Its unfortunate that Musica which had been SA’s leading music and entertainment retail brand for almost 3 decades had to shut down its doors on the 26th of May 2020 but unfortunately, the writing was on the wall way before covid-19 came in the picture.
For several years the retail store was operating with losses under a heavily declining market. Thats because there was a structural shift globally that favoured the digital consumption of music, movies and games from the traditional physical format.
Adapt OR Die
Instead of Musica adapting with the times and going digital with its business, it decided to stay stagnant in the declining physical market and unfortunately, that was the beginning of the end for the store.
A system that’s working in 2021 won’t necessarily work in 2035, big companies like Coca-Cola and FNB saw this from the get-go, that’s why they still exist after such a long time. They constantly adapt with the times and continue improving on a daily basis.
Don’t Be The Next Musica
We can talk the whole day about what Musica could’ve or should’ve done to ensure it’s survivability over the long term but fact of the matter is that the store is shutting down, whether we like it or not.
But that doesn’t mean we can’t prevent another Musica situation from happening again. Here’s what you can do:
Whenever time your business is performing well and making profits, its not time to go on vacation and enjoy yourself, its time to expand/invest the business to other related areas.
This ensures that even if one wing of your business starts crumbling, other areas will help keep the business afloat during times of need.
Sometimes the business is not failing because of change in times, its failing because of lack of creativity when marketing the products.
The same adverts Musica was using in 2007, was the same marketing tactics it was using in 2016 with only slight changes. This shows that even in the marketing departments, you still need to adapt.
Copy Competition But Make Slight Improvements
Musica didn’t have to come with an brilliant new idea to ensure it survives. All the company had to do, was copy the thriving product of close competition and make slight improvements for differentiation.
Your business might not be like Musica but in order to ensure its survivability over long term, make sure you constantly adapt with the times because nothing lasts forever.