Music Industry Business Plan
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The document analyzes the risks of entering an industry with high barriers to entry, including buyer power, supplier power, threat of substitutes, and rivalry among existing firms that dominate the market. It discusses a startup in the social music discovery market that faced high costs, lack of differentiation from major competitors, risk of investment, and challenges carrying inventory that ultimately led to the startup being phased out. The key takeaways are about considering all risks from beginning to end when entering a saturated market with large competitors.
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The music industry is dominated by four major transnational corporations that control most of the market through subsidiary labels catering to different genres and niches. Music videos serve to promote singles, albums, and artists through visually stylish productions that entertain and influence popular culture while reinforcing or changing the meaning of songs. The industry is made up of major labels, independent labels, and specialized divisions that handle artists, marketing, promotions, legal, and financial aspects in creating and distributing music and multimedia campaigns.
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Music industry
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A monopoly is a firm that supplies all of the output in a market.
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Music industry
The music industry consists of four main parts: writing music, recording music, publishing music, and live music/artist management. The recording process involves an artist finding a record label, writing or choosing a song, recording vocals and instrumentation, and distributing the recorded music. Songwriters and publishers each receive 50% of revenue. Live performances are now a primary source of income for artists. Record labels oversee marketing, recording, production, promotion, and distribution for artists. They have departments for A&R, artist development, promotion, publicity, sales, and administration. Major labels are Universal Music Group, Sony Music Group, and Warner Music Group. Independent labels include Domino, Rough Trade Records, and Apple Records.
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The document discusses how technological innovations have impacted the music industry, both positively and negatively. It covers the history and issues of production technologies like the piano, synthesizers, sampling, and computers and delivery technologies like the phonograph, radio, vinyl records, cassettes, CDs, MP3s and streaming. While technologies have increased efficiency and access to music, they have also disrupted business models, contributed to widespread piracy, and shifted revenue streams in the industry.
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The music industry is split into four main parts - recording music, songwriting and publishing, live music, and artist management. Recording involves finding a record label, recording original or cover songs, and duplicating the finished product. Songwriting involves splitting publishing revenues 50/50 between the songwriter and music publisher according to agreements. The live music sector has become a primary income source for artists due to illegal downloading, involving promoters, booking agents, venues, and road crews.
The future of music industry
The document discusses changes in the music industry over time as revenues have declined but music consumption has increased. It attributes the revenue decline to shifts in how people access and listen to music, from physical formats to digital. New services like Napster, iTunes, YouTube and Spotify provided convenient digital access to music for free or low cost, which impacted revenue streams. Streaming services in particular have grown rapidly and now drive most digital revenue, though artist royalties per stream are much lower than from other sources. Sustainable business models are needed that satisfy customers desire for easy, free access while also generating sufficient revenue to fairly compensate all industry stakeholders.
Business Models in the Music Industry
The document discusses various business models in the music industry. It begins by defining a business model and outlining the key components of the business model canvas. It then summarizes several business models including record companies, piracy, iTunes, Spotify, and independent artists. Record companies focus on marketing and promoting artists to mass markets through retail and digital channels. Piracy relies on uploading and downloading music for free through peer-to-peer networks. iTunes revolutionized the industry with its seamless digital music experience on iPods and in the iTunes store. Spotify aggregates music from rightsholders and distributes it for free with ads or through subscriptions on mobile and online. Independent artists are increasingly turning to crowd-funding to finance their
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CHEVRON CORPORATION 9Chevron Corporation
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Chevron is a multinational corporation, a successor of Standard Oil, founded in 1879. It has it headquarters in San Ramon, California, United States. It is a public company that operates in the industry of oil and natural gas, dealing with products such as petroleum, petrochemicals as well as natural gas. Chevron has operations in over 180 countries all over the world and has been ranked on of the key players in the energy sector, with an annual revenue of $15.45 billion in the year 2018. The operation of Chevron, just like any other large corporation, is largely influenced by general environment such as technological factors, sociocultural factors, economic factors as well as political/legal climate. Similarly, it is affected either positively or negatively, by forces of competition such industry rivalry and buyers bargaining power. It has strengths and weaknesses, opportunities and threats, and core competencies and capabilities which also affect its day to day operation in the industry. Proper management of company resources; human, material and financial resources, has played a key role in maintaining the status of Chevron Corporation at the top. This paper explains all these factors influencing its operation and how their impact can be reduced so as to minimize the running cost and boost profitability.
