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Hmv Group Plc’s Environmental and Strategic Position.

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Hmv Group Plc’s Environmental and Strategic Position.
Introduction
This is an informal report addressed to the City Analyst outlining the analysis and evaluation of HMV Group plc’s environmental and strategic position, giving suggested new organisational strategies and plans.

Environmental and Organisational Audit

Environmental and organisational audits are used to discover a company’s position in their market and environment, and the company’s physical position.
Two possible environmental audit techniques that can be done on a company like HMV Group plc are Porter’s 5 Forces and PESTEL analysis.

Porter’s 5 Forces

(Source: Franteractive Inc, 2008-2009)
Porter's Five Forces model is made up by identification of 5 fundamental competitive forces:

Rivalry among the existing players

HMV Group plc is one of the world’s leading retailers of music and DVD and the leading retailer of books in the UK and Ireland in terms of total sales; with HMV operating through 692 stores in 7 countries and online, and Waterstone’s operating through 313 stores in the 4 countries and online (HMV Group plc, 2009a). Even though HMV Group plc is a huge successful company, they still have to keep a close eye on their competition, because it is always possible for one of the competitors to develop in a way that will increase their market share overtaking HMV. Such competitors include, Amazon, Play.com, supermarkets, iTunes, eBay, WH Smiths, Borders and although illegal, piracy.

Threat of new entrants

Threats of new entrants should always be of worry to any business no matter how big and established they are. It is unlikely that a new entrant will pose an immediate effect on HMV Group plc, because is an extremely difficult task to get high market share as soon as one enters a market; but it will mean more pressure on HMV Group. However if a well establish company moves into HMV Group’s market it is likely that they get high market share quickly, and if HMV Group don’t have a contingency plan for a situation like that it can be fatal


Bibliography: 12Manage, (2009), Michael Porter’s Value Chain, [online], 12Manage, UK. BBC, (2006), Ottakar 's agrees to HMV takeover, [online], BBC, UK. BPP, (2004), Mandatory Unit 7 Business Strategy, London, BPP Profession Education Franter Active, (2006 -2009), Michael Porter 's Five Forces, [online], Franter Active, UK. HMV Group plc, (2007a), Strategic and Operational Review, [online], HMV Group plc, UK. HMV Group plc, (2007b), Strategic and Operational Review, [online], HMV Group plc, UK. HMV Group plc, (2007c), Strategic and Operational Review, [online], HMV Group plc, UK. HMV Group plc, (2008), Strategic review, [online], HMV Group, UK. HMV Group plc, (2009a), About Us/ Fast Facts, [online], HMV Group plc, UK. HMV Group plc, (2009b), Growing revenue from new channels, [online], HMV Group plc, UK. HMV Group plc, (2009c), About Us/ Management, [online], HMV Group plc, UK. Johnson G, Scholes K, (2002), Exploring Corporate Strategy Sixth Edition, Essex, Pearson Education Limited Learn Premium, (2005), Marketing - The Boston Matrix, [online], The Guardian, UK. National Statistics, (2008), Measuring Inflation, Changes to CPI and RPI shopping baskets, [online], National Statistics, UK. Swaine J, (2008), Unemployment at highest level for a decade, [online], The Daily Telegraph, UK Available from: http://www.telegraph.co.uk/finance/jobs/3201259/Unemployment-at-highest-level-for-a-decade.html [accessed Thompson J, (1997), Strategic management awareness and change Third Edition, London, International Thompson Business Press Wall N, Marcouse I, Lines D, Martin B, (2003), Complete A – Z Economics & Business Studies Handbook Third Edition, London, Hodder and Stoughton
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