CASE STUDY

Written by:

Juan Pablo Nieto

Presented to:

Stephan Ronald Langdon

Case study:

The resurgence of vinyl’s on new globalize markets

ESCUELA INTERNACIONAL DE CIENCIAS ECONÓMICAS Y ADMINISTRATIVAS

International marketing

Sep 23, 2022

Table of content

Introduction 4
Value chain and internationalization 4
Value chain SONY BGM 5
SONY BGM In the international market 6
SONY BGM swot analysis 7
Conclusion 7
Bibliography 8

Figure content
Value chain SONY BGM 5
SONY BGM swot analysis 7

INTRODUCTION
The musical entertainment market over the years has been having certain changes in the way it is
produced and how this product is sold to reach the maximum number of consumers, in this way we will
evaluate the evolution of vinyl from the perspective of one of the largest companies in the market as
American brand Sony BMG since 2004 has been transforming the market for the sale of vinyl since its
inception and how it is in the last 5 years has taken an important role in the vinyl market, In this way,
concepts such as internationalization, sales channels and customer service strategies and how the
company implements the process of attracting customers to the product and therefore to the brand will be
taken into account.

VALUE CHAIN IN INTERNATIONAL MARKETS

Within the evaluation concept, it is presided from a global perspective where the concept of
internationalization is permeate on the context form a global perspective in which the concept is defined
as "Doing business in many countries of the world, but often limited to a certain region" (Hollensen,
2020, p.14) and it is from this that the target market that it has in them against the perspective of vinyl
sales and its importance that this has had in the last 5 years is based on the value chain process. This
process is based on the target market that has in them into the perspective of the sale of vinyl and its
importance that this has had form these years are based on the process of value chain, where the process
of search and development is developed from the perspective of the type of technology implemented for
production, the patents that are established for the production of said product and the quality of which the
product is being made and how it reaches the point of production, where in this section is immersed the
way in which the product manages to develop and seeks to expand so that the product in question
manages to have a greater volume and greater reach in different markets, where already established the
production, marketing and sales are complemented from the perspective that distributes two factors such
as the distribution channel and communication with the customer in which is going through the phases of
relating to the brand that offers a product in question, and how the brand through the process where they
evaluate product, price, promotion and other factors can establish the relevant and direct strategies to
provide a product and quality service to the consumer.

Value chain SONY BGM

 Taken from: Juan Pablo Nieto Pardo on visual paradigm label .

In this way, brands establish certain parameters or objectives to be achieved in order to set their efforts
and be successful with what they offer in the market, where internal linkages are defined as "between
activities within the same value chain, but perhaps on different planning levels within the firm "
(Hollensen, 2020, p.25). and this is developed in three important aspects such as the strategic level where
it is described as the formulation and establishment of objectives, on the other hand is the second
managerial level that is in making these objectives possible and finally is the operational level which is
responsible for making the strategies are met and analyze how effective are being these strategies that the
company wants to achieve and finally compete in the market in an organized and competitive manner.

On the other hand, the company Sony BMG is a strategic alliance of two companies Sony music and CBS
records, which was born on August 5, 2004, in the entertainment market, in order to develop a
diversification of the means of production in what over the years the brand has had a great significance in
the market and is positioned as one of the most influential brands in the market. Likewise, the brand
through the internationalization of its media has managed to present itself as one of the record labels with
greater influx of artists globally, taking into account important factors such as the development of
headhunters and partnership with more producers that has allowed it to have a greater market share and
also have better net income per production produced in sales of each vinyl, cd or songs by digital media,
in which in the last 5 years has had a great impact on sales of vinyl in the United States and United
Kingdom, where one of its bestselling products is the vinyl that has had a great impact on the new
generations despite being one of the oldest musical media, but that has caught the attention of these, so
much so that in the countries mentioned is in the top 10 countries with more presence of stores globally
where the United States has more than 1760 stores nationwide and the United Kingdom with more than
612 stores in which the Sony brand has the largest representation of vinyl labels in stores.

