In creating strategic alternatives for a company, it is important to take into account the various challenges and dynamics of the current business world. Particularly, it is also important that the company focus on the specific industry within which they function, and how they can best use industry developments in order to create a sound strategic management program. Functioning within the music industry, Arista Records is no exception to this paradigm.
             The music industry has seen rapid and extreme changes over the decades since the 1950's. Vinyl records have for example been replaced by CD's, which has been supplemented by digital music technology. On the industry scale, large conglomerates such as Sony and BMG have begun to monopolize the industry, making competition and market entry difficult for small-scale companies without affiliations with large-scale conglomerates.
             According to Heather Page (1998), affiliations is one of the most prominent strategic alternatives for the modern business world. During the 1990's and beyond, in the new Millennium, businesses have begun to realize the importance of affiliate allegiances. This is particularly the case in the music industry. The dynamic of the music industry has expanded to such a degree that large conglomerates now dominate the music world. As a music company, Arista records form part of the Germany-based conglomerate BMG. This does not, however, prohibit Arista from forming further strategic alliances of its own. These are to the mutual benefit of each partner. Each partner benefits in ways that exceed the company's potential performance without the partnership.
             For Arista specifically, such potential partnerships can take some forms. The company can for example form alliances with other companies in the music industry, or with specific established artists on an individual basis. Regarding the latter, Arista has made several strategic alliances, of which the two most ...