Warner EMI Strategic Development Essay

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Innovative Marketing, Volume 2, Issue 1, 2006 67 Warner EMI Music. Strategic Development for the First Decade of the New Millennium Demetris Vrontis Abstract This case has been compiled to put forward the author’s suggestions for future strategic development open to Warner EMI Music as they develop during the 1st Decade of the 21st Century. The case is divided into four main sections. Section one is concerned with an environmental scanning including an analysis of Porters’ Value Chain and Five Forces models. This section identifies the key strategic issues for the new company and industry and provides an overview of their internal strengths and weaknesses and external opportunities and threats. Section two provides meaningful…show more content…
The world’s leading Media Company with an array of world-class brands Diversification to cable networks and systems, publishing, music, films Cut corporate overhead Strong loyalty to and from employees Intensive programmes encourage high-quality production Training production employees reduces waste and scrap Global purchasing delivers low-cost components Long-term ‘win-win’ relationship results in supplier’s passing through cost savings Economies in scale Experience effects raise efficiency Computerised routing lowers transportation expenses Distributing in bulk lowers transportation costs International advertising creates economies of scale Advertising through the Internet High standards of service PRIMARY ACTIVITIES SUPPORT ACTIVITIES Fig. 1. Value Added Chain Analysis for Warner EMI Music The next strategic model to analyse is Porter's Five Forces (see Figure 2). Michael Porter’s five factor map illustrates what potential threats can impact when a company is trying to segment the market and identify competitive strategies. This is based on the understanding of the ways in which the competitive environment influences strategy (Vrontis et al., 2000). Potential Entrants High entry barriers International competition Operation scale and scope Competitors Supplier Power Importance of volume Importance of price Increasing opportunities in the industry
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