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Research on HMV – Professional Essay Writing Service


Do a Research on HMV and include  swot analysis, pestels, porters 5 forces, ansof, value chain, rbv ,BGG, generic strategies ,and KPI’s……………..

PESTEL (Table 1).





>Strict anti-piracy copyright and patent laws (2).

>Strict Licensing laws

>Regulation laws to protect cultural and social abuse

>strict public protection laws

>strict juvenile protection laws


>Acquired several patents

>Licensed to operate in music entertainment

>Adult participation allowed in HMV entertainment

>public decency is enhanced

>protected against juvenile crime (1)

>Digital piracy is adversely affecting company busisness




>Economic downtown in Uk and Europe

> Unstable currency in recent years of recession

>Overall industry decline by 3.4% in years 2008 to 2010(3).

>Poor performance of HMV shares

>revenue from abroad revenue from abroad

>Declined company financial performance in 2009 (4).

>Sales revenue increased by 3.1% in 2010




>UN declaration of human right(6)

>Corporate citizen and human rights policy(7)

>HMV and teenager cancer trust fund by the company(5)

>tapping music and entertainment talents

> Offering career opportunities(8)




>Online business

>Film technology


> Sells products through transactional website;

> Use of high filming technology

> use of social network (23).




>Shift from plastic DVDs to use internet to safeguard the environment.  


Porte’s Five Forces (Table 2)

Threat of entry



>The company technology platform in film production  which acts as a threat to potential entrants

>Is the second biggest music and entertainment firm in the world after and the best in uk.

>the firm has established its brand across the globe which scare away any new entrant

>It has diversified and differentiated its products, books. Video games,

Books and music and movie DVDs which has greatly reduced threat to entry.

>very high entry regulation reduces entry threat

>distribution channels and exhibition networks are enormous for company hence barring new entrants

> declining market in recent years for industry products reduces entry threats.

Power of suppliers



>Inputs are highly differentiated reducing the threat of suppliers to HMV (They come in segments which are combined to produce the final product, for instance cameraman, actors, director, make ups, screenwriter etc for the movie).

>supplier size is big, many suppliers of inputs hence less power of supplirs

>the company has independency to choose from many suppliers at its disposal

>there is little switching cost from one supplier to another which reduces suppliers’ threat.

>However, lack of substitute inputs exposes the company to little supplier threat

Power of Buyers





>Low switching costs give buyer more power

> high price sensitivity for products increases power of the buyer (28).

>the tendency by buyers to switch from company products is high due to the nature of products

>Segmented markets reduces the power of buyers

>products are differentiated; hard copy books, online books, video games, movies, etc reduces buyer power

>however the large size of buyers reduces the power buyers






>the products have substitutes for instance move theatre fro movies

>beneficial alternative exist in form of media and pay TV programs

>Video games have substitutes from live games on TV channels and internet

>very low switching cost to substitute products raises threat of substitution

>Availability of cheap alternative products in the entertainment and film market

Competitive rivalry





>this is high due to low switching cost

>similarity of players in the industry offering similar products and in similar manner

>Its relatively hard to exit from entertainment market hence little chances of competitors to exit the market.

> large number of players in entertainment and film industry market

>low fixed costs hence easy entry, affordable video cameras,

>differentiated products by way of genre and content reduces rivalry threats









SWOT analysis (Table 3)

SWOT analysis(13)





>Strong market position in Uk and Ireland

>Sound financial base accumulated the years

>It has build a strong brand name

>a well established distribution network and outlets across the globe


>less branches in emergent markets of Asia, Africa and Latin America

> Piracy and copying in most markets outside Europe

> Competition from established firms like

>Bureaucracy and long process and procedures in film making (15)





>Expanding market for movies and entertainment

> favorable legal and political environment

> advanced technology for production, operation and marketing

> social media network for marketing products


>Global recession reduce revenue

> Changes in government policies





Value Chain (Table 4)

Primary activities

>Retailing of Books

>pre-recorded music

>video production

>production of Electronic games

>Live film exhibitions and shows



Secondary activities

> summer festival activities

>Artist management business

>online book and music retailing

>transactional websites selling through

>talent recruitment and training

> video and DVD renting from company retailers



RVB (Table 5)

Distinctive resources

>Most valuable entertainment firm in UK and Ireland

>a well established brand name

>Boasts of many stores and outlets in UK and the world

>steady increase in sales revenue and assets since 2006

>technological advancement in film and video game production and company operation.

Distinctive capabilities

>Ability to offer products to wide range of markets;

>offers variety of products; movies, books, music, television, internet.(18)

>use of state of the art and affordable technology

>use  of social network and internet.


Ansoff Matrix (20) (Table 6)

Market Penetration (26).

>more distribution and exhibition networks in the Uk and Ireland markets

>increased box office takings for the existing markets

>increase live entertainment venues, festivals and stores in UK and Ireland (25)

>increased corporate responsibilities as a tool to penetrate new market (10).

>aggressive promotional campaign (27) on company websites, internet, media and sales staff (16).

> reduce product prices to penetrate the current market (25).

