Music is one of the oldest and worldwide forms of communication, moving every person of every culture in the globe. In modern times the music industry is facing various types of technical complications. In this industry there is massive downloading from illegal file sharing on the internet, this is known as Piracy. EMI builds new marketing strategy against piracy and fight against co-competent and to avoid massive loss.

EMI Music is part of The EMI Group, it is one of the largest and oldest music companies in the world, It is the world's largest independent music company; it is effective directly in 50 countries, employing over 6,600 people. EMI has achieved the Times' Top 100 best Companies to work for in the UK. It is one of the world's leading music companies, it has some of the most successful and best known recording artists, lyricists and music catalogues.


The process of accumulate the information about the marketing situation which help marketers classify opportunities and maintain in planning .The technique of interim internal and external factor which persuade the organizational operation and target making in order to classify market opportunities and threats. The collection of information about actions, trends, and communication in an organization's external environment for use in target goal. It has massive importance for market planners. Environmental scanning may be undertaken systematically by a devoted department or unit within an organization or more easily by project groups and may be used in the planning and development of corporate policy.

Once a target market has been established, environmental scanning is an implement that can help determine a company's strategies. Environmental scanning consists of analyzing a range of external dynamics. It is a search for information about relevant external forces to perceive how these may affect a business. These include financial, demographic, political-legislative, social and cultural, reasonable dynamics, and technology moving the business market. Detailed, these may look like the following points:

  1. Economic:
    • Prosperity, depression, recovery.
    • Price increases dynamics
    • Interest rate trends
    • Unemployment
  2. Demographic:
    • Refers to the altering nature of the target market population
    • What are some current trends?
    • What are the implications of these changes?
    • Is there a changing ethnic mix?
    • Have buying habits and needs changed?
  3. Political / Legislative
    • Government relationships with large company
    • Policies set by government agencies
    • Wide-ranging economic/monetary policies
  4. Social and Cultural:
    • Lifestyles and values
    • Attitudes and emphasis on service quality and value
    • Demand for new services and conveniences such as filtering / virus control.
  5. Competitive:
    • Direct competitors
    • All services competing for the same market.
  6. Technological:
    • New forms of competition, like power companies. Impacts how people use their time ease and transparency.

A thorough analysis, such as that provided by an environmental scan, helps a company identify opportunities and challenges that may produce up from changes in its external environment. This analysis gives a business time to react to change or to new result and to create strategies that will agree to compete successfully. An environmental scan can supply significant information to support decisions about service, pricing, competitive, and promotions strategy. Not only is it important to determine customers' wants and needs, it is important to understand how needs change, how technology is changing wants and needs, and how legislation affects competitive activity. It is, similarly, important to have information about the demographic comprise of your market to know what services to highlight, how to price them, as well as the most effective promotional resources. Doing so will likely result in designing services that will satisfy customers.

Perception is reality. A customer's mind can only maintain one perception is the EMI. We do not want the awareness that we are projecting to be in contest with another perspective. Taking into consideration all of these factors, knowing in advance, and doing the proper planning and implementation, can provide opportunities to position and brand our business and be the first company in customers minds when it comes to the services.

Some examples:

Eris owns the rental car market, but Mathews has made its name by being number two and trying harder. California, Florida, and Texas have huge Hispanic populations. This opens the possibility of a role market for local Providers. People think of Bell as the Phone Company. People may perceive you as the Internet Company.

Environmental scanning is necessary, valuable, and involved. Scanning should be an ongoing and permanent process. Understanding the interaction of the dynamics recognized provides a broad view of the business environment. It makes it possible for companies to highlight on realistic and effective competitive strategies that are successful market share and grow their businesses.

The Business Vision and Company Mission Statement

Every good company has a mission statement which precedes its vision. Commitments to quality and leadership abound in the corporate world. Very rarely, however, does one find a mission statement a vision with the sole goal being to balance a life of faith and impeccable business. Its mission is to impact modern culture with the timeless relevance of Christ through songs ranging from Friends and Thy Word to The Great Adventure, How Great Is Our God, and Dare You to Move and Here I Am to Worship.

Macro, Micro and SWOT analysis

This statement provides a comprehensive overview on all aspects of the global music industry. It provides a detailed description of the macro environment of the industry with the aid of the PEST framework. The competitive landscape of the industry has been analyzed using Michael Porters Five Forces Model. The report also discusses the major issues confronting the industry, such as piracy and copyrights breeches. It goes on to provide a wide-ranging description of the industries response and the various methods being undertaken to deal with these problems.

A scan of the exterior macro-environment in which the positive operates can be expressed in terms of the following factors:

  1. Political Factors
  2. Political factors include government regulations and legal issues and define both formal and informal rules under which the industry must operate. Some examples include tax policy of EMI, employment laws of EMI, environmental regulations of EMI, trade restrictions and tariffs of EMI and political stability of EMI etc.

