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

Sony Music India Case Study Solution

SBU Analysis:

The SBU matrix shows that the digital strategic business unit of the company has high industry attractiveness as well as high business strength as it is contributing 40% of company’s revenue. As the physical strategic business unit of Sony Music India is also contributing 40% of revenue, therefore, it is high on business strength. However, its attractiveness is decreasing and has reached average industry attractiveness. On the other hand, the Music Recording SBU is contributing 10% in company’s revenue and this segment has the average strength for the company.

Moreover, it also attracts the industry on an average. The music publishing SBU, which is contributing 8% of company’s revenue, is average in terms of the business strength but low on industry attractiveness. Lastly, the services and communication network SBU of Sony Music India has a very low business strength and industry attractiveness as it is contributing only 2% of company’s revenue.

The investment in digital SBU should be increased as the projections show that its contribution to revenue along with industry attractiveness are increasing. Moreover, the consumer preferences are also increasing towards digital music playing. In addition, the cost of digital music is also very low. Consequently, by investing higher in digital music, the higher return will be generated.

On the other hand, the investment in physical music SBU should be decreased as it is continuously declining. The projections are also showing declining in its revenue. In addition, the consumer preferences and industry attractiveness also tend to decrease in near future. The cost of physical music is also low. Therefore, there are no chances of earning over its investment. The trends of public performance and music publishing are also increasing. However, the increase would be very low. Therefore, the investment in these two heads should be moderate as return generated on these items would not be much higher than now.

While focusing on business-level strategies, it has been identified that the digital music products should be based on broad differentiation as it is one of the company’s competitive advantage, as well as its cost, is very low and the main focus of digitalization is on differentiating it from its competitors. Moreover, the scope of digital music products is also very broad and are warmly welcomed by the consumers.

On the other side, the physical products of the company are under the head of cost leadership, as the cost implemented on respective products is higher. The music publishing is under the head of differentiation focus as it is higher on differentiation from competitors, but the scope of respective product is narrow to consumers. Lastly, the source of competitive advantage of services SBU is the cost, as well as its scope, is also narrow.

Q2: Market Segmentation:

Sony Music Inc. has been segmented on the basis of different consumer characteristics on the basis of the geographical, behavioral, psychographic and demographic patterns. On the basis of demographic patterns, company segmented its customers on the foundation of age from youngsters to adults for Rock music, Sufi Music and old generation soft music.

On the basis of geographical patterns, it targeted the local Hindi Music Industry and set up an office in Chennai to target the Tamil regional market which is mainly a Hindustani classical segment and which will help the company to reach to Kannada, Malayalam and Telugu markets.

Sony Music India Harvard Case Solution & Analysis

Moreover, the company divided the market into different segments on the basis of behavior land the usage patterns of the consumers which showed that people were focusing more on free music streaming through the internet.

The company also segmented its market on the basis of behavioral patterns such as live shows and physical products for those who like to watch movies on CDs and VCR through cassettes. It also segmented its market through changing psychographic segmentation through the changing technological patterns and attitudes of people to listen to soft or rock music which contains their favorite artist or celebrity. We have segmented the market into four consumer segments that are casuals, fanatics, enthusiasts and indifferent.

The company selected the suppliers for targeting the indifferent customer segment through different strategies such as recording companies for targeting those consumers who are not aware of the online music store and prefer to watch music through CDs. They are not up to date with the latest artists and the prefer to listen to the music that they grew up to. Moreover, the company chose the supplier by an agreement with YouTube for the Fanatics segment.

This segment is small in number but they want to discover new music and website is the platform where they discover new music. The third segment is the casuals segment and they discover music only when the mass media picks it up for them. TV and online music both play a major role in their music discovery. Finally, the fourth segment is the enthusiasts segment and they are always keen to discover new music and also take recommendations for new music from the fanatics. They discover their music through the social media platform, internet and the mobile applications..................

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