Chris Hart and Marty O'Donnell own Real Groovy, a retailer of CDs, DVDs, LPs, books, games, and band merchandise. They are struggling with declining profits as mega discount chains offer lower prices. In response, Real Groovy has expanded their product selection and offers additional services like online ticket sales and music downloads. The document recommends that Real Groovy focus on specialty retail offerings rather than trying to be all things to all customers, and to review each business activity and store location.

1. A Situation Analysis Caroline Igrisan

2. Meet Chris Hart and Marty O’Donnell

3. Together they own “ Real Groovy”

4. Chris and Marty are finding business a bit tough at the moment, Profits are down Because…

5. Mega Discounting Chains have come into the market with lower prices and more locations…

6. People are easily downloading music and movies some are even pirating music…

7. So what are Chris and Marty doing about it?

8. They offer a bigger, deeper range of CD’s, DVD’s and LP’s. (including second hand)…

9. they stock specialty books, games and band merchandise…

10. sell concert tickets… They publish two specialty magazines…

11. You can go to the Real Groovy website and… See an online Gig guide Become an affiliate and sell Real Groovy products and earn commission Join the Real Groovy Club and get special offers

12. Real Groovy has even developed system software for stock and supply chain management, which they can now sell around the world!

13. Chris and Marty have their fingers in a lot of pies!

14. RECOMMENDATIONS

15. If not, retrench and simplify Review each company activity and see if they sustain themselves.

16. Provide online music downloads.

17. Look at each store location and possibly reassign in line with population density Auckland Christchurch Wellington Dunedin

18. Have the retail stores concentrate on being ‘specialty retailers’- not all things to all people.

19. So Real Groovy’s profit can increase and make Chris and Marty happy again!