EMI Report

MGT 7201 STRATEGIC MANAGEMENT
INDIVIDUAL ASSIGNMENT
Table of Contents:
Table of Contents:....................................................................................................... 1 EXECUTIVE SUMMARY................................................................................................. 3 The last part of this report will then look into the theories that are applied into the configuration of this companys success. After analyzing all of the above, this report will therefore conclude by providing some recommendations that can help EMI Group Plc to maintain their competitive advantage over its main rivals, which are BMG Entertainment, Sony Music Entertainment, Warner Music Entertainment, as well as Universal Music Entertainment. ..................................................................................3 1.0 ORGANIZATIONAL OVERVIEW................................................................................4 1.1 Companys Perspective:....................................................................................4 1.2 Organizational Structure (Board of Directors):...................................................5 2.0 VISION, MISSION OF EMI MUSIC PUBLISHING.........................................................7 2.1 Value chain of EMI Music Publishing:.................................................................8 3.0 CORPORATE SOCIAL RESPONSIBILITY....................................................................8 EMI-MUSIC SOUND FOUNDATION (MSF)....................................................................9 EMI CHRISTIAN MUSIC GROUP & FEED MY STARVING CHILDREN..............................9 4.0 INDUSTRY ANALYSIS............................................................................................10 4.1 SWOT Analysis ................................................................................................10 4.2 Porter 5 Forces Analysis...................................................................................14 4.3 PEST Analysis...................................................................................................16 5.0 MARKETING STARTEGY FOR EMI .........................................................................19 5.1 Porters Generic Strategic................................................................................19 Cost Leadership.................................................................................................19 Differentiation....................................................................................................19 Focus................................................................................................................. 19 5.2 Ansoffs Product/ Market Matrix........................................................................20 Caroline d/o Anthony (I10006994) Page 1
Market Penetration............................................................................................20 Product Development........................................................................................20 Market Development.........................................................................................21 Diversification...................................................................................................21 Therefore, in conclusion, EMI Group is a very powerful company who has great background, experience, network and financial sources. This gives EMI many options to try new steps on the market. While music market becomes more and more competitive and earning from customers becomes more and more difficult. On this scenario easy to purchase and access to products like direct mobile downloading is a smart choose. Also pricing may be monthly based instead of per song. These may prevent users to seek illegal actions. But for the long term, EMI may try a risky action like entering a new market on the entertainment arena for example video games or movies.........................................................................21 6.0 THEORIES............................................................................................................ 22 6.1 Customer Behavior Theory...............................................................................22 6.2 Core Competency Theory.................................................................................22 6.3 Quality Theory ................................................................................................23 7.0 RECOMMENDED MARKETING STRATEGIES FOR EMI.............................................25 8.0 CONCLUSION.......................................................................................................27 9.0 REFERENCES.......................................................................................................28
Caroline d/o Anthony (I10006994)
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EXECUTIVE SUMMARY
Electric & Musical Industries (EMI) Group Plc is one of the worlds largest music companies based in United Kingdom, which was established in 1931. At present, EMI group plc owns more than 100 recording labels and one million musical compositions. In 1990s EMI shares were the marketers favorite shares which earned billions of money. But in recent years EMI is facing a decline in its growth rate because of the influence of various factors. This report begins with the introduction of EMI, together with its history milestone as well as a chart of organizational structure, namely, lists of their Board of Directors. Moving off the companys profile, it therefore further illustrates the mission, vision as well as the core values of EMI Group Plc. Embedded with the value chain of EMI. After discussing the companys perspectives, the latter discussion will focus on the strategic part of EMI, namely, their environmental analysis, their corporate social responsibility as their marketing strategies. The last part of this report will then look into the theories that are applied into the configuration of this companys success. After analyzing all of the above, this report will therefore conclude by providing some recommendations that can help EMI Group Plc to maintain their competitive advantage over its main rivals, which are BMG Entertainment, Sony Music Entertainment, Warner Music Entertainment, as well as Universal Music Entertainment.
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1.0 ORGANIZATIONAL OVERVIEW
Electric & Musical Industries (EMI) was established in 1931. EMI Group, PLC is the world 3rd largest music company which based in London. It is the world largest independent music company, not being a unit, subsidiary or division of a larger conglomerate corporation. EMIs business is comprised of two main group; EMI Recorded Music and EMI Music Publishing. The moment we hear the name EMI Music, we align this company as the leading music companies in the world, home to some of the most successful and best known recording artists. There is music everywhere despite the cultural differences, the society and the people. Throughout the years, music could only be heard by people who are constantly around musicians.
1.1 Companys Perspective:

