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Emi Assginment

In: Business and Management

Submitted By lasersori
Words 6285
Pages 26
CASE STUDY:
EMI GROUP,
PLC

{MOHD SHUKUR B AHMAD
201233899}
{INTAN DAHLIA AHMAD KAMAL
2012385223}
{ROZAINI B MD NAJIB
2012942051}
{NURHIDAYAH BT MD SETAMAM
2009181699}

DR SITI ZALEHA SAHAK
MKT 750
BM7701PA

Table of Contents

CONTENTS | PAGE | 1. Problem Statement 2. Industry Overview 3. Company Background 4. Porter Value Chain of EMI a. Primary Activities of EMI b. Secondary Activities of EMI5. TOWS Analysis6. Price Analysis7. Alternatives8. Choosing the Best Alternative | 33567911151922 | | |
1. Problem Statement The Universal Music Group (UMG) announced a pricing initiative designed “to reinvigorate the record business in North America”. UMG’s pricing initiative included a suggested retail price reduction, retailer display space requirements, and abolishment of retailer cooperative allowances and discounts. Therefore, the issues are:
• How should EMI respond to UMG’s initiative?
• What will the pros and cons of the sales and profit for each alternatives course of action?
2. Industry Overview The worldwide recorded music industry posted sales of $32 billion in 2002. This figure represented a 7% decline in dollar sales and an 8% decrease in unit volume from 2001. The United States is the largest market for recorded music at 39.4% of worldwide sales, followed by Western Europe t 36% and remaining from Asia and Latin America. Most of the sales and unit volume from all continents dropped except Western Europe. The mass downloading from unauthorized file sharing on the Internet, the proliferation of CD burning, competition from other entertainment formats (such as DVD film and new video game console) and poor economic conditions worldwide have contributed to the recent downward sales trend in the recorded music industry. As a consequence, major music companies have shut down CD manufacturing facilities...

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