Hmv Case Study

Table 2:  Strengths

• Extensive Market Presence
• A very strong entertainment brand name
• Emerging HMV live business
• key store locations
• Established excellent reputation for service

Weakness

• Falling Market share in sector
• Weak liquidity position
• Slow to respond to change
• too much dependence on promotional pricing to encourage sales
• Little understanding of consumer trends
• Lack of  latest technology in store

Opportunities

• Focus on key developments

• Growth in UK online retailing
• Expansion through strategic Acquisitions
• Alliances with key media groups and producers

Threats

• Rising man power cost
• Highly competitive market
• Information technology risk
• Little or no control over illegal downloads

Table 1:Porter forces

Music

Movie

Games

Competitive intensity

Virtual competitors   online buying.(2)

Being a leader in DVD this segment still declines.(3)

HMV is not the market leader.

Potential new entrants

Technologic factors.(9)

Easiness of downloading movies or watching movies.

Online gaming which can be bought and played (10)

Suppliers power

their power is very strong. S.C (L)

Sales are not insured. NO insurance NO supply(1)

The suppliers have a huge role in bargaining decisions.

Buyers power

able to download. Strong.S.C(L)

Downloading also involves the visual industry. Stong

Other video game retailers. Downloading. Strong(10)

Threats of substitute

Downloading

TV on demand, websites, movie rental

Downloaded videogames and hacked video games.