The British Phonographic (Recording) Industry is comprised of record labels that produce, promote,...

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The British Phonographic (Recording) Industry is comprised of record labels that produce, promote, and distribute recorded material mainly for home use. There are about half a dozen major record companies covering 80% of the market and thousands of independent labels making up the rest. The large companies are responsible for signing up artists, handling technical aspects of recording, securing distribution and promoting the recordings. The following table reports the distribution of profits (on a per disc basis) for different steps in the vertical chain for music compact discs
	
Document Preview: The British Phonographic (Recording) Industry is comprised of record labels that produce, promote, and distribute recorded material mainly for home use. There are about half a dozen major record companies covering 80% of the market and thousands of independent labels making up the rest. The large companies are responsible for signing up artists, handling technical aspects of recording, securing distribution and promoting the recordings. The following table reports the distribution of profits (on a per disc basis) for different steps in the vertical chain for music compact discs: Use the Porter’s five forces framework to explain this pattern. Discuss possible profit-maximizing business strategies that artists, record companies, and retailers may wish to pursue. Words: 1500This essay is required to be written as a report with recommendations based on the above scenario. Your essay should not contain sections or any note form writing. The introductory paragraph(s) should indicate the nature of the argument to follow, and there must be a clear conclusion leading from the main body of the essay. Diagrams must be used. All diagrams must be labelled and fully explained within the text.  The essay must be typed with lines double spaced. The essay must include a bibliography, which indicates all material consulted in writing the text.

David · Accepted Answer

Introduction
British Phonographic industry is known as the British industry’s trade and association. It 
represents the interests of the British record companies that were incorporated in the year 1973 
for the copyright infringement. It also helps in providing the chance to the young people for 
expressing them the musical creativity with respect to race, class, sex and abilities. Trust 
provides the people with the important opportunities to enhance the lives through music. It 
depends on the determination of the success in the competitive creative industries. It also 
represents the music industry that is the most exciting and the thriving music sectors in the 
world. Thus it accounts for purchasing the fans around the globe. This way, it is able to maintain 
the industry standard of certifying gold, silver and platinum awards. (Bpi.co.uk, 2013)
Porter’s five forces
The five forces help in the industry analysis of strategic development tool for creating the 
values of the shareholders through the operations of the business. It helps in the analysis of the 
industry and market attractiveness in the market. The major determinants of the demand and 
supply of the products in the market, their strengths and weaknesses, the margins and growth rate 
etc are being measured through this analysis.  
This analysis comes under the analysis of micro environment and it is used with other 
analysis such as PESTLE and SWOT analysis. The change in any factor affects the ability to 
meet the demand of the customers and it requires assessing the situation successfully.
To assess the five forces of the British Phonographic recoding industry, it is important to 
evaluate the competitive forces with the help of five forces.
Bargaining power of suppliers: This is the first force that is identified for the determination of 
industry attractiveness and is the power of suppliers that reduces the potential for high profits in 
the industry. It becomes high for the supplier with the help of the important factors such as:-
 There are fewer amounts of substitutes for the supply of products and services. 
 The supplied is limited that increases the demand of the product. 
 There are high switching costs that change the supplier from one supplier to another.
The main supplier for this industry is known well as the sources through the music labels to 
get the access of music. This includes the artists along with their managers. Due to the high 
increase of the reality shows, producers of shows have also become the suppliers of the music 
companies with the new skills and new talents. There are high power of bargaining of the artists 
and its managers. This increases the ability of the artists and it is unique & it cannot be 
substituted.  
With the increase in the demand for the new skills & talents, the bargaining power of the 
artists is high with the ability of the artist which is unique.

The British Phonographic (Recording) Industry is comprised of record labels that produce, promote, and distribute recorded material mainly for home use. There are about half a dozen major record...

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