HI-FI CASE STUDY

1. Perform a SWOT analysis and use this to help think through the industry dynamics in the hi-fi sector. STRENGTHS | WEAKNESSES | Employees are audiophiles, passionate by music. * Good engineered department * Extensive retailer network * Old companies, famous in this industry for the quality of their products, and for the innovation of their products. * Large portfolio product * Customer relationship * They have a good turnover and they make profit. * Good servicing and repairs. | * Evolve slowly compared with technology * Expensive product | OPPORTUNITIES | THREATS | Growth of online, digital and portable music sources.Nowadays, music is omnipresent and can accompany us wherever we go.Consumers are heterogenic in this market, some search the quality of sound and others the portability (and now people want the two in the same product).Good servicing and repairsNiche market, with specific consumers: vinyl and streaming media may become the two dominants formats. | Price war between deferent type of retailers (supermarket, electrical goods store, specialist hi-fi retailers…).Technology increase very fast. * Development of music on InternetDevelopment of Apple and its I ‘tunes (Apple have 65% of the digital market).Market of audio and video products growing slowly (3 to 9% in several years). * huge competition with many manufacturers |

What are the opportunities and threats facing these specialist hi-fi firms?

On the one hand, these firms do have the right strengths to take advantage of the opportunities in the market. Indeed, we analyzed that these firms tried to develop new products in order to deal with the rapid growth in sales of audio and video products. Moreover, they have a good engineered department which tends to improve the quality of products with the aim of catching the rapid growth in sales of digital music for example. So these specialist hi-fi firms have to evolve towards new audio