Polyphonic Hmi, Company Analysis
Polyphonic HMI, Company Analysis
DECISION PROBLEMS
Polyphonic HMI is in the process of establishing their Hit Song Science technology in the music industry. Major issue is the choice of a target market that would make most effective use of limited $150,000 marketing budget. Following this decision, Polyphonic HMI also needs to determine its key marketing strategies such are pricing, positioning of the product for the target market in order to maximize the profits.
ANALYSIS OF INDUSTRY (based on Porter’s 5 Forces)
The music industry is highly competitive. The key players in the industry are the artists who write, compose, and perform the music; record companies who publish the music; and producers who help the artist select music and develop the style. Buyer power is high in the music industry as consumption patterns and consumers’ preferences of artists and styles directly affect revenues and profits of retailers, record companies and also determine the success of artists, songs and albums. Conversely, supplier power in the music industry is relatively low as majority of the successful albums and singles are created by the limited amount of contracted established musicians (page 6). The threat of potential entrants in this industry is low since regardless of thousands musicians trying to get into the industry, very few would pass screening process and will get even an opportunity for success. Nowadays there are issues of on and offline piracy that have direct negative effect on the growth of the music industry, especially in USA (-10.4%). There are currently five big companies that dominate the recorded music business; however, other smaller labels exist. (page 5). Lastly, the threat of substitutes is low; music is a source of entertainment that cannot be easily substituted. Due to emotional connections loyal music fans of certain artists and genres of music will not look for and possibly will not find a replacement.
COMPANY ANALYSIS (base d on SWOT)
DECISION PROBLEMS
Polyphonic HMI is in the process of establishing their Hit Song Science technology in the music industry. Major issue is the choice of a target market that would make most effective use of limited $150,000 marketing budget. Following this decision, Polyphonic HMI also needs to determine its key marketing strategies such are pricing, positioning of the product for the target market in order to maximize the profits.
ANALYSIS OF INDUSTRY (based on Porter’s 5 Forces)
The music industry is highly competitive. The key players in the industry are the artists who write, compose, and perform the music; record companies who publish the music; and producers who help the artist select music and develop the style. Buyer power is high in the music industry as consumption patterns and consumers’ preferences of artists and styles directly affect revenues and profits of retailers, record companies and also determine the success of artists, songs and albums. Conversely, supplier power in the music industry is relatively low as majority of the successful albums and singles are created by the limited amount of contracted established musicians (page 6). The threat of potential entrants in this industry is low since regardless of thousands musicians trying to get into the industry, very few would pass screening process and will get even an opportunity for success. Nowadays there are issues of on and offline piracy that have direct negative effect on the growth of the music industry, especially in USA (-10.4%). There are currently five big companies that dominate the recorded music business; however, other smaller labels exist. (page 5). Lastly, the threat of substitutes is low; music is a source of entertainment that cannot be easily substituted. Due to emotional connections loyal music fans of certain artists and genres of music will not look for and possibly will not find a replacement.
COMPANY ANALYSIS (base d on SWOT)