Esternal Factors

1 Pages 321 Words

The external factors that contributed in the downfall of “Sam the record man’ can be viewed as:

Political forces:
Given the fact that we evoluate in a mixed economy, meaning that the government does play a key role in how business operate, I believe that some sort of regulations against music downloading on the internet should have been in place that could have protected records stores.

Economic/Global forces:
Knowing that our economy is very much tied a to the us, it would be only fair to assume that the repercussions of September 11th are felt in canada.analysis shows that there is a decline in the spending habits of consumer, they tend to think more long term.
Also we need to keep in mind that foreign owned business being large buyers might be able to give a better sale price on the same good.competiton is what make our economy thrive and what enable us consumer to most of the time the better deal.

Technological forces:

The fast growing business that is the internet has enabled users to get access to a lot of information and services such as napster (downloadable music site), that provides free music.given the fact that most people that buys the records are young and don’t have a lot of financial ressources.given the choice between paying or not, they would choose the later.

Competitive forces:

We live in an economy that favors competition, so a strong organizations and marketing plans within the company are essential along with a product that is competitive quality and price wise.sam lacked all of those and faced with some of the larger corporation hey did not stand a chance especially the way their internal business was run.

Societal forces:
Because of the culture that we live in American music is the one that is popular.
Unfortunately for sam the Canadian music industry is not as well know as the American one, so by supporting Canadian artist which was honorable he failed to see fill consumer prefer...