Ramon V.

Del Rosario College of Business

In partial fulfillment of the course requirements
in Strategic Management BUS835M
Term 1, A.Y. 2019-2020

Case Analysis # 1

Sony Music Entertainment and the

Evolution of the Music Industry

Submitted by:
Abella, Sarah Janine A.
Bellen, Angela
Dela Cruz, Rea Cassandra B.
Merza, Irma V.

Submitted to:
Prof. Joseph Pangilinan

October 2, 2019
 Table of Contents
I. Case Details ...................................................................................................................................................... 1
A. Case Background ....................................................................................................................................... 1
B. Case Timeline ............................................................................................................................................. 1
C. Mission and Vision ..................................................................................................................................... 2
II. Strategy Formation ........................................................................................................................................ 2
A.Statement of the Problem ........................................................................................................................... 2
B. Point of View .............................................................................................................................................. 2
C. Objectives ................................................................................................................................................... 2
D. Scope and Limitation/s .............................................................................................................................. 2
III. Case Analysis ................................................................................................................................................ 3
A. External Analysis ....................................................................................................................................... 3
a. PESTLE Framework.............................................................................................................................. 3
b. Porter’s Five Forces ............................................................................................................................... 4
c. SWOT – (O) Opportunities and (T) Threats ........................................................................................ 5
B. Internal Analysis ........................................................................................................................................ 6
a. Value Chain Analysis ............................................................................................................................. 6
b. Financial Analysis .................................................................................................................................. 7
c. SWOT – (S) Strengths and (W)Weaknesses ......................................................................................... 8
IV. Strategy Formulation ................................................................................................................................... 9
A. IFE, EFE and IE Matrix ........................................................................................................................... 9
a. Internal Factor Matrix (IFE) Matrix.................................................................................................... 9
b. External Factor Matrix (EFE) Matrix ................................................................................................. 9
c. Internal- External Matrix .................................................................................................................... 10
V. Alternative Courses of Action ..................................................................................................................... 11
A. ACA Evaluation ....................................................................................................................................... 11
1. Improve physical distribution channel .............................................................................................. 11
2. Invest in Research & Development to create an integrated streaming platform .......................... 11
3. Form strategic partnerships with successful streaming platforms such as Spotify, Youtube,
Itunes, etc. ............................................................................................................................................ 12
4. Tie up with other record labels to create multi-label streaming application to compete with
existing streaming apps like Spotify................................................................................................... 13
B. Conclusion and Recommendation .......................................................................................................... 13
VII. References .................................................................................................................................................. 17
I. Case Details

A. Case Background

Sony Music Entertainment is a Japanese company founded in 1929, and in July 2012,
Sony/ATV Music Publishing, a joint venture between Sony and the Michael Jackson Family
Trust, along with a consortium of other investment firms, bought the publishing arm of the
EMI Group, which solidified Sony’s position as the world’s largest music publisher. The
music industry was declining due to numerous substitutes arising as the digital age came into
play. There was a time where companies shut down due to bankruptcy however it was
mentioned in the case that they ended to blame piracy for their financial downturn, not digital
media, and not an outdated business model.

A change in strategy came in the year 2009, when Sony Music Entertainment became a
wholly owned subsidiary of Sony Corporation. This was done to lower costs through
increased efficiency, and, according to Sony’s 2009 annual report, it was envisioned that the
acquisition would allow the company to work more effectively with the electronics, game,
and pictures businesses.

In 2011, Doug Morris became the Chief Executive Officer of Sony Music Entertainment,
with him embracing the margins of becoming thinner and the industry was declining, it was
a challenge to sustain the competitive advantage of Sony Music Entertainment, and develop
a more strategic business model in order to adapt to the unstoppable change in the music
industry, to a world of digitalization.

B. Case Timeline

1929 - Sony Music Entertainment was founded.

