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 $40 billion music industryare being forced to evolvefrom selling products to simplyproviding a CDs each cost about$.
dustry consultant, “The music business will become about growing the size of the crowd. It becomes more like radio or television.” Payment to artists may be based on a royalty per download. Traditional retailers may be largely cut out of the loop—and, once established, artists may choose to access their market directly. As noted
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