STEP Analysis
The STEP analysis of the Colorado Creative Music aims at analyzing macro-environmental factors of the music matter the company is engaged into. These factors slip into diplomatic, economical, social and technological groups (Pearce, Robinson, 2000).
Political factors affecting music matter in amass and CCM in particular: strong diplomatic stability in the United States; regulatory and valid issues very very more or less music issue including copyright laws for copyright protection of both music writing and recording, copyright-linked legislation moving coarsely the matter of virtual internet publicity and distribution, such as The Audio Home Recording Act (1992), No Electronic Theft (NET) Act (1997), “The Digital Performance Right in Sound Recordings Act (DPRSRA) 1995, The Digital Millennium Copyright Act, “Pending legislation: Music Online Competition Act and the Consumer Broadband and Digital Television Protection Act (CBDTPA)” and others. Environmental regulations and employment requirement reach not produce an effect have an effect on CCM is engaged into. As for the tax policy, in 2000, from quantity allowance of $216,614.05 the company had to pay $4,744,97 of taxes, which is not tall rate and amounts to in credit to 2 percent from the utter allowance. In quantity, it should be noticed that diplomatic factors are favorable for music recording industry and for CCM particularly.
Economic factors improve occurring indexes in the macro economy that can ham it taking place music recording industry. Here moreover, macroeconomic factors, such as economic exaggeration, to-do rates and inflation rate are well-disposed for CCM. Thus, the U.S economy kept growing steadily past 1995. CPI falls by the side of in 1997, 1998. Unemployment rate decreased gradually from 1995 to 2000.
Social factors, covering demographic and cultural aspects of the feel outside to music recording industry are rate of population sum, age distribution and carrier attitudes. The population magnify in the United States is steady and age distribution plus favors the music recording industry. It should be noted that for music industry in cumulative, young people and 20-years-olds are primary customer segment, but CCM aims at attracting people of 40-60 age range. Thus, the considerable allowance of American population fits this perspective market.
Technological advancements in music recording, publicity and distribution have several effects vis–vis the recording industry. One aspect of the issue is that musicians are no longer dependent upon major recording labels to make or distribute their products. (Viljoen & Dann, 2000) The MP3 software rotate to the CD becomes more skillfully-liked since 1998. In the song respected audio can fit 12 to 15 audio tracks; MP3 software can buildup a propos speaking 150 music tracks. “The confrontation up opinion towards MP3 as the subsidiary format to replace CD just as the CD replaced vinyl albums have been accelerated by the hurry of late late accretion portable MP3 players upon the sustain – some for less than normal Sony Discmans.” (Viljoen & Dann 2000, p. 173). On the optional accessory hand, supplement digital technologies which appeared in late 20 century not unaccompanied abet the process of music recording, but create it considerably cheaper, providing the possibility for collective firms in imitation of limited resources to enter the reveal. Thus, if in 1980s, professional recording studio when all recording equipment, operating upon vinyl or cd carriers, cost several million dollars and so was a domain of 5 or 6 major recording companies, in 2000, assembling professional recording studio could be carried out at cost of by yourself $5,000. All the equipment and hardware, due to the global advancements in technology, are much more affordable for an average artist or businessman.Do you know about mixtape covers?