E-Sonic Compensation Paper
Todd Lipscomb, Belma Alic, and Teresa Halpin
Strategic Analysis Outline:
1. Strategic Analysis
A. E-Sonic NAICS falls into two different codes 334614 and 512220. The first code 334614 definition is, “Providing mass duplication of recorded products; Software and other Prerecorded Compact Disc, Tape, and Record Reproducing” (). This code is given in reference to E-Sonic’s producing of music on to various forms of products.
The second code 512220 is, “Releasing, Promoting, and Distributing sound recordings. Integrated Record Production/Distribution” ().
B. Analysis of E-Sonic’s external market environment
1. Sonic records are a part of the recording and production studio industry, which is going on to start E-Sonic. “Sonic Records, a market-leading recording studio and production house, has witnessed declining demand for music CDs” (). The company boasted over $15 billion in revenue five years ago. However, times have changed over the past five years; technology has greatly improved over time. There have been many technological advances that has offered alternatives to CDs. The one thing that has improved the industry some is the government regulations against pirating music, which is essentially stealing the merchandise.
2. E-Sonic’s competition is pretty fierce as the market has been going for quite some time now. It kind of goes along with, don’t reinvent the wheel if it is already working. Consumers might be leery to try on another company, while there are already so many branded companies to choose from. With competitors like iTunes, Pandora, and Sirius, The marketing team will have to have their best to compete with the competition.
The other part to that equation is various ways consumers are pirating music and illegally downloading there music rather than paying for their product. This is one of the things that hurt Sonic Records and has led to the implementation of E-Sonic. Although it is...