The internet is a more cost effective way of targeting the market and providing the customers with the desired products and services especially in the media and music market. This is mostly because the customers find it much more convenient to purchase music and media online. The business also are available to take advantage of the low costs for operation and the investment required for an ecommerce business, therefore providing customers with better rates and deals on the products sold.
HMV as a result is threatened in the market as more and more companies trading tin the music and media business come online following the suite of the Virgin Group. This is the main reason as to why the sales for HMV are being recorded at low levels as well. “Even more troubling is the gradual decline of music retailing in favor of downloads. HMV’s CD sales dropped by almost 20% last year and with the iTunes store and other sites continuing to grow sales and diversify into movie downloads; the long-term future for traditional music and DVD stores is cloudy. HMV is trapped between a rock and a hard place; and it does not get much rockier than iTunes or harder than Tesco.” (Ritson, 2006)
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.