Developing the best musical content has been EMI groups strategy whereby it helps create value to the shareholders, both via EMIs recorded music business, EMI Music as well as their publishing business, EMI Music Publishing. The whole aim of this strategy is to exploit fully this valuable content on a global basic through all economically attractive channels. The core of EMIs A&R (artist and repertoire) is the identification and development of new artists and songwriters with the potential to enjoy long term commercial success across multiple release and revenue streams. Moreover, by focusing on long term career artists, it helps increase profitability, and it also has favorable economics, driving increased sales.
The Table 1 below briefly illustrates the timeline of EMI Group Limited.
Caroline d/o Anthony (I10006994) Page 4
MGT 7201 STRATEGIC MANAGEMENT Year 1897 1898 1931 1961 1966 1974 1983 1986 1990 1992 1996 1997 Description
The Gramophone Company is founded in London..
The Gramophone Company makes its first recordings. Branches open in Germany, France, Italy and central Europe. Gramophone Company merges with Columbia Graphophone to form Electric and Musical Industries (EMI). The new company has operations in 19 countries. EMI establishes a joint venture record company with Toshiba in Japan. EMI releases its first pre-recorded cassettes. EMI Music Publishing formed. EMI releases its first compact discs. EMI begins manufacturing CDs. EMI acquires 50% of Chrysalis Records, purchasing the remaining 50% a year later. Acquisition of the Virgin Music Group record labels and publishing catalogues. EMI acquires 50% of leading US independent Priority Records, acquiring the remaining 50% in 1998. EMI establishes independent music education charity the EMI Music Sound Foundation. EMI Music Publishing acquires a 50% stake in the Jobete music publishing catalogue of classic Motown songs.
2002
EMI is the first major music company to make new music available digitally at the same time as it is released to radio. 2003 EMI launches the biggest European music download initiative by a record company in Europe with over 140,000 tracks from more than 3,000 EMI artists. 2007 EMI Music leads the music industry launching DRM-free superior quality downloads across its entire digital repertoire. 2009 EMI launches live music recording and instant production service Abbey Road Live. On release in September 2009 The Beatles re-mastered catalogue sells more than 10 million albums in just four months and the band are the biggest selling international act of the year in Japan. 2010 EMI extends its successful exclusive licensing agreement with Walt Disney Records in Europe, the Middle East and Africa. Building on the success of Capitol Records Nashville, EMI forms EMI Records Nashville. 2011 EMI is acquired by Citigroup and announces successful capital restructuring. Table 1: History of EMI Group Limited. Source: EMI, 2011 (http://www.emimusic.com/about/history/timeline/)
1.2 Organizational Structure (Board of Directors):

Name : Position:
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MGT 7201 STRATEGIC MANAGEMENT ROGER FAXON Chief Executive Officer EMI Group
LEO CORBETT
Chief Operating Officer EMI Group
SHANE NAUGHTON
Chief Financial Officer EMI Music
DAVID KESSLER
Chief Executive Officer, Europe and Rest of World EMI Music
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MGT 7201 STRATEGIC MANAGEMENT COLIN FINKELSTEIN Chief Operating Officer, North America EMI Music
KYLA MULLINS
General Counsel EMI Music
Table 2: Board of Directors. Source: EMI, 2011 (http://www.emimusic.com/about/management/)
2.0 VISION, MISSION OF EMI MUSIC PUBLISHING

Vision The corporate vision of EMI Music Publishing is to be a leader company in the world recorded music industry. EMI Music Publishing is a different kind of Music Company. Were proud to represent the single greatest popular music catalog in the world, containing well over a million of the best songs ever written. Mission
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The mission statement of EMI Music Publishing is to Bring fans together around high-quality music entertainment programming, while also creating business value wherever music is experienced.
2.1 Value chain of EMI Music Publishing:

The process begins with the talent pool which includes artists, producers, composers, ghostwriters, among others. These artists are then contracted to a record label to produce music recordings. Record labels add to the artists product by augmenting it with marketing campaigns, promotions, concerts, and most importantly, access to and bargaining power with distributors. Artists often find it beneficially to leverage the resources of a record label in order to reserve shelf-space amongst retailers. Finally, the music is finally delivered to the end-user or the consumer. Though there are many separate steps in the value chain, many record labels and music groups, including EMI participate in several of these stages. For instance, entering into a contract with an artist, then publish, manufacture, and distribute that artists work. For the view on how players within the music industry interact, look at the diagram 1 below. EMI Music is working at the forefront of digital music innovation, and we have developed an award-winning digital marketing capability to drive our expansion in this area. The consumer insight that this capability delivers enables us to identify potential release schedule opportunities and drive ongoing marketing efficiency and effectiveness.
Artists Musicians Producers Publisher Retailers Customers
Diagram 1: Value chain of EMI Music Publishing.
3.0 CORPORATE SOCIAL RESPONSIBILITY

