Sony Music India Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sony Music India Case Study Solution

Introduction:

This case study is dealing with a well-known global company Sony Music which is owned and controlled by its parent company, Sony Corporation America. This company was incorporated in 1929 with the name “American Record Company”. But after so many strategic alliances and acquisitions its name was changed to Sony Music.This global company expanded its business internationally and it entered in the market with the brand name Sony Music in the year 1996. The differentiation was to adjust itself with the local market trend and started to produce local music and its biggest hit was “Maa Tujhe Salaam”, which was the first ever song produced by the company in the year 1997. Afterwards, company received a heavy competition from Yash Raj Films and UTV who gave tough time to the company and its reputation started to decline.

Even after a successful start, the company did not shake its confidence and started to expand its market share by producing more hit songs in super hit movies like Lagaan, Kabhie Khushi Kabhie Gham, Kal Ho Na Ho and Kuch Hota Hai. Company was following progressive growth and was trying to meet the objective of fulfilling the desired outcomes and objectives. Company started to expand by using the aggressive growth strategy and was able to achieve a growth rate in market share from 5 to 10% within a period of around 6 years.

Expansion of company:

The company started to expand in different segments such as targeting music and video business to become successful in India. The differentiation strategy of the company was to focus on Bollywood music rather than on production of films. To enhance its market growth, company used market development strategy by entering into new geographical segment of Chennai for targeting a new customer segment which was about the production of Tamil Music. It received a better response from the customers and it was able to grasp a higher demand which led to a greater market share for the company. It became the market leader by getting a turnover around 65% of Tamil market and around 25% from the overall market. It resulted in the best decision for the company to expand to Tamil Market and it increased the market shares and sales growth of the company to capture more customers with existing products by entering into new segments within India.

Sony tried to provide convenience and means for communication to its end consumers and easy access to its music at minimal rate which made it easier for the company to generate around 40% revenue from digital segment which was growing rapidly with the changing environmental trends.

Company received a lot of recognition on YouTube when it launched its song Kolaveri Di which was a mixture of two languages Tamil and English. Its tone was quite unique and its music was very much liked by the viewers.

Trend was changing and traditional companies were trying to change the market dynamics from physical products such as CDS and cassettes to digital world by uploading online songs which can easily be downloaded at a minimal rate. They shifted their focus from physical to service based, digital and license based segment to achieve the growth targets effectively and efficiently..

Sony Music India Harvard Case Solution & Analysis

PESTLE analysis:

This analysis tool is widely used to consider the macro-economic factors influencing a country and economy in which the company is incorporated or operating to carry out its business activities. Each of the factor of PESTLE analysis is discussed below:

Sony Music India Harvard Case Solution & Analysis

Political analysis:

The major factors which have been considered for analyzing political situation of the country includes taxation policies of the economy and usage of taxes for the betterment of the general public. Moreover, other factors which influence political conditions of an economy include the control measures used by the government to control its expenditures and to reach at outcome which is favorable for the economy. It is also taken into consideration whether the government is stable or not. The Indian economy and entertainment industry is relatively stable and it is getting support from its government to screen the Bollywood movies and its music is appreciated around the world. Moreover, it is considered whether government is supporting online businesses for entertainment industry or not.

Economic Analysis:

It is considered for the success of any company to evaluate the economic conditions of the economy along with the industry’s economic position. If we look at the Indian economy and the entertainment industry, it is focusing on the growth trend followed by developing economy. It is necessary to consider interest rate and inflation in the economy along with the confidence of consumers in the entertainment industry products and the Indian economy as well. It is necessary to look at the growth opportunities as well. It is also necessary to consider the business cycle of industry so that it may allow the company to test its economic position and the place where company is falling whether it is at maturity or growth stage or it is following the declining trend.

Social Analysis:

The social analysis considers the patterns of consumer preferences for each industry and the culture of economy. It also considers whether the society values its entertainment industry or not. How much preference consumer gives to the products of entertainment industry? It considers whether they give preference to physical products or digital products. It observes whether the lifestyle of consumers is following the soft music or remix or it is Bollywood or Hollywood based music..................

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