Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model.Which of the following represents buyer power in the music industry?
A)Established record labels like EMI, Sony, Universal.
B)Walmart, Target, iTunes.
C)Independent record labels.
D)Game systems like Wii, social networks like Facebook.

Question

Quizplus · Accepted Answer

Buyer power in the music industry is represented by the ability of customers to exert pressure on the prices and quality of music products. In this case, Walmart, Target, and iTunes represent the most significant buyer power as they have a large customer base, can negotiate lower prices from suppliers, and have the ability to promote certain artists or genres over others. Established record labels like EMI, Sony, and Universal have considerable bargaining power over artists and their music, independent record labels have limited resources, and game systems or social networks do not represent direct buyers of music products.

Your Boss, Ty Jacob, Has Asked You to Analyze the Music