Warner music group

Résumé du document

Warner Music Group is a company which operates at the international level and which is structured in three Strategic Business Units: Recording, Licensing and Publishing; it is a leading company in national and international repertoire. E-business, for almost all the companies, is a very good way to conduct business and manage evolution and competition. Warner Music Group is no exception of that fact. The last news about Warner Music Group is the partnership between the company and Amazon.com. In fact, this news is dated as the 27th of December 2007 ( it is a very recent event ) and the partnership is about the DRM ( Digital Rights Management ), free music audio downloads from Warner Music Group to customers on Amazon MP3. It means, that now Amazon.com customers can purchase and download digital songs from the Warner Music Group through the Amazon.com website with exclusive tracks of the stand-alone music company. The Amazon.com customers have access to more than 2.9 million MP3 songs, which come from 33,000 labels, the biggest bookshop in the world. Using e-business system asks more flexibility from the company in order to answer to the customers needs, and this is something that the Warner Music Group is achieving.

Extraits

[...] In fact, doing business by Internet reduces: - The number of workers (in general because a part of the staff is replaced by others more specialized on Internet), - The production costs because the company does not have to buy the CDs (it is only in MP3 format), - The engineering costs because the company does not use the machines to write the song on the CD, it is almost directly in the right format. - There is a fourth cost which is reduced: it is about time. Indeed it is much quicker for a customer to buy an album by Internet than to go to the shop. [...]

[...] III E-business, strength or weakness for warner music group ? Internet is a very good way to conduct business but it can reveal some problems : Internet can give an advantage to a company such as Warner Music Group, but it can also have a negative aspect for a company in this business sector. Illegal downloads is one of the bad consequences of E-business in that industry: The statistics show that in France one adult over six downloads in an illegal way some music, films, etc. [...]

[...] The demand was up to the expectations of Warner Music Group and they decided to put the full albums online. “According to Jack HOLZMAN, a long time proponent of independent music and signer of the Doors to Elektra Music, using the Internet is a faster, cheaper way of searching for and validating talent”.[1] See the Jack HOLZMAN photo in the APPENDIX N°2. We can explain the process of the E-customer Relationship Management: E-Customer Relationship Management Target: The Warner Music Group target, about the e-business strategy, is all the Internet users and the music fans. [...]

[...] The objective is to industrialize these purchases with in first place the automation of the procedures of calls for tenders, the flow management between departments of a company, etc. PORTER's Five Forces: Suppliers: The Warner Music Group's suppliers are in one part all the artists that come through the labels in order to produce their songs, and in another part, all the technicians who record, modify, perform the songs in order to produce it. These suppliers are for the E-business part of the Warner Music Group. What is their power on Warner Music Group? [...]

[...] Warner Music Group is no exception to that fact. The last news about Warner Music Group is the partnership between the company and Amazon.com. In fact, this news is dated from the 27th of December 2007 (it is a very recent event) and the partnership is about the DRM (Digital Rights Management) free music audio downloads from Warner Music Group to customers on Amazon MP3. It is mean that now Amazon.com customers can purchase and download digital songs from Warner Music Group through the Amazon.com website with the exclusive tracks of the stand-alone music company. [...]