costomers Privacy
through software
Political Factors
legislation for the protection of music
copyright in the US and EU
Economic Factors
Worldwide music markets are
growing on the whole.
Increasing demand for streaming
music
Social Factors
Changing lifestyles: smartphones and
the internet are the major ways of
enjoying music

27. TOWS STRATEGIES
S
1. High Market Share in Music Industry
2. Strong Brand Awareness
3. A Portfolio of Successful Artists
4. Channels of distribution
5. Better Social Media Marketing
6. Internal Resources Integration in Sony
Corporation
W
1.High Cost of Media Production
2.Copyright Issues
3.Artists Management
(Neagtive Image)
O
Global music markets are stably growing
legislations that protect digital copyright
the promising sale of merchandise
SO
Transnational music
collaboration
OW
Take advantage of Internet to
reduce the cost
Collaboration with different artists
to add multiplication effect
T
Streaming music
Concert pollution
Piracy
Invasion of privacy
ST
Replace concert tickets with digital
tickets
WT
Use reusable stage set

28. Conclusion
Despite the music piracy and other problems that arises huge damage to the industry, Sony
Music strives to handle these matters legally and commercially.
However, solving the environmental problems are not the music industries priority, we
are looking forward to the future days that Sony Music could not only produce great works
and performances but also adopt our analysis as a reference for their future plan.