1938 - Sony was acquired by Columbia Broadcasting Company
1976 - Sony introduced the optical digital audio disc, known as the compact disc (CD)
1983 - CD was introduced to American market, by an American company, CBS Inc.
1988 - CBS Records Inc. was absorbed.
1991 - The new company was renamed Sony Music Entertainment Inc.
1993 - release of the MP3 algorithm.
2000 - in the early 2000s, there’s a huge increase in the copyright infringement in the
music industry
2009 - Sony Music Entertainment became a wholly owned subsidiary of Sony Corporation.
2010 - Sony Music announced Music Unlimited, a cloud-based music streaming service
powered by Qriocity, the company’s video distribution platform.
2011 - Doug Morris became the Chief Executive Officer of Sony Music Entertainment
2014 - Sony was the second-largest record label, with 20% of total industry market share.

There were also three main methods of digital music distribution: digital download, Internet
radio, and interactive streaming

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 C. Mission and Vision
Vision
“Our vision is to use our passion for technology, content and services to deliver kando, in
ways that only Sony can.”

Mission
Sony’s corporate mission is to be “a company that provides customers with kando – to move
them emotionally – and inspires and fulfills their curiosity.”

II. Strategy Formation

A. Statement of the Problem
What strategic measures should Sony Entertainment Music take in order to adapt to the
digital trend and sustain their competitive advantage in the music industry?

B. Point of View
This study will be taken from the point of view of Doug Morris, Sony Music Entertainment's
Chief Executive Officer (CEO) during the time of the case.

C. Objectives
The study aims to:
a. Identify the strategic measures in order to adapt to the digital trend and sustain their
competitive advantage in the music industry.
b. Come up with a decision based on the internal and external factors analysis result for
SME.

D. Scope and Limitation/s

The group assumed that Sony Music Entertainment current year is 2014 together with the
following scope and limitations:

 The group’s analysis covered information up to the year 2014. Any known market
changes after 2014 are not considered.
 Analysis was limited to the available data from the original case reading material.

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III. Case Analysis
A. External Analysis
a. PESTLE Framework

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b. Porter’s Five Forces

 Bargaining Power of Suppliers (HIGH)

The power of suppliers depends on the popularity of artists will be contingent to the
level of influence and bargaining power over SME. The more unique, the more
versatile; their services are in demand it cannot be substituted. Because of the demand
for new talents from a wide range of record labels, there will be lots of options for
artists which makes signing new artists to a record label competitive. With this, artist
have higher bargaining power.

On the other hand, since SME specializes on famous artists, it will be difficult to
compete except for their main competitors. Then again, SME has a pool of artists to
choose from, consequent lessening the power of the artist to have over them. In case
of the artist does not work, SME can easily choose an alternative to cover the loss.

In addition, the facility of an artist to promote and sell their albums over web pages
had eliminated the need for most record labels. They only serve to offer studios, music
equipment and support rather than full services like promotion, distribution, and sales
because of the internet era, which resulted in the increase of bargaining power of
supplier though self-promotion is less.

For the suppliers of recording disks and other materials needed for album packaging
resulted in a lesser bargaining power because they are purchased in bulk and covered
within a contract.

 Threats of Substitute Products (HIGH)

The threat of substitutes is very high because of the digital revolution. Options were
opened to the consumers, which allowed them not to rely solely on music albums and
services provided by the music label companies. With the substitute being easily
accessible and viable, alternatives for paid music purchases or downloads can be
identified to be free streaming music online, pirated music downloads online and TV
& Radio channels playing 24-hour music.

In addition, other channels of entertainment are also at play like movies or games,
though they are not direct substitutes, but they still provide similar services in
entertaining the consumer, but low level of threat can be considered.

 Rivalry Among Competing Firms (HIGH to MEDIUM)

SME is the 2nd largest music business in the world. The main competition is derived
from Universal Music Group, Warner Music Group, and EMI Group. The competition
of these companies depends on the popularity of the artist and their songs. Factors
such as brand identity and product differentiation are important. The artist branding
gives SME a competitive edge because of its artists like Elvis Presley, Prince, George
Michael, Michael Jackson. Even though each competitor offers equally attractive

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 products and services (artists), it is the branding of each artist that SME offers that sets
the company apart and gives it the strength to be ahead of the competition. For product
differentiation, given that all genres are being represented by common artist, product
differentiation is very low. It can only be differentiated through music formats (i.e.
CD, DVD, Blu-Ray, MP3, WMV, etc.).

