Real Groovy Situation Analysis
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Real Groovy is a New Zealand-based music retailer facing challenges from increased digital music downloads, larger competitors, limited store locations, and lack of products for non-English ethnic groups growing in New Zealand. The analysis recommends that Real Groovy develop its own digital music platform, specialize in niche products not offered by competitors, expand store locations nationwide and internationally, and offer Asian music and movies to attract more customers.
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- 1. Situation analysis By Sunny Wong ID:4902554
- 2. 油
- 3. Products for sale Physical Record: Music CDs, DVDs, LPs, Books, Games etc Tickets for concerts Magazines Dance Vinyl (new and used, local and imported) Accessories T-shirts Posters and Flags
- 4. Real Groovy have Deep Catalog of product (more than 20000 titles) Well Stock organization to help customer find product Good Services provide to customers Well Trained Staff A-well designed website A good delivery system in New Zealand The Brand name is well-known in New Zealand Well use of internet and promotion- 油Affiliate Program
- 5. Extra costs for imported from United States Higher selling price than competitors Only 4 stores in New Zealand- cannot get high market share in the whole country
- 6. Real Groovy is Facing
- 7. They are 1. Music download 2.Competition 3.Store locations 4. Population(ethnic group)
- 9. The increase in technology level
- 10. We can get faster network and more resources from the internet because of the technology level increased. Faster More resources
- 11. And teenagers share music on the internet for free.
- 12. Those reasons lead the music downloads become an issue but it is illegal.
- 13. 2.Competition
- 14. Bigger companies can offer more resources. Lower price Deeper catalog for goods
- 15. And it become a real competition and a big issue for Real Groovy because The selling price of big company is lower than Real Groovy's cost. The big company can offer a deeper catalog and cost more for advertising to increase customers.
- 16. 3.Store location 4 stores located in New Zealand
- 17. Issues of location Only four stores in New Zealand, it means they lose many potential customers in the areas they havent cover. On the other hand, the market of New Zealand Music Retailer is not fully employed yet. Especially in the rural areas.
- 18. 4. Population (ethnic group)
- 19. Issues of Ethnic Group The population of the Asian and other ethnic group in New Zealand has been increased a lot in these 10 years. And they have their own culture and their own music. Real Groovy only sale products in English, but not all people in other ethnic groups like western music. So Real Groovy can not provide services to them.
- 20. Recommendations
- 21. 1. Music Download Make the own version of music download from the net like MOOV. Join the membership and pay for the monthly fees to get a great quality of music download.
- 22. 2. Competitors Sale the products that competitors may not have and specialize in one particular area like tickets or accessories
- 23. 3. Location Start up new stores in different location in the whole country to gain market shares and build up the brand name for get into the international market.
- 24. 4. Population (ethnic group) Every customers have their wants, but it may not be the same. So Real Groovy can try to purchase some goods like Asian movie or music to get into their market and get more potential customers.
- 25. Notes All the pictures in these slides have been found through the searching engine Yahoo and Google. Addresses are as followed: http://www.twistingthrottle.com/images/real-groovy.gif http://www.sisco78dvd.com/store/index.php?page=1&cat_id=291 http://www.im-anger.de/stonehenge/download/download.html http://forum.aceboard.net/23756-1160-8950-0-Rubrique-RETRO.htm http://store.apple.com/ http://www.amherst.edu/~cmottau08/meta%20tags.html
- 26. http://www.edu-fair.com/Fair/newzealand/images http://www.scoop.co.nz/stories/HL0109/S00001.htm http://www.spanogroup.com/assets/images/faqIcon.gif http://moov.now.com.hk/ http://www.flickr.com/photos/lumaxart/2365535334/ http://lourenceranchhomes.com/Builder/Crossings?S=A http://www.flickr.com/photos/mundilfari_gjk/2417780862/ http://www.marocti.com/internet.htm http://www.midlandstech.edu/edu/sds/copyright/dontdownload.gif http://www.flickr.com/photos/jfpower/186199577/ http://www.presence-pc.com/actualite/amazon-16497 http://www.realgroovy.co.nz/Information/5007