E-Sonic’s Strategic Analysis

Executive Summary

E-Sonic’s Strategic Analysis

E-Sonic a subsidiary company formed from the production house, Sonic Records which is an on-line music store. The company operates in the Arts, Entertainment, and Recreation sector and will be responsible for creating an online music store capable of competing with established players in the industry. This sector includes a wide range of establishments that provide services to meet varied cultural, entertainment, and recreational interests of their customers. This sector comprises establishments that are involved in producing, promoting, and/or participating in live performances, events, and exhibits intended for public viewing. The Information sector comprises establishments engaged in producing and distributing information. This also includes cultural products, with the means to transmit and distribute these products as well as data, communications, and processing data. The companies’ mission is to create the world’s leading online music store.

Sonic Records, the market-leading recording studio and production house, which formed the subsidiary E-Sonic, has experienced tremendous success in the recording and music industry for over 30 years. Five years ago, Sonic experienced record-breaking revenues totaling over $15 billion. However, over the past few years, a shift in consumer preferences has reduced Sonic Records revenues by more than 30 percent. A survey of their key demographics revealed that over 80 percent of demographics had not purchased a CD in the last seven years. The survey also revealed that international piracy was at a most high and students burned a copy of their friend’s CDs, illegally download music from pirate websites, or even purchased tracks legally from online music portals for download to digital music players. Although declining sales have been disheartening, some positive advances in the fight against