this presentation was commissioned by real groovy

By Terry Ter-Lun Kung 4925473

How does Real Groovy manages its business?

How does it differs to other competitors?

What is the current challenge they are facing?

What should they do to overcome these challenges?

REAL GROOVY’S STRENGTHS Real Groovy sales a wide range of catalogue

second-hand products in a relatively high cost. Because their strategy is to provide the “*go-to retailer insurance claims”.

*Which mean they will replace the stolen CDs and DVDs collections for the customers.

BUT…

IS THAT A REAL STRENGTH?

Real Groovy’s product are often cheaper than brand new products, but sometimes can be more expensive as the company doesn’t normally offer discount.

Some customers rather buy brand new products which are cheaper from The Warehouse.(new CDs, DVDs and books are also better worth collecting.)

Sometimes Trademe also provides a wide range of cheaper secondhand goods.

Real Groovy is experiencing a rapid change in the business environment where people buying music albums and movie DVDs are decreasing.

This is because of…

People who are interesting in downloading movies and music tracks from the internet.

People who copies music CDs and movie DVDs from their friends.

…Real Groovy must think of a way to change or alter its internal environment in order to survive in the current dying market.

…This situation can be fatal as there are already companies shut and owing money due to the current environment that Real Groovy is also struggling.

In New Zealand the total turnover in music retailing dropped by 35 per cent between 2001 and 2005

There were 195 music retailers in NZ six years ago. By 2006 that had shrunk to 167.

The overall music retailing market is decreasing in NZ.

SOMETIMES IT JUST DOESN’T FIT THE ENVIRONMENT

Real Groovy’s internal problem is lack of discounts.

Its target market are the people who choose median-high cost with median-low quality products.

This market is small and decreasing. Because it can not compare its quality to brand new product from The Warehouse where the cost is median ( median –low with discount). And Trademe where you can get low to high secondhand product in low to high cost.

So, What would you do as strategy if you’re in a tough situation like that?

Promote more discounts to attract customers!

Or...

Lower the average cost in general!

Or…

Thank you for watching.

Your patience and time are truly appreciated.

NotesAll information in this slide are my own work.Information from slide 19 comes from January 10

2008, NZ Herald, Real Groovy - a company adapting to change.

All pictures in this slide are found through the Google search engine.

http://www.twistingthrottle.com/images/real-groovy.gif

http://www.monstersandcritics.com/dvd/news/article_1360120.php/Hold_on_to_your_donuts_The_Simpsons_Movie_is_coming_to_DVD_and_Blu-ray

http://showbiznews.info/2008/03/25/donald-trump-files-suit-over-miss-usa/

http://www.williamrolls.com/blog/images/donald_trump.jpg

http://ithoughtitwasthetrash.files.wordpress.com/2007/10/438772462_87c04672f0.jpg

http://radiofobia.zip.net/arch2007-10-16_2007-10-31.html

http://www.foundshit.com/images/bush001.jpg http://www.jesus-is-savior.com/False%20Religions/

Wicca%20&%20Witchcraft/bush_satan_sign.jpg http://nerd-paradise.com/images/nerd/nerd_385x2

61.jpg http://www.aolcdn.com/ch_gamedaily/american-ga

mer.jpg http://www.stevenkasher.com/html/..%5Cpublish%

5Cworksimages%5CHuepkerMuhammadAliWEB_LG.jpg

http://www.stevenkasher.com/html/..%5Cpublish%5Cworksimages%5CHuepkerMuhammadAliWEB_LG.jpg

http://bradlaidman.com/wp-content/uploads/2007/08/ali-muhammad-photo-muhammad-ali-6206402.jpg

http://artfiles.art.com/images/-/Muhammad-Ali-vs-Sunny-Liston-Poster-C13149345.jpeg

http://ezoons.com/images/wallpapers/onepiece-flag.gif http://ecwzone.de/Xeno/sonic/luffy.jpg http://www.kesar.org/fotos/15308.jpg http://ezoons.com/images/wallpapers/onepiece-flag.gif http://weblogs.newsday.com/sports/KBQB_blog/ali.jpg