Hot Topic: Everything About the Music

1931 Words Feb 28th, 2007 8 Pages
Hot Topic: Everything About the Music Hot Topic was founded in 1989 in Westminster, California as a store specializing in accessories. In 1990, they added rock tees which at the time could only be found in catalogs, small record shops and at concerts (Hot Topic, 2006). By 1994, their assortment of merchandise was 50% apparel and 50% accessories. Hot Topic evolved into a retailer geared towards customers "who are passionate about rock music, pop culture, and music-inspired fashion" (Hot Topic, 2006). Hot Topic operates 748 stores in 50 states and Puerto Rico and was named one of Fortune Magazines best 100 companies to work for in 2006 (Hot Topic, 2006). This organization shows how a specialty retailer that targets young consumers can …show more content…
This information aids Hot Topic in creating projections and census for their consumers and allows them to provide better service for their customers.
Despite these assets, Hot Topic has seen failing profits over the last year and must find new ways to regain profit margins (Hot Topic, 2006). They are primarily driven by fashion and music fads. Their most powerful strength is that they are able to embrace these fads and turn them into a profit. If they are able to stay on top of the music and fashion industry, they will have a continued future in retail.
Strategic Planning
Strategic planning determines three things for an organization. First, it tells the organization where it is going over the next year or more. Second, it explains how it is going to get there. Finally, strategic planning allows the organization to know whether or not it has achieved its desired outcome (Banyenzaki, n.d., para. 4). The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program (High performance coaching, 2005). When Hot Topic first came to life it was not as successful as what the founder, Orv Madden, had hoped for (Hot Topic, 2006). However, with a bit of strategic planning, his company would soon be moving forward into a future of net profit rather than net loss.
The
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