Research Proposal: E-BUSINESS IMPACT ON SUPPLY CHAIN MANAGEMENT IN THE MUSIC INDUSTRY

Background of the Study

In the ever-changing environment of the music industry, competition becomes the major organizational principle of marketing activities. Thus all companies in the industry are challenged to formulate strategies that will ensure them of achieving competitive advantage over other companies. In their attempts at securing a large market share, many music companies have ventured into e-commerce.

An important internal process in e-commerce is supply chain management (SCM). Companies should identify ways to leverage the Internet in each part of the value chain, from procurement to distribution to delivery. In fact, failure to adopt e-commerce-specific cost savings will likely put a company at a serious competitive disadvantage. Strong supply chain management is often the basis for providing superior service. In the area of procurement, a company can reduce the cost of goods sold by obtaining products through the Internet. Distribution strategies must not only cut costs but also provide the fastest and most convenient customer service. Delivery strategies should maximize convenience and speed for customers, using both the Internet and the company's existing infrastructure to provide these benefits. The best supply-chain practices, however, depend on the type of offering.

Supply chain management is also, for the most part, a practical area for alliance when the firm cannot just supply online consumers from similar distribution channels like physical stores. Target, Kmart, and Wal-Mart have all made such arrangements in dealing with their general merchandising business. Additionally, CVS also simplified its procurement process for its Web site by entering into a partnership with Merck.com (Epstein, 2005).

Aims and Objectives

In general, the research will examine how e-business impacts SCM in the music industry. Specifically, the objectives of the research are: (1) to examine and compare the traditional SCM and SCM in the e-business model in the music industry: (2) to examine the factors affecting the implementation of SCM in the e-business environment; and (3) to provide guidelines as to the best practices in SCM in the industry

Methodology

A descriptive research will be conducted. Both the qualitative and quantitative approaches (multi-methods strategy) to research will also be employed. Qualitative data will be gathered from in-depth interviews involving select managers in some music companies. Quantitative data will be gathered from the survey to be conducted with managers. Desk research will also be conducted to supply further information about the topic.

Scope and Limitations

This research centers on the supply chain aspect in the online digital music industry. Other components, including marketing management, are not within the scope of the study. Because of financial, logistical, and time constraints, this research will not attempt to obtain a representative sample. Thus, the researcher will be extra careful in generalizing the findings of the study.

Reference

Epstein, M.J. (2005). Implementing successful e-commerce initiatives: it's time to reexamine your investment and figure out how to make it more profitable. Strategic Finance. Retrieved August 8, 2007 from http://www.allbusiness.com/management/business-process-analysis/367893-1.html.