Business Project – HMV
Chan Ho Yeung 13431908
1. Introduction 2
2. Comparative Analysis of the company’s
competitive position in its various markets 3
2.1 PEST 4
2.2 Porter 5 forces 5
2.3 Value Chain 7
3. Considerations for the company’s position
in relation to cross-cultural issues 10
3.1 Hofstede Cultural dimensions 10
3.2 Iceberg model of culture 14
4. The company’s position in relation
to corporate social responsibility 16
4.1 Carroll’s CSR Pyramid 16
5. Conclusion 21
6. References 24
People who were born in 1990s or before, they should have gone to CD shops to buy CDs and supported their favourite singers. So that, you ...view middle of the document...
HMV tried to sell the Irish shops (BBC NEWS, 2013). On 5th April, Hilco UK has used about 50 million pounds to purchase HMV. The business of HMV in Hong Kong and Singapore, totaling 7 stores and the branding rights in China, Taiwan and Macau were sold to a private equity firm - AID Partners. Aid Partners is a Hong Kong-based firm that specializes in investing in China.
This project is separated into 3 chapters, comparative analysis of the company’s competitive position in its various markets, considerations for the company’s position in relation to cross-cultural issues and the company’s position in relation to corporate social responsibility. It will make you understand more about HMV and how is their business doing. After facing the bankrupted, how HMV competes with the new music market? Analysing the different demands that between HMV Asia and UK. How the different culture impact HMV and what do they do.
2. Comparative Analysis of the company’s competitive position in its various markets
In this 21st century, the trend is doing everything on the internet. Music is also cannot escape by sheer luck. Consumers who used to buy CDs and now they are listening MP3 online. In these few years, with the advance of science and technology, it causes many matters occurred. Consumers can easily to download the music online. Some consumers can illegally download and share with the others. It makes that whole recording industry are going downhill. HMV is the oldest brand CDs retailer, the turnover of HMV is the first to be attacked. In the following parts, it uses some theories to justify the company’s competitive position.
2.1 Why use “PEST”?
PEST is used for the marketing research and a part of the external analysis. It can give the company a general overview of the different factors in the environment. This tool can also be effective understanding the market's situation and understanding market growth or decline. PEST is about (1) Political, (2) Economics, (3) Social and (4) Technological factors, which are used to assess the market for a business or organizational unit (Businessballs, 2014).
HMV is facing the problem of the people who is illegal downloading the music. This problem is hard to solve in the world because the law and policies are very different and not complete. HMV cannot take any legal actions so that illegal downloading still counties. It made the sales of HMV was down.
It is a recession in the economy, people are spending less to consume and people are downloading music rather than buying CDs or DVDs. According to the internet technology is growing up faster, people can easily download the music illegally. It makes the recording industries and the singers are difficult to maintain their business. It is affecting the value chain of HMV, directly affecting the earning of HMV.
Nowadays, there are many new ways to listen music, such as YouTube, Spotify, and iTunes....