BUSINESS

Role of Strategic Management in Retailing



Introduction2

Discussion2

Reasons for the failure of HMV3

Change Management4

Online Retailing5

Bricks and Clicks Strategy6

Telescopic Swot6

Conclusion11

References12

Role of Strategic Management in Retailing

Introduction

The retailing sector of United Kingdom has been on a downslide with the occurrence of many uncertain market factors. The year 2012 was the least profitable year in terms of retail stores sales. A huge ratio of employees and stores got affected with the uncertain market conditions. Not only the market conditions, but there are also a handful of other factors that significantly affected the prospects of retail supermarkets. One of the most significant factors in the decline in sales of retail supermarkets have been the massive economic downturn.

The massive occurrence of a rapid economic downturn significantly impacted the results of many retailing supermarkets since many of them were underprepared to deal with such a huge complexity (Thomas, 2009). There were a selective number of retail giants that have been known to suffer to a great extent in successfully countering the threat of economic downturn. With the huge implications of recession, many supermarkets had either shut down or were generating very low sales. The massive declines in sales have been directly attributed to the emergence of recession and the threat of economic downturn (Anon, 2002).

Discussion

HMV is one of the most prominent chain offering music and entertainment products to its customers. It prides itself on being one of the most successful supermarkets over the years. On the other hand, with the massive changes in the economic environment taking places as well as the emergence of recession have significantly dampened the sales of HMV (Holloway & Beatty, 2013). It has been incapable of tackling the threat pertaining to online retailing and downloads. The efforts undertaken by the policy makers at HMV have struggled to reap effective results on the lines of tackling the threat of online retailing and download. Although HMV is trading on a regular basis, there are bleak prospects that HMV would be able to attract a huge clientele. HMV has struggled to admit the importance of online retailing and it has not inherited the concept religiously. It is one of the major reasons directly responsible for the failure of HMV. The changing world requires retailing giants to adopt the latest technologies in order to effectively cater the needs of a diverse clientele (Rindova & Thomas, 2012).

Reasons for the failure of HMV

The failure of HMV has been largely inevitable. It used to be one of the most high performing music chains but a variety of factors culminated in its massive failure and as a result its performance deteriorated to a great extent. Although there was a high degree of emotional attachment towards HMV, but HMV did not adopt the latest and innovative online selling models. This factor played a major role in the decline of HMV as an entertainment chain. It goes to show that legacy organizations that do not adopt the most effective methods of online selling would suffer the same fate as ...