EMI began reporting on its corporate social responsibility (CSR) activities in 1993 with the publication of its first environmental report, which won the Association of Chartered Certified Accountants environmental reporting award for best first time reporter. Over time this developed into an environment and community report, and in 2003 the company published its first social responsibility report, marking a year in which its Board approved an integrated social responsibility policy. Long active in environmental management, over the last few years EMI has added a focus on access to music to its core CSR activities.
As a music company we are very fortunate to work with an art form that has such a positive effect on so many people and contributes so much to communities all around the world. EMI aims to have a beneficial impact on the community, both through the way the business is managed and through the wider role it plays in society. Within its operations the Company works hard to understand the expectations of different stakeholders and demonstrate responsible business practices (EMI, n.d.).
EMI-MUSIC SOUND FOUNDATION (MSF)

According to Article 13 (n.d.), the independent music education charity the Music Sound Foundation (EMI MSF) - was recognized as a direct response to two issues: A turn down in the health of British music education, which was at risk as it was no longer part of the core (compulsory) national curriculum; and EMI receiving over 3,000 letters a year requesting charitable support. Although independent from EMI, MSF was set up with the help of four EMI staff and the support of various departments involved in organizing the companys anniversary celebrations in 1997. Besides that, as stated by EMI (n.d.), EMIs MSF is today the single largest sponsor of specialist performing arts college in the UK which has created vital bursaries at seven different colleges to assists music students in need of financial support. Moreover, EMI MSF has helped many schools as well as individual students to improve their access to music through the purchase of musical instruments and equipments.
In conclusion, with the establishment of the Music Sound Foundation (MSF), it has therefore helped many young talented individuals to pursue their dream of becoming an artist in the future. MSF has also help with the progression of the increase intake in many prestigious performing art schools whereby many talents are being discovered.
EMI CHRISTIAN MUSIC GROUP & FEED MY STARVING CHILDREN

Within EMIs framework for community giving us often focus on the issues of youth and music as we believe sharing our knowledge and skills can make a meaningful difference to young people. One of our best known initiatives in this area is the EMI Music Sound Foundation (EMI MSF) which was established by EMI in 1997 and has since become the largest single sponsor of specialist performing arts colleges (EMI, 2011).
Therefore, in conclusion, at EMI we want our company to have positive impact through the way we manage our business and the wider role we play in society. Within our own operations, we work hard to understand the expectations of different stakeholders and demonstrate responsible business practices. The main benefit to EMI has been the development of partnerships for
innovation and practical leverage for change with colleges, schools, music departments, teachers and musicians. This has resulted in new networks and a better understanding of the opinions of people at the grass roots on key issues such as copyright protection, the downloading of music from the Internet, and digital technology. Internally, the staff are benefiting as they become more involved with the MSF projects and are encouraged to support schools.
4.0 INDUSTRY ANALYSIS

According to Rizal (2008), EMI Records is UK based recording company who is the main label company of EMI Group. It has worked with many famous artists since its founded in 1972. Below are the several ways to analysis a particular industry, in this case, EMI Group. The analysis will start off with a swot analysis, followed by Porter 5 Forces analysis; nod will end off with the PEST analysis.
4.1 SWOT Analysis

