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Smas061 Real Groovy Power Point Presentation

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Smas061 Real Groovy Power Point Presentation

  1. 1. By Stefan Mastilovich - Management Consultant
  2. 2. <ul><li>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. </li></ul><ul><li>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. </li></ul>
  3. 3. <ul><ul><li>Factor 1: Legal Downloading </li></ul></ul><ul><ul><li>Factor 2: Illegal Downloading </li></ul></ul><ul><ul><li>Factor 3: Competition from other Companies </li></ul></ul><ul><ul><li>Factor 4: Lack of opportunities to expand </li></ul></ul>
  4. 5. “ Are forcing dramatic change in the music retail scene.” (Slade, 2008, ¶ 2).
  5. 7. Choose From 700,000 Tracks on online music store. ON YOUR MOBILE!
  6. 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,&quot; (Fenton B., Financial Times, p. 24.).
  7. 12. Money Spent on Music CD’s
  8. 14. JB HI-FI is an International company; selling CDs and DVDs at low prices.
  9. 15. The Warehouse is selling products for cheaper then cost price.
  10. 17. Expand?  Impractical
  11. 19. <ul><ul><li>Legal Downloading is lowering sales. </li></ul></ul><ul><ul><li>Illegal Downloading is lowering sales. </li></ul></ul><ul><ul><li>Competition from other companies is lowering sales. </li></ul></ul><ul><ul><li>Lack of opportunities to expand is restricting our sales. </li></ul></ul>
  12. 20. <ul><li>Two Options: 1) Change What Your Selling 2) Liquidate Real Groovy Business </li></ul>

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