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Introduction

EMI is one of the world's top music companies, home to some of the largely successfuland 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, writersand consumers all over the world.EMI is one of high street retailer of UK in the music industries with having globalbranches in different countries. It holds huge reputation in UK market by focusing onsales of music.Emi is not only the manufacturer of music but it act as distributors in the market as itmarket share is less but hold a position of brand in the market with still such a head-cutcompetition.EMI offers stylish, high quality music and sound recording with outstanding serviceespecially their own brands since last 3 century. Through massive supply chainincluding more than 1000 artists globally we have used the analytical to tools which areexplained as follows:

Environmental Scanning

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

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 tobe defensive from competitors. EMI has well-built marketing strategy

(example: stereosound recording).

Mostly there sales promotions are done by online purchases andcreating 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 andUniversal music group are providing quality service with cheaper rates. So through allthis we can say that EMI needs to take quick decision regarding various polices andstrategies 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 toexpand the business as it had partnership with terra frima.EMI has long taken the leadamong major music companies with employee initiatives such as flexible working, familyfriendly policies and flexible benefits.

Economical Analysis

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

Socio-cultural Analysis

EMI adopt certain social and cultural aspects which vary from country to country interms 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 andthreats to the firm. “Whatever the culture, whatever the society, wherever there arepeople, there is music. Throughout most of history, music could only be heard by thoseimmediately around the musician. Music was a live, transient art form.”

Technological Analysis

EMI uses low advance technology in order to serve their customers such as enhancedonline music were customers can make choices from various products that are availablein relation to different publishers and composers etc. This provides flexibility in runningthe business more efficiently. But now the digital device of sound recording and trackingand 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 hadtaken 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 thegrowth 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 theyhaven’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 musicentertainment and BMG. Even polygram were entering the market. So EMI faced highthreat from them as well with going time online file sharing put music industry indramatic 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 highlyinnovativeness in the offerings to fans of music but due unawareness in the market theycannot hold the customers as Sony music entertainment do so they have come up withquality products with cheaper prices to attract the customers, thus EMI is becomingmore 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 namewhich 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 manycompetitors so they use tactics like sales promotions, advertising, product differentiationand diversifying the structure by introducing other branded composer for global markets