Product development (22)

>moving into blockbuster movies

>use of high definition digital video cameras

>easy to use computer editing software

>visibility independent film festivals

> new live entertainment products and ticketing to satisfy customers.(14)

> Market research to enhance innovation (22).


Market development

>company plans to expand into emerging markets of Asia, Latin America and Africa (21).


>co-productions with firms in new markets of Latin America, (24).



BCG (Table 7                                                  Relative market share

High                                                                                        low


>Live festivals and ticketing in Uk, Ireland and international markets.

>Global online entertainment market


Question marks

>HMV live  and waterstone’s

>HMV international (Canada, Singapore and Hong Kong).

>local territory websites

Cash cows

>Movie, pre-recorded music video and electronic games. UK and Ireland.


>Book retailing,



Generic strategies (Table8)

Cost leadership

>use of cheap technology in movie making such as cheap high definition video cameras

>low production cost methods (29) for  quality products; video games, music DVDs and live festivals

>high efficiency in production and distribution

>ability to offer discount to customers(12)


>Ticketing and live festivals by the company to segmented markets

>strong sales team

> corporate reputation through brand name



Cost focus

> use of thirty party agents in overseas markets

> Use of state of the art technology

>offering online products through its website

> merging with established entertainment firms in new markets.

> merging with distribution companies (20).


Differentiation focus

>segmented markets and innovate products


KPIs (Table 8)

Competitive analysis (30) HMV






Profit margin 2.3% 2.4% 3.7% 3.4%
Revenue growth 4.4% 3.1% 27.9% 39.6%
Asset growth 13.0% 14.% 66.1% 36.1%
Debt asset ratio 83.8% 85.9% 61.9% 63.5%
Liability ratio 6.2% 17.2% 51.6% 39.5%
Return on assets 7.6% 7.4% 8.2% 7
  3. DATAMONITOR: United Kingdom, movies and entertainment
  5. news
  12. Reibstein, David J. and Hubert Gatignon (1984), “Optimal Product Line Pricing: The Influence of Elasticities and Cross-Elasticities,” Journal of Marketing Research, 21 (3), 259–67.
  13. Ryan B and Chrisler M. (2003): Small Resort Market Analysis; Type: guidebook by Extension Center for Community Economic Development and the Wisconsin Small Business Development Center, university of Wisconsin.
  14. Gutierrez S, Gonzalez-Uribe J, Coton E. G and Hernandez S.G. (2011): customer satisfaction; hospitality industry perception. Source: Advances in Competitiveness Research; 2011, Vol. 19 Issue 3/4, p17-31, 15p. Guadalajara (Mexico)
  15.  Köksal, M. H, Özgül E. (2007): The relationship between marketing strategies and performance in an economic crisis. Type: Research paper. Source: Marketing Intelligence & Planning Volume: 25 Issue: 4 2007 Iss: 4, pp.326 – 342
  16. Comstock. B, Gulati R and Liguori S. (2010): Unleashing the power of marketing. Harvard Business Review October 2010, HBR.ORG.
  17. standard chartered institute of marketing; Marketing and 7 P’s; a brief summery of marketing and how it works.
  18. The extended market strategies
  19. Neil H. Borden, (1964): The Concept of the Marketing Mix. Published his 1964 article,Business Source Complete, EBSCOhost, viewed 26 March 2012.
  20. Richardson, M, & Evans, C, 2007 ‘Strategy in Action Applying Ansoff’s Matrix’, Manager: British Journal Of Administrative Management, 59, pp. i-iii, Business Source Complete, EBSCOhost, viewed 26 March 2012.
  21. Cilley, J 2011, ‘A Road Map for Growing Your Business’, Business NH Magazine, 28, 10, p. 32, Regional Business News, EBSCOhost, viewed 26 March 2012.
  22. AbuJarad, I, & Yusof, N 2010, ‘Innovation Creation And Innovation Adoption: A Proposed Matrix Towards A Better Understanding’, International Journal Of Organizational Innovation, 3, 12, pp. 303-325, Business Source Complete, EBSCOhost, viewed 26 March 2012.
  23. Goozé, M 2010, ‘Keys to Building a Measurable Marketing Plan’, Production Machining, 10, 11, p. 20, Business Source Complete, EBSCOhost, viewed 26 March 2012.
  24. Proctor, T 2000, ‘chapter twelve: growth strategies: product-market expansion’, Strategic Marketing, pp. 238-263, Business Source Complete, EBSCOhost, viewed 26 March 2012.
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  26. Varadarajan, P 1983, ‘Intensive Growth Opportunities: An Extended Classification’,      California Management Review, 25, 3, pp. 118-132, Business Source Complete, EBSCOhost, viewed 26 March 2012.
  27. Pauwels, K, Joep A, and Thorsten W, 2010, “Marketing’s Profit Impact: Quantifying Online      and Offline Funnel Progression,” Marketing Science Institute Report 10-01.
  28. Simon, Julian L. and Johan A, 1980, “The Shape of the Advertising Function,” Journal of Advertising Research, 20 (3),11–28.
  29.  Shankar. V, 2008, “Strategic Allocation of Marketing Resources: Methods and Managerial Insights,” Marketing Science Institute Report 08-207.
  30.  Financial Times newspaper


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