Chapter 4苏州大学赵康管理信息系统case study案例答案精选.pptVIP

Chapter 4 the digital firm:electronic business and electronic commerce Preview Questions and answers * preview The music recording industry (MRI) is dominated by what was formerly known as the big that comprised the recording labels of Warner, EMI, PolyGram, MCA, BMG and Sony. However today there have been two mergers between Warner and EMI and also Sony and BMG to that forms dominance by four music recording companies. The main stream of revenue is through the sale of CDs that are predominantly sold through the retail outlets. The past few years has seen the come of the MP3music files and the internet as a mode of travel, transfer and duplication for them. This, however illegal under current copyright protection laws, is still extremely prevalent among music consumers today. This duplication and transfer, or sharing as it commonly known as has been made possible and flourished by shareware internet sites other wise known as peer to peer (P2P) sites such Napster, Lime Wire and many more. These sites offer users to access and download music from all other users’ hard drives at no expenses. This report looks at the Music Industry’s current business strategy, the changes to how music is used the consumers. The advancement in technology and how this has affected the music industry. * Question 1 Apply the value chain and competitive forces models to the music recording industry The principal physical distribution channel of the recording music industry value chain has been standardized with a final physical media as CDs among other products. Unfortunately with the Internet and digital technology, the recording music industry has been one of the most affected by companies like KAZZA, Morpheus, Grokster, Gnutella, and the like, which are all based in peer to peer networks or just selling music without taking care of the copyrights. When a person buys a CD, that person is acquiring a product that represents all contributions of a chain that are part of the music i