SWOT Analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. It is a general technique which can find suitable applications across diverse management functions and activities. SWOT analysis can provide a framework for identifying and analyzing strengths, weaknesses, opportunities, and threat. This can also provide an impetus to analyze a situation and develop suitable strategies and tactics, a basis for assessing core capabilities
and competences. Moreover, this can provide the evidence for, and cultural key to change and a stimulus to participation in a group experience.
STRENGTH Strong global presence
EMI Group, PLC has a worldwide market in nearly 50 countries; among its major market are North America, Continental Europe, Latin America, UK & Ireland, Australia, Japan and Asia. World largest independent music company
In 2002, EMI worldwide market share is 12.6%. Its large size gives many benefits such as cost reduction through economic of scale. Vast resources and strong market share also give the benefit of being able to attract the best staff and artists to the company which have a strong position for the future. Financial Performance
Although EMI Group sales in fiscal 2003 decline compared to 2002, the company operating profit show excellent increased about 33.1% in 2003 compare to 2002.The improvement in operating profit was due to a comprehensive reorganization of EMI Record Music Division. World class artist roster
EMI releases more than 1000 albums every year and has a roster of over 1300artists. Among them are David Bowie, The Beatles, Norah Jones, Queen, Robbie William and many more. WEAKNESSES Difficulties in the US Market
EMI has consistently been towards the bottom of the five majors in the US market share, which is the world largest recorded music market in the world. In 2003 it only command 9.8 % of US market share. Dont have conglomerate backing
EMI is the only top five music company that solely independent which not being own by larger corporation. This mean EMI has to generate its own resources without any help from other larger company. Decreasing in worldwide market share
EMI Group, PLC worldwide market share dipped from 13.4% in 2002 to 12.6%in 2003. The worldwide decreasing were resulted from the decreasing of EMI Group market share in several
major region in 2003 compared from 2002 which included North America (-0.03%), UK & Ireland (-0.01%), Continental Europe (-1.7%), Latin America (-2.6%) and Australia (-0.10%
OPPORTUNITIES Joint Venture / collaboration
With recent merger attempts being stopped, EMI consolidation within the industry is becoming more difficult. EMI has often enjoyed success with joint venture with other large company such as Apple Computer (I-tunes) and Yahoo! In joint project for mutual gain. Internet sales
Internet has become the fastest growing media for music distribution and many analysts expect that the downloading trends will continue to grow in a future. The success of Apple I-tunes has show it is possible to sell download music over the internet with many customers willing to pay rather than download the music for free from such sources as Kaza A, Morpheus and many more where legality is still a rather grey area. Selling music by internet download may be an area EMI may try to enter directly or through collaborations and increase market share.
More Open M&A regulatory
-More open or liberalization of M&A in music industry may increase EMI Group opportunity to acquire or merge with other music company. This will give EMI added market share and resources to compete with other major music companies. Focus on market where it has a strong market share and growth
-Although North America especially US is the biggest market for recorded music, however it seem that EMI having trouble to keep competing to gain more market share. Maybe EMI has to give more focus or gaining more in the market that it has a strong share such as UK & Ireland, Australasia and Continental Europe.EMI also has to focus more in growing market region such as Japan and Asia.
THREATS Limited growth potential for recorded music
-The worldwide recorded music industry posted sales of $32 billion in 2002. The figure represent a 7% decline in Dollar sales and an 8% decrease in unit volume from 2001. Compared to 2001, sales of CD albums fell globally by 6% and there more continued declines in the sales of CD singles
(down 16%) and cassettes (down 36%). These show that is very difficult to find growth opportunities in the market. Poor economics condition and exchange rate fluctuation
-As a global company operating in many countries worldwide, EMI Group, LTC is easily be vulnerable to the deteriorating economic condition worldwide and fluctuation in exchange rates and interest rates. These can often adversely affect both revenues and profits for the company. Impact of piracy (CD burning and mass downloading)
-Piracy in the music industry, particularly the burning of CD and mass downloading of free music from the internet has increased recently. The industry analysis estimate that unauthorized file sharing alone has accounted for $700million in lost sales to industry in 2002. Predicted the CD album sales globally will drop almost 30% from their 2000 peak by 2007 if present pace of unauthorized downloading continued.
Filling low
-In early September 2003, RIAA filed 261 separate lawsuits in US against individuals engaged in unauthorized file sharing. Industry analysts expected that litigation would have a short-run dampening effect on unauthorized CD downloading and burning. However it was viewed as having a minima long-run effect on this practice. Aggressive Competition
-The recorded music industry is very competitive which dominates by five larger companies which included Universal Music Group, Sony Music Entertainment, Warner Music Group, BMG Entertainment and EMI Group, PLC. EMI has to always consider any action from competitors which may affect the company competitive position.
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4.2 Porter 5 Forces Analysis

