CD Now case study

CDnow needs Cash For five years your sales have more than doubled every year yet you have yet to turn a profit. I have looked at some industry trends and the strengths and weaknesses of your company and have come up with some suggestions for what you could do that could possibly get you guys into the black. The major problem CDnow has is low profit margins. Because of the low profit margins, you have …

…and customer service. CDnow would be able to continue to operate independently. Amazon, who in their first year of selling cd's made $50 million in sales, will more than double their sales of cd's with a partnership with CDnow. The partnership could take place fairly quickly, probably over the course of a few months. CDnow may have to move its operations which could lead to layoffs. Overall, this would be the best this CDnow could do.