HMV Group Case Study Example | Topics and Well Written Essays - 3500 words

HMV Group - Case Study Example This report highlights the various strategic options available to the HMV Group as well as an analysis of the potential effectiveness of these new strategies based on the current strategic position of the organisation. an isolated incident which did not stem from higher consumer patronage and online sales, but from the sale of HMV Japan (Bryant, 2008). It appears that HMV Group was experiencing minimal sales volumes in the Japanese division of the company, thus the sale of this particular business unit was performed in order to increase total company liquidity and make the company's stock appear more viable for long-term investment. The implementation of the Japanese HMV division did not bring adequate sales results to the company, thus this was an initial failure at diversifying the company's total business portfolio. Additionally, and much to the surprise of the HMV Group leadership, the company experienced its best Christmas sales in December 2008, largely due to video game sales in the HMV division (Financial Times, 2008). This seems to have taken the company on a new strategic direction by January 2009, with a much higher focus on video game sales and less focus on music sales and downloads. The 3.0 Strategic options for HMV Group The company is currently facing a considerable amount of competition stemming from the rise of online retailers, the digital download environment competitors and also supermarkets which appear to be attempting to cash in on music and other digital media sales (Bryant). There is no research evidence which suggests why consumers are moving toward supermarkets and online retailers for their music and digital media selections, however since these competitors are eroding the firm's total profitability, the company needs to select several new strategies in order to build competitive advantage and emerge, again, as the leader in this type of digital format sales. Pricing Strategy: From a sales and marketing perspective, the company would benefit from taking both a price-based strategy and a differentiation strategy in order to build the type of sales growth expected by the company. In today's difficult economic environment, it is relatively common knowledge that many consumers have cut back on their spending habits due to fear of the short-term effect on personal consumer income. The company should adopt a low price strategy and a

Bollinger Bands and RSI Essay Example | Topics and Well Written Essays - 1250 words

Bollinger Bands and RSI - Essay Example As the report stresses the purpose of an RSI is to compare the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. The RSI is best used as a valuable complement to other indices, for in and of itself it is susceptible to the fact that large surges and drops in the price of an asset will affect the RSI by creating false buy or sell signals. Different RSI settings can allow traders to get more accurate market readings about different strategies that they might wish to use. â€Å"Swing traders† might want to set the measured period at 15 days, while those buying to hold for longer times might want to make it equal to 30 or even 50 days. In this analysis the author has made the Bollinger Bands our trade trigger and the RSI our trading confirmation. The two indices must be simultaneously within their respective domains where we desire them for a given buy or sell position, or we ignore the trade signal and hold everything. He has used this strategy so that the â€Å"noise† created by volatility indicated by the Bollinger Bands gets reduced by the â€Å"high pass filter† of the RSI reading. Simply put, he is looking at once at an individual stock’s performance and at that stock’s industry’s performance. The author has taken an aggressive approach in our analysis. This was a result simply of following the strategy that we had laid out; we were not attempting to be overly aggressive nor overly conservative and we were not tossed to and fro by emotions.