Environmental Analysis & Strategy Development for Emi Music

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The online music market is a highly competitive market which has exploded with a large number of competitors in the recent years. Players such as iTunes, Napster and AmazonMP3 dominate this market with revenues being made by all players in the market exceeding US$4.2 billion in 2009 (http://www.ifpi.org/content/library/DMR2010.pdf). The online digital music download market currently consist of 400 legal music services engaged in providing 260 types of products which include music, videos, mastertones, ringtones, audio tracks, etc. The industry is pushed into more competition and the potential for new entrants are increased by the current trends in the market which includes higher consumer purchases of music online, faster
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It is therefore included in the strategic marketing planning process (Miles, 2003 & Baker, 2008) as follows;

Situational Analysis

Formulation of Objectives

Strategy Formulation

Tactical Considerations



Figure 1: Strategic marketing planning process

In summarizing it can be said that environmental scanning is important to the marketing planners in terms of assisting in formulation of objectives which in turn forms the basis for strategy formulation for the future.


When considering the development of a suitable strategy for EMI, it has to be preceded by an environmental analysis which will assist in identifying the forces operating in the environment and help in developing objectives for the future.

a) Macro Environmental Analysis

Macro environmental analysis helps marketing planners in identifying the factors which affect the industry as a whole, in this case the Music industry which will create industrial breakpoints leading to opportunities and threats for the existing players in the market including EMI. The analysis takes into consideration the Political, Economic, Social, Technological, Ecological and Legal environments and the changes of which needs to be taken into consideration while developing strategies.

- Political

In 2010, the UK political environment became volatile due to the General Election and the overturning of the Labour

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