According to a recent article, music sales in the US have dropped by 5% in 2014, and instead, downloading and the streaming of music have become much more predominant.
This article highlights several issues upcoming businesses should consider. How can technology hinder and aid them in their industry? If one considers a PEST analysis in understanding a business’s external environment, it is evident that technology does in fact play a large role.
Not only does the article target technology in the external environment, it also largely relates to the “social” aspect of a PEST analysis. The society in recent years has become more “tech-savvy” and this has lead to such a decrease.
Thus, for a firm, it is important not only to consider the internal environment but it’s also critical to understand the external environment in order to ensure business survival.
Music sales decrease as downloading and streaming increase.
Works Cited
Web. 10 Nov. 2014. <http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2010/3/19/1269026406827/Downloading-bar-001.jpg>.
“PEST Analysis.” PEST Analysis. Web. 10 Nov. 2014. <http://www.quickmba.com/strategy/pest/>.
Sisario, Ben. “U.S. Music Sales Drop 5%, as Habits Shift Online.” The New York Times. The New York Times, 25 Sept. 2014. Web. 10 Nov. 2014. <http://www.nytimes.com/2014/09/26/business/media/music-sales-drop-5-as-habits-shift-online.html?ref=international>.
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