strategic management in a global context

strategic management in a global context

Question 1: Provide a brief statement of the current & future strategic issues that you believe the case addresses.
(200 words)

Strategic issues for HMV for now as well as the future:

1. Saving - driving cost efficiency
2. Protecting - revitalising the core business
3. Growing - establishing new channels


Saving - driving cost efficiency

Cost savings of £40m per annum will be achieved by 2009/10 by simplifying the
HMV UK and Waterstone's supply chains, maximising Group purchasing and head
office synergies and from the review of the UK store portfolio.

Protecting - revitalising the core business
* HMV UK will launch an enhanced range of portable digital products from
  suppliers including Apple, Bose, Samsung and Sony.
* A new HMV store format of the future is being developed and will be
  trialled from autumn 2007.
* Waterstone's will grow its children's book proposition and will offer
  a range of high quality gift stationery.
* A loyalty card to drive spend across both brands and all channels will
  be rolled out during 2007/08.


Growing - establishing new channels
* HMV will launch a social networking site for music, film and games
  enthusiasts, providing revenue streams from advertising, sponsorship and
  paid-for content. Strategic content partnerships have been agreed with
  Universal Music and 20th Century Fox.
* HMV UK is partnering with 3, the UK's leading mobile music retailer to
  provide content to 3's 3.75m subscribers. A number of HMV's larger UK stores
  will also host 3 in-store concessions.
* Growth in HMV.co.uk and Waterstones.com will be accelerated by increased
  marketing, enhanced functionality and closer integration with stores.
* HMV.co.uk will become 20% of HMV UK sales by 2010, and Waterstones.com
  9% of Waterstone's sales.
(Source www.hmv.co.uk/annualaccounts/13refurms/meetinghr3/19-09-2007)



These strategic issues are the latest up to date issues which are a concern to hmv,
They...