Chase Erceg4976828

This is Real Groovy…

A New Zealand Music Retail Store

Current situation…

Large decrease in music CD sales

Mainly affected by…

Change in market from CD’s to Digital Music

Increasing Competition from Big Retailers who can buy in bulk and sell for cheap

Illegal music downloading

And..

Highly competitive prices of digital music

V.S.

Reason contributing to why consumers purchase digital music legally or illegally

Convenience of access e.g. at home

Little or no cost

Ability to download single songs rather than whole albums

Ability to download music before out on CD

‘Real Groovy’ has a very large back catalogue

Which holds a strong competitive advantage

Offers a Large variety

A huge collection of vinyl's, CD’s and DVD’s including 2nd hand

But comes at a cost…

products are more expensive than their competitors.

Boom of portable music devices

Development of technology and popularity of portable media devices such as iPods, which require mp3 or digital music files have taken over the market.

Also making the demand for CD’s decrease dramatically

Other companies’ solutions…

International music retailer “HMV”, decided to change with time and create a digital download service called “HMV digital”

Other companies such as “Amplifier”, have also created this service

Summary

Decreasing market for CD’s and increasing market for digital downloads

Real Groovy’s variety helping to set them apart but coming at a cost

Recommendations…

Create an online music store

Attempt to get same variety of music online

Advertise the attribute to try an attract customers from all around the world

Notes: All information in this slideshow come from my

previously written business report

All pictures in this slideshow have been found through the search engine, Google

Addresses:http://www.twistingthrottle.com/images/real-groovy.gif

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