  3. Economic Factors
  4. Economic factors affect the purchasing power of potential customers of EMI and the Organisation's cost of capital. The following are examples of factors in the macro economy are economic growth, interest rates, exchange rates inflation rate etc.

  5. Social Factors
  6. Social factors of EMI include the demographic and cultural aspects of the external macro environment. These factors affect EMI's customer needs and the size of potential markets. Some social factors which includes health consciousness, population growth rate, age distribution, career attitudes emphasis on safety.

  7. Technological Factors
  8. Technological factors can inferior barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors of EMI which include R&D activity, automation, technology incentives and the rate of technological changes in comparable with the other music industries.

The PEST factors shared with external micro environmental factors can be classified as opportunities and threats in a SWOT analysis.

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 various management functions and activities. SWOT stands for strengths, weaknesses, opportunities, threats. Strengths and weaknesses are inner factors while opportunities and strength are external. Performing a SWOT analysis involves the generation of strengths, weaknesses, opportunities, and threats concerning a task, individual, department, or organization.

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.

  1. Strengths
  2. EMI Music group has an advantage because they compose of the top selling artists, best songwriters, and extensive catalogues of recordings. Moreover, EMI has also a wide range of musical genres.

    Financial confidence for EMI Music as reported that the company has significantly outperformed the industry. , Co-CEO EMI Publishing (2006) represent that the business has a remarkable track record, consistently outperforming the industry for the past several years. Revenues increase by a 3.9%, operating margin has improved by 12%, profit before tax increased by 12.9%, and earnings per share improved by 19.8%.

  3. Weakness
  4. EMI music industry is poor in retailing their products. There is a problem on low sales on the retailing of the products.

  5. Opportunity
  6. The advent of digital music is an opportunity of the music industry because it will actually propel to higher profit. Another is internationalization, expanding through penetrating to other countries.

  7. Threat
  8. Competition with the parallel industry is one of the greatest threats to any business venture and EMI music group is not an exception to that, with the presence of the Universal Music Group, Sony Music Entertainment, Warner Brothers Group, and BMG Entertainment.

In addition to that, with the revolution of the new technology of internet, it does bring many forms of threat to the music industry. With the MP3 which is the compression technique which allows music to be recorded into small files which are downloaded from the internet. Another form to this technology is the Napster which lets users share MP3 files over the internet, in other words, it makes music available free-of-charge over the internet. This makes the new evolution of music piracy.

SWOT Analysis of EMI Music Group

A brief Analysis of Industry.

Porter's 5 forces Model Fig.1

Porter's 5 forces model is a concept that involves a relationship between competitors, suppliers, buyers and alternative solutions to the problem being addressed.

From the figure 1, five forces are considered. These are the threat of new entrants, threat of substitutes, the bargaining power of buyers and suppliers and the industry rivalry.

The threat of new entrants is considered as rather weak because it is hard to enter an international business in any form to establish internationally and with the EMI Music Group standing in the industry it is not easy for a new comer to turn out the company.

Next, the power of buyers is assessed as strong because buyers are the life of business and in the music industry contest reasonably high and music is a fad that when it is not already in sales would go down.

After that, the influence of supplier is being assessed as strong because in the music industry having good talents and good conveniences will make possible a better practical advantage.

And finally, the threat of substitutes is assessed as relatively strong as the problem of the music industry today is piracy. Piracy cost lower than the original that buyers would rather buy that pirated CD's and with the free downloading in the internet. This had really cause difficulty to the entire music industry.

The Concept of Marketing Mix

Porter's 5 Forces Model fig.2
  1. Product
  2. EMI Music Group is one of the largest independent music companies. They produce the most popular music CD's. Their product has no problem for these have been saleable to different types of people. Their packing will depend on the artist. The company should also provide after sale services to make the product more attractive to buyers.

  3. Promotion
  4. Promotion is the most important aspect to make your products make sales. Promotion should be done more on television such as MTV, and to other music television and radios to promote the songs and the artist and make it known to everyone. Popularity of the artist also has a great deal to sales. Concerts also are one way of promotion.

  5. Pricing
  6. Price has additional component of value in consumer's mind. Prices should be appropriate to the intended target market. Volume discounts should also be given.

  7. Place of Distribution
  8. In the recent days, music industry has been transformed by the emergence of the digital technology. There are new ways to purchase, store and enjoy music. EMI should also go into exploiting the digital technology in response to the changing preferences of the consumers. EMI should make 100% of their music available throughout all legal and commercially viable digital channels, to enable people to find and consume any music in any form at any time and place. The online and mobile offer music fans unlimited choice of selection of music and it would help to extend degree of interaction to customer.

    Digital technology should not be considered a threat by the EMI but instead an opportunity to go further on the distribution and increase sales.

