Essay about Emi Group Case Analysis
CD Pricing in the Recorded Music Industry
EMI music group was formed in 1931 when Gramophone Company merges with Columbia Graphophone to form Electric and Musical Industries (EMI 2007). EMI started with operations in nineteen countries and has eventually grown to operations in over fifty countries. EMI has the rights to over one musical composition. Of the five major music companies, EMI has the least market share in the Unites States. This market share may now be in jeopardy as Universal Records has decided to decrease the price of its CD's in an effort to generate sales. EMI must determine what they would gain or lose by dropping or not dropping their retail price for CD's and the price charged to …show more content…
For every action there is an equal and opposite reaction and such is the case for each of the solutions for EMI. Changing EMI's marketing mix may give EMI the increase in market share that it needs, but the process of change is time consuming and can be costly. Money and Time are not two things readily at the disposal of EMI and probably wont' be for some time. By offering more music geared towards the consumer who actually purchases music, EMI will place itself in a position to sell CD's to consumers who purchase CD's. However this also takes market research, time and heavy promotion of new artist. By dropping artist that do not produce and supplying the music industry with high quality artist, EMI will be able to increase their market share. But as mentioned in the case, the music industry is extremely competitive and close-knit. Any meetings with possible new artist may cause other record labels to attempt to recruit that artist as well. Decreasing its CD prices is and option for EMI and may increase sales of their products. However as stated earlier sales of CD's is not the main problem EMI has, lack of market share is.
Using emerging forms of technology to increase awareness of themselves and their artist