Introduction
Background:
HMV stands for “His Master’s Voice’ which is the painting painted by English artist Francis Barraud, A.R.A. HMV trademark logo ‘dog-and-gramophone’ is the most memorable logo with a Jack Russell Terrier dog Nipper staring longingly into the wide bell of a gramophone. It was established at UK since 1921. Its original store is opened by Gramophone Company located at Oxford Street in London. The development of HMV was driven by the need to innovate continually. HMV chain stores spread rapidly with over 250 stores across UK and Rep of Ireland. After the period of rapid expansion, it became the leader of the industry - HMV Group. HMV Group operates many different business levels in the industry, such as Waterstone’s bookstores…show more content… On a statutory basis for continuing operations, profit before tax and exceptional items declined from a profit of £16.2m to a loss of £16.2m. On revenues from continuing operations which decreased by 20.8% to £873.1m our adjusted earnings per share from continuing operations fell to a loss of 3.4p from a profit of 3.4p last year. Basic earnings per share from continuing operations before exceptional items fell to a loss of 8.7p from a loss of 1.5p in 2011. Whilst our financial performance this past year has evidently been disappointing the Board is confident that the year ahead will see a significant financial improvement. (Bloomberg 2012)
SWOT Analysis
This part is using SWOT analysis to evaluate the strengths, weaknesses, opportunities and threats of HMV and analysis the internal environment of HMV.
Strengths
With the recognizable brand logo and the trust of customers that gained from all these years, HMV has the power to provide the service for the film industry with distinctive characteristic of product making. HMV’s history is the link with recorded music which built its image equal to the high quality of services that customers can trust. Therefore it has a high level of repeating purchase clients with brand loyalty as the client base that hare is no rivals in the…show more content… Political
Political factors mainly come from the government which has little effect on the entertainment industry. Government may forbid the publishing of music or videos which the content may contain message against sentiments of some population or harbor evil intentions messages. All messages against the law are prohibited from being delivered or distributed. HMV should avoid to publishing such contents in order to protect the company from any loss and damage of the company image. Economical
Internet retailing business increases rapidly from 2006. The yearly revenue has rise over 100% within 5 years. Starting 2006 in UK, the growth of online households has increased by 85%. (Euro monitors International from national statistics). The economic depression combined with high taxes policy and the increase of daily expenses turn down the consumer sentiment. Money falls into insurance, mortgage, repayments, utility bills and pension funds which turns out that the public has less cash to be spent on the entertainment industry.