 Potential Entry of New Competition (LOW to MEDIUM)

New entrants will be having difficulty taking on the current activities of the established
record label companies. The power of influence and competition was already at play;
new competition can join the market, but it will be a matter of survival should be
considered. Given that the established record label companies spend millions in
developing strategies, accumulating talents, marketing, talent management and
investments.

New entrants shall be needing the specialist skills and having access to money for the
extensive distribution network, including online partners for online distribution, which
is the mainstream of distribution of albums to sale.

Furthermore, due to the experience and financial power of the industry giants,
capturing a significant market share will be very difficult in a short time which makes
the threat of new entrants is very low.

 Bargaining Power of Consumers (HIGH)

What consumers prefer to do can eventually affect the company and the music industry
itself, regardless if it is individual or corporate. For individuals, the bargaining power
of customers can be assumed to be very high because they are the main listeners and
they purchase music online and offline. With the introduction of a digital music era,
the option becomes extensive which most of the consumers prefer the cheapest, the
most accessible, the most convenient (i.e. illegal downloading, peer-to-peer file
sharing, free music online, burning CDs). In addition, with intense competition in the
industry, price cutting is evident, especially in online music sales. For corporate
consumers, who purchase albums in bulk, the bargaining power can be said to be low
due to the prices agreed between them and the labels at the time of contract signing.

c. SWOT – (O) Opportunities and (T) Threats

Opportunities
 Emergence of streaming services via subscription
 Emergence of downloadable music applications to mobile devices
 Releasing MP3 songs
 Genres and music culture collaboration
 Discovery of new and development of current talents
 Digital media preference of consumers.
 Technological innovations resulting in easier access on internet
 Growth in niche market

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  Partnering with independent labels
 Retail stores for music are decreasing
 Cybercrime and Anti-piracy laws mandated by the government

Threats
 Increase of illegitimate music purchase. Physical sales are decreasing due to
digital music.
 Emergence of online substitute - the internet has become a substitute of music
albums.
 Digital media preference of consumers. People prefer listening to songs through
Internet (Spotify, Rhapsody, YouTube), on the radio, on TV channels.
 Change in music trends
 Self-publication of artists due to the accessibility of digital distribution or media
platform.
 Consumer awareness and consciousness on data privacy
 Public opposition on piracy

B. Internal Analysis
a. Value Chain Analysis
Sony Corporation has a diverse business portfolio with subsidiaries like Sony Music
Entertainment vertically integrated to the parent company. In 2009, Sony Music
Entertainment became a wholly owned subsidiary of Sony Corp., bought out Bertelsmann
AG - - to lower costs through increased efficiency, it was envisioned that the acquisition
would allow the company to work more effectively with its core business which are
electronics, game and picture business.

Vertical integration as a strategy is adopted by Sony Corporation in order to have more

control and leverage over the creation of their desired product or service in a specific
market. Sony Corporation went through strategic collaborations, acquisitions, mergers and
joint ventures such as:
 Collaboration with BMG focusing on finding promising new talents and creating a fan
base its big stars
 Joint venture with MySpace, an interactive online platform for music sales,
subscription services and ad supported entertainment where Sony artists' greatest hits
were on stock
 Mobile phones
 An agreement with Amazon to sell MP3s compatible with Ipods and other mp3 players
 Formation of Vevo, a music video licensor and aggregator, together with Abu Dhabi
Media and Universal Music Group
 Launching of Music Unlimited, a cloud-based music streaming service powered by
Qriocity, Sonýs video distribution platform

SME has resources and capabilities. It has a wealth of artists, record catalogs, record labels
technological support, deeply rooted from its parent company, Sony Corporation.

