Todd Lipscomb, Belma Alic, and Teresa Halpin
Strategic Analysis Outline:
1. Strategic Analysis A. E-Sonic NAICS falls into two different codes 334614 and 512220. The first code 334614 definition is, “Providing mass duplication of recorded products; Software and other Prerecorded Compact Disc, Tape, and Record Reproducing” (). This code is given in reference to E-Sonic’s producing of music on to various forms of products.
The second code 512220 is, “Releasing, Promoting, and Distributing sound recordings. Integrated Record Production/Distribution” (). B. Analysis of E-Sonic’s external market environment 1. Sonic records are a part of the recording and production …show more content…
Executive Summary A. Sonic Records is one of the top market-leading recording studios in the entertainment industry, and is currently working on expanding by opening an online music store. This is a result of the changing in the industry, in which there are multiple ways to now distribute and sell music. The creation of E-Sonic is going to allow Sonic Records step forward into the new way of selling music.
While Sonic Records is making the step forward into the new way of selling music. The online music industry has been around for the better part of a decade now. With that being said there is already a strong market in the industry, which will make for a fierce competition. In comparison this would be equivalent to a company breaking into the fast food industry trying to compete with McDonald’s and Burger King. These are companies that have held the top of the industry for a long time. The challenge for a new company to break through would be an uphill battle. E-Sonics top competitors would be ITunes, Sirius, and Pandora.
The problem with piracy will be a competitive factor, although there are more laws being created to help reduce the problem. As time goes by,