67
Warner EMI Music. Strategic Development for the First
Decade of the New Millennium
Demetris Vrontis
Abstract
This case has been compiled to put forward the author’s suggestions for future strategic development open to Warner EMI Music as they develop during the 1st Decade of the 21st Century.
The case is divided into four main sections. Section one is concerned with an environmental scanning including an analysis of Porters’ Value Chain and Five Forces models. This section identifies the key strategic issues for the new company and industry and provides an overview of their internal strengths and weaknesses and external opportunities and threats. Section two provides meaningful recommendations, strategic directions and methods to Warner EMI Music for the key strategies to be followed in the first decade of the new millennium. This is undertaken by utilising a number of respected strategic models including the Ansoff’s Matrix, Johnson and Scholes’ directions for strategic development and development strategies, and Porters’ three generic strategies. Section three deals with the cultural organisational issues that have risen by the formation of the new company and section four examines whether the proposed strategy is feasible, suitable and acceptable to be used by Warner EMI Music.
Key words: EMI, Time Warner, Situation Analysis, Strategy, Culture.
Analysing the Environment and Strategic Models for Warner EMI Music
The music industry is entering a period of fundamental transition. The key drivers include the tremendous opportunities afforded by the Internet and developments in new media, the increasing globalisation of the music industry, as well as constantly evolving consumer tastes and preferences (www.timewarner.com).
Industry forecasts indicate that nearly 10% of world-wide music sales will be acquired through the Internet by 2004 (The Guardian, 24.1.2000: 5). New media offers music
References: Ansoff, I. (September-October 1957), “Strategies for Diversification”, Harvard Business Review. 2. Bennett, R. (1999), Corporate Strategy, Second Edition, London: Pitman Publishing, Financial Times. 3. Hussey, D. (1999), Strategic Management, from Theory to Practice, Fourth Edition, Oxford: Butterworth-Heinemann. 4. Johnson, G. and Scholes, K. (1999), Exploring Corporate Strategy, Fifth Edition, London: Prentice Hall Europe. 5. Porter, M. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, The Free Press. 6. Rosen, R. (1995), Strategic Management, An Introduction, London: Pitman Publishing, Financial Times. 7. Schein, E. (1985), Organisation Culture and Leadership, Jossey-Bass. 8. The Guardian (24.1.2000), 'EMI and Time Warner Form Giant Music Group ', 9 10. Vrontis, D. Vignali, C. and Davies, B. (2000), SRATICS, Strategy and Tactics in Marketing, McGraw Hill. 11. Vrontis, D. Vignali, C. Dana, L.P. and Davies, B. (2000), Principles of International Marketing, McGraw Hill.