Sony Records in the Music Industry - Case Study Example

SONY RECORDS IN THE MUSIC INDUSTRY 0 MISSION, VISION AND OBJECTIVES OF SONY RECORDS IN THE MUSIC INDUSTRY 1 Introduction Music is part of our life. Ranging from toe drumming to bobbing-head beats, music speaks to our souls and conveys a specific message to the masses. In the current world, the ways of enjoying music keep on changing day by day as technologies change. The manner of presentation, storage and distribution of music to fans changes to comply with the new technological demands. The abrupt increase in piracy, the establishment of streaming online music coupled with digital sales resulted to an increase in the number of fans (Media and Entertainment, 2014). 1.2 Our mission To distribute record labels and artists, efficient delivery solution and tools with unrivaled customer satisfaction as well as empowering artists to produce the kind of music they like and give the capability of controlling their own careers of choice. 1.3 Our vision We visualize a world in which all music lovers and artists live in an environment where there is the freedom required for them to take the direction they choose and shape their own destiny in the modern dynamic music industry. 1.4 Our core objectives To be a strong and prominent organization that protects and develops interests of music lovers and artists. To improve the current methods used in recording and distributing music in the industry. Influence the society to accept music as a tool for building cohesion in the society. 2.0 Environmental awareness No firm can prosper without an understanding of the environment in which it operates. Common characteristics of the modern music industry are intense competition and rapid inventions and innovations. Music lovers will always go for the product that will give them the highest degree of satisfaction at the lowest cost (Porter, 1985). Scanning is a perfect tool for encouraging productivity as well as growth. As a goal oriented company, scanning will help improve innovation of our tools, sustain a competitive advantage and enhance efficiency in production, which will minimize losses. Monitoring the environment will help identify the opportunities in the industry as well as the threats that affect the organization. Therefore, employing high effort and resources in carrying out the study of the environment will enable the company to remain relevant to its clients (Porter, 1985). Understanding the environment means identifying the company’s strengths, weaknesses, opportunities and threats. Forecasting will enable the firm to predict the above factors and input the necessary mechanisms to match the situation. For example, if we identify that the organization or one of the products is going to decline then we are going to enter in a rescue plan. If we identify a future opportunity, we will embark on a suitable plan to take advantage of it. In addition, if we discover our weaknesses we will take measures to correct and eliminate them. Knowing the marketing strategies of our competitors will enable us take measures and safeguard our market share. Because of these steps then our company is going to achieve the visions, missions and objectives (Porter, 1985). To conclude, environmental awareness is the ground foundation for the success of the organization. Sustainable growth and expansion is easy if we understand the prevailing conditions in the bicycle industry. 3.0 Areas of the value-chain Value chain entails the processes and operations the company uses in designing, producing, marketing, delivering and supporting the products. In addition, value chain reflects the history of the company, the performance strategy and the means of implementing the strategy as well as the fundamental economics. For the firm to prosper, it has to produce a product which customers will accept and fight completion (Institute of Management Accountants, 1996). Product differentiation will influence customers to believe in the quality of the products the company is offering. Delivery of goods and services at the right time and place, offering a wide range of products as well as other factors, will give the products a unique appearance. Thus, the company can then take advantage to either raise the price to offset customer benefit to earn more profits while safeguarding the market share or lower the price to increase sales (Porter, 1985). Lowering the cost of products through efficient operations will enable the company to benefit by either selling the products at lower price than the competitors, which will increase the market share for the products or sell the products at the same price as competitors and increase profits (Institute of Management Accountants, 1996). Advancing in technology will improve the functionality of the products. For example, the easy of handling, comfort and introduction of new brands will enhance customer loyalty and attract new others (Institute of Management Accountants, 1996). Product promotion like advertisement will influence customers in favor of the products. For example, educative advertisement on the comfort and reliability of the product will attract even new members to join the music industry and hence larger market share. Finally, after sales service will also install positive feelings in customers and thus widening the industry. The idea is not just to seize customers from competitors but also to encourage more people to join the industry after understanding the benefits of music in the modern world (Porter, 1985). 