It is an uncertain world for business in the 21st century as they have to constantly assess their situation in an ever-changing global community. Now, it is not simply enough to sell a successful product, companies now have to evaluate their position in the market and constantly re-evaluate if they hope to keep up and still be successful – not only in terms of profits, but also in terms of reputation and brand image. In my project I am going to focus in on one particular company – HMV and I intend to investigate what is the current position of HMV and what is the best way forward for the company if it is to remain successful.
With over 75 years of trading history, and more than 160 stores around the country, HMV is one of the UK’s premier retailer of music, dvd, videos and computer games. The HMV brand, made famous by the instantly recognisable dog and trumpet trademark, has also been successfully exported around the rest of the world, with a further 200 stores trading across the U.S.A, Canada, Australia, Japan, Hong Kong, Singapore, Germany and Ireland. The first HMV shop was opened in 1921 at 363 Oxford street, one of London’s most prominent shopping streets and HMV has developed into the UK’s leading music specialist retailer. Since 1986 HMV stores have been opened in Canada, Ireland, Australia, USA, Japan, Hong Kong, Germany and Singapore.
HMV’s principle territory in the UK with Canada and Japan accounting for the majority of profit in the North America and Asia Pacific regions. 147 stores operate in Europe, 111 stores in North America and 70 stores in Asia Pacific. For the whole period of its trading history, HMV had been a part of the EMI Group of companies, but in March 1998 it was sold to form a new retail concern – the HMV Group – that also comprises the Waterstones bookchain.
HMV operates 328 stores in 9 selected international markets which retail an authoritative range of multi-genre music, video and games and a small, targeted range of related merchandise. After assessing HMV’s situation I expect to find that HMV probably could use some strategies to move forward as doing nothing in an ever-changing world does not seem like good business sense. Background For a company to know where it is going in the future, it is vital for them to know where they are in today’s world. So to understand where HMV is now I will analyse their situation so I can find out the best way forward for them.
HMV has many strengths as a company – it has one of the world’s most instantly recognisable trademarks and its name is inextricably linked with the history of recorded music. It has been very successful at establishing a brand image and associating it with its trading heritage, quality and service. It is the UK’s leading specialist retailer of music, DVD and computer games. The company has a 25% share of the domestic music market (source: CIN based on unit deliveries), and also accounts for over 20% of all DVDs and VHS videos sold as well as approximately 10% of computer games. Branding helps make products and services distinctive from those offered by rivals. Brands are generally based around a trade name e.g. HMV, Coca-Cola and Nike. A brand will usually incorporate a logo e.g. ‘Nipper’ the dog listening to His Master’s Voice through a gramophone.