Maung Kyaw Zin, latt ID:4946143

Understanding about Real Groovy’s business Understanding about Real Groovy’s business environment.environment.

Its market competitors.Its market competitors.How it competes with other businesses.How it competes with other businesses.External and Internal business environment.External and Internal business environment.

Real Groovy is one of the most successful Real Groovy is one of the most successful music record stores in New Zealand. music record stores in New Zealand.

Real Groovy’s have 4 stores within New Real Groovy’s have 4 stores within New Zealand which are in Zealand which are in Auckland, Wellington, Auckland, Wellington, Christchurch and Dunedin.Christchurch and Dunedin.

In 2002 there were 195 music retailers in the In 2002 there were 195 music retailers in the New Zealand market, and then it shrunk to New Zealand market, and then it shrunk to only 167 retailers left in 2006.only 167 retailers left in 2006.

In 2002:195 music retailers.

In 2006:167 music retailers.

-28 during 3 years

Challengers such as ‘Challengers such as ‘JB Hi-Fi’, ‘Sounds’ and JB Hi-Fi’, ‘Sounds’ and ‘The CDs and DVDs’. ‘The CDs and DVDs’.

JB Hi-Fi which is from Australia sells music, JB Hi-Fi which is from Australia sells music, games and hardware retailer, opened four games and hardware retailer, opened four New Zealand stores last year.New Zealand stores last year.

Market Competition.JB Hi-Fi

Real Groovy

Sounds, the biggest national chain of music Sounds, the biggest national chain of music stores, unfortunately it shuts in November stores, unfortunately it shuts in November after its parent company collapsed owing after its parent company collapsed owing almost $20 million.almost $20 million.

However, still some of the stores were However, still some of the stores were subsequently reopened by its voluntary subsequently reopened by its voluntary liquidators. liquidators.

The CDs And DVDs have The CDs And DVDs have a wide range of record a wide range of record stores within New stores within New Zealand.Zealand.

They have 11 stores in They have 11 stores in Auckland, 10 stores in Auckland, 10 stores in Christchurch, 6 stores in Christchurch, 6 stores in Wellington and a store Wellington and a store each in Rotorua, each in Rotorua, Hamilton, Dunedin, Mt Hamilton, Dunedin, Mt Maunganui, Nelson and Maunganui, Nelson and Palmerston North.Palmerston North.

Real Groovy competes online music retailers by Real Groovy competes online music retailers by making special offers from internet and getting in making special offers from internet and getting in touch with customers, which makes it easier for touch with customers, which makes it easier for them to them to book their products, find information and book their products, find information and trade within internet. trade within internet.

Real Groovy uses non- price market competition e.g Real Groovy uses non- price market competition e.g differentiate their products or improving new differentiate their products or improving new features to the product and sells them with normal features to the product and sells them with normal price to attracts more customers.price to attracts more customers.

Real Groovy supports a Real Groovy supports a Cool Blue radio station, Cool Blue radio station, 96.1FM96.1FM by providing by providing 75% of music. Got no 75% of music. Got no ads ads or news, or weather, or news, or weather, or sports resultsor sports results just just pure music radio pure music radio stations. It is all around stations. It is all around the world over the the world over the internet.internet.

Real Groovy Real Groovy carry out a full range of latest carry out a full range of latest release LPs across all genres and it has a release LPs across all genres and it has a huge second-hand selection that includes huge second-hand selection that includes many hard to find and out of production titles.many hard to find and out of production titles.

Real Groovy they also offers Real Groovy they also offers CDs, LPs, videos, CDs, LPs, videos, DVDs, games, music books and magazines. In DVDs, games, music books and magazines. In some stores, it also sells streetwear, some stores, it also sells streetwear, audio/video hardware and Playstation audio/video hardware and Playstation hardware. hardware.

Real Groovy uses like those kinds of strategies to Real Groovy uses like those kinds of strategies to gain customers for their business that’s why Real gain customers for their business that’s why Real Groovy is recognized by many people in New Groovy is recognized by many people in New Zealand.Zealand.

Internal impact to the business environment Internal impact to the business environment leads by strength and weakness. leads by strength and weakness.

Strength:Strength:

Real Groovy has the third busiest online shopping from internet Real Groovy has the third busiest online shopping from internet after TradeMe and the Xtra Shopping Channel. after TradeMe and the Xtra Shopping Channel.

It holds more than 28,000 new titles stocks across all genres of It holds more than 28,000 new titles stocks across all genres of music as well as 14,000 second-hand titles.music as well as 14,000 second-hand titles.

The company is unique in that people can trade their unwanted The company is unique in that people can trade their unwanted music, movie and game titles towards new ones. music, movie and game titles towards new ones.

Staff that works at Real Groovy is all expertise and passionate Staff that works at Real Groovy is all expertise and passionate about the music and also Real Groovy have the benefit of about the music and also Real Groovy have the benefit of attracting the best people.attracting the best people.

Weakness:Weakness:

Real Groovy is not specialized in games, hardware Real Groovy is not specialized in games, hardware and videos.and videos.

Real Groovy, is a bit old fashion because most Real Groovy, is a bit old fashion because most specific kind of music they stock are old titles and is specific kind of music they stock are old titles and is second-hand selections. second-hand selections.

