The Transformation of the Music Industry Supply Chain Essay

The Transformation of the Music Industry Supply Chain - Essay Example This research will begin with the statement that developments such as Information Technology (IT) have had profound impacts on the way companies do business. Of late, companies have had to rethink the way their activities are coordinated from production to the final consumers. These shifts in company’s actions have not been initiated by technology alone. The theory of investment, changes in consumer preferences, taste and fashion have had a profound impact in shaping company’s strategy. Supply chain management (SCM) has been considered as the most popular operations strategy to help companies sail through these challenges and for improving organisational competitiveness in the twenty-first century. In the 1990s, agile manufacturing (AM) gained momentum and received due attention from both researchers and practitioners as SCM gradually attract interest. Both AM and SCM appear to differ in philosophical emphasis, but each complements the other in objectives for improving organisational competitiveness.Supply Chain Management (SCM) activities are related to problem-solving, information sharing, and cost reduction initiatives. The influences of individual-level antecedents on post-adoption utilisation of a specialised IT within an SCM context were examined by Bradley. Bradley found out that 92% of the people he questioned in1999, were planning to implement one or more supply chain initiatives. Supply chain plans to integrate key business activities through improved relationships at all levels of the supply chains. In short, SCM has become a necessity for any firm seeking to solidify its position in the marketplace. An effective supply chain includes a variety of firms, ranging from those that process raw materials to those engaged in wholesaling and retailing. It also includes organisations engaged in transportation, warehousing, information processing, and materials handling. 1.2 Supply-Chain and the Music Industry Supply chain is a competitive management technique employed within the last two decades to ensure the effective flow of resources, information, services within and organisation network. Today, organisations have adopted it as a strategic competitive weapon as they continue to seek competitive advantage. This quest by organisation explained the recent influx of research into SCM. Hines, P. & Rich, N. (2005) postulated that SCM has become a converging ground for various disciplines and integrate key business activities through improved relationships at all levels of the supply chains (Internal operations, upstream supplier, networks and downstream distribution channels. In figure 1.0 below, I try to look at key players in the music industry and some of their labels. This table has been adapted from http://www.soc.duke.edu . 1.2.1 Warner Music Group Being the largest in the industry, it has total assets of over $16.7 billion. The company started in the 20s following an attempt to control music. It owns the Warner music group with publisher, Warner/Chappel Music Publishing. It merger with EMI Ltd. in 2000 took it to the dominant market position. 1.2.2 Sony Music With the main publisher Sony music publishing and Columbia records, to complement its hardware operations, the management of Sony created a software manufacturing and distribution system. Sony music is a key player in the music indusrty 1.2.3 PolyGram N.V. The company has a Dutch origin and is 75% own by Phillips. The position of the company today resulted from a