The EMI's supply chain management

Résumé du document

Since 10 years, the music industry knew a deep period of crisis. There are several reasons : the new opportunities provided by Internet, the changes in the way of listening music, the price of DVD, etc ... But if the environment and the market evolved, the industry stayed inactive. When the sales of compact discs began to decrease, the majors didn't ask themselves if it was the time of change.

All the markets follow the life's curb of the products, but the music industry didn't. The compact disc, compare to the uses of the consumers, didn't feet anymore. During this period, the piracy was the only answers to the decrease that the majors found. If it accelerated for sure the death of the compact discs, it was not the only reason.

Internet has changed the relationship between consumers and music. All the elements of the market changed. There were new entrants :
- New competitors (for instance, which imposed innovative contracts with artists as Live Nation);
- A different kind of distributors on Internet (I-tunes, Emusic, etc ... which modified the way of buying music, the consumer can buy only one track on a album;
- A change about the suppliers with more dematerializations (because Internet and the new formats of exchange such as the mp3's); we can also consider the video games as a kind of product of substitution (many new video games give the possibility to "play" instruments and "make" music).

Extraits

[...] which modified the way of buying music, the consumer can buy only one track on a album A change about the suppliers with more dematerializations (because Internet and the new formats of exchange such as the mp3's); we can also consider the video games as a kind of product of substitution (many new video games give the possibility to instruments and music). The supply chain changed a lot during this period and the main actors had to think about new models and organizations. [...]

[...] They base all the strategy on this point contrary to the other actors which try to find new source of incomes. Emi has paid this immobility and lost market shares and turnovers. We can add that they also lost many artists who want to be part of a label which is efficient and dynamic. One interesting point, they develop innovative phone applications which are a great source of incomes. Actors of the EMI's supply chain Authors / Music composers / Singers: These kinds of actors make the products which shall be sold by EMI. [...]

[...] It is interesting to see that this evolution changes the entire supply chain management. The new activities of EMI are completely integrated in the global strategy and in the process of selling. This efficiency in term of strategy and the control of all this process is important for EMI because it ensures that each product is launched with a concrete and global vision. The control or the perfect collaboration with external actors is compulsory for ensuring this kind of strategy. [...]

[...] They organize, promote and sell the live tour in order to earn money in an other way than by selling the musical products. It is a complex activity which asks real knowledge and a network. The competitors did acquisitions of specialized companies in order to facilitate this activity. Spectators: People buy the seats in the physical and virtual distribution. EMI sells them the live performance of the artists real show). The concert halls are all around the world and are independent. Why did EMI develop this supply chain management? [...]

[...] We are going to include these changes in the supply chain management. Transportation: for the physical offer, the music materials are transporting all the way to the distributors. It is a part important which allows selling to the final consumers. Physical distributors: they are the last link with the consumers. They put the products on their departments and sell them. It is important in term of network: they have store chains all around the world. In France, it is actors such as Fancy, Virgin, etc . [...]