Strategy for BPM Distribution Company Essay Example | Topics and Well Written Essays - 1500 words

Strategy for BPM Distribution Company - Essay Example Before getting further deep, the report will begin with a brief overview of the music distribution industry. Music distribution Industry: Overview Music distribution industry is a part of Media and Content Industries (MCI), which takes into account music publishing, video and motion picture production, broadcasting and distribution, and several other information services. The companies belonging to this industry mainly remains involved in producing musical recordings, generating in-broadcast revenues, music distribution and licensing rights for using music. Germany is ranked at the third position in terms of music sales. Globally, US top the charts with a staggering turnover of $15 billion per annum. Moreover, the industry is also forecasted to grow at a rapid pace. However, the biggest threat of this industry is illegal downloads and pirated cassettes. With the development of information and technology, companies around the world are redesigning their distribution pattern and focusing more on digital distribution. Some of the major companies of this industry are Sony Music Entertainment, Universal Music Group, Warner Music Gro up, German firm Edel etc (IFPI, 2013). The industry is also characterized by the presence of numerous small music distribution firms. Recommended Business Strategy Business strategies are generally classified into three broad categories namely differentiation strategy, focus started and cost leadership strategy. The existing strategy of BPM is focus strategy. The company mainly focuses on a specialized segment of market. Its main customer group is local independent shops. The company has been extremely successful with this strategy, but due to technological advancement and increasing popularity of web based music shops and online download the local independent shops are losing their market share. As a result of this, the demand for vinyl and CD’s are reducing day by day and BPS is finding difficulties to maintain the desired sales volume. In order to deal with this situation, the company is recommended with the following strategies: - The company is recommended to consider the use of digital distribution in order to get success in the market. In order to pursue this strategy, the company should try to acquire digital distribution rights from the music production companies. This will allow the company to target those customers, who prefers to download music rather than buying CDs or DVDs. It is also recommended to the company that they should not focus on a particular group of customer, but the focus should be on mass customers. The company only sell their products to the retailers, but they can also consider selling products directly to the end consumers. This strategy will allow the company to earn more profits. The company is recommended to adopt differentiation strategy, rather than pursuing focus strategy. Although, the company does not have any scope of offering differentiated products and services to the customers, the only way by which they can differentiate their product line is through stocking different music genre. There is a long list