SONY MUSIC ENTERTAINMENT - marquette.eduowt/Sony.pdf · SUPPLIER POWER |Supplier Power is stretched both ways |Level of Influence and bargaining power over SME is determined by yWho

SONY MUSIC ENTERTAINMENT

BBy:Hien VuShawn Garner

EXTERNAL ANALYSIS

PESTEL Analysis The Five-Forces Model

P.E.S.T.L.E. ANALYSISPolitical FactorsEconomic FactorsSocio Cultural FactorsTechnological FactorsLegal Factors

POLITICAL FACTORS

Sony Corporations head quarters are based within Minato Sony Corporation s head quarters are based within Minato, JapanSMEs corporations polices are entirely different although it i id d b h ffiit is considered a branch office

LegislationThe Consumer Broadband & Digital Television Promotion ActThe Consumer Broadband & Digital Television Promotion ActP2P Piracy Prevention Act

Upon the agreement of the joint venture SME received the bl i f h E U i b li i h h blessing of the European Union believing that the merger will drive growth, job creations, and innovation 1.

ECONOMIC FACTORSSuccess for music is determined by the taste of ythe people who listens to it. Incorporated as many labels (Public and I d d t) iblIndependent) as possibleInvest in generally favored genres as they provide the safest investment. provide the safest investment. Decline in album sales and the rising costs of producing music.

SOCIO CULTURAL FACTORSMarketing toward demographics g g pLarge enough to produce material for all genres, ages, and gender. Houses a number of popular artists on the Billboards.

TECHNOLOGICAL FACTORSDigital Rights Management g g gInvestment in Mp3 technology First to offer DRM free songs Allow their music database to be available for download with 200,000 songs available at Amazon Amazon. Extended Copy Protection XCP and Media Max.

Invasion of Privacy

LEGAL FACTORSKnown for actively violating consumer privacyE d d C P i XCP d M di M Extended Copy Protection XCP and Media Max

Installation of software application without consent Left Computer vulnerable to Viruses and Spyware e t Co pute vu e ab e to V uses a d Spywa e Patches criticized for masking files and installation of software that could not be removed

LEGAL FACTORS II Discovery led to a mass product recall y p Numerous lawsuits followed for the violation of privacy. States (Texas, California, Florida) all ruled that the

applications installed were forms of spyware and applications installed were forms of spyware and immediately removed from all IP addresses from those respective states.

FIVE-FORCES MODEL

S PSUPPLIER POWERSupplier Power is stretched both ways Level of Influence and bargaining power over SME is Level of Influence and bargaining power over SME is determined by

Who the Artists are How famous they are How in demand they are

However due a massive pool of artists to choose from However, due a massive pool of artists to choose from, SME lessens the power that artists have over them.

BUYER POWERConsumers have a lot of buyer power.M il d b iMay not necessarily need or want to buy itDigital music era

Illegal Downloading Illegal Downloading Peer-to-Peer File SharingStreaming Free Music Online

Consumers may ultimately affect the company and the music industry itself reflected by the three-year music industry itself reflected by the three year decline in album sales

DEGREE OF RIVALRYSignificant factors such as g

Brand identity Product differentiation

M i i i d i d f h Bi F Main competition derived from the Big Four Universal Music Group Warner Music GroupWarner Music GroupEMI Group

Uniqueness and branding sets SME apart and gives it h h b h d f h i ithe strength to be ahead of the competition.

