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Real Groovy assignment for info 191
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Well established music retail store that specialises in…
CD’s
DVD
Clothing Books Vinyl Games Tickets
Also offers a w i d e selection in…
Well established in local market
with a customer base of over
60,000 people
CD sales in the US last year
decreased by
While Digital downloads globally
last year increased by
Digital downloads are having a major impact on the
industry
Apple I-tunes sales increased last year as they reached 1.5 billion downloads
Sounds went into receivership last year owing $20 million in debts. This was blamed on the decrease of sales due to digital downloads
Physical CD sales appear to be decreasing, as digital sales appear to be
increasing
Real Groovy remains stable in this market as they have
an extensive range
Real Groovy remains stable in this market as they have
an extensive range
New local entrants of Australian owned music retailer ‘JB HI-FI’, have
a similar music range but also specialize in digital technology
The Warehouse music buyer Terry Anderson claims that The Warehouse dominates 40% of the music retail market. They do this by having their CDs price $5-$6 lower than other retailers.
The internet in relation to digital downloads and file
sharing, is one of Real Groovy’s biggest competitors
Left: Rapid increase of internet downloads
Real groovy should associate itself with this growing part of the music industry and
incorporate music downloads into their website
Strong local database of customers
Wide range of entertainment productsWide range of entertainment products
Free online delivery system
Only has 4 stores nationwide. As much as people enjoy downloading music, they also enjoy going into stores an talking about music and anything else that relates to it! Number of stores is quite small
Poor internet services for what is available to them
Online music market would be affective as they already have secured 60,000 customers through their stores
In an excellent position to open more stores
Online music market is a threat if they don’t adapt their online services to it
Competitors pose a threat as they offer a range of different products and prices
Real Groovy should associate itself with the fast growing market of internet downloads and digital technology.
Entertainment is going digital and Groovy needs follow this change.
Real Groovy should also open more stores to increase profits and grow as a company. This would also compliment an online
shift, as the extra stores can further promote online music
Real Groovy holds a stable market position as it has a wide range of goods.
Real Groovy has a strong local customer base and strong brand, which is an advantage to them over new entrants into the market (JB HI-FI).
The music industry is in a rapid changing state, where buying music in digital form has a fast growing market. Real Groovy needs to associate with this market to survive in the industry.
Real Groovy has a low store count which limits its national growth. More stores would benefit the profits and name of the business.
Real Groovy holds a stable market position as it has a wide range of goods.
Real Groovy has a strong local customer base and strong brand, which is an advantage to them over new entrants into the market (JB HI-FI).
The music industry is in a rapid changing state, where buying music in digital form has a fast growing market. Real Groovy needs to associate with this market to survive in the industry.
Real Groovy has a low store count which limits its national growth. More stores would benefit the profits and name of the business.