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External factors affecting HMV include shifts in consumer behavior, such as the rise of digital streaming services that reduce physical music and video sales. Economic conditions also play a role, as disposable income fluctuations can impact spending on entertainment. Additionally, competition from online retailers and changes in technology, like advancements in digital media, further challenge HMV's traditional retail model. Lastly, cultural trends and evolving music consumption habits can influence HMV's product offerings and overall market demand.

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