EMI Records

 Based on the assumptions and the recommendation below write EMI Music Stratergy that relates to the Five Forces of Competition Model. Threat of New Entrants, Bargaining Power of suppliers, Bargaining Power of Buyers, Threat of Substitute Products and Rivalry among Competing Firms. Year 2020 In the very first year after the acquisition by Sony, EMI is expected to foresee a high cost startegy by investing in new digital technology. This is going to be visible in terms of the increase administrative expenses by 29% and cost of sales by 27%. The sales revenue is expected to increase in 2020 by 12% as the company revenue is gradually progressing in increasing its digital market share as global digital market share is improving due to online streaming revenue incline. Sales Revenue 12% Cost of Sales 27% Administrative expenses 29% Year 2021 EMI will invest 11% more on administrative expenses and see minimal sales revenue during the year. EMI Music publishing will see more profit growth in 2 to 3 years because of the investment in staff training in new technology. EMI sales revenue decrease by 2 precent based introducing new digital technology in the next year. EMI cost of sales has inceased from 27% to 32% of focus on new technology are being sold international to new markets. Sales Revenue 10% Cost of Sales 32% Administrative expenses 40% Year 2022 In the year 2022, EMI will begin to target its current artist by soliciting its new low cost strategy by starting to move into the digital music world. Artist will reap the rewards from this by seeing additional revenue increases from streaming. The overall company’s cost of sales is expected to increase by 5%. The administrative expenses will remain low due to drastic change with moving from a physical catalog to digitizing. The sales revenue is going to be inclined by 25% with the movement towards EMI’s own digital streaming service. Sales Revenue 17% Cost of Sales 25% Administrative expenses 42%