THREAT OF NEW ENTRANTSBarriers to entry are high.y gThe power of influence and competition by Big Four provide difficulty for small labels to

isurvive.Not an easy feat to accumulate a roster of current artists that includes a broad array of current artists that includes a broad array of both local artists and international superstars It would require a lot of capital and a great deal f i d i b ild h l ld of time and expertise to build the largest, oldest,

and most diverse catalog of musical recordings in the world

THREAT OF SUBSTITUTESSubstitution is easy and viableyOnline Entertainment

Download or stream music (legally or illegally)Mp3 vs. Physical CDs

INTERNAL ANALYSISSME Value Chain and VRINE

Retailers PromotionsArtistsPoolNewTalent >

EfficiencyHumanCapital

Intensive

>

RetailersConsumersInternet

Performances

>

PromotionsAdvertisements

MoviesRadios

>CustomerSupport

Television

Inbound Operations OutboundMarketing ServiceLogistics Logistics &Sales

SME FIRM STRATEGY

Di ifi d f liDiversified revenue portfolioDigital distribution strategyInnovate mp3 formatsInnovate mp3 formats

FLAC or Mp4 Limit acts of PiracyyLegitimate alternatives to P2P NetworksLegislation

SOLUTIONS AND RECOMMENDATIONSEase licensing restrictionsgDevelop digital copy protections for musicInvest more in online subscription servicesFocus on long-term potential instead of short-term lossesCD i i h ( dd d l )CD pricing change (added-value)Embrace MP3s as another retail formAdoption of SACD & DVD-Audio (higher quality)Adoption of SACD & DVD-Audio (higher quality)

1|P a g e

SSoonnyyMMuussiiccEEnntteerrttaaiinnmmeenntt

CCoommppaannyyAAnnaallyyssiiss

MANA124

ShawnGarner

HienVu

12042008

2|P a g e

TABLEOFCONTENTS

Introduction....................................................................................................................................3ExternalAnalysis............................................................................................................................3PESTELAnalysis...........................................................................................................................3

PoliticalFactors........................................................................................................................3

EconomicFactors.....................................................................................................................3

SocioCulturalFactors..............................................................................................................4

TechnologicalFactors..............................................................................................................4

EnvironmentalFactors............................................................................................................4

LegalFactors............................................................................................................................4

FiveForcesModel.......................................................................................................................5

SupplierPower........................................................................................................................5

BuyerPower............................................................................................................................5

DegreeofRivalry.....................................................................................................................5

ThreatofNewEntrants...........................................................................................................6

ThreatofSubstitutes...............................................................................................................6

InternalAnalysis.............................................................................................................................6ValueChain..................................................................................................................................6

VRINE...........................................................................................................................................7

FirmStrategy..................................................................................................................................7Recommendations.........................................................................................................................8Conclusion......................................................................................................................................9AppendixA...................................................................................................................................10WorksCited..................................................................................................................................11

3|P a g e

Introduction

SongMusicEntertainmentbeganasofacorporatejointventurebetweenSMEandBertelsmannMusicGroupinAugust2004.Inagreementwiththetermsestablishedbothcompaniesowned50percentofalllabelsacquiredbeforehand.SoonafterthemergerSMEandBMGSonyBMGbecamethelargestdistributorofmusicandlabelsintheworldsecondonlytoUniversalUMG.

OnAugust2008SonyCorporationofAmericaagreedtobuyBertelsmanns50%stakeinthemusiccompanyfor$1.2billionto$1.5billion.ThenewlyboughtcorporationwasrenamedSonyMusicEntertainmentInc.toreflectoftherevivalofSMEpriortothemergerin2004.HeadquarteredatNewYorkCity,thecorporationhascontinuedtothriveasawhollyownedsubsidiaryofSonyCorporationofAmerica.IExternalAnalysis

ThissectionwillanalyzeSMEasalargerecordlabelcompanybyusingboththePESTELAnalysisandtheFiveForcesModel.ThePESTELAnalysiswillexaminethepolitical,economic,sociocultural,technological,environmental,andlegalforcesimpactingthisindustry.TheFiveForcesModelwillconsiderhowsupplierpower,buyerpower,degreeofrivalry,threatofnewentrants,andthreatofsubstitutesaffectrecordlabels.

