Sony Bmg Case Study
Sony BMG Music Entertainment, the second largest record music company in the world. This study is about the Sony BMG's Market Entry into Second Life, as Virtual World of Second Life becomes increasingly popular. It started as a little 3D online community in 2003 developed into a sophisticated virtual world with more than 4 million users from around the globe and with an economy larger than that of a small real-world country. As part of its search for new revenue streams in an industry that has frequently failed to keep pace with its customers, Sony BMG wants to Second Life, and presumably to facilitate shared music experiences. This marketing plan will help the company in achieving its strategic marketing objectives.
Sony BMG's Market Entry into Second Life:
Mission Statement:
“To experience the joy of advancing and applying technology for the benefit of the public. To be leader in virtual world."
External Environmental Analysis
The external review can be done using PESTEL analysis, Porter’s five forces and by analysing the competitors and the customers.
Macro Environmental Analysis (PESTEL)
Macro environment analysis is done for both country and virtual world.
Political:
USA is politically stable country and present government is working to improve the condition of business. Government is providing subsidies on some businesses as well. Such conditions are good for business and will encourage new investors and will benefit sony BMG.
In virtual world there is no political government .It’s a community which connect different people. Such conditions are good for business and will encourage new investors. If we look at Sony bmg politically they don’t have any pressure.
Economic:
During recent recession many companies have turned down. The condition for doing businesses is getting very tough. It was estimated that the annual sales of Sony BMG has dropped down due to the current climate.
Second Life was an economy of its own. Linden Lab
Sony BMG's Market Entry into Second Life:
Mission Statement:
“To experience the joy of advancing and applying technology for the benefit of the public. To be leader in virtual world."
External Environmental Analysis
The external review can be done using PESTEL analysis, Porter’s five forces and by analysing the competitors and the customers.
Macro Environmental Analysis (PESTEL)
Macro environment analysis is done for both country and virtual world.
Political:
USA is politically stable country and present government is working to improve the condition of business. Government is providing subsidies on some businesses as well. Such conditions are good for business and will encourage new investors and will benefit sony BMG.
In virtual world there is no political government .It’s a community which connect different people. Such conditions are good for business and will encourage new investors. If we look at Sony bmg politically they don’t have any pressure.
Economic:
During recent recession many companies have turned down. The condition for doing businesses is getting very tough. It was estimated that the annual sales of Sony BMG has dropped down due to the current climate.
Second Life was an economy of its own. Linden Lab