Hmv Market Environment

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INTRODUCTION After a rapid development over the past 10 years, the music market is currently undergoing significant changes. These changes are caused not only by marketing competition but also by the challenges from external marketing environment. The entertainment industry kept growing for years and as the business grew, the competition also increased. There has also been an increase in the sales of music online. Selling online made it cheaper for customers and as a result many preferred to buy them online rather than going to the stores and buying music. Secondly, there has been an increase in illegal digital downloading; young people tend to download music of various formats which are easily available from the internet. This has lead to…show more content…
They must work in harmony to provide superior customer satisfaction and value. We can also use Porter’s Five Forces Analysis to help HMV to contrast a competitive environment. This analysis tends to focus on the single, Strategic Business Unit rather than a single product or range of products. The five forces are the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. THE SWOT ANALYSIS SWOT analysis is a method used for evaluating and analyzing any business and its current environment so as to identify the most beneficial goals. By using SWOT analysis it is possible to together information regarding HMVs position, resources and capabilities. Strengths • Patent • Good reputation B2C • Elite access to high standing natural resources • Favourable access to distribution networks • Experienced staff and management • Well Known • Wider range of products Refer (appendix 1) Weakness • Lack of patent safety • Poor reputation B2C • High cost structure • Limited access to the best natural resources • Limited access to key distribution channels • Lack of presence in the media • Sales decrease over recent years Refer (appendix 2) Opportunities • Unfulfilled consumer need • Using new technologies • New favourable government regulation • Eliminating international trade wall • Population growth • Online business Refer (appendix 3) Threats • Emergence of substitute goods • Taxation policy • Increased trade barriers
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