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b. Financial Analysis

Industry
2013 2012 2011 2010 2009
Standard

Cost Control

Gross Profit
Margin 3.49% 0.84% 2.59% 0.86% -2.62% 15.7 %

Operating Profit
Margin 3.38% -1.04% 2.78% 0.44% -2.95% 7.94%

Net Profit
Margin 0.63% 7.03% -3.61% -0.57% -1.28% 2.73%

Liquidity

Current Ratio 0.87 0.80 0.93 1.02 0.95 1.47

Asset Utilization

Return on
Assets 0.30% 4.34% 2.01% 0.32% 0.83% 2.85%

Return on
Equity 2% 23% -10% -1% 3% 4.99%

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 Financial Impact to Sony Music Entertainment Strength/
Aspect Weakness?

Market Share Second largest record label with 20% of total industry Strength
market share in 2014.

Profitability The increase from 2009 to 2013 of the profitability Strength

(GPM, OPM, ratios indicates an increase in the margin of the
NPM) company available to cover expenses and generate
profit.

Liquidity The decline from 2009 to 2013 of the current ratios Weakness
(Current poses a threat to the liquidity of the organization
Ratio)

Asset The fluctuating ratio from 2009 to 2013 of the ROA Weakness
Utilization indicates that SME is not able to utilize its assets
(ROA, ROE) effectively. On the other hand, increase of ROE
indicates that SME was able to utilize its investor's
money but still below the industry average.

c. SWOT – (S) Strengths and (W)Weaknesses

Strengths
 Second largest record label in the music industry.
 Wide range of artists portfolio
 Integrated division and product distribution.
 Various product distribution - mobile, radio, TV, internet
 Pioneer in the intersection of music and technology with its breakthrough products -
Walkman, Trinitron Color television, VCR, Playstation, Crystal LED Innovation,
magnetic recording tape, the compact disc, and the Blu-Ray disc
 Improvement on 2009-2013 profit margin

Weaknesses
 Music artists retention
 Lack of recent breakthrough product e.g. Itunes & Ipod, Youtube, Spotify.
 Vulnerability of IT security
 Lack of introduction/innovation of new music advancement against customer
response
 Diversification shifted its focus from its core competency
 Unsuccessful projects such as Music Unlimited 2010 and Pres Play in 2001 due to
lack of synergy between divisions.
 Financial liquidity issue from 2009-2013 due to expansion and segmentation.

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IV. Strategy Formulation
A. IFE, EFE and IE Matrix

The group will be deriving the Internal Factor Evaluation (IFE) and External Factor
Evaluation (EFE) from the previously presented PESTEL and SWOT analysis. These two
evaluations will be used as input to the Internal-External (IE) Matrix.

a. Internal Factor Matrix (IFE) Matrix

The Internal Factor Evaluation (IFE) is useful for the organization to assess how strong
or weak each factor of a firm (David, 2017). Based on the group’s analysis, Sony has a
strong internal position proven by the average weighted score of 3.05 which is above the
average IFE score of 2.5.

b. External Factor Matrix (EFE) Matrix

While IFE focuses on the internal factors, the External Factor Evaluation (EFE) evaluates
how well does an organization’s strategy responds to its opportunities and threats. Based
on the group’s analysis, Sony’s average weighted score of 2.30 implies a need for
improvement on strategies to effectively respond to their external environment.

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c. Internal- External Matrix

After plotting the average weighted scores of 3.05 and 2.30 from the IFE and EFE
matrices, Sony falls under the Section IV of IE Matrix. This means that the company
may concentrate on Grow and Build strategies.

Grow and Build Strategies:

a. Backward, Forward, Horizontal Integration
b. Market Penetration
c. Market Development
d. Product Development

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 Hence, the group will focus the Alternative Courses of Action (ACA) to these
strategies.

