Q1: SBU Analysis:

The SBU matrix shows that the digital business unit of thecompany has high industry attractiveness as well as high business strength as it is contributing 40% of company’s revenue. As the physical unit of business is also contributing 40% of revenue therefore, it is high on business strength. However, its attractiveness is decreasing and hasreached average industry attractiveness. On the other hand, the song video licensing and publishing, brand music and live music arecontributing 10% in company’s revenue and this is theaverage strength of the company.

Moreover, it also attracts the industry on an average. The music publishing, which is contributing 8% of company’s revenue, is average on business strength but low on industry attractiveness. Lastly, the public performance has a very low business strength and industry attractiveness as it is contributing only 2% of company’s revenue.

The investment in digital should be increased as the projections show that its contribution to revenue along with industry attractiveness is 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,higher return will be generated. On the other hand, the investment in physical music should be decreased as it is continuously declining.

Sony Music India Assignment Harvard Case Solution & Analysis

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 theseitems would not be much higher than now.

While focusing on business-level strategies, it has been identified that the digital music products would be basedon 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 ishigher. 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 public performance 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 fromyoungsters toadults for Rock music, Sufi Music and old generation soft music.

On the basis of geographicalpatterns, it targeted the local Hindi Music Industry and set up anoffice 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.....................

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