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information provided is from milestone one, two and milestone three and what need to be included in the final project. please let me know if anymore information is needed. thanks! I will also have to seen the rest of the milestones through the actual question because it would not let me load anymore.
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milestone one
Running Header: FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
3-2 Final Project Milestone One: Strategic Analysis
Travis Centell Russell
OL 325 Total Rewards
Southern New Hampshire University
1
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
2
Table of Contents
STRATEGIC ANALYSIS ............................................................................................................ 3
1
EXECUTIVE SUMMARY ................................................................................................... 3
2
STRATEGIC ANALYSIS .................................................................................................... 4
2.1
3
4
5
NORTH AMERICAN INDUSTRIAL CLASSIFICATION (NAICS) ............................................. 4
EXTERNAL MARKET ENVIRONMENT ........................................................................ 4
3.1
INDUSTRY PROFILE ........................................................................................................... 4
3.2
COMPETITION .................................................................................................................... 5
3.3
FOREIGN DEMAND ............................................................................................................ 6
3.4
LONG-TERM INDUSTRY PROSPECTS .................................................................................. 6
3.5
LABOR-MARKET ASSESSMENT.......................................................................................... 7
ANALYSIS OF INTERNAL CAPABILITIES................................................................... 7
4.1
FUNCTIONAL CAPABILITIES: ............................................................................................. 7
4.2
HUMAN RESOURCES CAPABILITIES: .................................................................................. 7
REFERENCES ...................................................................................................................... 9
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
3
Strategic Analysis
1
Executive Summary
This strategic analysis provides an evaluation of Sonic Music Records compensation system as
well as an in-depth study of its newly established online music store e-sonic. The company has
been an important figure in the music industry for many years, and the company is still playing a
significant role in the market by offering customers with music stores on online platforms. This
decision was made based on the changes in the music industry and due to the dictates of the
techno-savvy, dynamic market.
This strategic analysis guides through the decisions upon which the compensation system of
Sonic Music Records company was based. It reveals firm-specific The production of this type of
backup will allow Sonic Music Records to maintain its record as one of the best music stores/
sellers in the world. However, although Sonic Music Records has just entered this type of
Internet business, some businesses in the same category have used this popular style for many
years.
As a ripple effect of technological advancements, e-Sonic business has found itself way
behind time, and this may be a key stumbling block to its endeavors' of being an industry leader
since some of the major players like iTunes and Google Play have commanded a large market of
the industry over the years. As Sonic engages in online business, there is a high probability that
the company will experience some problems. However, the company still has a competitive edge
since it is already a business that is established online. Since 2009, E-Sonic has adopted some
changes that have created the opportunity to move forward and thus high sales rate. Currently,
Sonic Music has an asset establishment whose key focus is to choose people who will not only
promote the company but also replace the staff that left the firm.
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
2
2.1
4
Strategic Analysis
North American Industrial Classification (NAICS)
E-Sonic is a branch of Sonic Music Records which falls below two codes as per the NAICS.
These codes include 512220, 454111 and 334614.The codes 334614 are tagged in the section:
software and other pre codified CDs, cassettes, compact discs and reproduction of records. This
section has many media items such as CD-ROMs, DVDs, and cassettes. The Code 512220
represents the integrated records and Distribution section. This section is mainly responsible for
the publication, promotion, and distribution of audio recordings (Census, 2012). The code
454111 represents electronic shopping.
Based on the North American Industrial Classification system (NAICS), E-Sonic can be
subjected to the different codes. The first two numbers of the NAICS represent the industry in
which 33 stands for factories or manufacturers, 45 sales and 51 stands for information. E-sonic
records music and sells it electronically, and therefore this is a clear sign that the codes are
entirely authentic (census, 2012).
3
External Market Environment
While exploring the key tenets of the environment external to the company, this analysis will
focus on competition, industry profile, foreign demand, the labor market and industry long
prospects. The company should shift focus, invest in Research & Development (R&D) strategies
that promote the exploitation of young talent and harnessing next-level technology. Additionally,
it is pivotal to the company’s growth and continuity to come up with a competitive and lucrative
compensation structure to preserve young talent.
3.1
Industry Profile
In the past decade, Sonic records have experienced a decrease in CD sales due to development of
other forms of buying music such as iTunes, free streaming, Pandora, HeartRadio, YouTube and
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
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global piracy of music. Before the last five years, Sonic Records has been a leader in the
recording and production industry with revenues in excess of $15 billion (Popoli, 2015). The
sound knowledge of sonic products and a background of various electronics products are
essential tools for customer representatives and sales personnel. The provision of adequate
training to employees will ensure that Sonic offers outstanding customer service to its buyers.
