Analysis of HMV

Marketing

Strengths

Physical market presence-

Despite the closure of many of HMV’s stores due to administration difficulties, over 100 stores were still in operation in prime shopping locations in the UK and Ireland. In 2012 HMV had nearly 20% of the market share, slightly more than Amazon at the time. HMV is one of the largest and most successful entertainment retail store in Europe and is more successful than its rivals such as Virgin megastore who closed down in Ireland in 2002. (McCaughren, 2007). As of 2013 HMV had 16 stores operating all over Ireland in the main cities such as Henry Street, Lucan , Graton Street, Galway and Cork. (www.thejournal.ie). In Ireland HMV’s physical presence is strong compared to their rivals Tower Records and Golden discs as HMV is more recognisable than them and are in prime locations.

Weaknesses

Falling market share-

With the rise in digital downloads such as on iTunes, HMV lost 36million in August 2012 due to streaming online and downloading music online, music and DVD sales were down by 20% in the run up to Christmas 2012. (Wood, Z. Milmo, D. 2011) HMV’s market share in January 2013 had fallen to 17% a low figure compared to Amazons which was 23% at this time. (Lawson, A 2013). With a falling market share a company begins to lose sight of the market and drastic changed need to be made to meet customer demands and to keep ahead of rivals.

Failure to accept changes-

One of the main reasons HMV failed is because they didn’t move with the times and adapt to the current marker. There were three major factors standing in HMV’s way supermarkets, online retailers and downloadable music. It has been brought to the director’s attention about the upcoming problems but they didn’t see them a...

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...icial Eye to create in-store cinema venues’ [online] screendaily. Available from http://www.screendaily.com/hmv-curzon-artificial-eye-to-create-in-store-cinema-venues/5000273.article [accessed on the 30-3-2014]

Music week ( 2005) ‘HMV to encourage environmental awareness’ [online] musicweek 27TH of January. Available from http://www.musicweek.com/news/read/hmv-to-encourage-environmental-awareness/027552 [accessed on the 30-3-1014]

Indexmundi (2013) ‘Historical Data Graphs per Year’ Indexmundi Available from http://www.indexmundi.com/g/g.aspx?c=ei&v=21 [accessed on the 29-3-2014]

Bowie-Sell , D (2012) ‘UK second worst in world for illegal music downloads’ [online] Telegraph 17TH of Septemeber. Available from http://www.telegraph.co.uk/culture/music/music-news/9547974/UK-second-worst-in-world-for-illegal-music-downloads.html [accessed on the 15-3-2014]