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Real Groovy's new challenge


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Real Groovy's new challenge

  1. 1. this presentation was commissioned by real groovy By Terry Ter-Lun Kung 4925473
  2. 8. <ul><li>How does Real Groovy manages its business? </li></ul><ul><li>How does it differs to other competitors? </li></ul><ul><li>What is the current challenge they are facing? </li></ul><ul><li>What should they do to overcome these challenges? </li></ul>
  3. 10. REAL GROOVY’S STRENGTHS <ul><li>Real Groovy sales a wide range of catalogue second-hand products in a relatively high cost. Because their strategy is to provide the “* go-to retailer insurance claims ”. </li></ul><ul><li>*Which mean they will replace the stolen CDs and DVDs collections for the customers. </li></ul><ul><li>BUT… </li></ul>
  5. 12. <ul><li>Real Groovy’s product are often cheaper than brand new products, but sometimes can be more expensive as the company doesn’t normally offer discount. </li></ul><ul><li>Some customers rather buy brand new products which are cheaper from The Warehouse.(new CDs, DVDs and books are also better worth collecting.) </li></ul><ul><li>Sometimes Trademe also provides a wide range of cheaper secondhand goods. </li></ul>
  6. 13. <ul><li>Real Groovy is experiencing a rapid change in the business environment where people buying music albums and movie DVDs are decreasing. </li></ul><ul><li>This is because of… </li></ul>
  7. 15. <ul><li>People who are interesting in downloading movies and music tracks from the internet. </li></ul><ul><li>People who copies music CDs and movie DVDs from their friends. </li></ul>
  8. 16. <ul><li>… Real Groovy must think of a way to change or alter its internal environment in order to survive in the current dying market. </li></ul>
  9. 17. <ul><li>… This situation can be fatal as there are already companies shut and owing money due to the current environment that Real Groovy is also struggling. </li></ul>
  10. 19. <ul><li>In New Zealand the total turnover in music retailing dropped by 35 per cent between 2001 and 2005 </li></ul><ul><li>There were 195 music retailers in NZ six years ago. By 2006 that had shrunk to 167. </li></ul><ul><li>The overall music retailing market is decreasing in NZ. </li></ul>
  12. 21. <ul><li>Real Groovy’s internal problem is lack of discounts. </li></ul><ul><li>Its target market are the people who choose median-high cost with median-low quality products. </li></ul><ul><li>This market is small and decreasing . Because it can not compare its quality to brand new product from The Warehouse where the cost is median ( median –low with discount). And Trademe where you can get low to high secondhand product in low to high cost. </li></ul>
  13. 23. <ul><li>So, What would you do as strategy if you’re in a tough situation like that? </li></ul>
  14. 24. <ul><li>Promote more discounts to attract customers! </li></ul><ul><li>Or... </li></ul>
  15. 25. <ul><li>Lower the average cost in general! </li></ul><ul><li>Or… </li></ul>
  16. 27. <ul><li>Thank you for watching. </li></ul><ul><li>Your patience and time are truly appreciated. </li></ul>
  17. 28. <ul><li>Notes </li></ul><ul><li>All information in this slide are my own work. </li></ul><ul><li>Information from slide 19 comes from January 10 2008, NZ Herald, Real Groovy - a company adapting to change. </li></ul><ul><li>All pictures in this slide are found through the Google search engine. </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
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