PREX (2)

SWOT Analysis
Strengths
● PREX is a smaller, niche market, they have a loyal target market that seems to
consistently shop there.
● According to the PREX official website, they offer a very wide assortment of
options from music to movies offering them opportunities to reach the broadest
clientele possible.
● Similar to successful video game chains before them such as GameStop, PREX
not only sell products but allow consumers to sell them back products for either
store credit or cash reimbursement which sets them apart from their larger
competitors such as FYE.
● According to their website, PREX are trying to offer an alternative to the Mall,
“Big-Box” and online stores that have come to dominate the music and movie
retailing world. As such, they take pride in being able to offer low prices, high
quality merchandise, and a great amount of depth in their selection.
Weaknesses
● PREX has a niche market
● PREX is small and locally owned making it well known in the surrounding areas of
the store, but not to the general public.
● PREX customer reviews on yelp say poor customer service
● PREX customer reviews on yelp state the store is very unorganized
Opportunities
Threats
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In the market there is room to grow with a strong word-of-mouth influence by local
consumers in the niche market and social media sites/ blog sites.
According to data collected by Digital Music News and Wall Street Journal (which
they received via SoundScan and Nielsen ratings), 9.2 million vinyl albums were
sold in 2014. This marks the highest sales number recorded since the industry
started monitoring LP sales in 1991.
33.7% of consumers are 45 and older and not into the digital music world
CD’s, records, tapes and audiobooks all fall under the industry’s music segment,
and represent 39.7%,the largest percent, of total industry revenue.
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Other local specialized record stores can take potential consumers away
Hard to reach consumers that are in the market for vinyl records
Hard to know what specific vinyl records that consumers will want
E-commerce such as Amazon is a huge competitor because of the volume of
products and price