Music Stores
Competitive Landscape
Consumer spending and entertainment trends drive demand. The profitability of individual companies depends on effective merchandising and competitive pricing. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. The industry is labor-intensive: average annual revenue per employee is $120,000.
Opportunities
Developing Local Music Culture - By supporting local groups and artists, small music stores can differentiate from large chains and mass merchandisers, which typically focus on national best sellers. Local...
Business Challenges
Competition from Alternative Retail Outlets - Music stores face intense competition from consumer electronics stores, mass merchandisers, warehouse clubs, and Internet retailers. Music stores capture less than one-third of all US...