PestleAnalysis

PoliticalFactors ConcerningthePoliticalPolicesofSMEitshouldnotbeconfusedwiththepoliciesofitsparentcompanySonyCorporation.DuetothefactthatSonyCorporationsheadquartersarebasedwithinMinato,Japan,thecorporationspolicesareentirelydifferentfromthatoftheUS.BeforethemergerSonyMusicEntertainmentwasalabelcontrolledbytheSonyCorporationofAmericaandBMGwasadivisionofBertelsmannbasedintheEuropeanUnion.UpontheagreementofthejointventureSMEreceivedtheblessingoftheEuropeanUnionbelievingthatthemergerwilldrivegrowth,jobcreations,andinnovation(NYPost).EconomicFactors Asthesuccessofmusicisdeterminedbythetasteofthepeoplewholistenstoit,itisverydifficultforSMEtodeterminewhowillbecomeanAlistcelebrityandwhowillnot.Tocounterthis,SMEhasadoptedasmanylabelsbothpublicandindependentaspossibleinattempttobroadentheirvarietyandrangeofmusic.InordertofollowtheeconomictrendsofmusicamajorityofartistswhoarewithSMEareinvolvedinRock,Pop,HipHop,andR&B.Thesegenresaretypicallythemostwidelyacceptedandprovidethesafestinvestment.Asmusictrendsshiftandmarketcycleschange,themajorrecordlabelsinvestheavilyinfindingnewtalentandcreatingpoolsofunusedmaterial.Thisenablestheartiststodrawuponand

4|P a g e

quicklyproducenewmaterialiftheyprovetobepopularwiththepublic.AswithUniversalMusicGroup,SMEisaproductorientedbusiness.Withthemassivedeclineinalbumsalesandtherisingcostsofproducingmusic,Sonyhasadoptednewmeasurestoinvestin.OnesuchmeasureincludespubliclysharedMp3savailablefordirectdownloadthatcanbeindividuallysoldonlineviaiTunesorRhapsody.SocioCulturalFactors Asformarketingtowarddemographics,SMEisabusinesslargeenoughtoproducesufficientmaterialforeverygenretoappealtoanyageregardlessofgenderoreducation.Basedsolelyontheirpopularartists,theynumberinthe100sspanningeverygenre.AsforothersocialaspectssuchasEthicalissues,Health,orOccupations,theydonotdirectlyaffectorimpacthowwellanartistwillperform.Artistsmakemoneybasedonsalesorendorsementsoftheirmusic,andtheattendanceanddemandtoseethemliveforconcerts.TechnologicalFactors Asmentionedbefore,SMEisaproductorientedcompany;therefore,stayingontopoftechnologydetermineswhetherthecompanywillcontinuetoflourishorfacecontinuedrecedingprofits.TypicallyrevolvingaroundtechnologyhelpthwartpurchasersfromsuccessfullyrippingtheirCDs;SMEhadalwaysbeenstrictabouttheirDigitalRightsManagement.Inlater2005andearly2006,peoplediscoveredthatafterpurchasingBMGproducts,SonyspearheadedaplanthatinstalledsoftwaretodisrupttheOperatingSystem(Root).ItpreventstheusersfromsuccessfullyrippingtheCDsandultimatelyleftthecomputermorevulnerabletovirusesandillegaltrackingIPaddresses. Afterthescandal,SMEbegantoinvestinMp3technologyandinFebruary2008cametoanagreementwithAmazon.comtoallowtheirmusicdatabasetobeavailableonAmazonwithnearly200,000songsavailablewithinthefirstmonth.ThiswasthefirstonlinemusicstoretoofferDRMfreesongsfromallofthefourmajorlabels(Wired).Laterthatmonth,SteveJobsannouncedthatmusicpublishedundertheSMElabelwouldalsobeavailablefromiTunes.EnvironmentalFactors EnvironmentalissuesaretheleastofSMEsconcerns.AllproductspublishedunderthelabelareintellectualpropertyandisincreasinglybecomingmoreMp3basedformatratherthanCDbasedformats.IfSMEbecomescompletelyinternetbased,thenthecompanywouldbeevenmoreenvironmentallyfriendlyasitwouldgiveoffnoexcesswastethatcouldbeharmfultotheenvironment.LegalFactors

