You may all remember, I was entitled to analyze the current difficult situation of our company and come up with an appropriate future strategy to stop the steadily fallen sale figures
It’s obvious that in the last 3 Years, Our total profit is gradually decreasing and to be more competitive, we need to restructure our strategy and also our organization and work effectively to adapt to the Shift of Market. With Reference to the Market research, in five years’ time, 70 % of all music products will be bough via the Internet, so I would strongly advise we sell at least 50 % and keep some stores open.
Definitely it’s a risky move to close some stores and emphasize strongly on selling through the Internet, but trends show that 2/3 of all Consumers under the age of 30 prefer shopping through the Internet. We need to restructure our organization gradually so the customers can adapt slowly to the changes and I would highlight the opinion of a colleague to transfer the Restructuring measures to a very experience logistic company, so that change can be implemented with perfection.
Furthermore, the end-consumers are seeking complain about the narrow product range and criticize the lack of innovation in our company. Hanna suggests that the best solution is to outsource advertisement and promotion to an external company, which has a high cost factor. On the other hand, we can introduce new products and broaden our product range like offering Concert cards which will be bought by over 70 % of all the consumers in referring to the Market research. The Market research also states that, the age group 60+ will be spending more on Music products, so I would strongly advice we offer a broaden assortment of goods. In addition, we need to focus on the 41-60 year old group, because they have the highest average spending in KGC’s shop
All in all, this is a call for change. We need innovation to be competitive.