Work Essay

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Module Code: 5IB004 Module Title: Managerial Economics Student number: 1007533 AUTHOR: Anil Bangar The key changes of recorded music retailing industry and the effects of the structure and competitive behaviour. Introduction For this assignment, I need to identify key changes within the competitive environment of the recorded music retailing industry between 2000 and 2009. Some of the major key changes I will be talking about will be digital downloading and how more music purchasers are buying music online and digitally rather than going into shops and buying physical CD’s leading to a major drop in CD sales. Another key change would be illegally downloading music and piracy, such as file sharing. I will also assess how changes in the competitive environment have affected the structure of recorded music retailing industry, such as HMV and amazon diversifying being forced to ecommerce by offering digital downloads to customers as well as physical CD’s, while other competitors fail to do this (Woolworths & Zavvi). Finally, I will explain how the new environment has influenced the types of competitive behaviour observed in my chosen industry and impacted on performance and successfully analyse the changes in trends and the negative and positive aspects of this. Digital Music downloads Here I will state the key changes which occurred between 2000 and 2009 in the music retail industry. The first key change is the music market is vastly turning digital, as “99% of the UK's singles market is now digital. Downloading continues to grow, with over 16 million albums bought digitally in 2009. This was an increase of 56% and they now make up 12.5% of album sales overall.” In the UK, music being bought digitally was introduced in 2004, when iTunes was first released for UK users, and this was the year when “digital single sales surpass physical single

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