Introduction

EMI is one of the world's top music companies, home to some of the largely successful
and best known recording artists, songwriters and music catalogues. In the course of
their own companies and network of licensees, they are able to serve our artists, writers
and consumers all over the world.

EMI is one of high street retailer of UK in the music industries with having global
branches in different countries. It holds huge reputation in UK market by focusing on
sales of music.
Emi is not only the manufacturer of music but it act as distributors in the market as it
market share is less but hold a position of brand in the market with still such a head-cut
competition.
EMI offers stylish, high quality music and sound recording with outstanding service
especially their own brands since last 3 century. Through massive supply chain
including more than 1000 artists globally we have used the analytical to tools which are
explained as follows:

Environmental Scanning
The environmental scanning procedure involve both factual and biased information on
the business environment in which a company in operating or posture in mind of
entering. It study internal and external environment as this environment factors helps
out to view or process effectively managerial and operational activities. It helps to
increase the probability that organisations strategies your develop will suitable reflect to
organisation environment. It is process of gathering information and analysis critical the
environment of organisation through its internal strategic planning and external
surrounding.

External Analysis: (macro level)

From the above mentioned analysis one can state that EMI produces the superior
quality services and thus EMI can sustain in strategic market for long time but have to
be defensive from competitors. EMI has well-built marketing strategy (example: stereo
sound recording). Mostly there sales promotions are done by online purchases and
creating awareness in all the public places like tube station, train station, bus station etc.
Buyers of EMI are gradually falling because the Sony music Entertainment and
Universal music group are providing quality service with cheaper rates. So through all
this we can say that EMI needs to take quick decision regarding various polices and
strategies that they are following.
A).Pest analysis:

1. Political Analysis:

In spite of cultural differences EMI have functioned very efficiently in terms of

macroeconomic policies and also enhanced good relations with other countries to
expand the business as it had partnership with terra frima.EMI has long taken the lead
among major music companies with employee initiatives such as flexible working, family
friendly policies and flexible benefits.

2. Economical Analysis:

As the current situation the economic state of affairs are adverse because of the
recession therefore EMI is not able to achieve the desired targets due to which they
have to reduce their cost of products and even online music sells had prove low
business to music industry.

3. Socio-cultural Analysis:

EMI adopt certain social and cultural aspects which vary from country to country in
terms of their lifestyle, values and beliefs. This leaves the impact on diffusion of
products onto the market. As changes in the lifestyle results in both opportunities and
threats to the firm. “Whatever the culture, whatever the society, wherever there are
people, there is music. Throughout most of history, music could only be heard by those
immediately around the musician. Music was a live, transient art form.”

4. Technological Analysis:

EMI uses low advance technology in order to serve their customers such as enhanced
online music were customers can make choices from various products that are available
in relation to different publishers and composers etc. This provides flexibility in running
the business more efficiently. But now the digital device of sound recording and tracking
and other music components is available by fast running competition.

B).Industry life cycle period:

There are 4 phases in the life cycle, the EMI had started from introduction phase it had
taken a long time to developed and move towards the growth phase. In 20th century the
growth of EMI was strong enough to compete in the market. The company is still in the
growth stage as they are innovative and creative in terms of developing new products of
sound developing systems and improving in the digital device because of this only they
haven’t reached to the maturity and decline stage.

C).Five Forces:

I. Threat of New Entrants:

In 19th century; there were new entries like universal music group, Sony music
entertainment and BMG. Even polygram were entering the market. So EMI faced high
threat from them as well with going time online file sharing put music industry in
dramatic depression.

II. Bargaining Power of Buyers:

EMI bargaining power increases because the quality and the price of the products of
music components as it hold branded composer in its group and having highly
innovativeness in the offerings to fans of music but due unawareness in the market they
cannot hold the customers as Sony music entertainment do so they have come up with
quality products with cheaper prices to attract the customers, thus EMI is becoming
more price sensitive.

III. The Bargaining Power of Suppliers:

EMI bargaining power is very high as it is known for its quality & value music services.
So supplier can threaten the market by increasing high price or decreasing the quality.
As EMI is doing partnership widely which increases bargaining power of supplier.

IV. Threat of Substitute Product & Service:

Due competition substitute products & services are available, EMI is having brand name
which is valuable, but substitutes are also available like Sony music entertainment,
Universal music group Warner music group etc.