Late Arrival on latest music.Late Arrival on latest music.

Strength

Weakness

Strength can sometime over Strength can sometime over come weakness for come weakness for example: Real Groovy got example: Real Groovy got the busiest online shopping the busiest online shopping so they can use it for so they can use it for advertising more about their advertising more about their old titles music more old titles music more forward to older people. Get forward to older people. Get more attention from them, more attention from them, which will improve their which will improve their business.business.

External effect to the business environment, which External effect to the business environment, which can be separated as opportunity and the threats. can be separated as opportunity and the threats.

Opportunity:Opportunity:

Real Groovy got the chance to know closer about their customers from Real Groovy got the chance to know closer about their customers from 4 main cities over the internet. (Auckland, Wellington, Christchurch, and 4 main cities over the internet. (Auckland, Wellington, Christchurch, and Dunedin).Dunedin).

While some internet companies spent millions on development and While some internet companies spent millions on development and advertising, Real Groovy had the benefit of buying off-the-shelf web advertising, Real Groovy had the benefit of buying off-the-shelf web software at smaller price and its ready-made market. software at smaller price and its ready-made market.

Real groovy started the worldwide broadcasting with Auckland new Real groovy started the worldwide broadcasting with Auckland new Cool Blue radio station 96.1 FM on internet and receives average of 20 Cool Blue radio station 96.1 FM on internet and receives average of 20 calls a day from listeners wanted to know about the music information calls a day from listeners wanted to know about the music information from all over the world.from all over the world.

Threats:Threats:

People download music, video, software from internet illegally, People download music, video, software from internet illegally, which which decreases the sale of Real Groovy. decreases the sale of Real Groovy. Also Real Groovy needs to be caution Also Real Groovy needs to be caution of not importing fake CDs or DVDs which give negative externalities to of not importing fake CDs or DVDs which give negative externalities to their business.their business.

Competitors like JB Hi-Fi is a threat to Real Groovy because JB Hi-Fi Competitors like JB Hi-Fi is a threat to Real Groovy because JB Hi-Fi attracts many various customers who like games, music, DVDs, CDs or attracts many various customers who like games, music, DVDs, CDs or video. JB Hi-Fi have a wide range of entertainment and it is also from video. JB Hi-Fi have a wide range of entertainment and it is also from Australia and now in New Zealand so it is already been known by Australia and now in New Zealand so it is already been known by Australians and New Zealanders.Australians and New Zealanders.

Opportunities Threats

Real Groovy able to use their Real Groovy able to use their opportunities to overcome their threats. opportunities to overcome their threats. For example by using Cool Blue radio For example by using Cool Blue radio station they should recommend about station they should recommend about their new arrival of music or DVDs to their new arrival of music or DVDs to listeners and also reporting what are listeners and also reporting what are news happening around Real Groovy.news happening around Real Groovy.

Real Groovy should catch up with teenagers Real Groovy should catch up with teenagers because they have got different type of tastes because they have got different type of tastes and they change frequently. and they change frequently.

Real Groovy should Sell New Zealand music Real Groovy should Sell New Zealand music to international market through internet. to international market through internet. Make Real Groovy’s name spread to the Make Real Groovy’s name spread to the nationwide. nationwide.

Thus Real Groovy needs to maintain their Thus Real Groovy needs to maintain their copyright law and reminding their customers copyright law and reminding their customers to buy copyrights products instance of to buy copyrights products instance of downloading from internet. downloading from internet.

Real Groovy Real Groovy was establish in 1981 that’s why was establish in 1981 that’s why everyone in New Zealand knows about “Real everyone in New Zealand knows about “Real Groovy”. It is very famous till today. Groovy”. It is very famous till today.

http://www.thecdanddvdstore.co.nz/findastore.aspxhttp://www.thecdanddvdstore.co.nz/findastore.aspx Slade. M. (2008). Real Groovy – a company adapting to Slade. M. (2008). Real Groovy – a company adapting to

changechange Retrieved March 30, 2008,Retrieved March 30, 2008, From http://www.nzherald.co.nz/section/3/story.cfm?From http://www.nzherald.co.nz/section/3/story.cfm?

c_id=3&objectid=10486047c_id=3&objectid=10486047 O’Donnell. M. (2008)O’Donnell. M. (2008) Retrieved March 30, 2008, from Retrieved March 30, 2008, from

http://getfrank.co.nz/marty-odonnell/ THE PRESS,    20 DEC 2004,    Edition 2,    Page 5.THE PRESS,    20 DEC 2004,    Edition 2,    Page 5. “ “Huge store lives up to name” Huge store lives up to name” SUNDAY STAR TIMES,    24 NOV 2002,    Edition A,    Page 1.SUNDAY STAR TIMES,    24 NOV 2002,    Edition A,    Page 1. “ “Record store gets into a different groove online”.Record store gets into a different groove online”. New Zealand Herald — entertainment — music — Sep 8 2001 New Zealand Herald — entertainment — music — Sep 8 2001

4:59AM “4:59AM “Real groovy on air worldwide” Real groovy on air worldwide”