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General environment refers to those factors outside the corporation that influencing its operation, affecting its long-term profitability in a given market or industry. In our case, we will only focus on the two main segments namely- political/legal factors as well as economic factors.
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Political impact in the profitability or even the survival of Chevron Corporation is diverse. These political changes range from mass unrest due to dissatisfaction by the government decisions to prompt shift in current political regimes (Cherry et al. 2012). The political stability determines whether Chevron will invest in in a given location or not- where there is political instability, it will shy away from risking its finances thus affecting its income as well as profitability of the industry. The laws that a country puts in place regarding businesses, like contract law, outline what corporation is permitted to do and what is not allowed to do, if Chevron finds the laws favorable, it will invest in such place thus boosting both the organization profitability as well as the industry at large. Similarly, in countries where there are no policies to protect company’s intellectual property, investors see it risky to invest with Chevron. High taxation as well as stringed trade barriers will dem.
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CHEVRON CORPORATION 1
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Lucy Rowell
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Professor’s Name
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General environment refers to those factors outside the corporation that influencing its operation, affecting its long-term profitability in a given market or industry. In our case, we will only focus on the two main segments namely- political/legal factors as well as economic factors.
Political/legal climate
Political impact in the profitability or even the survival of Chevron Corporation is diverse. These political changes range from mass unrest due to dissatisfaction by the government decisions to prompt shift in current political regimes (Cherry et al. 2012). The political stability determines whether Chevron will invest in in a given location or not- where there is political instability, it will shy away from risking its finances thus affecting its income as well as profitability of the industry. The laws that a country puts in place regarding businesses, like contract law, outline what corporation is permitted to do and what is not allowed to do, if Chevron finds the laws favorable, it will invest in such place thus boosting both the organization profitability as well as the industry at large. Similarly, in countries where there are no policies to protect company’s intellectual property, investors see it risky to invest with Chevron. High taxation as well as stringed trade barriers will dem ...
Industry analysis- Fundamental analysis
The document outlines the four stages of an industry's life cycle: pioneering, expansion, stagnation, and declining. It then provides details about each stage. The pioneering stage involves a new industry becoming established with few competitors. The expansion stage sees increased competition and innovation. The stagnation stage involves slower sales growth and emphasis on profits. Finally, the declining stage is when products are no longer popular and risks are high for investors. The document also discusses Porter's five forces model and how to analyze competitive conditions, characteristics, and market structure of an industry.
INDUSTRY ANALYSIS MONE.pdf
This is summarization of industrial and competitor analysis topics in successful launching new ventures
Entrepreneurship
Source: bruc barringer
SSE_cola wars_group4b_2011
1) The Coca-Cola and Pepsi concentrate industries have high rivalry due to slow growth and two equally sized competitors fighting for leadership through branding and pricing. Entry barriers are also high.
2) The bottling industry has moderate rivalry between brands but low rivalry between bottlers of the same brand. Entry barriers are also low. Retailers have significant bargaining power over bottlers.
3) Both industries face challenges from increasing health concerns, a saturated carbonated soft drink market, and growing power of retailers.
Marketing plan 1
Skyson Industries plans to enter the marching percussion equipment market with a new line of innovative practice pads. Their pads will include built-in sheet music clips, metronomes, and carrying cases to meet unmet needs. They recognize opportunities in the growing market and expect competition to increase as they introduce differentiated products. If successful in the US, Skyson plans to export products internationally starting in China due to the growing percussion culture there and few competitors.
Strategic management
This document outlines questions to consider when conducting an industry and competitive analysis. It discusses assessing the dominant economic features of an industry, including market size, growth, and profitability. It also addresses the competitive forces within an industry using Porter's five forces model. Additional questions focus on identifying the strongest and weakest companies, anticipating rivals' strategies, determining factors for success, and evaluating a company's attractiveness and profitability prospects within its industry.
Strategy-Course-Notes+(1).pdf
The document discusses various strategic management concepts including:
1. Porter's five forces model for analyzing competitive environments.
2. Different types of competitive advantages such as cost leadership, differentiation, and focus strategies.
3. The importance of assessing a company's resources and capabilities to develop competitive advantages.
4. Organic growth strategies like developing new products or entering new markets versus inorganic strategies like mergers and acquisitions.