5|P a g e

Knownin2005foractivelyviolatingconsumerprivacy,SMEincludedcopiesofExtendedCopyProtectionXCPandMediaMax.Thesoftwareinstalledprogramstoaconsumerscomputerwithouttheirconsentandpreventedthemfromsuccessfullyrippingthemusic.Moreover,itleftthecomputermorepronetovirusattacks.MarkRussinovichwasoneofthefirstcomputeruserstonoticetheproblemanddemandedthatsomethingbedoneaboutit.SMEquicklyreleasedapatchtodeletethesefilesfromuserscomputers.However,uponfurtherinspectionitwasdiscoveredthatthepatchesmerelyunmaskedthehiddenfilesandinstalledadditionalsoftwarethatcouldnotberemoved.ThisdiscoveryledtoamassproductrecallforamajorityofSMEbasedproductsandeventuallyleadtonumerouslawsuitsfromthestatesagainstSMEfortheviolationofprivacy.StatessuchasTexas,California,andFloridaalldeemedthattheadditionalprogramsinstalledwereformsofspywareandshouldberemovedimmediatelyfromallIPaddressesfromthoserespectivestates.FiveForcesModelSupplierPower

Supplierpowerisstretchedbothways.Dependingonwhotheartistsare,howfamous,andindemandtheyarewilldeterminetheirlevelofinfluenceandbargainingpoweroverSME.ArtistslikeBeyonceandUsherhavetalentsthatareunique;theirservicesareindemand.ForthisreasontheywouldhavemorestrengthandcontroltoinfluenceandimpactSMEthansomeonewhoisrelativelynewlikeJordanSparks.Ontheotherhand,SMEhaveamassivepoolofartiststochoosefrom,thereforelesseningthepowerthatartistshaveoverthem.Ifoneartistdoesnotwork,thenthecosttoswitchtoanotherwouldberelativelylow.

BuyerPower

Consumershavealotofbuyerpower.Althoughtheycanlikethemusicalbumsprovided,theydonotnecessarilyneedtoorwanttobuyit.Withthedigitalmusiceracomesillegaldownloading,piertopierfilesharing,andfreemusiconline.Whatconsumersdecidetodocanultimatelyaffectthecompanyandthemusicindustryitself;hencethethreeyearlongdeclineinalbumsales(Hoovers).

DegreeofRivalry

Likeothercompetitiveindustries,factorssuchasbrandidentityandproductdifferentiationaresignificanttorecordlabelslikeSME.BehindUniversalMusicGroup,SMEisthe2ndlargestmusicbusinessintheworld.Althoughtherearevariousindependentlabels,SMEsmaincompetitioncomesfromthreemaincompaniesUniversalMusicGroup,WarnerMusicGroup,andEMIGroup,thatwithSMEmakeuptheBigFour.Eventhougheachcompetitoroffersequallyattractiveproductsandservices(artists),itistheuniquenessand

6|P a g e

brandingofeachartistthatSMEoffersthatsetsthecompanyapartandgivesitthestrengthtobeaheadofthecompetition.Forexample,therewillonlybeoneandonlyoneElvisPresleywhohappenstobeunderSME.ItisthisartistbrandingthatgivesSMEacompetitiveedge.

ThreatofNewEntrants

Consideringthetangibleandnontangibleassetintensivenatureofrecordlabels,thebarrierstoentryarehigh.However,thatisnottosay,newcompetitioncannotenter;itisjustthematterofbeingabletosurvivewithinthemarketwhenthepowerofinfluenceandcompetitionfromtheBigFouraresogreatandintense.Afterall,itisnotaneasyfeattoaccumulatearosterofcurrentartiststhatincludesabroadarrayofbothlocalartistsandinternationalsuperstarsasisthecasewithSME(Indeed).ThecompanyhasartistsfromeveryletterofthealphabetexceptforZ,whoarediscoveredfromalldifferentpartsoftheworld.Itwouldtakealotofcapitalandagreatdealoftimeandexpertisetobuildthelargest,oldest,andmostdiversecatalogofmusicalrecordingsintheworld(Thinkmap).

