Well established music retail store that specialises in…

CD’s

DVD

Clothing Books Vinyl Games Tickets

Also offers a w i d e selection in…

Well established in local market

with a customer base of over

60,000 people

CD sales in the US last year

decreased by

While Digital downloads globally

last year increased by

Digital downloads are having a major impact on the

industry

Apple I-tunes sales increased last year as they reached 1.5 billion downloads

Sounds went into receivership last year owing $20 million in debts. This was blamed on the decrease of sales due to digital downloads

Physical CD sales appear to be decreasing, as digital sales appear to be

increasing

Real Groovy remains stable in this market as they have

an extensive range

Real Groovy remains stable in this market as they have

an extensive range

New local entrants of Australian owned music retailer ‘JB HI-FI’, have

a similar music range but also specialize in digital technology

The Warehouse music buyer Terry Anderson claims that The Warehouse dominates 40% of the music retail market. They do this by having their CDs price $5-$6 lower than other retailers.

The internet in relation to digital downloads and file

sharing, is one of Real Groovy’s biggest competitors

Left: Rapid increase of internet downloads

Real groovy should associate itself with this growing part of the music industry and

incorporate music downloads into their website

Strong local database of customers

Wide range of entertainment productsWide range of entertainment products

Free online delivery system

Only has 4 stores nationwide. As much as people enjoy downloading music, they also enjoy going into stores an talking about music and anything else that relates to it! Number of stores is quite small

Poor internet services for what is available to them

Online music market would be affective as they already have secured 60,000 customers through their stores

In an excellent position to open more stores

Online music market is a threat if they don’t adapt their online services to it

Competitors pose a threat as they offer a range of different products and prices

Real Groovy should associate itself with the fast growing market of internet downloads and digital technology.

Entertainment is going digital and Groovy needs follow this change.

Real Groovy should also open more stores to increase profits and grow as a company. This would also compliment an online

shift, as the extra stores can further promote online music

Real Groovy holds a stable market position as it has a wide range of goods.

Real Groovy has a strong local customer base and strong brand, which is an advantage to them over new entrants into the market (JB HI-FI).

The music industry is in a rapid changing state, where buying music in digital form has a fast growing market. Real Groovy needs to associate with this market to survive in the industry.

Real Groovy has a low store count which limits its national growth. More stores would benefit the profits and name of the business.

Real Groovy holds a stable market position as it has a wide range of goods.

Real Groovy has a strong local customer base and strong brand, which is an advantage to them over new entrants into the market (JB HI-FI).

The music industry is in a rapid changing state, where buying music in digital form has a fast growing market. Real Groovy needs to associate with this market to survive in the industry.

Real Groovy has a low store count which limits its national growth. More stores would benefit the profits and name of the business.