Strategy Plan for Hmv Group.
TASK 1.
a) Explain and analyse external factors affecting HMV.
Executive summary
HMV Groups markets had experienced rapid change over recent years and have become more competitive and with a diminishing amount of in store sales as consumers choose to use the internet to fulfil their needs. These trends are heavily influenced by celebrities and other social icons as well as advertising and publicity. The main technological development is that of the internet. It has also given rise to competition in the form of piracy which is a growing social/ political issue. Piracy has had a large affect on sales and demand within the industry and any changes in law/ legislation or enforcement of piracy will have a large effect on the HMV group. It has enabled consumers to communicate directly with the seller and buy their goods without ever having to enter a store. This has influenced the way goods are sold and the types of goods sold within the industry.
It is important to evaluate these forces to determine the competitive nature of the HMV groups external environment. To do this I shall use Porters 5 forces analysis
Porters 5 forces show that the markets that HMV Group is involved with are highly competitive and rely heavily on the sellers ability to offer the consumer the choice they want and to be able to offer there good to the consumer in a variety of ways allowing the consumer to exercise a choice. It is also important to note that it is vital that the consumer has easy access to the seller as otherwise they will buy from a rival due to the low levels of customer loyalty.
External Factors
An external factors examines the opportunities and threats that are available to it within its market and is also the study of other rivals that exist within its environment. It is important to study this when constructing a business plan as it is necessary to know what affects your rivals have on you and the environment you work in as well as the outside factors that affect
a) Explain and analyse external factors affecting HMV.
Executive summary
HMV Groups markets had experienced rapid change over recent years and have become more competitive and with a diminishing amount of in store sales as consumers choose to use the internet to fulfil their needs. These trends are heavily influenced by celebrities and other social icons as well as advertising and publicity. The main technological development is that of the internet. It has also given rise to competition in the form of piracy which is a growing social/ political issue. Piracy has had a large affect on sales and demand within the industry and any changes in law/ legislation or enforcement of piracy will have a large effect on the HMV group. It has enabled consumers to communicate directly with the seller and buy their goods without ever having to enter a store. This has influenced the way goods are sold and the types of goods sold within the industry.
It is important to evaluate these forces to determine the competitive nature of the HMV groups external environment. To do this I shall use Porters 5 forces analysis
Porters 5 forces show that the markets that HMV Group is involved with are highly competitive and rely heavily on the sellers ability to offer the consumer the choice they want and to be able to offer there good to the consumer in a variety of ways allowing the consumer to exercise a choice. It is also important to note that it is vital that the consumer has easy access to the seller as otherwise they will buy from a rival due to the low levels of customer loyalty.
External Factors
An external factors examines the opportunities and threats that are available to it within its market and is also the study of other rivals that exist within its environment. It is important to study this when constructing a business plan as it is necessary to know what affects your rivals have on you and the environment you work in as well as the outside factors that affect