HMV music retailer Essay Example | Topics and Well Written Essays - 1750 words

HMV music retailer - Essay Example The retailer must have had several issues that were affecting its performance in the market, which led to the distraught performance. First, there is a need to analyse the politics that govern the retailer (Boddy, 2008:21). The politics of the administration affected the running of the retailer in a number of ways. For example, after entering into administration, there was change in the way the business was being conducted. Since new administration comes in with different performance strategies, these strategies failed. Similarly, the political environment of the new administration was not conducive for business. It brought loss of interests as most of the workers and employees were not contented, which brought dire consequences to the retailer.The retailer’s economic position was adversely affected with introduction of administration. In such an instance, the retailer had to incur other costs that are used in running the businesses of the retailer. In this instance, the retai ler’s income was stagnant while the expenses of administration increased. Therefore, the budgets of the retailer were skewed as they had to get more resources to run the business (Boddy, 2008:14). This was a disadvantage to the business. The third aspect that affected the performance of the retailer was the social environment. Previously, the retailer had concrete business bonds with the market. This strengthened its businesses across the competitive market (Johnson and schools, 2008:18). This ultimately led to dismal performance by the retailer.... With introduction of new and sophisticated technology, the retailer is well prepared to make better and improved products. Similarly, the retailer is able to serve a large number of customers in minimal time (Mennen, 2011:11). However, with the introduction of the administration, there was minimal investment directed toward technological improvement. This ultimately led to dismal performance by the retailer. SWOT Analysis HMV as a retailer was well prepared to tackle the market in making substantial accruals in terms of profits and returns. The most prudent decision the retailer should have taken is relying on the strengths and utilising the opportunities it had (Boddy, 2008:23). Similarly, the retailer should have generated strategies to reduce the effects of its weaknesses and reduce the threats that would drive the retailer out of business. In the first place, the retailer had a strong point in that it was well-established in the market. The retailer had opened numerous branches i n many countries across the globe. Similarly, it was a strong retailer in that the demand for its products was escalating. However, the retailer had an internal weakness with the inception of administration. The administration was not apt in executing its tasks. Similarly, the retailer was not keen on extending its market share. This led to murky performance after the threats surpassed its strengths. The retailer had an opportunity in investing in technology and making superb approach to the market. Since it is a music retailer, it had an opportunity to invest in current and sophisticated technology (Pearce, 2009:14). A perfect example is Apple’s iTunes. Apple’s iTunes are appreciating a greater market share due to their compatibility with the new technology. Apple