Question

Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of__________

Answer 1

Walmart's refusal to stock CDs with explicit content and their influence over the content produced by recording artists is an example of buyer power from Porter's Five Forces model, highlighting the retailer's impact on the music industry.

Step-by-step explanation:

Walmart's strategy of not stocking CDs with parental advisory stickers and requiring artists to alter their content is an example of buyer power, which is one of the elements of Porter's Five Forces model. This model is used to analyse the competitive environment of a business, and buyer power refers to the impact that customers have on a business. In the case of Walmart, their large market share and customer base give them the power to influence the merchandise that recording artists produce if they want to be sold in Walmart stores.

By utilizing their buyer power, Walmart can indirectly shape the music industry norms and practices, potentially affecting musicians' creative freedom and the industry's economic structure. This control is a testament to how a single retailer's policies can have extensive implications on market dynamics and business strategies.