Tower Records and the Internet
In February of this year Tower Records declared bankruptcy. Thecompany sighted internet downloading and file-sharing as the primary reasonfor the demise of the company's profits. The company joins a long line ofcasualties that have succumbed to the decline of record sales due to musicfile sharing over the internet. The company also has to compete with othercompanies that sell music over the internet. The purpose of thisdiscussion is to examine why Tower Records can't compete with these two Firstly let's explore the impact of music file sharing on therecording industry as a whole. Over the past dew years music downloadingand file sharing has become the Achilles heel of the entire recordingindustry. Retailers such as Tower Records can not compete with the highavailability of free music. No matter which schemas Tow
These shoppers wantto be able to create their own CD's that are customized to fit theirparticular musical taste. com and do a search containingthe word "CD's", Tower Records website does not appear. (Google search forCD's) Studies have shown that if a website does not appear on the firstpage of a search, then that website will have a difficult time selling itsproduct. In addition, to the physical locations that these locations havethese companies also have internet sites that sell music (as does TowerRecords). er records tries todevise people are going to choose free music over music that is justdiscounted. For instance, Wal-Mart also sells food, clothing,personal care items, toys, books, household goods and a myriad ofelectronic gadgets. Inthis respect Tower Records can't compete with Wal-Mart because Tower's onlysells music. Internet shoppers want their products at abargain and they expect to receive their purchases in a reasonable amountof time. This paradigm shifts makes it difficult for Tower Records tokeep customers. com is the most used searchedengine on the internet. The company has to realizethat the internet caters to segment of the population that is somewhatdifferent than those that shop at physical locations. Tower Records could also attempt to employ the same tactics that Wal-Marthas used and offer single songs at a low price.
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