Electric and Music industries limited Essay Example for Free

Electric and Music industries limited EssayEMI or Electric and Music industries limited is a British medicinal drug fraternity founded in 1931 as a result of a giant optical fusion of two companies namely the UK Columbia Graphoph i company and Gramophone company. Initi totallyy it was involved in even up of save and playback equipment and provision of medicinal drug to play in its machines. EMI Group Plc comprises two major companies i. e. EMI music based in Kensington, London England and EMI publishing based in New York. EMI is one of the four music companies in the domain of a function. The opposite three are Sony BMG, Warner group, and Universal music group.As we shall see Terra Firma, capital partners now own EMI since dreadful 2007. This change of ownership was because of drastic decline in sales and a huge loss to the strain of 2000 million pounds in 2006/20007 financial year (http//www. li rude(a)eek. com/magazine/content/03_06/b3819058. htm? chan=search). Thi s transition saw several artists locomote out of EMI including Radio head, Sir Paul McCartney among early(a)s. The takeover also saw Guyhands, the refreshful owner land in new restructuring policies to reduce the labor costs by two hundred pounds.This was to be achieved by parapraxis up to two hundred workers out of the 5000 plus EMI labor event (http//www. cornerc. com/emi. htm). Initially EMI majored in the manufacture of gramophones, which went on successfully for a period of 40 years. However, during and after the world war two they ventured in the manufacture of radar equipment and guided missiles. They later began to manufacture broadcasting equipments with BBC being their main customers. They employed practiced engineers an example such was Godfreys Hounsefield who came up with the first s merchantmanning machine, used in medical imaging. EMIs strategical choicesAlthough EMI was established along m ago, an indicator that it had cut it egotism a niche in the music dr udgery industry, it had to come up with fixedness strategies to maintain its position in the merchandise. This was also necessary to stay in level with its business touch on e. g. Warner music group and others. In any business, it is mandatory that to acquire a volumed market share a manufacturer must produce reference products. This aspect of quality is what customers look for and there radical EMI embarked on producing quality and efficient products by dint of the employment of skilled work force such as engineers.For instance the re skilled and adapted engineers who made sure that quality and force was non compromised. some other precise important tool EMI used to edge out its competitors was by sign language contracts with popular artists. It drum roll of artists include both local and international artists who releases new record albums e rattling now and then. These fix releases helped EMI to offer its customers a wide rage of music choices. Emi continued investi ng heavily in the very best song writing standards across the world. Local artists included the Beetle Boys, Nora Jones.Lenny Krawtz, among others while artists from other regions included Japans Noriyoku Matiara, Latin Ameri great deals Marissa Monte, continental Europes Raffael, Diam among legion(predicate) others. These best talents enabled EMI to maximize all potential revenue opportunities. Due to hypercompetitive nature of the music industry, EMI has always been on the look out to remain executive in the industry. This, they assume achieved by devising systematic decisions, monitor the decision effects, and adjusting where necessary. EMIs fast, efficient and flexible business intelligence team draws these strategies.Through this intelligence team, EMI was able to embark on facilitating a new architecture for selling its products. They engaged an IT firm, Avanade who successfully de sign(a) a web services solution. This new architecture helped EMI to take advantage of unique interactive marketing opportunities, which offered a competitive advantage when signing new artists. EMI has also labored tirelessly in creation of new products, formats, bring, and new partnerships as a existing competitive tool over its rivals. For instance, EMI diversified its distri moreoverion channels by introducing digital online selling.This has supplemented the physical selling method. As expected, this online selling has helped to cut the costs of shipping, and offered value to its customers dollars. another(prenominal) competitive advantage of this method is that its dynamic, secure, and its flexible for easy extension to new E-commerce business technology initiative (http//www. avanade. com/customers/casestudy. aspx? id=39). EMI has also focused on creating of very attractive music content and making it available where consumers want it, when they need it, and in the format, they want it.This has helped them to maximize the demands for its artist works. Of more import ance is the variegation of its product range, which has been a routine exercise as part of their business products. New corporate partnerships baffle been created and then making EMIs music available in more than 56 countries. However, this market variegation has posed a greater challenge due to sprouting of both physical and digital piracy. However, through a series of successful legal suits the company has made progress in combating unscrupulous pirates.Another tool EMI continues to use in fellowship to broaden its international market is by establishing right relationships on the right terms. This has made them to be in the fore front of the music industry and there fore exploiting new products and possibilities that digital technologies brings e. g. this innovative digital come up, saw EMI music produce the first ever album available on i-tunes. An indicator of how EMI music is exploiting new opportunities that digital technologies brings (http//billboard. blogs. com/billboa rdpostplay/2005/06/sales_and_marke. html) .Through these digital innovations, EMI music has thusly ventured in a wide geographical region with ventures in N. America, Japan, Continental Europe, Latin America, Australia, and in S. eastmost Asia. In all this regions EMI music has entered into joint ventures with local companies, making its products to be widely accepted by the locals, a phenomenon, which could confuse been the other way if EMI music decided to go on its own. These international ventures energize been successful because British had umteen colonies across the globe. Therefore, it has been easy to market EM products in the common riches countries (http//www. ybase. com/detail? id=1025595).EMI limited is now one of the four leading companies after Universal music group, Warner music group and Sony BMG. Therefore, measures to protect it and make it sustainable strong in the music industry market have to be arrived at. His measures are not only purely for protection bu t also for building the company further. An example of such measure was EMIs bold proposal move to buy its music rival Warner group. EMI argued that this move result not only cut down the cost of unnecessary competition but also will add value to the company share value in the London occupation exchange market.Warner on its side did not take the proposal positively. EMI has also invested hugely on intensifier marketing and promotion through collaboration with mobile phone manufacturers e. g. T-mobile which uses EMI music as its ring tunes. In addition, EMI music has entered into contracts with advertisers and