ThreatofSubstitutes Withsubstitutionbeingeasyandviable,itweakensSMEspowerbothtocompeteandoveritscustomers.Duetothedigitalrevolution,consumersdonotneedtorelysolelyonmusicalbumsandservicesprovidedbyrecordlabelstogettheirmusic.InsteadofgoingtoTargetorthemalltobuyCDs,consumerscansimplygoonlinetodownloadmusic(legallyorillegally),orjustlistentomusicdirectlyonlineprovidedbysiteslikeImeemorYouTube.InternalAnalysis Internallyacompanyisaboutitsresourcesandcapabilities.SMEhasmanyresourcesintheformofitswealthofartistsandrecordcatalogs.Thecompanyreliesoninboundlogisticsbasedonitsabilitytocontinuouslycontractnewtalent.Utilizingthegreatamountofrecordlabelsanddiversepoolofhumancapital(artists)itholds,SMEhascreatedvaluethatotherrecordlabelcompanieshasdifficultymatching.Inadditiontoitswidevarietyofmusicselectionsandlabels,SMEalsohavemanyindependentlabelsthatitdistributestoenablethecompanytoremainstrong.

ValueChainSMEalsohasmanycapabilitiesasdescribedbytheValueChain[SeeAppendixA].SMEs

strongestcapabilityisitsdiversifiedrosteroflocalandinternationalartists.ThecompanyhasawidearrayofmusicgenresranginganywherefromHipHoptoPoporR&B,Rap,Classicaletc.Withthenatureofthisindustrybeinghighlyhumancapitalintensiveandthrivingonthedemandforwhatitsartistsproduce;itisessentialtomaintainagoodrelationshipwithbothitsartistsandaudiences(consumers).Thepurposeistobeabletogaugewhattheaudiencewants,andprovidethemwiththerightpeopleandmusicfromtheirmassivepooloftalents.

7|P a g e

SomeofSMEssupportactivitiesincludethesizeofthecompanyanditshumanresources.Thecontinuoussearch,acquirement,andendorsementoftalentssupportthecompanysgrowthandrecognitionwhiletheacquisitionsandmergersenablethecompanytogrowandbeaslargeasitistoday.OriginallySMEwasrecognizedasSonyBMGbecauseitwasajointventurebetweenSonyandBertelsmannBMGin2004.ThelargemergercreatedamusicgiantthatwasabletopropelSonyBMGintothenumbertwopositionpastEMI.Nevertheless,onOctober1st2008,Sonyboughtouttheother50%ofBertelmannsholdingintheventurefor$1.2billionincashandtookfullcontrolofthecompany.ThebuyoutwasbeneficialsinceitendedapartnershipthatwasoftentimesturbulentbetweenSonyMusicEntertainmentandBMGEntertainment(Hoovers).

Despitecontinuouslybringinginfreshnewtalentandexpandingthecompany,SMEstillwasavictimtomusicpiracyofbothphysicalCDsandonlinedigitalmusic.Afterseveralfailedattemptsofusingsometimesillegalmeansoftechnologytostopmusicpiracy,SMEoptedforamorepreventiveratherthanreactiveapproach.Theyfinallyrealizeditwasbettertoappeasetheverypeoplewhoarethemaincontributorstotheirrevenuestream,ratherthanfightthem.Therefore,asslowasSMEweretoadaptingandembracingdigitalmusic,whentheydidmadetheswitch,theylaunchedaservicewithaproprietaryencodingsystemthatrequirednospecificsupportinitsplayerstoaccommodatethetypicalMP3format(MobileCast).Inaddition,thecompanydroppedtheoldandcumbersomemainframelicenseISandwentforSybasetechnologytoenhanceitsservicesintheextremelycompetitivemarket(Sybase).ThetechnologyenablesSMEtodevelopaflexibleandpowerfulsystemprovidingmuchmoreclarityandefficiencythroughoutthecompany.