For analyzing EMI on micro level, it is wise to apply Michael E Porter's five forces of competitive position model.
BARGAINING POWER OF BUYERS
(Before online-sharing: little) The distribution channels and the formats of the album for costumers were fixed. Album prices were widely controlled (for all companies, for all products). There was nearly no way to reach a specific album or single for the costumer, if he or she didnt like the current offer. (After online sharing: very high) Now there is an alternative option for customers: downloading albums for free, even without going into a store or streets. EMI and other record companies now need to examine and listens to their consumers. They can no longer prescribe distribution channels and formats.
BARGAINING POWER OF SUPPLIERS
(Before online-sharing: high) The way to success for nearly all performers was on the record companies, especially big ones. The contract between EMI and the artist was on the hands of EMI. Performers could do little about it. This basically meant that EMI could set nearly all of the rules of the game. (After online sharing: lower) Artists were less bound to record companies. Web based systems allows artists to publish their music easily and they can also advertise and sell their songs, means they are no longer desperately need the help of recording companies. So this means EMI has less control over the artist.
BARRIERS TO ENTRY
(Before online-sharing: very high) Creating, recording, printing (or sharing), publishing, marketing and advertising were requiring experienced employees, great co-operation and a good network. Also it required too much financial support that this meant that for new companies, entering to the market is extremely difficult. (After online sharing: lower) New technologies with the expanding of internet (international network) makes all creating, recording, printing (or sharing), publishing, marketing and advertising easier. Even artists can set up their own companies.
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MGT 7201 STRATEGIC MANAGEMENT THREAT OF SUBSTITUTES
(Before online-sharing: very low) Particular artists material was only available by are cording company and it sets all the rules for the distribution channels and format, means customers has nearly no alternative for reaching that material. (After online sharing: extremely high) If customer doesnt like current offering for price, distribution channel or format, they can immediately download it from illegal systems.
RIVALRY AMONG EXISTING COMPETITORS
(Before online-sharing: low) The music market is big and it was enough for the players but still competition was fierce. However they were stable on current market share and pricing policy. (After online sharing: higher) So more companies is on the arena because of the developments at the music industry and also because of developments at the technology, competition is more deadly
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4.3 PEST Analysis

POLITICAL FACTORS
The major influence on a music industry is taxes. So it is also affecting EMI that high taxing causes expensive products which causing changes on customer interest and demands. Of course for any music company this leads to a dangerous situation because of the presence of obtaining their products for free.
The other case that effecting EMI is the protection of Copyrights bylaw. Because of the nature of product, it is very easy to copy and use it; and it is very difficult to trace and manage illegal actions. EMI is responsible for protection of writers and musicians while protecting the sales.
Also regulations for competition are also a big fact. Because new technology allows, even one individual to create, record, publish and share album without requirement of intimidating funds. Thus allowing more artists to create their own record companies and competition becomes more and more chaotic.
Also contracts between EMI and the performers are carefully considered because this new era allows them many chances and alternatives. This means performers are less dependent to EMI and they can litigate more often. The laws have a big influence on those disagreements.
ECONOMICAL FACTORS
The main factor affecting EMI is exchange rates of course for a global company. The difference and less value of money have affect on profit and total sales.
For a record company, costumer confidence is also a considerable cause because in this industry customers are less probably cares for EMI instead of Artist itself. So if artist makes contract with another company, this means EMI lost of its products completely.
SOCIOCULTURAL FACTORS
Many people do not completely understand and/or act that buying albums on the streets or downloading from sharing systems, is something illegal. Also they dont consider the illegal groups or organizations behind fake albums or download sites/systems. This is probably because music piracy does not social-alarming people as the same way of drug traffic does, for example.
Also ordinary people do not understand why albums prices are high. They think companies protecting copyrights are responsible while these companies try to recover losses because of illegal albums, trademark protection, etc.
Another factor is the changes on people lifestyle and taste. Considering 60s to 2000s popular music changes nearly every ten years (from rock n roll to metal to pop to electronic to etc).
TECHNOLOGICAL FACTORS
Recording and publishing CDs starts a new era that now audio quality can be provided without any loss at quality. However it is also easy to copy with the help of CD recorders which is very easy to reach and use. This threat can be a minor problem and can be controlled to acceptable limits but developments in the internet, at the same time, creates an enormous danger: file sharing.
With the developments on the connection speeds, downloading an album requires just a couple minutes. It is a good factor if user buys that album legally because he or she doesnt have to go to a store; doesnt need time to reach content; can reach products anywhere; can listen and decide which album to buy easily. But of course it is a huge bad factor if he or she downloads that record illegally.
Web marketing and online sales are very important for EMI because of the nature of their products. Many customers needs to try clothes, and may need to see the cell-phone before buying it; but digital media is one of the most un-important products to see and buy physically.
EMI must also be updated for new technologies like publishing their products directly to mobile devices.
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Another factor that must to be considered is ease of use new technology. Nowadays by the new technological devices and systems; creating, recording, printing (or sharing), publishing, marketing, advertising is very easy that even an end-user can do all of them without needing too much capital.
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5.0 MARKETING STARTEGY FOR EMI

