Will the dog survive – meeting the challenge of disruptive change

Will the dog survive – meeting the challenge of disruptive change

Posted by Torben Rick | April 6, 2013 | Strategy

Will the dog survive in the long run

Along with Blockbuster and other prominent high street retailers HMV collapsed into administration after struggling to compete against cut-price supermarket offers and internet downloads. When it collapsed HMV employed 4,123 staff in 223 stores.

Now HMV has been rescued by the Hilco, saving 2,643 high street jobs and 141 stores. Hilco plans to concentrate on selling music and film and step away from selling consumer electronics. Music labels and film studios, keen to ensure that a major entertainment retailer remains on the high street, are understood to have agreed to support HMV with new supply terms.

Disruptive Change - Will the dog survive

Paul McGowan, the chief executive of Hilco, said:

We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.

However, refocusing on music is not without risk. Britons are switching to digital downloads quickly – nearly 30% of music downloaded last year compared with about 20% in 2010, according to figures from retail analysts Conlumino. By 2015, about 45% of music is expected to be downloaded.

Music lovers and film fans are not only switching to downloads, but buying more CDs and DVDs from internet stores. Last year, 73.6% of all music and film, including downloads and physical products, such as CDs, was bought online and that is expected to rise to 90% by 2015, according to Conlumino.

The big question: Will the dog survive in the long run?

Short URL & title:
Will the dog survive – meeting the challenge of disruptive change — http://www.torbenrick.eu/t/r/qpi

Share it:
If you enjoyed this article, please take 5 seconds to share it on your social network. Thanks!

About The Author

Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany and Switzerland.

Add a comment

*Please complete all fields correctly

Related Post

Driving and managing change will remain the number one priority
Posted by Torben Rick | March 23, 2017
Adaptability – The new competitive advantage The business race to adapt. Driving and managing change will remain the number one priority Few companies can avoid big, periodic changes in the...
Ready for digital transformation - Mind the digitization gap
Posted by Torben Rick | January 2, 2017
The pace of change is accelerating Much has changed since the “dial in” days with modems connecting to online services like America Online or Compuserve and eventually directly onto the...
Shaping strategy – Constant turbulence and disruption
Posted by Torben Rick | December 30, 2016
Challenge to keep companies competitive – Perhaps the greatest challenge business leaders face today is how to stay competitive amid constant turbulence and disruption Change affects every company, but disruptions...