HMV are aware that their business is struggling and will continue to struggle because of the modern online downloads and streaming that is available. HMV had warned they would struggle yet again in 2011 and the organisation only saw an increase in sales for a few weeks that lead to Christmas.
According to Marketing Week, “Sales from stores open for a year or more dipped 8.2% for the first five weeks to 31 December, an improvement on the 13.2% dip reported for the first 7 weeks to 17 December.”
HMV has changed the layout of its stores and expanded the room available for technology products. The organisation has recognised the threat of competitors who offer online downloads/streaming and convenience to customers in their home. HMV is currently in a phase where changes are being made to the companies various strategies, organisations core strategy to provide entertainment to the target audience will still exist. The company must challenge other competitors by providing convenience to its consumers directly via Television, Internet, Consoles, Tablets and Smartphones.
Stated in the Marketing Week, “The slowing sales decline was credited with the layout changes” furthermore the article indicates HMV “saw many of its stores give up a quarter of floor space to technology products.”
HMV are clearly showings signs of major changes taking place in the cooperation. It is vital for HMV to refocus their business in the markets they are in because the organisation is seeing a decline in sales for physical music and films in its high street stores. HMV as an organisation is going through a combination of changes and these are beginning to show from the ‘slowing of sales decline’.
Technology is one major aspect HMV wants to be involved in as there are major sales in this market and consumers are wanting new technology all the time. Now these products are physical but HMV does have an effective website from where customers can buy products/services that are physical or downloadable.
HMV is major brand recognised all over the World and has an existing foundation for the future. With the reputation that HMV has it is very likely that it will be utilised as an app for entertainment on TV, Internet, PC, Laptop, Tablets, Smartphones and other media devices once the organisation is stable and has no more debts.
As a consumer I rather prefer the physical products because you can store them in a room and watch it again without any streaming problems. An online movie for instance may keep you waiting when streaming or a downloaded movie maybe lost due to technical problems with a certain device. I like to have a collection of movies stored in my room while making it seem as if it were decoration. A physical product such as a movie with the various colours and pictures on the DVD cases changes the mood in the room.
I do like products/services to be convenient aswell because I am a modern person who loves marketing and technology. I feel I have to keep myself upto date with the modern world if I am to compete in my job or have the required knowledge when having a conversation with another human being. Recently I have been using the Love Film app to watch movies on my PS3 (Playstation 3) console and I can understand why physical movies are in decline.
“The freedom of choice is what attracts consumers to conveniently utilise devices to watch online movies and listen to music.” Ahmed, N. 2012.