V. Alternative Courses of Action

A. ACA Evaluation

1. Improve physical distribution channel

Increasing the physical presence of SME through wide distribution of its products to
stores so consumers would remain familiar with the brand and its products would allow
SME to keep in touch with the consumers. This strategy would help keep the competitive
advantage of SME since its products readily available in the market, increasing the
presence and customer relationship.

Pros Cons

 More stores (in malls or own shops)  Additional cost (manpower,

 Increase accessibility to consumers inventory, transportation,
construction)

2. Invest in Research & Development to create an integrated streaming platform

This long-term strategy directs SME to the path of digitalization, embracing the change
of how the music industry will be in the next couple years. The integration of music,
video, tv, radio that can be used by Sony and non-Sony devices, transport (cars), other
home appliances and business equipment; and redesign Music Unlimited Application.

If SME would not evolve it would be a huge risk that would pull them down to the end
of the line. Considering the creation of streaming platforms and redesign of Music

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 Unlimited Application would be a big step further to develop their presence in the digital
world and this could be their ticket to sustain their competitive advantage in the market.

Pros Cons

 Promotes synergy in Sony Corp. by  Increase R&D expense. This

engaging the different business units
to come together and create a
cohesive breakthrough
product/service for the streaming
segment, Sony Music for music, Sony
Pictures Entertainment for TV and
video, Sony Entertainment for
gaming, Sony Mobile for mobile
devices.
 Maximizes Sony Corp.’s resources as
it makes use of internal talents and
materials.
 This breakthrough streaming
platform can put back Sony Corp. as
the leader in innovation. Bringing
back the glory days of the Sony
Walkman, CD Man, Playstation,
Bravia, Trinitron.
 Take a giant leap by exploring the
landscape of the music industry 10
years from now. Be ahead.
immediately affects the financial
standing of the company and the
results can be a long gestating and
unpredictable.
 Mobile communication plays a key
role here, a business segment where
Sony is not on top of its
game. Experia is not in the top global
brands of mobile phones in the
world. New players, for example,
like Huawei has overtaken Experia.
 This is a hit and miss. The digital
space is crowded with top tech
companies, highly creative start-
ups. Sony is no guaranteed a spot at
the top until they make that milestone
product/service.
 A strong R&D starts with
leadership. In the past, Sony has
faltered because the leadership did
not get priority R & D.

3. Form strategic partnerships with successful streaming platforms such as Spotify,

Youtube, Itunes, etc.
Since the music industry is already in the path of turning into digital age, Sony Music
Entertainment must consider the options on how to digitize their products and make use
of what is available in the market. It is important to also consider the preferences of the
customers especially the ease of access and portability of music, where it can be available
wherever you go without the hassle of bringing bulky items like CDs and player.

Pros Cons

 Customers will have an ease of  There could be less control on the

listening to music since it will be
available in a compiled list of songs
through a smartphone or laptop.
 Promotes external synergy, SME and
the rest of the players/partners.
selling of music items since it might
be downloaded from an illegal file-
sharing services.
 There could be a decline in sales if
there will be no digital copy
protection for music in place.

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  SME can leverage on the different  There will be limited income
strengths of each of its partners. potential since only royalties are paid.
 Efficiency
 Earn royalties
 No additional operational expenses or
costs

4. Tie up with other record labels to create multi-label streaming application to

compete with existing streaming apps like Spotify.
Partnership with other record label would ease the long-term process of research and
design, since SME would have access to create streaming application in order to remain
competitive. This strategy would also help in the profitability of the company.

Pros Cons

 Easily accessible and less costly than  Decrease on competitive advantage.

opening new physical stores.  Additional costs in research and
 Less manpower needed. development, and advertising
 Increase competitive advantage.  Uncertain level of user acceptance
 Can provide additional income to
Sony by making the application
subscription based.
 Can offer application exclusivity:
 First to listen to new albums
 Exclusive photos and videos of Sony
artists
 Upcoming artists’ events
 New features can be added:
 Lyrics of the songs
 Customizable playlist
 Song/Genre suggestion
 Opportunity to increase market by
making the application compatible to
all mobile devices.

