HMV Strategy - Death of a Billion Downloads

Has the Internet killed the music store? HMV has £130m of bank loans and its profits are falling. Some analysts believe that HMV may even become loss-making in the near future - so how would it pay its interest and loan repaymements. No wonder the business is in crisis.

A superb new FT video examines how technology has fundamentally changed the business model of the traditional music and book store - and what the implications of this are for HMV’s business strategy. Can HMV develop a profitable niche in their existing market in order to survive?

Lots of scope for Boston Matrix and Ansoff Matrix analysis using this video - which describes how HMV has diversified into other consumer markets. But has it all happened too late? A cracking case study - and ideal research material for AQA BUSS4 students looking to add some topical and relevant research evidence for their section B essays this summer

Here is the FT video on HMV