Recommendations and Justifications of EMI's Music Business Solutions

  1. Management, Marketing and Information Solutions are the three things which Music Business Solutions can provide.
    • Music Business Solution can help us:
    • Keep away from expensive errors by setting up EMI as a legal business with exact, up-to-the-minute information on licenses, trademarks, copyrights and taxes.
    • Make dynamic business and marketing plans that keep our company track-bound toward our professional goals.
    • Measure our company current marketing efforts to find out untested ways of locating and communicating with your exceptional market audience.
    • Find and use the Business for Music.
  2. EMI merged with internet music
  3. EMI has signed agreements with internet music platforms around the world as well as a deal to offer advertising-supported videos on mobile phones in the US through Rhythm New Media. This will also help to boost up the sales.

  4. Reducing cost, Increasing revenue
  5. The technology change programme will give up substantial returns benefits and cost savings for EMI music and at the same time make the company more effective in the digital music environment.

    Real time sales information, available to any operating company within the EMI music around the world, will aid operating decisions and help develop successful artists more effectively.

  6. Securing the future of Industry
  7. EMI music has always been under pressure to combat piracy and ensure the secure management of assets. Technology has been key enabler fighting traditional piracy methods. But, unfortunately as the technology to combat piracy becomes more sophisticated so do the methods by which hackers use to.

  8. EMI music strengthens Executive team with key appointment.
  9. EMI music appoints the position of Chief financial officer and General Counsel. Both positions are related with EMI music executive committee and that reports to the company's chief executive officer .EMI business serves professional communities with event online and print products.EMI Music has a strong background in supporting change management in multinational business. It has financial skills together with deep understanding of the media sector to develop the EMI Business model.CEO of EMI has operating its finance operations worldwide through its network of Subsidiaries in 32 countries.CEO has include right management strategy and new business development in a sector that , like ours is seeking to optimise the opportunities of digital music.

  10. New Business Model
  11. EMI music helps to develop inventive and revenue-generating services using its songs and lyrics and delivered via digital platforms.It's newly-launched 'joint venture' style business model will see the company establish a long-term partnership with the UK's most inventive music publisher.

  12. Copyright, Licensing, Distribution rights and Digital channels
  13. Part of the EMI Group, EMI Music Publishing owns the copyright on more than one million songs, and has contracts with many of the best lyrics working today. A considerable part of its business involves generating revenue from this rational property through licensing its use in advertisements, films and television programmes. The joint project style partnership with HUGE Entertainment will enable it to increase its revenue streams through maximising the prospective offered by digital platforms such as online, digital television and mobile. However, because of its inventive culture, EMI Music Publishing has familiar that digital channels enable it to extend its distribution networks and therefore offer an opportunity to introduce new services that provide added revenue streams. EMI's new music portal guests will be above to browse an extensive catalogue of music and the songs which can be downloading from the net from top selling EMI artists.

  14. Framing new sales strategies
  15. The possibility of downloading music from the Internet has given rise to entirely new sales strategies. In addition, companies acquired by EMI must be incorporated into the enterprise. Another new challenge is so-called circulation deals that allow small, self-regulating labels to use the sales and logistics infrastructure of a larger company, such as EMI, so they can fully devote their own resources to looking after their artists and marketing their recordings. This will also boost the sales performance of the company.

  16. Framing new structure of product and analyzing data
  17. The fast changing market constantly forces EMI to adjust its organizational structure to adapt its product portfolio and sales channels, or reschedule its regions, product groupings and sales communications. The company's system are flexible enough to support new structures when analyzing data and feel supplementary users without compromising performance. It needs to be skilled using one single, uniform, plenty database to make sure meaningful trend analysis. But EMI's massive, complex data assets are a major challenge in terms of processing speed. Through framing new business structure of product and analyzing data can also recipient for EMI music.

  18. Well-Informed Future Business planning
  19. The coming future of EMI Music will bring along new wants in terms of scalability, performance and flexibility. The volume of data available for BI analysis has grown substantially in recent years, boosted in part by the integration of other national subsidiaries: Austria and Switzerland were incorporated into the system in 2004, which is followed by the Benelux countries in 2006.

  20. Planning Strategies
  21. New marketing activities are in the planning stages. EMI has been one of the first enterprises to set up a premium service on the Web jointly with Apple iTunes to allow users to download music without copy protection. This gives the buyer better audio quality while enhancing the listening experience.

  22. Accurate Evaluation of information
  23. According to Chief Management's decisions such as this one is the result of detailed, preventative analysis. By offering highly flexible, efficient evaluations based on exceptionally huge data assets, company's IT department enables the enterprise to plan its business activities much better.


EMI Music Group has always been competitive with its products and talents. There are sometimes fluctuations in their sales but they always come up with it.

In the SWOT analysis, it shows that EMI has greater strengths than weaknesses. That would mean that the company is strong enough. And the opportunities should be exploited for any way of its expansion. And the threat should not always be considered threat but an opportunity to be better.

With the industry analysis, Porter's 5 forces model has been used. Threats on the new entrants, substitution, the bargaining power of buyer and supplier, and competition should always be considered in every industry for it will have an effect on the company in any way.

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