VRINESMEsextensiverosterofartistsattractsandappeasescustomersfromdiversedemographics

andregionsallovertheworld(SeeAppendixA).ApplyingtheVRINEmodel,SMEsabilitytoprovideanarrayofmusicaltalentsandgenresiswhatgivesthecompanysuchhighvalueforconsumers.Furthermore,themodelalsoindicatesthatthedistinctpooloftalentsisSMEscorecompetence.NoothercompetitorshavetheexactsameartistsunderthemthatSMEhas.Itistheuniquebrandingandrecognitionattainedbytheartiststhatbooststheirpopularityanddemandwhichmakesisdifficulttoimitate.ThedifficultyandexpenseofsearchingfortalentandmakingthattalentuniquelyahithasgivenSMEarareadvantagethatisnonsubstitutable.Whenpeertopeerfilesharinganddigitalmusiccametothemusicindustrytakingbusinessfromtherecordlabels,itwasdifficultforSMEtoexploititsproductandservices.Butnowastheyarequicklyadaptingtothenewdigitalmusiceraandattackingtheonlinemusicmarketwithavengeance,SMEisabletoonceagainoffercompetitivelypricedservicesandproducts(music).

FirmStrategy

Foronecompanysolarge,itisnotsurprisingthatitwouldhavemorethanonestrategytotackle.AccordingtoNewsBlaze,SMEwillaggressivelypursueitsdigitaldistributionstrategyandexploitnewopportunitiesinpackagedmediafromformatssuchasUMDandBluraydisc.Thegoalwassynergy.Theywanttolinkallthesegmenteddigitalmusiceffortssuchasinthehardware,onlinesales,

8|P a g e

andsoftwareunitstoassistthecompanyincreatingamoreuserfriendlydigitalmusicsystem(Williams).Byworkingcloselytogether,itwillmakeiteasierandmoreefficienttoinnovateMP3formats.Inaddition,pursuingthedigitaldistributionmethodwillalsohelpSMEcutdownonitsmanufacturingcosts.

Atthesametime,thecompanyalsoaimstotakefulladvantageofitscorecompetenceandexploititswealthofuniqueartiststotheaudiencesthedifferentiationstrategy.Bycreatingalargepoolofindemandandirreplaceableperformers,itwillsecureSMEsplacewithintheindustryandmakeitharderforcompetitorstofollowsuit.Tobedifferentisgood,buttobedifferentandgoodatwhatyoudoisevenbetter.Consumerswouldbemorewillingtospendmoneyonsomethingiftheydeemitmoreworthyoftheirtimeandmoneythansomeotheraveragething.Sothepointistohaveartistswhoaregood,unique,andpopularenoughtodriveandsustaindemand.

SMEalsoendeavortokeeponexpandingthesizeofthecompanyanddiversifyingitsrevenueportfoliointheformofroyaltiesandmusiclicenseswithinthevariousentertainmentindustries.OnOct9,2006,thecompanysignedacontractwithGoogletomaketheirexpansivemusicvideocollectionavailableforonlinestreamingthatcostsnothingforusers(Press).Whileofferingthemusicvideocatalogforfree,revenueisgeneratedthroughGooglesadvertisers.Earlylastyear,thecompanyannounceditsinvestmentinACCESSChinaMediaSolutionstodevelopanddistributeworldclasssolutionsfordeliveringmobilemusicandmultimediaentertainmenttowirelesscustomersthroughoutChinaandotherAsiaPacificmarketsectors(ACCESS).Thesesolutionswillprovidemusicexperiencesinthehighestqualitywithuserfriendlyinterfacesandfeaturesonmobileplatforms.ItwillbeeconomicallyviableforSMEtodistributetheirproductsandservicesintheChinamarketandthroughouttherestoftheworld.

