Real Groovy is a small organisation by world standards.

They only operate four stores throughout New Zealand

They are too small to affect much change, rather they must adapt to the current market situations

As a result of their size, it has meant they lacked a complex and inefficient chain of command

This is where Real Groovy establishes their competitive edge over larger, more complex organisations...

As they are a smaller operation they are able to exploit changes and opportunities quicker than larger companies. Giving them a competitive edge over others.

The music industry operates in a rapidly evolving environment

Current Trends indicate continued decreases in CD sales and rapid increases in legal downloading

In the 2006-2007 year we witnessed...

46%

19%

This means that retailers within the music industry could no longer rely simple CD sales for revenue

As a result, many smaller CD retailers worldwide have gone out of business

Real Groovy has had to use newer strategies to succeed in this changing market

In order to compete with larger music retailers, Real Groovy has diversified their products in several ways...

Insurance against CD Theft

Concert Ticket Sales

Sale of Vinyl Records

In the graph below we see that young people (aged 15-24) spend more than any other group on music.

Therefore Real Groovy offer special services to capture this market

This includes...

Being a prominent members of the social networking website MySpace. Advertising events and new products

Much of what they sell is second hand. This suits cash strapped students and young people

They release a monthly publication called Real Groove. This deals focuses on the youth music scene

Real Groovy has already shown success against great odds in a make or break industry

It has established itself as a strong competitor through its own ingenuity and adaptability

In the future they should retain their small size, as it bests enables them to manipulate the changing market to their advantage

They must also maintain their desire to have the needs of young people met, an area too often overlooked by retailers