Hmv, a UK-based music and entertainment retailer founded in 1921, is facing challenges and needs a new strategic focus. It is closing 60 stores due to falling sales of 14% from the previous Christmas season. Products have increasingly moved online, and piracy is also hurting sales. However, Hmv has strengths in its diverse products and brand recognition. To adapt, it plans to invest more online, launch smartphone apps, offer in-store WiFi discounts, and go greener like Kindle. Hmv will need to lower costs by closing stores, invest heavily in its online presence, and leverage new technologies to modernize and return to growth.

1. A New Strategic Focus
February 17th 2011
Aline Lima de CarvalhoB0413MPMP0810
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Group 5

2. hmv
KEY FACTS
 Founded in 1921
 280 stores (UK and Ireland)
 More than 700 stores
in 8 countries
 Also own Waterston's,Fopp
and Zavvi

3. hmv
Situation
60 stores closing
down
Sales fell by 14%
comparing to
Christmas time last
year
Products have
gone on line

4. hmv
Stores closing down

5. hmv
Piracy

6. hmv
Sales diminishing

7. Strengths Weaknesses
 Diverse Products in a same  Too many online competitors
marketing  Too many shops (stores)
 Knowledge and Experience
 Recognized Brand/Name
Opportunities Threats
 Reach new consumers  May lose old consumers
 New Image  Face strong competitors
 New Market

8. Competitor Analysis

9. Changes begin
Nipper the mascot first appeared The HMV logo has been
in an 1898 oil painting called His rebranded to give it a
Master's Voice more contemporary look
(2007)

10. How to Adapt?
- Strategies
Online Investment Smart Phones Apps
Promotion/Deals
Wi-Fi in store discount shopping
Go green
(like kindle)
hmv
hmv

11. - strategies

12. Internal and External Factors

14. conclusion
• Hmv need some changes to get back to the
market
- Lower the cost (less stores)
- Invest in the on line business (e commerce, e
market, e business)
- Take advantage of the technology. Changes can
be good if Hmv keeps up with it.
- Promote it.
Then results will come soon.
Thank you!