4.0 Human capital The presence and the quality of human capital is a strong factor in the success of the organization. It affects the efficiency of the operations as well as invention and innovation in the products. The various factors to consider in the effort of maintaining qualified individuals within the organization include the following, First, during recruitment, proper interviewing methods will ensure the selection of the right individuals with the required skills and talents. Not all the time the firm will have to employ experienced persons. Sometimes, it is better to tap young talented individuals from colleges and university and train them. These kinds of employees benefit the organization more because they work hard and remain loyal to the organization (Porter, 1985). Upon recruitment, training is very important for all the employees including for the ones with many years of work experience. The training should base on the individual talents and area of specialization. This will help build confidence and competency that will in turn improve innovation and the overall performance of the company. Good and regular training of employees also builds their morale and trust to the company (Porter, 1985). Another important means of attracting and retaining the human capital is proper rewarding. The management must recognize the contribution of employees to the performance of the organization. Reward may take several ways that may include bonus or communicating employee’s achievement to other employees. The reward has to be realistic reflecting the amount of contribution, not too high or too low. To avoid demoralizing employees there should be equity in rewarding them (Porter, 1985). With the appropriate knowledge and resources the attraction, development and retention of human capital is quite a cheaper task for the management of the organization to achieve. 5.0 Michael Porters generic strategies Porter’s model describes how the organization can defend its share in the market. The outcome is either defensive or offensive. Defensive is when the company safeguards and maintains its original market share while offensive extends further into altering the competitive setting. 5.1 Cost Leadership This means making the price lower than the average cost per unit of the product in the industry. This means that the profits will be low but relatively higher in comparison with those of rivals or having a lower cost relative to the rivals. Cost leadership is defendable approach since it defends the company from powerful buyers who may push the prices down the lowest level of the best efficient producer and powerful suppliers where the firm can absorb excess inputs. It also acts as a barrier to entry of new competitors. For the company to implement cost leadership strategy it has to advance in technology, invest more capital, carryout innovation, intensively monitor its labor and tightly control overhead (Porter, 1985). 5.2 Differentiation It entails making your products unique through differences in designing, branding and production methods. It is a defendable strategy as it creates brand loyalty, uniqueness and mitigates customer powers. Implementing the strategy requires exclusivity, strong marketing skills and innovation (Porter, 1985). 5.3 Focus or Niche Strategy This strategy, focus on a specific class of buyers, product fragment or geographical area. It creates a defensible position inside the targeted portion of the market. Failure to implement one of the strategies will result to failure or low performance due to reduced market share 6.0 Leveraging the core competencies In identifying the company’s key competencies, three important factors come into our minds; providing benefits to customers, implementing strategies that competitors cannot imitate and leveraging extensively to numerous products as well as markets. Most often, consumer benefit is no something simple to describe, even the consumer receiving the product itself. A recording instrument customer might appreciate the brilliance of the home showroom as well as the paint color but most important is the capability of the instrument to provide him with the enjoyment he likes. Invention and innovation to improve the functionality and outlook can therefore be a key competence in grasping opportunities in the market (Hiadmin, 2013). Competitive uniqueness can happen even where the given capabilities span the whole industry. Every producer must produce and avail his product fast and at the lowest possible price, but the company can do this better than the other producers can. What will make this a key competence is that the degree is higher than that of other producers (Hiadmin, 2013). Leveraging extensively means that the competence has to possess some degree of extendibility. This means it has to be capable of remaining relevant to new areas of application. A key competence establishes the foundation upon which the company will enter into new products and opens new opportunities (Hiadmin, 2013). Conclusively, if the company concentrates on what it currently considers relevant to its key competencies then it will not make significant progress. The management must therefore speculate about new avenues beyond their knowledge and experience, with the aim of bringing new positive changes. Consumers always need direction on what to buy and must therefore see new products that they had not seen before in order to shape their behavior for the product. References Hiadmin. (2013, January 29). The three essential elements of a core competence. Retrieved from http://www.humaninteractions.com/the-three-essential-elements-of-a-core-competence/ Institute of Management Accountants. (1996). Value chain analysis for assessing competitive advantage. Retrieved from http://www.imanet.org/PDFs/Public/Research/SMA/Value%20Chain%20Analysis.pdf Media and Entertainment. (2014). U.S. music industry year-end review: 2013. Retrieved from http://www.nielsen.com/us/en/insights/reports/2014/u-s-music-industry-year-end-review- 2013.html Porter, M., E. (1985). Competitive Advantage. New York:The Free Press. Read More