B. Conclusion and Recommendation

The group will utilize the Quantitative Strategic Planning Matrix (QSPM) which uses the
internal and external factors to evaluate the best alternative strategy for the identified problem.

Attractiveness Score: 0 = not relevant; 1 = not acceptable; 2 = possibly acceptable; 3 = probably

acceptable; 4 = most acceptable.

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 Strategic Alternatives
ACA 1 ACA 2 ACA 3 ACA 4
Tie up with other
Invest in R&D Form strategic record labels to
Improve create multi-label
to create an partnerships
physical streaming
integrated with successful application to
distribution
streaming streaming compete with
channel
platform platforms existing streaming
apps like Spotify.
Key Internal Factors W Score WS Score WS Score WS Score WS
Strengths
Second largest record
label in the music 0.2 3 0.6 4 0.8 1 0.2 2 0.4
industry.
Portfolio of successful
artists such as Beyonce,
Celine Dion, Justin 0.1 4 0.4 4 0.4 1 0.1 3 0.3
Timberlake and other
artists.
Integrated division and
product distribution of 0.1 2 0.2 2 0.2 1 0.1 1 0.1
Sony
Various distribution
platforms
0.05 0 0 2 0.1 1 0.05 3 0.15
2009-2013
improvement on profit 0.05 1 0.05 2 0.1 1 0.05 0 0
margin
Weaknesses
Music artists retention 0.15 3 0.45 4 0.6 2 0.3 2 0.3
Lack of recent
breakthrough products
0.1 2 0.2 2 0.2 4 0.4 1 0.1
Vulnerability of IT
security
0.1 2 0.2 1 0.1 1 0.1 1 0.1
Rate of introducing new
music advancements
against consumer
0.08 1 0.08 4 0.32 4 0.32 2 0.16
response
2009-2013 decrease on
current ratio (Liquidity 0.07 2 0.14 4 0.28 4 0.28 3 0.21
Issue)
Total SW 1 2.32 3.1 1.9 1.82

Key External Factors W S WS S WS S WS S WS

Opportunities
Emergence of streaming
services via 0.1 1 0.1 4 0.4 4 0.4 3 0.3
subscription
Emergence of
downloadable music
applications to mobile
0.1 1 0.1 4 0.4 4 0.4 3 0.3
devices

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 Technological
innovations resulting in 0.1 1 0.1 4 0.4 4 0.4 3 0.3
easier access on internet
Cybercrime and Anti-
piracy laws mandated 0.08 1 0.08 4 0.32 4 0.32 3 0.24
by the government
Digital media
preference of 0.05 1 0.05 4 0.2 4 0.2 3 0.15
consumers.
Retail stores for music
are decreasing
0.02 1 0.02 4 0.08 4 0.08 2 0.04
Threats
Digital media
preference of 0.1 1 0.1 4 0.4 4 0.4 4 0.4
consumers.
Self-publication of
artists due to the
accessibility of digital 0.1 2 0.2 2 0.4 2 0.2 2 0.2
distribution or media
platform.
Consumer awareness
and consciousness on 0.1 4 0.4 3 1.2 3 0.3 3 0.3
data privacy
Digital piracy and
illegal duplicates
0.1 4 0.4 1 0.4 1 0.1 1 0.1
Increase of illegitimate
music purchase
0.05 3 0.15 1 0.15 1 0.05 1 0.05
Emergence of online
substitute
0.05 1 0.05 4 0.2 4 0.2 4 0.2
Public opposition on
piracy
0.05 3 0.15 3 0.45 3 0.15 3 0.15
Total OT 1 1.9 5 3.2 2.73
Total Overall 4.22 8.1 5.1 4.55

The group arrived at a conclusion that ACA 2 would be the best option as a strategic
measure in order to adapt to the digital trend and sustain its competitive advantage in the music
market. Investing in the research and development to create a streaming platform that integrates
music, video, tv, radio that can be used by Sony and non-Sony devices, transport (cars), other
home appliances and business equipment; and redesign Music Unlimited Application, is a long
term strategic plan to spread its presence even in the digital scene. Creating a new streaming
platform may be a challenging and risky move, but it would allow Sony Music Entertainment
to become one of the leading innovators in the industry. The group measured the strategic
alternatives through each of the company’s key internal factors which are its strengths,
weaknesses, opportunities and threats. It was measured on how an alternative solution address
each factor.

