Transcription of The External Environment
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The External Environment
The External EnvironmentThe Broad EnvironmentSocio-cultural ForcesGlobal Economic ForcesGlobal Technological ForcesGlobal Political/Legal ForcesThe Task EnvironmentCompetitive ForcesExternal Stakeholders and Environmental UncertaintyPartnering with External StakeholdersStrategic GroupsKey Points SummaryEnd Notes2 CHAPTERJust like the steel and auto in-dustries during earlierdecades, the music industry isunder siege. In recent years,the technological, economic,legal, and competitive forceshave conspired to alter adecades-old business traditional music recordingand production companies inthe $40 billion music industryare being forced to evolvefrom selling products to simplyproviding a CDs each cost about$.50 to make, but retail for$ or more. The $ price covers the cost ofproduction, marketing, distribu-tion, royalties to the artists, andpercentages for the record com-panies and the retailers. In amajor settlement with recordcompanies, the Federal TradeCommission recently concludedthat consumers may have over-paid more than $450 million forCDs in the past three years.
The competitive implications—such as the threat of substitute business models like the Napster model, and the rela- ... smoking have set the stage for a regulatory and legal backlash against the tobacco companies. ... Levels of foreign investment/ownership in the United States Social costs of restructuring, especially layoffs ...
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