case study

I am researching into Sony which is a global recorded music company which includes a broad array of both local artists and international superstars such as Jimi Hendrix and Michael Jackson. Sony Music Entertainment owns 25.61% of the US market share and 23.1% of the UK market share.
Song BMG is a majorly conglomerate company, multi-industry company and is multinational. Sony owns a range of mass media products such as television, radio, publishing, video and radio. US music labels Sony owns include American Recordings, Arista Nashville, Battery Records, Beach Street Records, BNA Records, Columbia Nashville, Columbia Records, Day 1, Epic Records, Essential Records, Flicker Records, LaFace Records, Legacy Recordings, MASTERWORKS, Polo Grounds, RCA Records, RCA Nashville, RCA Red Seal, RCA Victor, Reunion Records, Roc Nation, Sony Classical, Sony Music Latin, Star Time International, Verity Gospel Music Group, and Volcano Entertainment. Sony have alot of power and ownership,  their costs are drastically reduced increasing their overall profit. Sony Coropration owns alot of major companies under their name such as Metro-Goldwyn-Mayer, Sony Pictures, Columbia Records, Epic Records, RCA Records, RCA Victor, Sony BMG Masterworks, Sony BMG Music Entertainment and Sony Music USA

Sony own several types of companies which include products such as Consumer Electronics, telecommunications, communication & information equipment, semiconductor, electronic devices, battery, chemicals, playstation, films, television, music. They offer a range of digital equipment such as cameras, Sony Pictures Entertainment, They launched the PlayStation in in late 1994,a line up laptops branded as VAIO and even produced a 'green TV' for ecological consumers with advantages such as less energy consumption.

In February 27, 2009, Sony Corporation, the company announced a major reorganization and a new management team. The changes, effective April 1, 2009, reorganised the company's electronics and game businesses to improve profitability and strengthen competitiveness in the midst of the continued global economic crisis. They will also accelerate the production of innovative networked products and services by strategically integrating these two business groups.
They realised that consumers want products that are "networked, multi-functional and service-enhanced utilizing open technologies, and user experiences that are rich, shared and, increasingly, green," said Mr. Stringer in announcing these changes.

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its six operating segments – Consumer Products & Services Group (consumer electronics, game & network services), Professional, Device & Solutions Group (B2B products & services), Pictures, Music, Financial Services and Sony Ericsson.^[These make Sony one of the most comprehensive entertainment companies in the world.

Sony is laterally integrated (both horizontally and vertically) as they market the product to different market segments or geographical areas, the subsidiary companies join together that produce similar but related products. advatanges of using this type of integration are:

1. Increases the size of the business and allows for more internal
2. One large firm may need fewer workers, managers and premises than two – a process known as
3. Mergers often justified by the existence of
economies of sale – lower long run average costs – improved profits and competitiveness rationalization again designed to achieve cost savings "synergies"
4. Wider range of products - (
diversification). Opportunities for economies of scope
5. Reduces competition
by removing rivals – increases market share and pricing power.

With an increase in file sharing and music sales plummeting in recent years, labels and organizations have had to change their strategies and the way they work with artists. New types of deals are being made with artists called "multiple rights" or "360" deals with artists. These types of pacts give labels rights and percentages to artist's touring, merchandising, and endorsements. In exchange for these rights, labels usually give higher advancement payments to artists, have more patience with artist development, and higher percentages in CD sales. These 360 style deals are most effective when the artist is established and has a loyal fan base.