Management

C H A P T E R 2 The External environment The Broad Environment Socio-cultural Forces world-wide Economic Forces Global Technological Forces Global Political/Legal Forces The Task Environment Competitive Forces External Stakeholders and Environmental Uncertainty Partnering with External Stakeholders strategical Groups Key Points Summary End Notes S T R A T E G Y I N F O C U S The medication Industry Just standardized the steel and auto industries during earlier decades, the euphony industry is below siege. In recent years, the technological, economic, legal, and competitive forces have conspired to alter a decades-old trade model. The traditional music recording and production companies in the $40 billion music industry are world forced to evolve from selling products to simply providing a service. Music CDs each cost about $.50 to make, but retail for $15.00 or more. The $15.00 retail price covers the cost of production, marketing, distribution, royalties to the artists, and percentages for the record companies and the retailers. In a major settlement with record companies, the Federal Trade accusation recently concluded that consumers may have overpaid more than $450 one million million for CDs in the past three years.

The agreement requires that record companies vary their pricing policies. The more significant threat to the traditional business model is technological change. The Internet has spawned a series of start-up companies that set aside swapping and downloading of music files. Several companies, with Napster being the most famous, capitalized on the rest of transferring MP3 music files. The approach used by these companies is to simply ferment as a switchboard for matching up customers with their music interests, which allows users to copy music from other users free of charge. As expected, Napsters activities have been challenged in court as a assault of copyright laws. A San Francisco federal judge ordered Napster to deliver its music transfer operations. Napster... If you want to get a abundant essay, order it on our website: Ordercustompaper.com

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