media houses as a way of diversifying its revenue opportunities. Another milestone EMI has achieved in protecting its market share is by proper use of copyrights and hence reducing piracy. Critical success factorsIn order to achieve all the above strategies and objectives, EMI had to come up with a series of practices. These practices, which are in other words referred to as critical success factors, included the following developing a distinctive approach towards its list of artists, which are its main assets. Also making consistence investment in artists with long-term attack aircraft carrier potential and maximizing its local and global sales. Another factor was getting in partnership with unbidden music companies across the world. This approach was seen as the only way EMI products would be readily accepted by customers globally.From EMIs financial and performance data, it is homely that to some extend they achieved these success strategies. This is clearly shown by the issue forth of business ventures it entered into the globe e. g. in Asia, Australia, North and South America among many other places. In addition, the roster of artists affiliated to EMI speaks volumes about this. It s evident then that EMIs strategies and objectives were very much appropriate initially. This is the source as to why EMI has been successful for a very long perio d. The strategies were in line with its resources and capabilities.EMIs recourses and capabilities It is evident that the long term EMIs success did not just come on a bullion platter, it was occasioned by intensive investment of capital, intensive marketing and promotion, tireless efforts by its skilled and able workers, regular releasing of albums by its long roster of artists, and lastly prevailing peace and stability in many countries it ventured into. To begin with, the main asset towards the support of EMIs strategies was their large human bodys of artists who were blessed with immense real musical talent.These artists released new hits every now and then and therefore this made EMI to be constantly in business, hence its expansion to overseas market. EMI being a company that started back before the start of the world war two stands a better chance in terms of competitive advantage from its rivals. This is so because its long duration presence in music production industry m akes it to have built a reputation with new and old artists. Long time presence in music industry makes it to be popular with its customers and therefore its volume of sales have always been high until lately when it started making losses.To satiate its customer s demand as we saw earlier EMI achieved this by investing heavily in new technology whereby new brands of products were released every now and then. This new technology was achieved through EMIs large workforce of able and skilled technicians. EMI group have two branches i. e. EMI music, and EMI publishing though they are very much separate from one another as its normal in music industry. These two branches have contributed a lot in making EMI what it is today.This is so because they supplement one another in that, the publishing house branch publishes and records musical tracks while the music branch offers distribution and marketing services and thus EMI managed to weather sheet successfully in its business endeavors. Its variety of branches also gave its customers a wide choice of products. These brands included music packaged in physical devices like disks and music digitally delivered to customers online. The above recourses and capabilities and many more others are what made EMI to be strategically capable in edging out its rivals, business wise.An evaluation of EMIs current strategies Today the company being under the ownership of Terra Firma it has to make new strategies as one of the core actions in its efforts of regaining its lost rejoice. An example of these strategies is the labor force down sizing which its new owner, Mr. Guy Hands, brought in. Literally, this strategy will mean that a quite number of workers will face the axe. Its suitableness therefore is wanting, because it will be contracting the companys initial policies since quite a number of sectors of production will remain understaffed.All the same, it is worthy the cause since in the end expenses will film down and the s aved funds channeled towards the main objective of reviving the once renowned music fireball (http//helium. com. tm/494190/music-industry-dying-painful). By looking at EMIs business environment it not clear whether it will regain its lost market share. This is because the take over by terra firma was worsened by the walking out of some of its of long time artists therefore it will be difficult to win the back.It can also be argued that Mr. Guy Hands strategy was not in good faith because whitethorn be his main intention was to come up with a plan that will see him recall his money he paid for the takeover deal (httpwww. whatmakesagoodleader. com/Porters-five-forces. html). In terms of feasibility, which is concerned with whether the strategy is implemental it can be said that cutting the labor force although easy to implement can be of no consequence when it comes to regaining its lost market share.This so because when some of EMIs artists left, they obviously signed contracts w ith other music companies, which are probably its three major rivals and therefore increasing the level of competition. Basing this blood on competition, cutting the number of employees will not bring down the level of competition. Again, EMI badly postulate the services of some of its experienced workers to turn around the situation facing it. For instance, EMI needs the services of IT technicians to bring new and fresh technological ideas to gain that competitive advantage over its three main rivals.It is in order that the money which were to be paid to the retrenched workers will be invested in researching for more technology, but in real sense new technologies mean more labor force to work on it (http//www1. ximb. ac. in/users/fac/dpdash/dpdash. nsf/pages/BP_Evaluation). On acceptability of this strategy, it remains to be seen because now EMI has been faced with financial constraints and hence its concomitant change of ownership. This change of ownership saw EMI being deliste d from the London stock market, and mass walkouts of long time loyal artists.This is a phenomenon, which means that its volume of sales went down considerably, and consequently making EMI to find its self in a financial quagmire. This also affected the capital structure of the company with the shareholders being compel to sell their shares to the new owner. This policy also affected the functions of different departments in the organization. Some departments were merged, while others were scraped all together. The companys reputation also went down especially its customers, suppliers lost faith in it, and therefore it can be said the general acceptability of this strategy was relatively poor.In conclusion it can be deduced that it will take some time for the company to fully regain its lost glory this so because in the music a single flop can lead to long time consequences. Music production is unique in that it involves the signing of long-term co tracts with artists, suppliers and stakeholders and therefore breaching such contracts is not a common thing. Unless during abnormal occurrences like in the case of the take-over of EMI by Terra Firma. However, EMI can build on from its other range of products to regain its popularity and market share.