Marketing personnel plays the role of gathering necessary information which is later
shared with employees of Sonic records to ensure sales are made to the right customers. This is
the arm of the company that analyzes and generates reports on competitors and competitions
within the industry, market environment, and economic changes (Widjaya, 2011). The
information provided can influence the success of the company. They also report forecasts for
the next year based on current data.
3.2
Competition
The e-sonic company competes with sales centers that offer digital music downloads with fast
download capability. ITunes and Amazon are the major competitors for E-sonic customers. Esonic will use its reputation in the recording industry to obtain benefits for the customer and gain
access to this new market. The online music store confers the company with a competitive edge
against the fiercely rising rivals. This same benefit will allow them to get the most out of the
music they sell since the company may be able to access and discover the music that customers
prefer and therefore they can bait the customers into buying from their stores (Popoli, 2015). The
critical area where E-sonic needs to direct attention should be on its user interface.
Some of its competitors, such as Amazon, are working well due to a robust online
experience and have already developed loyal customers due to some of the online shopping
options they have been offering consumers over time. Buyers are currently doing more of online
purchases and have therefore experienced and anticipate what is to happen next. For e-sonic to
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
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succeed, the company should make sure the customers should feel comfortable as opposed to
making them worry or doubt if they should or should not buy the products.
3.3
Foreign Demand
Reports from the figures obtained through the International Federation of Phonographic
Industry (IFPI) portray that while there is a marked decline in the music industry business due to
the progressive decrease in returns from the sale of music CDs, digital sales from the online
downloadable media have equally countered the effect for Sonic Records. Foreign staff will not
need to be directed, and People who love music in Latin America format in South America will
over time make Sonic the most socially accessible organization (Feeney, 2015). To develop ESonic internationally, it will be useful to use various advertisements. Google and Facebook are
not the only methods available to reach consumers since E-sonic may utilize different territories
such as concert venues to broadcast and music gear deals across the world. For E-Sonic to trade
on an international level, it requires some innovative ideas which are possible to acquire since
there is an increased interest in music in each territory (Widjaya, 2011).
3.4
Long-Term Industry Prospects
There have been numerous changes in music appropriations in the past decade, therefore
E-Sonic has a lucrative future in online music sales. In the course of the next five years, up to
two-thirds of revenue will come from advertisers and consumers of digital media (Popoli, 2015).
e-Sonic will have the opportunity to reach customers who were not open to retail stores through
expanding business overseas. Moreover, E-Sonic will probably get rid of public utility costs
essentially by working online and designing its stores on a budget. E-Sonic can also grow in
retail stores by offering gift cards as done by competitors such as iTunes. Although there are
several obstacles available, Sonic is a significant music wholesaler and employer who has been
doing business for over thirty years.
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
3.5
7
Labor-Market Assessment
The key pillar of the e-sonic company is her adept maintenance of good customer relations.
Exemplary customer service is essential for the company's growth and relevance in the market.
This demands the acquisition of well-trained personnel in the labor market. The county
experienced recession back in the year 2009. Despite the effects of the recession, about 12
million jobs were created between the years 2009 to 2015. The R&D teams are also a crucial
backbone of Sonic Records. Software developers are required to maintain a robust online store
and user-friendly consumer environment.
At a time when the economy works well, more people enter the labor market because there
are more jobs available (Madowitz, Rawal, and Corley, 2015). Although it may be harder to find
the ideal E-Sonic personnel, this will be an excellent opportunity since the percentage of
employed customers may have sufficient disposable income to spend on E-Sonic products.
4
4.1
Analysis of Internal Capabilities
Functional Capabilities:
The operational capability of workers in Sonic Company is to ensure the company achieves
success. All levels including C level employees, VP, engineering, developers, customer service,
marketers, human resources, etc. It is essential that they are aligned with the E-sonic business
strategy. E-sonic has the responsibility of making sure that the pay structure aligns with the
compensation strategy and that talents are retained by the company while at the same time
sustaining its competitive edge in the market. To remain relevant in digital business, E-sonic
would be required to invest heavily in market research.
4.2
Human Resources Capabilities:
Human resource team shall be utilized in accessing the current team by conducting various
periodic analysis and evaluations on various jobs to ensure that the company remains
FINAL PROJECT MILESTONE ONE: STRATEGIC ANALYSIS
competit...