What are the strengths of EMI PLC?

 EMI Group PLC had a strong global market presence in nearly 50 countries with
major presence in North America, Latin America, Continental Europe, UK & Ireland,
Japan, Asia and Australia
 EMI Group had an extensive collection which was world class and most valuable with
the likes of The Beatles, Adam Bowie, Pink Floyd and such adding to the strong
brand image.
 It’s large size owing to the 12.6% share in worldwide market helped them in cost
reduction using economies of scale, good global distribution network and were able to
attract the best talent.
 The company’s operating profit increased to about 33% in 2003 from 2002 which was
due to restructuring of its record music division

What are the weaknesses of EMI PLC?

 EMI was not supported by any conglomerate unlike its main competitors which
means that it must generate revenues using its own resources.
 Owing to the changes in music industry, its main source of revenue, recorded music,
has been declining over the years and it led to only 9.8& of US market share in 2003.
 The impact of increased piracy and file sharing on internet has resulted in decline of
EMI’s revenues and profits

What are the opportunities for EMI PLC?

 The relaxed policies of M&A in music industry may bolster EMI’s chance to merge
with other music companies which will provide them with resources and increased
market share.
 In the current scenario, the impetus should be on digital market as the internet will
become more powerful and accessible. Sales of music by downloading from internet
could be a turning point for EMI to increase its revenues. It can either do this by
venturing alone or through partnerships which would increase the market share.
What are the threats to EMI PLC?

 There has been a limited potential for growth in recorded music. The worldwide
recorded music industry posted sales of $32 billion in 2002. There has been a decline
of 7% in Dollar sales and of 8% in unit volume from 2001. Sales of CD albums fell
globally by 6% and there had been continuous decline in the sales of CD singles
(16%) and cassettes (36%). These show that is has become very difficult to find
growth opportunities in the music industry.
 Piracy in the music industry, particularly the burning of CD and mass downloading of
free music from the internet has increased recently. It was predicted that the CD
album sales globally will drop almost 30% from their 2000 peak by 2007 if present
pace of unauthorized downloading continued.
 Due to aggressive competition from the likes of Universal Music, Sony Group
Entertainment, BMG Entertainment and Warner Music group, EMI has currently
faced a considerable threat of take-over and as such EMI should monitor and analyse
any action from the competitors which could affect its relative standing.
 As a global company operating in many countries worldwide, EMI Group, is
vulnerable to the deteriorating economic condition worldwide and fluctuation in
exchange rates and interest rates. These can often adversely affect both revenues and
profits for the company.