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.


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

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