The record sales has viewed considerable drop as the market has saturated with aggressive competitors that participates in the war of price reduction. The primary competitors of HMV are the entertainment organizations that are expanding the businesses majorly in various manners. An example of this can be the Virgin organization that has developed megastores and independent outlets . The research has also revealed that the super markets and leisure organizations are also among the competitors of HMV as they drive customers to different directions in the holiday seasons.
The bargaining power of suppliers is considerably low since large retailers of record which are the market leaders’ sets own prices and standards due to which they control the supplier’s cost . Furthermore, the online stores that provide free music are causing not only HMV but also other major retailers of record to reduce their prices, establish online stores and improving the promotional as well as marketing endeavors. Hence, the force of competition is high.