SWOT analysis of HMV
This SWOT analysis shows as the Strengths, Weaknesses, Opportunities and threats of HMV. Where the Strengths and weaknesses are the internal part of the organization whereas, opportunities and threats are the external ones.
1. Brand Acceptability: - since hmv has an iconic trademark, its acceptability all over the United Kingdom is high.
2. Quality Products: - there is no doubt that hmv provides a high quality products and it is well known for it.
3. Good History: - hmv has a remarkable history by operating more than nine decades which is on the way for a century. In this all times hmv has done a good job and is much known for its exceptional history worldwide.
4. Price: - the prices in hmv stores for physical outlets products are affordable
5. Market Position: - its market position in UK is good even though there has been a dropping in the past years.
6. Relationship with films and Music Providers: - the company has a close relationship with its films and music providers. Therefore the services they give are good and consumers like it.
7. Number of Stores: - hmv has over 150 stores over the country which makes it better than other retailers. And its stores are found around prime shopping districts and high human traffics areas.
8. Extensive dimensions of products: - hmv provides a wide range of DVDs, VHS videos, computer games, technologies and others in physical outlets.
9. Good Customer Relationship and services: - hmv give good services to its customers and maintains a good relationship with them.
1. Failure in following trends: - hmv did not comply with the quick change of today's business model where most things are sold online.
2. Lack of Marketing: - the marketing is done through online mediums and word of mouth. This need to be changed. More promotions and advertising should be done. And we need to remind people who we are and what we are providing.
3. Limited Locations: - even though there are over 150 stores all over the UK, this stores are found in main streets but we need to go deeper than that and provide products and services to consumers.
In this External analysis we will see opportunities and threats of the organization. If opportunities are not used at the exact time it can change to a threat and the organization will be at risk, but if we used them at the right time we can be benefited from that.
1. Establish a world beating online shop: - hmv needs to establish a high class online presence and needs to compete with its competitors because this days most transactions and shopping takes place online.
2. More participation in Games: - the industry of games and technology is getting higher therefore hmv should use this opportunity and become the leading provider of Games and technologies in UK.
3. Technology: - hmv should invest more because the interest of people in technology is getting higher and higher every time.
4. Increase in number of Sales Channels:- hmv can be benefited by increasing it channel of sales beside retail shops.
5. Awareness: - by doing more promotions or by making people aware of hmv, they can increase the sales.
1. Online Stores:- everybody with a similar product but sales their products online are threats for hmv.
2.Smartphones (3G Networks):- smart phones is making people life easier once it is possible to buy products online straight from your phones, nobody wants to go to an hmv stores and find the products there. Buying online, ordering online saves time and money rather than going to a store even if it is near.
3. Steaming Medias: - now days there is a fast connection network. So people choose online streaming Medias rather than buying products from stores or online. They can watch or listen online whatever they want where ever they want. They just need the internet connection. For example we can compare by selecting a certain music video seen online and how many hmv store sales the same video. There is a big difference. Therefore this has been and is a big threat for hmv not to increase sales.
4. Price Wars: - there is a big competition in price since customers are very sensitive to price
5. Innovations: - we can see big innovations now days and this makes them compete to each other and it is another threat for hmv.
6. Illegal downloading or pirated music: - the big threat in any body which is similar to hmv's business is illegal downloading people rather choose to download illegally than to pay for it.