V. Intensity of Rivalry among competitors:

The Rivalry among the competitors is strong, In case of EMI, there are many
competitors so they use tactics like sales promotions, advertising, product differentiation
and diversifying the structure by introducing other branded composer for global markets
also and doing partnerships with technological and innovative enterprise to reduces
their cost by changing cost structure etc.

D).Strategic Alliances:
1) Economy of scale:
In case of EMI economy of scale it uses the concept of mass production of CDs and
DVDs of new composer and putting online sells, the partnerships always help to input
and through this they could reduce the cost per unit as well they raise more revenue. As
it is one of the trustworthy brands it had to keep hold on efficiency.

2) Economy of scope:
EMI has varieties of services in the different range of stores and locations. This
diversification of their premium services and services as this core quality is giving
greater opportunity to compete in the global market.

3) Economy of learning:
EMI has additional competence as learning of new markets, new customers and new
preferences according their previous pitfalls and achievements.

Internal analysis: (micro level)

The EMI has some powerful strength as their competitive advantages to sustain in the
market:

1). Strong brand name:

EMI achieved popularity in UK because of their quality, service and innovation; and
effectively stepped in global market to diversify their brand internationally. EMI also
developed very high reputation from all kind of customers by maintaining their standard
and never compromised the quality standards for services.

2). Good Financial Position:

The Company has a very strong cash flow position where the company doesn’t require
taking any loans from any financial institutions as they hold partnership with terra frima
by out there equity in ratio. They can easily manage funds from the revenue they
generate. The company indicates to have a strong balance sheet as there is increase in
their turnover and trading profits.
SWOT analysis:
A. Strengths:
EMI is the largest retail as well as distributors industry in the global market. It has strong
financial backup and also holds good reputation among the customers, suppliers and
the distributors. The brand is very famous among the market in UK as well as over the
globe. Even they have diverse range of products or services which makes them unique
in their behaviour as they have their in house production and distribution channel.
These key points have helped EMI sustain in the global market.

B. Weakness:
EMI is in strong competition with Warner, Universal, and Sony for example the
production life cycle of Sony is just 2 months even when it comes to new music these
retailers offer the same price range as EMI and even more latest techno products or
services. In terms of music shopping EMI faces competition with Sony and Universal as
they offer high quality value added and even premium music. It had lose the market
share in last 4 to 5 yrs as it is now not on the top. Little bit profit is maintained but
customers are losing from the hands of EMI.

C. Threats:

Due to high competition, the products or service substitution is possible & this will
further reduce the price of product and service e.g. Sony music entertainment. EMI
products or services are value perspective but there are very small group which
constitute value perspective and consumer perspective products as it is having value
added pricing methods as other retailers use market skimming method or market
penetration methods of marketing. Online selling of music also become some time
threats as number of buyer would download files of music through file sharing and this
way it is challenging for every Music Company and whole music industry.

D. Opportunities:

The competitive advantage helped the company to expands its business keeping in
mind the futuristic vision in terms of diversification to help market development from the
existing products or service by welcoming new products or services and make them
exist in the global market this denotes the expansion matrix in terms of EMI as the
company is on the edge of establishing its brand across the territories. Being innovative
and familiarizing with new innovative styles of publishing also help EMI to cover more
markets as cost matrix solve half of problem so this way structure of business is well –
developed in context to future.
OVERVEIW OF POSSIBLEMARKETING STRATGIES:

a).Generic Strategies:
• Cost leadership:

To compare with Industry competitors EMI is not focusing to be a cost leader as to

maintain their quality.

• Differentiation:

EMI always differentiate their products and services to keep their position in the retail
market. For example to be a UK’s leading music retailer maintain fashion trends and
great value with more clarity and newness of all range from new generations to old
generation as E.g. “catalogues” are maintain for old saga songs which gives values to
old successive composers and “new music” are new fresh online music which is legal
and now EMI does not need any DRM in selling its products or services and music
publishing also always customer focusing and removing duplication that are priority
issues.

• Focus:

EMI gearing a focus on generic strategy by concentrating on broad market segment

such as a no particular buyer group and age, social class, income and occupation.
Market segments through value like premium price, high quality, mid-priced and low-
price segment.