5.1 Porters Generic Strategic
There are three different strategies in Porter generic strategies. There are segmentation strategies, differentiation strategies and cost leadership. All these three strategies explain a companys position in terms of profits and competitive advantage.
Cost Leadership
EMI has experience staffs that are working hand in hand with a lot of successful artists. Moreover, they have powerful management of the products, in terms of their artists ladder of success. EMI also have many great and smart connections of many co-operative companies for their advertising as well as web-marketing campaigns.
Differentiation
Smaller companies have to focus on their product differentiation for costumers as well as for the artists. Although they are still playing in a wide field but they lack of the Big Fours (EMI Group, Warner Music Group, Sony BMG, Universal Music Group) advantages. The differentiation on music market means not too much, but for example: a better share for artist, helping environment saving groups by every album purchase, giving a free artists poster, to allow reaching products on different media.
Focus
Either pursue lowest cost or deliver differentiated products to a narrow market. Before internet narrow market means these local products is generally stay only local but online sharing makes this kind of specific albums to be worldwide available. But even this way they are still low profit products.
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5.2 Ansoffs Product/ Market Matrix

Market Penetration
This is a growth strategy which company focuses on selling existing products into existing markets. EMI may maintain or increase the market share of existing products and also past products. This can be achieved by easy to use and access to web based product catalogue which covers all EMIs past publications. Of course its success also depends on competitive pricing strategies, good advertising, promotion, etc. Also this catalogue is better if it holds some smart features, like adaptive user profiles which profile is created and modified automatically by users own search and buying history. Then by using this profile system can offer similar products with promotions.
Product Development
Product development is a growth strategy which company introduces new products into existing markets. For audio media as music art there is three options for product development. First company publishes new albums; that this is periodically establishing by EMI already. Second is to change album packaging (size, shape, etc.). Third is to use different medias to publish albums like DVDs, Blu-Ray Discs, Old fasion plaques, and etc.
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Market Development
Market development is a growth strategy which company seeks to sell its existing products into new markets. EMI may expand to new markets by various methods. For example: exporting the product catalogue to new countries by using web technologies as explained at market penetration. Also new distribution channels must be considered like mobile devices. For example co-operation with telecommunication companies, EMI can publish their content directly to mobile devices.
Diversification
Diversification is the growth strategy which company markets new products into newmarkets.EMI may sell famous artists posters, t-shirts, mugs, etc. And even it can be applied for less famous artists as well by using internet and mail orders because web based sales dont require a shop and too many personnel so expenses are low enough while it is worldwide.
Therefore, in conclusion, EMI Group is a very powerful company who has great background, experience, network and financial sources. This gives EMI many options to try new steps on the market. While music market becomes more and more competitive and earning from customers becomes more and more difficult. On this scenario easy to purchase and access to products like direct mobile downloading is a smart choose. Also pricing may be monthly based instead of per song. These may prevent users to seek illegal actions. But for the long term, EMI may try a risky action like entering a new market on the entertainment arena for example video games or movies.
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6.0 THEORIES
6.1 Customer Behavior Theory
For any business customer is a fundamental concept. Customer behavior is an essential theory for business to sustain in the business. Innovative, collaborative, cooperation, commitment can create new approaching into customer behavior toward the business. For a business, customer behavior can helps a CEO, manager, director, sellers, supervisory body, and policy maker to manage the demand and responses from customers (Killoran, 2001).
Customer behavior very much contributes for the problem solving and decision making in the business. In reality, customers and their behaviors encompass of many attributes and differentials. The differences are not only based on the demographics, ethnic groups, age, gender and others. There is a much more complex customer behavior exist in the business world.
For instance, customers are human beings. They can be categorized as spontaneous, unpredictable and also self-interested. In order to understand this behavior, companies are always engaging in providing the best to the customers to drive the customers into their business. According to the various studies, customers are always easy to influence by sellers.
Sellers usually play with the customers psychology by improving the product attributes and build better relationship with customers. Sellers are the one always creates the demand. In reality, customers do not know what they want. Suppliers create some products and customers demand for that products in different way. Therefore, sellers create the image of the products through advertisement and attract customers to buy the product (Killoran, 2001).
6.2 Core Competency Theory
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Core competency theory is a theory which focuses on firms competitiveness. Company competitiveness can be based on the resource of the company. EMI Group Ltd. has its strong brand overseas as well as and in international market. Competence can be seen through the company overall successful, knowledge of the employees, R&D technology, high rate turnover and others. EMI has then continuously tried its best to compete in the market in terms of having high R&D Technology to enhance their market share. As long as EMI produces great music in the market, they will have no problem in providing for the customers the enrichment of the art of musics value everyday life.
6.3 Quality Theory

