Information Management 191, Assignment (1)
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Transcript of Information Management 191, Assignment (1)
By Jenna MorrisManagement Consultant
• This presentation aims to:
1. Investigate2. Discuss3. Summarise
Real Groovy’s current situation
Despite Real Groovy’s enormous trade in:
1. 2. 3.
The company has experienced…
A sales drop.
Factors such as…
DOWNLOADING MUSIC;
Legally
And illegally
Heavy Competition;
And a Declining economy;
All contributed to Real Groovy’s sales drop.
Let us
at these factors
a little more closely…
FACTOR 1: Digital Music Downloads
2001$200 Million
2006$147 Million
Total music sales fell from,
to
… CD’s have become a ‘clumsy’ way to package songs in the digital age.
ALSO:
e.g.Option 1:
1 C.D = 20 Songs 1 x 80 gb iPod = 20,000 Songs
Main Idea:
The physical increasingly cannot compete with the digital.
FACTOR 2: Economy
After its parent company collapsedin late 2007…
‘Sounds’ (the nation’s largest music retailer at the time) shut its doors…
…owing creditors almost $20 million.
‘Sounds’ blamed a weak
retail market and illegal
downloading from the
internet after its recent
closure.
FACTOR 3: Heavy Competition
JB HI-FI has increased profits by 50% during 2004 to 2006…
… a time where all the major music labels admitted
they had ‘taken a hit’ in their
financial reports.
It is not all bad news!
Real Groovy set themselves apart through:
“nooks, crannies and systems management”, and competing on range, not on price.
LOOKING AHEAD…
On an international scale, the Virgin megastore spokesman
believes that:
“If music was available only as downloadable material, it would be the beginning of the end for the music industry…”
“… after all, The Darkness aren’t likely to be appearing in-store to sign their latest downloaded album anytime soon.”
Real Groovy needs to implement an achievable and clear strategy of how the company is going to respond to its current situation.
Recommendations for Real Groovy
Using the Boston Consulting Group Tool, (The BCG Matrix)sort out what is working in the business and what is not working .
Implement a Growth Strategy. This involves organisational expansion.
Continue to set themselves apart from other companies in the music industry.