Business plan for SBA music in developing new services - Assignment Example

Introduction The report attempts to compile a business plan and develop a new area for SBA Music in creating sound music for games for both computers and mobile. SBA Music is based in Sydney, Australia. This is a music programming business which specialises as a background music provider. Simply put, it makes mixtapes for businesses to play for their customers. SBA is regarded as a notable musical company operating in an environment with other actors in the musical industry thereby offering some form of competition.

Thus, this report will try to evaluate the current environmental analysis of the industry using the SWOT analysis. Situation Analysis Business environment SBA Music is operating in an environment mainly influenced by two associations which represent the Record Companies in Australia – ARIA, which licenses the right to copy music, and PPCA which licenses the right to play recorded music in public (SAB). Their initiative to push tariffs up is likely to impact negatively on other musical suppliers and this is likely to affect the B2B music market within Australia.

For SAB there are various factors that affect its operations such as social demographic as well as economic. Their products are tailored to appeal to a wide range of audiences and through improved technological advances the organisation can capitalise on both computer and mobile software. It is a force to reckon with especially with its highly organised programming team which is always on top when it comes to supporting local artists. Market Analysis The market for SBA Music is diverse and very wide according to information obtained from the website.

The target market ranges from the young to the older generations and they produce and mix music to be played in various outlets including the retail shops, bars, restaurants, hotels and even hair saloons. These are also distribution channels and products should be tailored to appeal to different target groups on the basis of age. Competitor Analysis In an attempt to explore and develop a new era for SBA Music in creating sound music for games, both for computers and mobile software, it must be noted that there are also other internationally acclaimed competitors in the same field.

Examples can be drawn from you tube, Samsung, Ipod among other competitors. These offer specifically designed mobile musical as well as video games hence the need to analyse their operations as a way of gaining a competitive advantage. Locally, there are also other local musical producers which may offer competition. Organisation Assets and Skills The organisation is well equipped with skills to tailor its products to suit the brand or business. It is not just about music tracks (or clips), but more about matching the profile of music styles with the profile of the client’s audience.

In order to achieve this, together with the music supplier, there is a potent music programming infrastructure which is very important to meet the needs of the clients. This one is capable of sourcing and classifying songs (profiling) in preparation for servicing a client’s needs. It can be noted from this assertion that the organisation is well equipped with the relevant technology. SWOT Analysis “A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T).

This analysis is very important since it is based on the notion that an effective strategy fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. The major strength in this scenario is that SBA’s customer base is very broad and it includes everyone from small boutique fashion stores to large corporate retail chains, bars, clubs, DJs, coffee houses and fast food establishments. It is a force to reckon with especially by contributing to the success of the upcoming artists by promoting their growth.

One weakness that can be noted is that of pitfalls after failing to understand the clients well especially on how music could be of benefit to them if it was tailored correctly. Failure to understand the needs of the customer is dangerous and it is one weakness that can negatively impact on the organisation. Thus, from this assertion it can be noted that a SWOT analysis attempts to define the relationship between the internal and external environmental factors in the appraisals in strategic analysis (Robinson 1997).

It is primarily concerned with analysing the key factors of the environment and the fundamental internal strengths and weaknesses of the organisation which will help dictate the strategies appropriate to the firm as highlighted above. The organisation’s strategy must take into account its resources and competitiveness. Competition in the market is the major threat which needs to be carefully countered in order for the firm to maintain its status quo in terms of good reputation among its clients.

Competition from other local as well as international competitors can be a major threat to SBA Music. By virtue of using the same technique to assess the competitors, the organisation can capitalise upon those competitors’ weaknesses and avoid going head on against their strengths. However, SBA Music can explore other wide avenues of opportunities which are mainly determined by technological innovation. Given that it is a well established and reputable organisation in the market, it can entrench its opportunities in technological innovation such as harnessing mobile as well as computer software in designing music for games.

Conclusion Over and above, it can be concluded that SBA is a reputable musical company with vast opportunities especially with regards to technological innovation where it can develop music for game for both computer and mobile. Technological advancement during the contemporary period has brought about a lot of opportunities. References Robinson W (1997), Strategic Management and Information Systems, 2nd Edition, Prentice Hall, UK Smith P.R. (1999), Great Answers to Tough Marketing Questions, Kogan Page, UK.

Strydom M.C. (2000), Marketing Management, 4th Edition Juta and Co Ltd, SA. SBA home, accessed on 25 August 2009, from http://www.sbamusic.com.au/plugins/newsfeed.cgi?rm=content&plugin_data_id=28339