The history of quality management, from plain assessment inspection to total quality management, and it is modern branded interpretations such as six sigma has led to the development of necessary processes, ideas, theories and tools that are central to organizational expansion, change management and the routine improvements that are usually desired for persons, teams and organizations.
Total quality management (TQM) was introduced in year 1920. Total quality management features centrally the customer supplier interface, means internal and external customer supplier relationship. TQM is the management concept and is far wider in its application than just assuring product or service quality. TQM is very important for EMI to make certain to gain full satisfaction from its customers. TQM drives the company to deliver the best to the customers, provide leadership, and make certain that they are on the right track.
TQM is related with customer and supplier both internally and externally throughout the processes in the company. In order to achieve success in the process, commitment, communication and understanding of culture between them is very important. These are the foundations of TQM, and they are supported by the key management functions of people, processes, and systems in the organizations. By understanding the organization as a whole, EMI can maintain its performance, appearance, availability, delivery, reliability, maintainability, cost effectiveness and price. In addition, EMI Group Ltd. also improves the standard quality of products by understanding the stakeholders. It helps the company to plan, organize, and understand each activity of company accurately. The Figure 1 below illustrates the co-relation between people, system as well as processes in order to gain total utilization of TQM.
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Figure 1: co-relation of customer service with people, system and processes
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7.0 RECOMMENDED MARKETING STRATEGIES FOR EMI

So far we discussed about the influence of different factors that made EMI to underperform. As a result of the underperformance; EMIs revenue, market share value, and profit has declined by a huge rate. Now, it is time for EMI to reconsider its marketing strategy, so that it can improve its music business. In this section few key points of marketing strategies are discussed, which may help EMI to increase its growth rate. The main reason for the drop in physical sales of EMI is high CD pricing. Introducing appropriate price cut would attract the customers to buy CD. The reduction of CD price, should improve the physical sales by increasing the demand in the market. By this way the retailers can also increase their profit which maximizes the distribution of CDs (Rizal et al, 2008).
EMI should monitor the customers buying behavior in order to provide what they need. The evolution of digital music has gathered the attention of consumers. So EMI should focus more on digital market to provide music using new technology to the consumers.
Using internet as a medium, will give EMI a new market so that it can gain more customers. The digital sales of music are very flexible for both the company and the consumers. The digital music reduces the manufacturing and operational costs of physical CD sales of EMI. Also, it allows the customers to easily access their desired content of music, just sitting in their home.
The development of the digital sales has divided the music market. The digital sales market has got many digital retailers such as iTunes, Napstor, Full audio, Roxio. In order to compete with competitors EMI should increase the number of digital distributors to maximize its digital sales (Anon, 2002).
When it comes to digital music, there always arises a problem of incompatibility. Those music files that can be played on Apple iPods do not support other music players such as Sony and Microsoft. This incompatibility of music files leads to confusion of customers and creates a bad impression on the company. So EMI should be able provide digital music that can be played on any music player.
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It is always good to use new technologies; EMI can go ahead by providing the latest release of songs, available directly on the Mobile phones of the consumers. Nowadays, most of the mobile phones are 3G supported and EMI can use this technology to gain more number of customers which also gives a new market share.
Piracy is the biggest threat to music industry. Though it cant be eradicated completely, Music Company such as EMI, UMG, and BMG can force the government to take severe action against the unauthorized users who runs the illegal download websites.
EMI can attract more customers using more promotions, advertising, and by high quality musical albums. Also, signing contracts with great pop stars and musicians can help gaining attentions from consumers and retailers. Allowing offers on musical albums during festive time can improve the sales of musical albums.
Without efficient managers and employers a company cannot achieve its objective. The managers should share the same interest as that of investors, if not the company will have poor performance. So reshaping of organization is also important whenever necessary, to minimize the loss and maximize the profit.EMI should appoint efficient managers and do necessary job cuts to minimize the operational cost. EMI should also end the agreement with artists who underperform during the period of contract.
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8.0 CONCLUSION
EMI Music Publishing is the worlds leading publisher of popular music, representing some of the most successful writers working in the music industry today, including Beyonc, Drake, Jay-Z, Norah Jones, Alicia Keys, Pink, Scissor Sisters, Stargate, Usher, Kanye West, Pharrell Williams, and Amy Winehouse. Its remarkable catalogue of more than 1.3 million songs includes some of the most recognisable songs of all time, such as New York, New York, Bohemian Rhapsody, Every Breath You Take, Youve Got A Friend, Over the Rainbow and Santa Claus is Coming to Town.
Songwriters and publishers are entitled to be paid every time that a piece of music is used commercially, with publishing companies collecting revenue from many different users and distributing royalties to the writer of each song they represent. EMI Music Publishing earns income from discovering and developing the best songwriters in the world, and then connecting their music with a commercial audience.
Thus, the problems of EMI are; piracy of music, high CD price, changes in the customer buying behavior, cut throat competition, lack in technological development, and poor management. These are the various factors which affects the growth rate of EMI Group plc. In order to increase its market share and maximize the profit, EMI should reconsider its marketing strategy. The above discussed marketing strategies may help EMI to increase the consumers loyalty on the company andmay gradually increase its growth in the future.
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9.0 REFERENCES
EMI (2011), About EMI Music, [online] retrieved fromhttp://www.emimusic.com/about/ [accessed on the 16th May, 2011]
EMI (2011), Social Responsibility, [online] retrieved from http://www.emimusic.com/about/socialresponsibility/ [accessed on the 17th May, 2011]
EMI (2011), Timeline, [online] retrieved from http://www.emimusic.com/about/history/timeline/ [accessed on the 17th May, 2011]
Rizal (2008), CASE STUDY: EMI Group, PLC, [online] retrieved from http://www.scribd.com/doc/2559417/CASE-STUDY-EMI-Group-PLC [accessed on the 18th May, 2011]
EMI (2011), Management, [online] retrieved from http://www.emimusic.com/about/management/ [accessed on the 31st May, 2011]
EMI (n.d.), MALTBY CAPITAL LIMITED: ANNUAL REVIEW 2009/10, [online] retrieved from http://www.emimusic.com/wp-content/uploads/2010/02/MCL_AR_09101.pdf [accessed on the 31st May, 2011]
EMI Music Publishing (2011), Our Vision, [online] retrieved from http://www.emimusicpub.com/about/index.php [accessed on the 1st June, 2011]
Article 13 (n.d), EMI-revisited, [online] retrieved from http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=1380 [accessed on the 1st June, 2011]
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Anon (2002), EMI Group signs online distribution deals, [online] retrieved from http://www.independent.co.uk /news/business/news/emi-group-signs-multiple-onlinedistribution-deals-604212.html [accessed on the 7th June, 2011]
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EMI Report

