INTRODUCTION:-

Electric and Musical industries was established in 1931. E.M.I is world largest
independent music company which is oldest and universal form of communication,
touching every person of every cultural in the global music.
E.M.I ‘s business is compose of two main group. First one is E.M.I recorded music and
another one is E.M.I music publishing.
ENVIRONMENTAL SCANNING:-
Environment Scanning is a process of gathering, analyzing, and dispensing information
for tactical or strategic purpose. (wikipedia)
The Environment scanning process implicate both factual and subjective information on
the business environment in which a company in operating or considering entering. In
other word environmental scanning is study of organizational environment to point out
the environmental factors that can significantly influence organization operation and
processes which will helpful to understand what is happening both inside and outside
organization and to increase the probability that organization strategies you develop will
suitably reflect to your organization environment.
E.M.I’s marketing planner has to understand the external environment and the
interconnections of its various sectors and to translate this understanding into the
institution's planning and processes.
The recorded music industry has grown increasingly with many technological
advancement. But for the past few year the U.K music industry is facing problems with
the technological breakthroughs of different kind, particularly illegal file sharing on the
internet from certain providers free of charge and download this for their own use
instead of buying a CD. As a result, the CD singles market collapsed between 2000 and
2004, with annual sales falling from 80 million units, worth £ 200 million, to just 31
million units, worth £80 million. According to the international federation of
phonographic industries, the retail value of digital music sales in the first half of 2005
rose to U.S $790 million from, $220 million in the same period in 2004. Over the same
period, price-cutting by big supermarkets saw the value of a CD album fall by around
four percent. E.M.I music’s traditional model has been very successful But as any
successful business should have response to changing business environment.
SWOT ANALYSIS:-

SWOT Analysis is a tool auditing and Organization and its environment.

It is the Primary stage of Planning and helps Marketing Planner to Concentrate on

key issues.

It is a common Technique Which can find reliable application across diverse

management functions and activities.

SWOT is stand for strengths, weaknesses, opportunities and threats.

SWOT analysis can furnish a frame work for analyzing and identifying strengths,
weakness, opportunities and threat.
This can also render an impetus to analyze a situation and develop suitable
strategies and tactics which is a basis for assessing core capabilities and
competence.

STRENGTH:-

EMI is the largest global independent major music publisher in nearly 50 country among
its major market are in U.K, Ireland, North America, Continental Europe, Latin America,
Australia and Asia with a portfolio of over 1m music tracks.
EMI worldwide market share is 12.6% in 2002. Its large size and strong global present
gives many benefits such as cost reduction through economic of scale. The strong
market share position and vast resources are also give the benefit to attract the best
staff and artist to company which has strong future.
-Although the EMI sale is decrease in the year 2003 compare to 2002, where as the
profit of EMI is excellently increase around 33.1% in the year 2003 compare to 2002.

Substantial roster of recording artists, supported by over 70 different record labels,

diversifying risk
Global positioning and distribution network maximises chances of artist album success
Financial strength for marketing and A&R activities
Restructuring programmes are producing a leaner, fitter organisation. Cost savings are
helping to
drive margins and earnings growth
Solid music DVD business, so far little affected by the music pirates
Commitment to digital music positions it ahead of its peers
Weaknesses Impacted by persistence of global music piracy, both physical and digital
Music has been fashion-driven, but now this exposure is being addressed
Opportunities Digital music strategy is a fundamental change throughout the
organisation to address new
consumer trends
Continued legal action on pirates should enable the legal market to expand, with EMI
well positioned
to maintain its market share
EMI continues to develop new music talent through its A&R activities. This could result in
future
superstars
Strong future album releases by existing talent should drive physical product sales
Threats Erosion of consumer confidence will impact sales of CDs and DVDs
Further progress by music pirates will erode the legal markets for music
Weak album releases will cause physical product sales to stall
Source: Bridgewell Securities

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 stands for strengths, weaknesses, opportunities, threats. Strengths and

weaknesses are internal 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.

Strengths

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%

Weakness

EMI music industry is poor in retailing their products. There is a problem on low

sales on the retailing of the products.

Opportunity
 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.

Threat

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