SONY BMG ON VALUE CHAIN

In the theoretical framework the company uses a value chain, from the point of inbound logistics to the
service offered where from the first phase the company presents the diversification of the brand and wide
selection of new talents offered to the musical entertainment market, Thus giving way to the other phase
where the operational part in the development of new products and the same improvement of those
already offered in the market, such as vinyl music that in the long term has had a great significance as
digital media, where the company through an emotional strategy attracts connoisseurs and new consumers
who are willing to have the product, to which an important factor is the marketing that the brand develops
to attract customers and as is the sample of new smaller turntables to which it is easier to listen to vinyl’s
that have previously acquired in addition to the influence of the artists by the Sony brand to influence
their followers to buy their vinyl’s as a more premium version of their music which leaves an aspect of
the marketing processes of the company to attract attention. And finally the sales where these in their
products offer the complete experience from how the product looks and how it is made so that their
consumers are satisfied with the purchases in addition to the points of sale where they acquire the
products give them a unique experience so that each individual has the opportunity to have their first
vinyl and that in the construction of the consumer experience this prefer to compare the products of the
brand as consolidated of this.

SWOT ANALYSIS SONY BGM

 Taken from: Juan Pablo Nieto Pardo on Excel.

On the other hand, the strategic development of the Sony company has built a SWOT analysis where it is
denoted which are the points with greater weight within each sector of the tool in question, where in the
strengths the means of music production is the strongest since it is the epicenter of income of the
company, in the following phases as weaknesses is the resale and high prices of the products that in the
vinyl market its selling price is set in terms of competitive parameters, resales make the market
unbalanced by the scarcity and high prices with which they offer these products, where the section of the
threats is the other brands that offer lower prices and their music is 100% streaming which is a factor that
competes with the trends of vinyl and therefore there are opportunities that have a large market share, this
makes the brand increasingly cover more space with their products in the music industry which leaves
way for the company to be the market leader.

Conclusion
In conclusion that the internationalization of the markets is the door to new horizons and more for the
music entertainment market since it attracts masses and consolidated a close relationship with consumers,
since the music industry is one of the largest and with greater customer loyalty has, thanks to the influx of
music and artists that are in the market and make consumers have interest in consuming this industry.
Also, the Value chain process exhorts the means of how the company processes its processes to give a
final product and this was for the case of vinyl in the industry in relation to the brand with greater market
presence as Sony BGM and that with means such as SWOT analysis understands the different scenarios
for the company in terms of improving and presenting better products and opportunities in the music
industry to concatenate what a consumer seeks to approach a brand and to identify with it and therefore
become loyal to it.

BIBLIOGRAPHY
 Asier. (19 de 04 de 2018). DOD magazine. Obtenido de DOD magazine:
https://www.dodmagazine.es/paises-con-mas-tiendas-de-vinilos-y-las-mas-visitadas-mundo/

DOD MAGAZINE provides information on the content of which countries have the most vinyl stores
internationally, such as the United States with 1760 and the United Kingdom with 612.

Hollensen, S., n.d. Global marketing. 8th ed. England: Pearson, pp.14,25.

Doing business in many countries of the world, but often limited to a certain region (Hollensen, 2020,
p.14) between activities within the same value chain, but perhaps on different planning levels within the
firm" (Hollensen, 2020, p.25).

music, S. (14 de 09 de 2022). Sonny music. Obtenido de Sonny music:

https://www.sonymusic.com.co/quienes-somos/

the company sony provides the necessary information where by sections informs how the company is
composed and how it works in the market.

Paradigm, V. (14 de 09 de 2022). Visual Paradigm. Obtenido de Visual Paradigm:

https://online.visual-paradigm.com/app/diagrams/#diagram:proj=0&type=ValueChainAnalysis&
gallery=/repository/8c0a45f1-6790-491b-a4ca-a0efc90e6d01.xml&name=Power%20Supply
%20Company%20Value%20Chain%20Analysis

Provides the opportunity to generate through a template a comprehensive business analysis tool with the
relevant rhetorical foundations

Pazzanese, C. (12 de 11 de 2021). The Harvard gazette. Obtenido de The Harvard gazette:
https://news.harvard.edu/gazette/story/2021/11/renaissance-for-vinyl-records/

in this research magazine provides information on the relevant topic on the importance of vinyl in recent
years and its impact on new markets.

Quartz, J. M. (11 de 07 de 2014). The atlantic. Obtenido de The atlantic:

https://www.theatlantic.com/entertainment/archive/2014/07/vinyl-records-savior-of-the-music-
industry/374291/

The vinyl recordings are a great example of how vinyl has been having an impact on the entertainment
industry since its inception and how it has expanded over the years.