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MGT 7201 STRATEGIC MANAGEMENT

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

1.0 ORGANIZATIONAL OVERVIEW

1.1 Companys Perspective:

1.2 Organizational Structure (Board of Directors):

Caroline d/o Anthony (I10006994)

Chief Operating Officer EMI Group

Chief Financial Officer EMI Music

Chief Executive Officer, Europe and Rest of World EMI Music

Caroline d/o Anthony (I10006994)

General Counsel EMI Music

Table 2: Board of Directors. Source: EMI, 2011 (http://www.emimusic.com/about/management/)

2.0 VISION, MISSION OF EMI MUSIC PUBLISHING

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

2.1 Value chain of EMI Music Publishing:

Artists Musicians Producers Publisher Retailers Customers

Diagram 1: Value chain of EMI Music Publishing.

3.0 CORPORATE SOCIAL RESPONSIBILITY

MGT 7201 STRATEGIC MANAGEMENT

EMI-MUSIC SOUND FOUNDATION (MSF)

EMI CHRISTIAN MUSIC GROUP & FEED MY STARVING CHILDREN

MGT 7201 STRATEGIC MANAGEMENT

4.0 INDUSTRY ANALYSIS

4.1 SWOT Analysis

MGT 7201 STRATEGIC MANAGEMENT

STRENGTH Strong global presence

MGT 7201 STRATEGIC MANAGEMENT

OPPORTUNITIES Joint Venture / collaboration

More Open M&A regulatory

THREATS Limited growth potential for recorded music

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

4.2 Porter 5 Forces Analysis

BARGAINING POWER OF BUYERS

BARGAINING POWER OF SUPPLIERS

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT THREAT OF SUBSTITUTES

RIVALRY AMONG EXISTING COMPETITORS

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

4.3 PEST Analysis

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

5.0 MARKETING STARTEGY FOR EMI

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

5.2 Ansoffs Product/ Market Matrix

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT

6.2 Core Competency Theory

Caroline d/o Anthony (I10006994)

MGT 7201 STRATEGIC MANAGEMENT