HMI is operating in a highly competitive market. The market has various forces that influence the performance of a firm. The music industry has a lot of potential as well as threats. For a clear understanding of the operations of HMI, a SWOT analysis would be of great importance.
The strength of this firm lies in various factors. One of the major strengths of the project is its brand name. Although this brand has not managed to make a huge impact outside the home country, it is quickly gaining acceptance in the industry. The name is expected to attract the youth, who make the majority of the market share in the industry. This firm also has considerable financial strength due to the growth in its sales.
As such, this project is in a position to implement its strategies, including those of research and extension. The firm is also expected to operate in various cities outside Spain and the United States. As such, it would be able to balance its production in such a way that when one section of its market would be experiencing recession, the other one would be experiencing an economic growth.
Despite the above strengths, the firm has some weaknesses consisting in the fact that some of its competitors in this industry eat up a section of the market share. It is evident that one of the weaknesses that many environmentalists have repeatedly talked about is environmental degradation.
The plastic materials that this firm uses in making the CDs and the cassettes are causing havoc to the environment. It is disappointing that this firm is yet to develop a solution to this problem because according to a simple market research, it is yet to replace completely the CDs with better alternatives.
The firm operates in an environment with some opportunities, which can make it experience a massive growth in its market share. HMI has exploited a vacuum that existed in many countries in the world, especially in the developed countries.
It is apparent that there was no competition for this firm in the overseas markets and this company was able to make enough profits; HMI was providing the market with a completely new product that was not comparable with any other in the market. HMI would find it easy to embrace change, which came about because of the changing technologies.
This was accelerated by its size, unlike other organizations which would not adopt change due to their large sizes. Technological advancements will also enable the firm to conduct trade easily due to improved means of communication and transport. The economic boom that the US government and various countries in Europe experienced following the end of the recession is another opportunity that can help this firm in expanding its market.
The threats that this product is forced to deal with include competition and piracy. The market is very competitive, which calls for the stakeholders to come up with new strategies to counter the effects of competition. It is apparent that many firms are likely to come up with products, which are close substitutes of the products offered by this firm. The firm will have to fight for the available market share with competitors. Piracy is also eating up the profits of this firm.
Security concern in some of the cities where this firm operates is another threat that the management must take into account. When there is an internal strife, such as the one experienced in Egypt and Libya in the recent past, the firm would lose millions of dollars due to destruction of its assets. During such periods, the firm would also lose profits it gets, while it will have to pay employees. This would cause a lot of financial damage to the firm.