Business Consultancy Report: PESTLE, Porter's Five Forces Analysis

This business consultancy report examines Newcastle Music Services, focusing on the impact of Brexit and the competitive landscape. The report utilizes PESTLE and Porter's Five Forces analyses to assess the political, economic, social, technological, legal, and environmental factors affecting the company. It identifies challenges such as unstable legislations, government funding issues, and supply chain disruptions due to Brexit. The report also analyzes the competitive rivalry, threats of new entrants and substitutes, and the bargaining power of customers and suppliers. Key recommendations include securing ties with UK suppliers and understanding customer preferences to enhance competitive positioning. The analysis highlights opportunities in social media and technological advancements while addressing the need for environmentally sound and socially acceptable music development. The report concludes by emphasizing the importance of adapting to Brexit's impact and leveraging market opportunities for sustained growth.

BUSINESS
CONSULTANCY
REPORT

Table of Contents
PESTLE ANALYSIS......................................................................................................................1
PORTER'S FIVE FORCES ANALYSIS........................................................................................2
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REFERENCES................................................................................................................................4

PESTLE ANALYSIS
As per Illustration 1 below, it is quite evident as to how the Newcastle Music Services is
likely to face a heavy impact due to the events of Brexit. A very evident factor in context with
this effect is due to political, economical and legislative instability within the country (Sampson,
2017). The consequences of the same for the music services of Newcastle is that they could not
appropriately acquire any government funding due to ineffective policies and legislations. In
addition to this, ineffective and unstable legislations would also impact the services as the
funding from other nations are bound by several obligations towards Brexit which is
disadvantageous for the company. However, on a positive side, there are several opportunities
for the music services within the UK. For example, social media has been quite evidently used
by individuals which could be helpful in a way to provide knowledge and practice of music in a
cheaper and easier way. Moreover, in terms of technology, there are advanced methods to
develop effective music in a new way. Moreover, environmentally, carbon footprint could
effectively be reduced through modifying the distribution of music through online channel and
not by CDs and DVDs. However, since there is tough competition in field of music, Newcastle
Music Services must develop new alternatives to develop music that is environmentally sound
and socially acceptable (Baker, 2019). Moreover, social media could be used to distribute music
at standard rate, which would help the services in reducing the impact of Brexit.
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Illustration 1: PESTLE Analysis
PORTER'S FIVE FORCES ANALYSIS
The forces of industry have a prominent impact on the Newcastle Music Services.
However, the industrial position of these services is quite effective in order to helping the
company in gaining a competitive edge in the market (Browne, 2018). For example, threat of
new entrants is relatively low for Newcastle Music Services. Reason for this is because a heavy
capital investment is required to enter the market which is very challenging or the organisation.
Furthermore, government funds are required to enter the industry, which are heavily affected by
Brexit. Additionally, competitive rivalry is moderate in the industry as there are only few
services in the market which could have an effect, such as SAGE and NEMCO/NMC. However,
threat of substitutes, bargaining power of customers and suppliers are relatively higher or
Newcastle Music Services. This is because due to Brexit, the supply chain management has
become ineffective and costlier due to unstable regulations with EU countries. Moreover, as far
as customers are concerned, there are several factors such as lower switching cost, cheaper
options for music availability and variety of music by competitors, which could be problematic
for the organisation. Thus, in order to appropriately enhance their competitive position within the
organisation, Newcastle Music Services requires to effectively secure its ties with the suppliers
in the UK, to ensure lower cost. Furthermore, customer preferences must be taken into
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consideration in order to gain a competitive edge, as well as lower the bargaining power of
customers (Rozbicka and Conroy, 2017).
Illustration 2: Porter's Five Forces Analysis
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REFERENCES
Books and Journals
Baker, A. (2019). London: Music Business Capital of the World. In The Great Music City (pp.
71-86). Palgrave Macmillan, Cham.
Browne, S. (2018). The Last Ship from Broadway to Newcastle: A feminist political musical for
the Brexit era. Studies in Musical Theatre. 12(3). 377-385.
Rozbicka, P., & Conroy, M. (2017). Live music and Brexit’s cliffhanger. Music Business
Journal. 13(1). 8-11.
Sampson, T. (2017). Brexit: the economics of international disintegration. Journal of Economic
perspectives. 31(4). 163-84.
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