Consultancy Scenario

You are requested to do an industry analysis of the DVD/CD DIGITAL industry and formulate relevant strategic options for a (troubled) brick-and-mortar company that retails DVD/CDs. You are a struggling brick-and-mortar company which is yet to move into the digital market (pretty much like Blockbusters though your case is slightly different because you are looking at a retailer not a rental company). The point is that once you do your industry analysis and come up with opportunities and threats, you must think about how to be a smart, fast second mover (meaning, what kind of options can you come up with to make them build a sustainable, long-term competitive advantage?)
Consider
• I suggest you think deeply about a) what does digital convergence mean? b) what is a disruptive innovation? c) which other elements of PESTEL will have a bearing on your analysis of the digital (media) industry? The Chancellor has just published his new budget. There seems to be a new tax on music and e-books downloads (http://www.bbc.co.uk/news/technology-26716917)
• Discuss some broad brush trends (e.g., technological convergence, disruptive technologies, etc.) which you should draw out from PESTEL
• Analyse the digital (media) industry directly and formulate strategic options accordingly (remember though that going digital is just one of the possible options you can formulate from Ansoff)

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