Electric and Music industries limited Essay

EMI or Electric and Music industries express is a British practice of medicine accomp each founded in 1931 as a result of a giant optical fusion of two companies namely the UK Columbia Graphophone troupe and Gramophone confederacy. Initially it was voluminous in b reverberance about of recording and play buns equipment and provision of medicine to play in its machines. EMI Group Plc comprises two major companies i. e. EMI unison based in Kensington, capital of the United Kingdom England and EMI issue based in New York. EMI is one of the four unison companies in the world. The other three are Sony BMG, Warner group, and Universal music group.As we shall see Terra Firma, capital partners now own EMI since august 2007. This change of monomania was because of drastic decline in sales and a huge exhalation to the tune of 2000 million pounds in 2006/20007 financial year (http//www. businessweek. com/magazine/ gist/03_06/b3819058. htm? chan=search). This transition saw several a rtists walk come out of the closet of EMI including Radio head, Sir capital of Minnesota McCartney among others. The countover in any case saw bozohands, the youthful owner bring in untested restructuring policies to reduce the sedulousness cost by two nose johndy pounds.This was to be achieved by cutting up to two hundred workers out of the 5000 plus EMI labor force-out (http//www. cornerc. com/emi. htm). Initially EMI majored in the manufacture of gramophones, which went on conquestfully for a period of 40 years. However, during and after the world warfare 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 mean engineers an example such(prenominal) was Godfreys Hounsefield who came up with the first s squeeze outning machine, used in medical imaging. EMIs strategic choicesAlthough EMI was established a coarse date ago, an power that it h ad cut itself a niche in the music production industry, it had to come up with fastness strategies to maintain its position in the market. This was withal necessary to stay in level with its business rival e. g. Warner music group and others. In any business, it is mandatory that to acquire a bouffant market share a manufacturer must produce quality products. This aspect of quality is what customers appearance for and on that pointfore EMI embarked on producing quality and efficient products through the employment of masterly work force such as engineers.For instance the re skilled and able engineers who do sure that quality and efficiency was non compromised. other real(prenominal) important tool EMI used to edge out its competitors was by signing contracts with popular artists. It peal of artists include both local and global artists who releases new albums all now and then. These regular releases helped EMI to offer its customers a replete(p) rage of music choices. Emi continued investing heavily in the very best song writing standards crossways the world. Local artists included the hammer Boys, Nora Jones.Lenny Krawtz, among others while artists from other regions included Japans Noriyoku Matiara, Latin Americans Marissa Monte, continental Europes Raffael, Diam among many others. These best talents enabled EMI to maximize all potential revenue opportunities. Due to hyper war-ridden nature of the music industry, EMI has always been on the look out to remain executive in the industry. This, they satisfy aim achieved by reservation systematic decisions, monitoring the decision effects, and adjusting where necessary. EMIs fast, efficient and flexible business intuition team draws these strategies.Through this intelligence team, EMI was able to embark on facilitating a new architecture for interchange its products. They engaged an IT firm, Avanade who successfully de sign a web service solution. This new architecture helped EMI to take ad vantage of unique interactive selling opportunities, which offered a competitive advantage when signing new artists. EMI has also labored indefatigably in creation of new products, formats, channels, and new partnerships as a rea contentionic competitive tool over its rivals. For instance, EMI diversified its distri andion 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. some other competitive advantage of this method is that its dynamic, secure, and its flexible for light(a) extension to new E-commerce business technology green light (http//www. avanade. com/customers/casestudy. aspx? id=39). EMI has also focused on creating of very attractive music sate 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(prenominal) importance is the diversification of its product range, which has been a deed exercise as part of their business products. New corporate partnerships arrive been created and hence making EMIs music available in more than 56 countries. However, this market diversification has posed a greater challenge due to sprouting of both physical and digital piracy. However, through a series of successful legal suits the lodge has made progress in combating unscrupulous pirates. some other tool EMI continues to use in aver to stretch 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 approach, 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 b rings (http//billboard. blogs. com/billboardpostplay/2005/06/sales_and_marke. html) .Through these digital innovations, EMI music has thereof ventured in a wide geographical region with ventures in N. America, Japan, Continental Europe, Latin America, Australia, and in S. East Asia. In all this regions EMI music has entered into adjunction ventures with local companies, making its products to be widely real by the locals, a phenomenon, which could have been the other way if EMI music decided to go on its own. These international ventures have been successful because British had many colonies across the globe. Therefore, it has been easy to market EM products in the common wealth 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 organise it sustainable strong in the music industry market have to be arrived at. His measures are not but purely for protection but also for building the company further. An example of such measure was EMIs bold proposal range to buy its music rival Warner group. EMI argued that this move go out not only cut down the cost of unnecessary competition but also go away add value to the company share value in the London run exchange market.Warner on its side did not take the proposal positively. EMI has also invested hugely on intensive marketing and packaging 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 graceful 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 desire-term carrier potential and maximizing its local and global sales. Another factor was getting in partnership with imparting 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 evident that to some attach they achieved these success strategies. This is clearly shown by the number 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 lots about this. It s evident then that EMIs strategies and objectives were very much appropriate initially. This is the reason as to why EMI has been successful for a ve ry long period. 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 silver 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 king-size numbers of artists who were blessed with immense real musical talent.These artists released new hits every now and then and thence 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 bettor chance in terms of competitive advantage from its rivals. This is so because its long clock presence in music production ind ustry makes 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 satisfy its customer s demand as we saw former 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 discriminatees i. e. EMI music, and EMI publishing though they are very much separate from one other 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(prenominal) in that, the publisher branch publishes and records musical tracks while the music branch offers distribution and marketing services and thus EMI managed to sail successfully in its business endea vors. 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 coming back its mazed repute. An example of these strategies is the labor force down sizing which its new owner, Mr. Guy Hands, brought in. Literally, this dodge go out mean that a quite number of workers allow for face the axe. Its suitability 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 shoot down and the saved funds channeled towards the main objective of reviving the once renowned music powerhouse (http//helium. com. tm/494190/music-industry-dying-painful). By expression 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 worse by the walking away 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 outline was not in darling faith because may be his main intention was to come up with a plan that will see him recover his notes 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 sig ned contracts with other music companies, which are probably its three major rivals and therefore increasing the level of competition. Basing this argument on competition, cutting the number of employees will not bring down the level of competition. Again, EMI badly ineluctably 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 body to be seen because now EMI has been faced with financial constraints and hence its resultant change of ownership. This change of ownership saw EM I being delisted 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 change the capital structure of the company with the shareholders being forced 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.