Asforaddressingtheproblemswithmusicpiracy,SMEhastakenmeasuressimilartothoseofothermajorrecordlabels.Litigationsandlegislationswerefiledandenforced.Copyprotectionandpreventivestepssuchasdataencryption,watermarking,andspoofingwereimplemented.However,themainfocuswastopromotelegitimatealternativestoP2Pnetworkswhileatthesametime,discouragethepracticeofillegaldownloading.WhenSMEwasstillSonyBMG,thetwogiantcreatedPressPlayasasubscriptionbaseddownloadserviceinattempttolimitillegaldownloading.Later,SMEstartedofferingPlatinumMusicPass;anewdownloadingservicewheretheMP3formatisfreefromprotectionschemes.

ConclusionSolutions&Recommendations ImposingfearupontheconsumersthroughlitigationsandlegislationswillonlyhelpSMEtoacertainextent.WhatSMEshoulddoisfocusmoreonlongtermpotentialgainsratherthanonshorttermlosses.Thecompanyshouldlearntoembracethetechnologicalchangesthatcomealonginsteadofresistingit.Whiletheycancontinuetodevelopdigitalcopyprotectionsfortheirmusic,theycanalsoinvestmoretimeandmoneyinonlinesubscriptionservices.Furthermore,sincethesalesofCDshavebeengraduallydeclining,itwouldbewisetomarketCDsthathasaddedvalue(i.e.freeposter,deluxe

9|P a g e

boxset,coupons,discountsetc.)TheaddedvaluewillgivetheconsumersmoreincentivetobuytheCDs,becauseitwillgivethemthefeelingofgettingtheirmoneysworthandmore.Moreover,SMEcouldalsostartembracingMP3sasanotherformofretailratherthanjustCDsalone.Andforthoseconsumerswhoenjoyhighqualitymusic,SMEcanfocusonadaptingtheusageofSACD&DVDAdiostoreachthemandfurtherexpandtheirrevenuestream.

10|P a g e

AppendixASMEValueChain

ArtistsPoolNewTalent

>

EfficiencyHumanCapitalIntensive

>

RetailersConsumersInternetPerformances

>

PromotionsAdvertisementsMoviesRadiosTelevision

>CustomerSupport

PrimaryActivities

InboundOperationsOutboundMarketingServiceLogisticsLogistics&Sales

FirmInfrastructure Hierarchical CostCutting

HumanResources Diverseworkforce(variouskindsandtypesofartists) Continuoustalentsearch

TechnologyDevelopment SybaseTechnology PlatinumMusicPass DRM

Procurement ManyAcquisitions SizeofCompany Merger

SupportActivities

11|P a g e

WorksCited

"CaseStudy/SonyMusic."Thinkmap.2008.23Nov.2008 .

"GoogleSignsAgreementwithSonyBMGMusicEntertainment."SonyMusicEntertainmentPress.9Oct. 2006.27Nov.2008.

"SonyBMGEntertainment."Indeed.2008.23Nov.2008.

"SONYBMGMUSICENTERTAINMENTandWarnerMusicGroupAnnounceInvestmentinACCESSChina MediaSolutions."ACCESS.2008.28Nov.2008.

"SonyBMGMusicEntertainmentSuccessStory."SybaseInc.2008.27Nov.2008 .

"SonyBMG."Wikipedia.2008.18Nov.2008.

SONYBMGWINSMERGERAPPEALATTOPEUCOURTNYPOST.11July200811July2008

"SonyCorporationAnnouncesCorporateStrategy2005."NewsBlaze.11Sept.2005.26Nov.2008 .

"SonyEntertainmentInc."HooversAD&BCompany.2008.18Nov.2008 .

"SonyMusicEntertainment."MobileCast.2008.17Nov.2008 .

Tildesley,William.Sonyconfirmsrootkitproblem.Ivirtua.MonSep03,2007.

12|P a g e

UniversalMusicGroupCaseStudy(Reference)

VanBuskirkElliot.SonyBMGWillAllowAmazontoSellItsMusicWithoutDRMWired.10Jan.2008

Williams,Martyn."SonyExaminesMusicStrategy."PCWorld.21Jan.2005.27Nov.2008 .