Buyers have high bargaining power as the advancements of technology and revolution of internet has resulted in the shift of this power from the retailers to the customers due to increased informational access (Geis, 2014).
The entire industry of records retail is shifting and converting into the online counterparts. Hence, the entry within the brick and mortar store format does not hold any advantages . Therefore, the opportunity for the retailers of music lies in online based music sales. The barriers to entry are less but it is essential that strong brand recognition and image is developed similar to that of HMV.
The growth of internet and technology has resulted in the increased demand for the mp3 music formats by the customers and the demand for the CDs and DVDs have reduced which were the major selling components in the music industry previously . Hence, the threat of substitute is higher as music is present in compact forms and the retailers are focusing on enhancing their service offering to match the preferences of the customers.