Strategic Management and Strategic Competitiveness
Universal Music Group is the company under research and it has been affected by many changes in technology and internationalization in the music industry. Technology is no doubt part and parcel of the music industry and it has enabled many artists to come up with high quality music and make more sales online. Technology has also led to the introduction of new music formats for example the mp3 and other music devices including CDs and Ipods.
Technology has also played a crucial role in ensuring artists successfully produce and release music within a short span of time. Presently, internationalization and technology enables artists to deliver music records to their fans within a specified period of time online. Fans can as a result, download the songs online to their computers systems and other devices after given some amount of money.
Globalization and technology has also led to decline in the sale of music CDs over the recent past. Even so, Universal Music Group that is known as a leading music company in the world has received increased sales from sale of digital music. Music is a global language and widely listened by people of all ages and gender. The company due to globalization has managed to generate more revenue across the globe.
The Universal Music Group Company also has music artists and labels from different countries across the globe that has ensured generation of record music sales. Globalization for instance has made it possible for artists in America under the Universal Music Group to tour the world to promote their music and the company at large.
Technology and globalization have consequently managed to be the driving force in international music industry where the company has reaped huge benefits. Universal Music Group is also thriving in the music industry which is dwindling and has transformed from analogue to digital all thanks to technology (Universal Music Group, 2013).
Universal Music Group can earn more than average returns through industrial organization model in its operations. The industrial organization plan to earn more than average returns for the company will first study the company’s external environment such as competition and industry. The second process for the company will be choosing an industry that has potential of generating more returns.
Thirdly, to get more than average returns, strategies for set goals are achievable based on the characteristics of the industry. Universal Music Group will then acquire and develop crucial resources including assets and skills that are needed for successful implementation of the selected methods.
Lastly, above average returns will also be achieved to the companies that implement ideal strategic actions for the company successfully to leverage its strengths in meeting demands and challenges of the music industry. Universal Music Group can also utilize resource based model to achieve above average returns mainly based on the uniqueness of the company’s internal resources as well as capabilities.
First, Universal Music Group should realize their internal resources and weigh their strengths and weaknesses in relevance to their competitors. Universal Music Group should also identify resources that offer capabilities in the market and asses their ability to outdo their competitors in returns and lastly to compete justly.
Universal Music Group can also achieve a sustainable economic advantage to achieve above average returns by creating and implementing strategies that enable them to effectively explore resources and capabilities in relevance to their competitors. The mission statement for the company is besides focused on the implementation of the company’s vision that states its unique purpose as well as operation scope for its products as well as the market.
The mission statement of the company is ‘’to give consumers what they want, when and how they want it’’. The vision statement of the organization is to also engage in a wide range of new distribution channels that are available to the clients. The company’s vision and mission statements have also been very crucial in the overall success of the company. The future success of the organization for example is largely dependent on the type of music being distributed and on the type of platforms used for distribution so as to reach out to many people.
Universal Music Group is additionally committed through its mission to innovating and investing to effective meet the needs of the challenging and competitive digital era (Universal Music Group, 2013). Therefore, this means that the company should offer clients what they need, at the time they need it and in a way that they want it.
The company has managed to capitalize on giving clients what the need, when and how they want the music. Many fans for example usually want instant success of their music and consequently, the Universal Music Group has ensured that fans can enjoy music downloads from iTunes. Many of the fans also want easy access to music and on the go.
The company accordingly, has ensured that clients can utilize cloud services for example Google Music to access music on the go. Many of the clients certainly want to access music subsequently and free of charge and as a result, the organization has ensured that they can access the music via advertisement platforms including YouTube and Spotify. Universal Music Group’s mission statements and vision have as a result, been quite instrumental in the triumph of the company.
Stockholders in the Universal Music Group can also influence the performance of the organization. This is based on the fact that they have ability to withhold participation and it is paramount to the survival, competitiveness and survival of the company. There are three major stockholder groups who influence the company’s success. They are the stakeholders in the capital market such as investors and lenders; product market stakeholders including suppliers, customers, unions, and host community and lastly the organizational stakeholders who include managers and staff (Hitt, Hoskisson & Ireland, 2013).
The capital market shareholders can also affect the overall success of the company through shareholders that can increase capital to the company and ensure enhancement of wealth while lenders ensure wealth preservation. The product market stockholders including clients can ensure success of the company by purchasing goods and services of the company for company profitability.
Suppliers can also ensure the success of the company by ensuring it has all the needed inputs for effective service delivery and at sustainable prices. The host communities will also ensure the overall success of the company as they will be offer the necessary labor to help in realization of the company’s goals and objectives. Additionally, organizational stockholders for example managers and staff will ensure the company’s overall success as they work in a rewarding, safe and motivating environment (Singh, 2008).
Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2013). Strategic management: Competitiveness & globalization: cases. Mason, OH: South-Western, Cengage Learning.
Singh, M. (2008). Strategic management and competitive advantage. New Delhi: Global India Publications.
Universal Music Group. (2013). Universal Music Group. Retrieved from http://www.universalmusic.com/
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