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Handleman Company Case Analysis

HANDLEMAN COMPANY

PRESENTED BY:
ANDREW VACCAREZZA
CARLOS RODRIGUEZ
DANIEL SAELEE
MIKE GARDNER


TABLE OF CONTENTS

COMPANY OVERVIEW 3
HISTORY 3
ORIGINAL BUSINESS MODEL 4
Main Idea 4
Middleman in Music Industry: 4
Competitive advantage (differentiation): 4
Business strategy: 4
Innovations: 5
CHANGES TO THE BUSINESS MODEL 5
Overview & Challenges: 5
Complications: 6
Channel of Choice Merchandise Planning: 6
Product Replenishment: 6
Inventory and Distribution Systems: 6
Store Clustering: 7
Downloading of Music: 7
PROBLEM STATEMENT 7
CHANEL OF CHOICE MERCHANDISING & DISTRIBUTION 7


COMPANY OVERVIEW
• Provider of management services, such as inventory control, distribution control, retail merchandising, category management, and pre-recorded music for retailers.
• Main operation in North America and UK.
• Headquarters located in Troy, Michigan
• About 2,600 people employed.
• Average operating income has been decreasing for the last 4 years.
• Average revenue is about 1.3 million dollars a year in recent times.
• Recent involvement in video game software.
• Crave Entertainment Group was acquired by Handleman (outside source)
• Crave operates in the video game industry (outside source)
• Crave distributes other published video game software as well as their own (outside source)

HISTORY
• 1934: Founded by Philip Handleman and his four sons.
• Started out as a distributor of drug sundries
• 1953: Music distribution started with the introduction of the rock and roll era
• 1963: Went public and was listed on the NYSE
• 1975: Book distribution started trying to capture mass market purchases
• 1983: Computer software business developed with the introduction of the home computer expansion era
• 1985: Videos made available to mass merchants (Notes: videos only available for rental until now)
• 1985 Late: Honored by the Video Software Dealers Association
• 1989: Acquisition of Video Treasures (First venture outside the box)...