5. Tools for strategic analysis including SWOT analysis and the industry lifecycle model.
Ssecolawarsgroup5b2011 110121071443-phpapp01
This document analyzes the cola industry using Porter's Five Forces framework. It finds that the industry has high barriers to entry due to economies of scale, customer switching costs, and unequal access to distribution. Rivalry is high as the industry is dominated by two major competitors. Threats of substitution are currently low but may increase with greater health concerns. The analysis also finds that bottling operations have lower profitability than concentrate companies due to squeezed margins between suppliers and retailers. Key challenges for cola companies include health trends, substitutes, retailer power, and a mature market. Competition has lowered margins but also increased the power of major players like Coke and Pepsi.
Sse cola wars_group5b_2011
This document analyzes the cola industry using Porter's Five Forces framework. It finds that the industry has high barriers to entry due to economies of scale, customer switching costs, and unequal access to distribution. Rivalry is high as the industry is dominated by two major competitors. Threats of substitution are currently low but rising due to health concerns. The analysis also examines bottlers in the industry, finding they have low bargaining power against concentrate suppliers and high customer switching costs, leading to lower profit margins. Overall the industry is very attractive for major players but less so for new entrants or bottlers.
ch06_2 - Pricing Strategies - Entry and Exit
This document summarizes key findings from a study on entry and exit in US industries:
1) Entry and exit are common, with typical industries seeing 30-40% turnover over 5 years. Half of entrants were diversifying firms and the rest new firms.
2) Entrants and exiters tended to be smaller than incumbents and survivors. Within 10 years, 60% of entrants had left the industry but survivors doubled in size.
3) Diversifying entrants posed more threat as they built bigger plants than other entrants. Managers need to plan for unknown future competitors and find capital to support survival and growth.
Direct and Global Sourcing
Distributors and large chains have increasingly adopted direct sourcing over the past 5 years to reduce costs. This shifts purchasing power away from manufacturers to customers. As a result, manufacturers now face challenges like competing for production capacity globally with their largest customers. To adapt, manufacturers may focus on brand loyalty with independent operators, offer tiered product lines, and monitor direct sourcing models closely as purchasing practices continue evolving. Global sourcing is emerging as the next phase in the supply chain's evolution.
Toothpaste industry in india.
The toothpaste industry in India offers significant growth opportunities as penetration and per capita consumption is still low. While awareness is increasing, the total market is 750 crores with a growth rate of 18.6% annually. However, per capita usage remains just 85gms per person leaving vast potential for expansion. Major players include Colgate Palmolive and Hindustan Unilever who have the highest market shares but many local and regional brands are also available.
Poter's 5 force model
This model aimed to provide a new way to use effective strategy to identify, analyse and manage external factors in an organization’s environment.
• Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level.
• An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.
• The Five Forces were Porter’s conclusions on the reasons for differing levels of competition, and hence profitability, in differing industries. They are empirically derived, i.e. by observation of real companies in real markets, rather than the result of economic analysis.
9. life cycle strategies
This document outlines the five stages of an industry life cycle: embryonic, growth, shakeout, maturity, and decline. It describes the characteristics of each stage, including how competitive forces change as industries evolve. Strategic managers must understand how their industry is progressing through the life cycle and adapt their strategies accordingly, such as preparing for intense competition during the shakeout stage or focusing on cost minimization as the industry reaches maturity. Recognizing the current stage is important for developing strategies that consider future changes in competitive dynamics.
Electronics Industry Analysis-Sony
This document discusses Porter's five forces model and its application to analyzing various industries, including electronics, computer, and transportation industries. It analyzes the bargaining power of suppliers and buyers in industries like CPU manufacturing, bus makers, and couriers. It also discusses strategies used by companies like Sony, Dell, and FedEx to manage competitive forces and reduce the bargaining power of suppliers or buyers.
Monopolistic competition
Monopolistic competition is characterized by:
- Many small firms producing similar but differentiated products, allowing some control over pricing. While firms have some pricing power, the market is highly elastic due to substitutes.
- Free entry and exit into the market. Firms use advertising and product development to differentiate themselves and try to earn economic profits, but in the long-run normal profits are achieved as new entrants drive down prices.
- The economic effects are less detrimental than monopoly but include some waste from excess capacity and non-price competition through advertising.
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Music Industry Business Plan
- 20. Risk of entrants is high Buyer power is high Supplier power in this market is high Threat of substitutes is fairly high - as this is a somewhat saturated market in terms of general services. What we are offering has not truly hit the market yet—thus the threat of substitutes is unknown. Rivalry among Existing firms is high
- 21. FORTE.COM SOCIAL MUSIC DISCOVERY