Abstract
As HMV announced its considerable profit loss last January, the leading entertainment retailer's company strategy has immediately been called into question. With its profit decline of 90% in Ireland in 2010 as well as its intention to close over 40 stores in Britain and Ireland , the company must reconsider its current strategy in order to maintain its place on the pedestal of leading entertainment retailers. This report aims to analyze the current company strategy, in particular its current participation in online markets. The analysis will include the scope of online operations, the strengths and weaknesses of their current online business model as well as the analysis of the possible paths the company may choose to take in the future. Despite its recent misfortunes, this entertainment company is particularly interesting to examine as it is currently dramatically changing its business model to diversify away from retail towards a "cross-selling" online strategy (Harris et al, 2009).
The HMV group is a UK entertainment retail chain specializing in audio, books, DVDs, Blueray CDs, video games, computer software and hardware as well as its newly developed fashion sector. Established in 1921 in the UK, the group consists of HMV, which specializes in various types of entertainment and the bookseller Waterstone's . HMV and Waterstone's are run as two separate retail brand entities, each concentrating on its specific product ranges. However, only HMV (entertainment) will be examined for the purpose of this report.