The creation of a streaming platform is another option for consumers that aims to satisfy their
needs and wants, and at the same earn as much profit and avoid an abrupt decline in sales due
to irrelevance. The availability of the streaming platform in all forms of player can catch the
loyalty of its consumers. Also, redesigning the Music Unlimited Application will take a good

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 chance on improving what they have once started, and arrive at the best possible offer from
Music Unlimited Application. The group’s chosen ACA may also address the objective of the
case analysis where we come up with a decision based on the internal and external factors
analysis result for SME.

VI. Ethical Considerations

In planning and executing strategies, it is important to take into consideration the ethical
aspects of the business. The group suggests the following areas to be considered by Sony
Music Entertainment.

Employees

The company’s diverse, global operations make them aspire to generate sustainable social
value and a high level of profit thus making its employees important stakeholders and key
contributors in overall business performance.

SME needs to engage the full commitment of its employees in order to take a leadership
role in digital music, they need to be inspired and competent to help the organization
achieve said business goal.

The Basic Approach Sony Corp. adheres to states that “Sony views employees not as a
group, but as individuals. Sony values employee engagement as the key to unleashing the
full potential of individual employees with their own strong motivation, autonomy and
desire to grow. Sony’s Founding Prospectus sets forth the founders’ vision, stating that
Sony employees and workplaces should stress a spirit of freedom and open-mindedness
and that Sony should place emphasis on a person’s ability, performance and character, so
that each individual can fully exercise his or her abilities and skills. This approach has been
passed down unchanged to the present day. Sony believes that the growth of the individual
will lead to growth of the organization and, in turn, to the growth of Sony. Sustainable
growth will ensure that employees continue to have opportunities to take on new challenges
and grow.”

Suppliers

Since one of the competitive advantages of Sony Music Entertainment is the pool of artists
that they have, it is important to take care of them and protect them. The company must
continue to fight against piracy.

In general, as a matter of principle and policy, it is clearly stipulated that “the foundation
of Sony's efforts to build a responsible supply chain is the compliance of each and every
director, executive, and employee with the Sony Group Code of Conduct and ethical
business practices.

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 Customers

Sony has developed stringent policies and processes specific to Product Quality and
Customer Services that embody the organization’s commitment to continuous
improvement of product and service quality from its customers' viewpoints in order to both
maintain and enhance satisfaction, confidence, and trust. Sony has strong conviction to
remain a highly trusted, preferred partner to all customers.

Community

Under the slogan "For the Next Generation," community engagement is done through its
business regions, products, content, technologies, the strengths of employees, and also by
partnering with its stakeholders. Sony strives to address diverse global issues by supporting
educational activities; providing emergency relief and assistance in large-scale disasters;
employing technology to solve social issues; and using entertainment as a source of public
awareness.

VII. References

Employees - Sony Global

https://www.sony.net/SonyInfo/csr_report/employees/

Essays, UK. (November 2018). Music industry and effect of digital world. Retrieved from
https://www.ukessays.com/essays/marketing/music-industry-and-effect-of-digital-
world-marketing-essay.php?vref=1

Kotler P. & Keller K.L. (2006), Marketing Management, 12th ed., New Jersey: Pearson
Prentice Hall

Music Industry. Wikipedia. Last accessed on 30 September 2019 at:

http://en.wikipedia.org/wiki/Music_industry

Porter, M.E. (1980), “Competitive Strategy”, Free Press, New York

Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business
Review, January 2008.

Responsible Supply Chain

https://www.sony.net/SonyInfo/csr_report/sourcing/index.html

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