Sound and Vision Plc Essay

942 WordsJan 6, 20154 Pages
Sound and vision is a public limited company which means their securities can be traded on a stock exchange and can be bought and sold by anyone. They are a retailer of CD’s DVD’s and books. They operated in 300 music stores and 200 bookshops throughout the UK. Sound and Vision’s profitability has fallen in the past few years and so they have appointed a new chief executive, Amina Chiedozie, to help get back on track. Amina believes that sound and vision plc needs to adopt a policy of strategic innovation. A reason for going with the proposal is that Amina wants to set up an online store which would sell music and film downloads as well as CD’s, DVD’s, books and mobile phones. Amina has commissioned a market research agency to investigate trends in sound and visions plc’s current market. This research showed that the market for buying pre-recorded music and film was predicted to decline in terms of both value and volume. This is due to new technology which allows consumers to purchase what they need quickly online. It is clear that Sound and vision plc needs to become up to date with changing trends and technology as their profitability has fallen and there is a growing increase in the popularity of downloading music. This will have a positive effect on the business as more people are interested in online shopping because it is easy and more convenient for them. By doing this they will be able to sell a wider range of products than that offered in the stores. By looking at Sound and Vision plc's product portfolio we can see that CDs and DVDs have low market share and low market growth so it is currently doing very badly. By moving online it is likely that the sales of these products will rise and they will start to become stars because of the growing trend of downloading online. Having a much larger range of products, which is only feasible by having an online

More about Sound and Vision Plc Essay

Open Document