These are the key points applied to achieve differentiation from their competitors like,
Sony music entertainment, universal music group. As a tacit skill they come up with new
ideas to improve the business e.g. EMI maintain to keep their own brand products in
stores. EMI have decided to introduce the other branded composer music to published
products.

b).Segmentation:
EMI had both geographical segmentation as well as demographic segmentation. The
markets in context to global level is segmented into different areas of world as well as
widen market segment is covered by this as it does not concentrates on any particular
features, the market level is high and view this EMI put focus on its services to delivery
in which area especially in music industry.
c).Positioning:
The company is well positioned in the market due to high market saturation in the music
sector there is less demand but this had low effect on the company’s working as its
brand name had put it into proper position and it is established since last 3century so
EMI has strong and sustainable position in the market.

d).ANSOFF GROWTH MATRIX:

The Ansoff Growth matrix is a device that helps businesses decides their product and
market growth strategy. Ansoff’s product/market growth matrix suggests that a
business’ attempts to raise depend on whether it markets new or existing products in
new or existing markets.

• M
a
r
k
e
t

penetration:
Market penetration is the name given to a growth strategy where the business focuses
on selling existing products into existing market. EMI has implemented this same
strategy for its existing composed music which is there mention in catalogues of EMI
 • Market development:
Market development is the name given to a growth strategy where the business seeks
to sell its existing products interested in new markets like example new geographical
markets; New product dimensions or packaging; New distribution channels; Different
pricing policies to catch the attention of different customers or generate new market
segments here EMI is trying its level best to enter into innovative markets.

• Product development:
Product development is the name given to a growth strategy where a business aims to
initiate new products into existing markets. This strategy may involve the development
of new competencies and requires the business to enlarge personalized products which
can appeal to existing markets. EMI always accept the changes and the product and
services of the company are ever diversified with needs of markets.

• Diversification:
Diversification is the name given to the growth strategy where a business markets new
products in new markets. This is an intrinsically more jeopardy strategy because the
business is moving into markets in which it has slight or no experience. For a business
to approve a diversification strategy, therefore, it must have a clear idea about what it
expects to expand from the strategy and an honest estimation of the risks. EMI has well
known quality with it as it diversified its products its idea and introduce new concept and
components in to market.

Marketing mix:
EMI has implemented its marketing mix strategies in to very much right direction.
Marketing mix helps to know about different components or area which marketing
should take care of the marketing mix consists of 7ps that product, promotion, price,
and place which is very important and with this process, people, and physical evidence
which support the marketing functions.
• Products:
EMI products and services are unique as the this services and products are being sold
in the big super market hold retail selling as well as online selling is also available. The
composers design and artist work for creating music hold huge importance. This
creativity reveal in the EMI brand services and products.
• Price:
EMI has brought significance changes in the price- level as it has evaluate its cost
structure and prices are reduced so this market penetration method is used by EMI in
case of new product but in case of existing product the cost plus pricing method is used
the pricing method varies in context with quality of product or services and its type.
• Promotion:
EMI is doing promotion to increase the sales by bring new techniques and advertising
online for sales promotion. Thus media is vital components for promotion.
• Place:
EMI is international business company mostly its target place are USA and UK so it
holds more agreement with big super market like TESCO, ASDA, and SAINSBURY etc.
to sell CDs and DVDs in retail market.
• People:
EMI is publisher, composure, as well as distributor of music in the industry. EMI does
not focus on target customer, here perception of customer and interest in music is
needed.
• Process:
EMI holds very simple process as for each working area the departments are developed
with one line manager and this line manager are appointed to top level. So EMI’s
management has top to bottom and bottom to top flow of instructions communication
and pre-determined course of action.
• Physical evidence:
The EMI Company is holding brand name in global market as well as having good
financial condition as you see the annual report of last seven years but within 2 to 3
years profits margin is decreasing because of recession and other illegal misconception
otherwise over-developing of company is better and helps to sustain for long term.

Conclusion:
Using both environmental analysis techniques (SWOT and PEST) and portfolio analysis
we have seen that EMI have various internal strengths and weakness in its current
business activities as well as number of opportunities and threats. The portfolio of EMI’s
products in terms of BCG matrix is either ‘dogs’ (cash in balance) or question marks
(cash cow). In digital section (with its focus differentiation generic strategy) relative
market shares is low with low industry growth and Financial services industry growth is
high but EMI’s market share is low and will require substantial capital investment as well
as new technological methods to turn them into ‘stars’.