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These factors fall into political, economical, social and technological groups Pearce, Robinson, Political factors affecting music business in whole and CCM in particular: Environmental regulations and employment requirement do not affect business CCM is engaged into.
In whole, it should be noticed that political factors are favorable for music recording industry and for CCM particularly. Economic factors include indexes in the macro economy that can affect music recording industry.
Here also, macroeconomic factors, such as economic growth, interest rates and inflation rate are favorable for CCM. S economy kept growing steadily since CPI falls down in Unemployment rate decreased gradually from to Social factors, covering demographical and cultural aspects of the environment external to music recording industry are rate of population growth, age distribution and carrier attitudes.
The population growth in the United States is steady and age distribution also favors the music recording industry. It should be noted that for music industry in whole, teenagers and years-olds Carnival porter 5 forces primary customer segment, but CCM aims at attracting people of age range.
Thus, the considerable share of American population fits this target market. Technological advancements in music recording, promotion and distribution have several effects on the recording industry.
One aspect of the issue is that musicians are no longer dependent on major recording labels to create or distribute their products. In the space traditional audio can fit 12 to 15 audio tracks; MP3 software can store approximately music tracks.
On the other hand, new digital technologies which appeared in late 20 century not only facilitate the process of music recording, but make it considerably cheaper, providing the possibility for multiple firms with limited resources to enter the market.
All the equipment and hardware, due to the global advancements in technology, are much more affordable for an average artist or businessman. Not only assembly of studio with all necessary equipment and hardware is cheaper, but duplication of CDs, storage and shipping are less expensive as well.
Positioning of CCM in a distinctive market niche. CCM is microlabel recording company which specializes on classic and traditional instrumental music. Growing customer base and customer loyalty within target group. Customer base growth due to expansion of product lines 4 already, each year 2 new product lines emergeand geographical coverage of listeners.
Good customer service shown through the direct contact between Darren and his fans. Weaknesses No clear strategic vision: CCM needs a long term vision which includes all areas of the business, from marketing and management to distribution and human resources.
At the moment the company faces a dilemma of further strategic development, which will be focused on either enhancing or developing the recording company or more active promotion and distribution of the products through the possibilities of other companies the company is currently regarded by its management as potential object of acquisition or investment Competitive disadvantages: CCM are not able to enter the retail market due to its current level of sales.
Competitors such as major labels have advantage because they have major market power and influence. Such firms can specify when their music should be played on radio and negotiate large contracts with distributors and retail outlets, hence giving themselves broader appeal.
Limited channels of distribution: These channels are major sources of profit for the company.Porter’s 5 forces model allows to analyse the factors outside the Cruise industry that influence the nature of Carnival competition within it, the forces inside the Cruise industry that influence the way in which Carnival compete, and so the company’s likely profitability.
Jean Marie Lucien Pierre Anouilh (French: [ʒɑ̃ anuj]; 23 June – 3 October ) was a French dramatist whose career spanned five decades. Though his work ranged from high drama to absurdist farce, Anouilh is best known for his play Antigone, an adaptation of Sophocles' classical drama, that was seen as an attack on Marshal Pétain's Vichy government.
CARNIVAL CORPORATION & PLC PORTER’S 5 FORCES Porter’s 5 forces model allows to analyse the factors outside the Cruise industry that influence the nature of Carnival competition within it, the forces inside the Cruise industry that influence the way in which Carnival compete, and so the company’s likely profitability.
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