Real Groovy is facing declining music sales that threaten the viability of the business. Four key factors are identified as contributing to the falling sales: legal and illegal music downloading, competition from other companies, and a lack of opportunities for Real Groovy to expand its business. The report analyzes each of these factors and their impact on Real Groovy's sales to help its managing director understand the challenges facing the company and determine the best strategy going forward.

1. By Stefan Mastilovich - Management Consultant

2. This report was commissioned by Chris Hart, Managing Director of Real Groovy. Its purpose is to investigate, discuss and summarize Real Groovy’s current situation in the music market. The biggest problem with Real Groovy today is that its sales are dropping. If it continues to drop, the business could find itself in a tight spot.

3. Factor 1: Legal Downloading Factor 2: Illegal Downloading Factor 3: Competition from other Companies Factor 4: Lack of opportunities to expand

5. “ Are forcing dramatic change in the music retail scene.” (Slade, 2008, ¶ 2).

7. Choose From 700,000 Tracks on online music store. ON YOUR MOBILE!

10. John Kennedy has stated that “Illegal downloads still outnumber legal by 20 to one. I am relieved that the proportion hasn't grown since last year, but I am horrified at a ratio of 5:95 for legal sales," (Fenton B., Financial Times, p. 24.).

12. Money Spent on Music CD’s

14. JB HI-FI is an International company; selling CDs and DVDs at low prices.

15. The Warehouse is selling products for cheaper then cost price.

17. Expand?  Impractical

19. Legal Downloading is lowering sales. Illegal Downloading is lowering sales. Competition from other companies is lowering sales. Lack of opportunities to expand is restricting our sales.

20. Two Options: 1) Change What Your Selling 2) Liquidate Real Groovy Business