real groovy - ibei001
DESCRIPTION
Situation Report for Real Groovy Ian BeissnerTRANSCRIPT
Real Groovy is a small organisation by world standards.
They only operate four stores throughout New Zealand
They are too small to affect much change, rather they must adapt to the current market situations
As a result of their size, it has meant they lacked a complex and inefficient chain of command
This is where Real Groovy establishes their competitive edge over larger, more complex organisations...
As they are a smaller operation they are able to exploit changes and opportunities quicker than larger companies. Giving them a competitive edge over others.
The music industry operates in a rapidly evolving environment
Current Trends indicate continued decreases in CD sales and rapid increases in legal downloading
In the 2006-2007 year we witnessed...
46%
19%
This means that retailers within the music industry could no longer rely simple CD sales for revenue
As a result, many smaller CD retailers worldwide have gone out of business
Real Groovy has had to use newer strategies to succeed in this changing market
In order to compete with larger music retailers, Real Groovy has diversified their products in several ways...
Insurance against CD Theft
Concert Ticket Sales
Sale of Vinyl Records
In the graph below we see that young people (aged 15-24) spend more than any other group on music.
Therefore Real Groovy offer special services to capture this market
This includes...
Being a prominent members of the social networking website MySpace. Advertising events and new products
Much of what they sell is second hand. This suits cash strapped students and young people
They release a monthly publication called Real Groove. This deals focuses on the youth music scene
Real Groovy has already shown success against great odds in a make or break industry
It has established itself as a strong competitor through its own ingenuity and adaptability
In the future they should retain their small size, as it bests enables them to manipulate the changing market to their advantage
They must also maintain their desire to have the needs of young people met, an area too often overlooked by retailers