Current Market Conditions Competitive Analysis

Current Market Conditions Competitive Analysis

Contents

TOC o “1-3” h z u Introduction PAGEREF _Toc380835750 h 1The organization and its product PAGEREF _Toc380835751 h 1Demand, supply, and equilibrium prices PAGEREF _Toc380835752 h 2Issues or opportunities faced by cellutant electronics PAGEREF _Toc380835753 h 3

IntroductionCompetitor analysis is a tool used in marketing as well as strategic management whereby an assessment of the strengths and weaknesses of an organizations both current and potential competitors is done. A useful technique in carrying out a competitor analysis is the construction of a competitor array. This is done through various steps first identification of the industry that the organization wants to venture into. This encompasses the scope and nature of that particular industry (Abahe.co, 2011). The second step involves the determination of competitors for the intended product. The third thing is identifying customers and the benefits they expect from the organization. It is also crucial to find out the key factors of success in the industry. Through this analysis the organization acquires both defensive and offensive strategic context so that it identifies threats and opportunities that are present. Competitor analysis is therefore a very crucial and essential component of an organizations strategy (Entrepreneur Media, Inc 2013).Cellutant electronics, a large corporation is thinking of expanding its market scope and start producing tablets. As part of the strategic planning group the marketing director has asked the team to carry out a competitive market analysis so as to determine the product’s potential success. The paper will focus on cellutant electronics primary competitor in the products market.

The organization and its productApple Inc. is among the most successful firms in the cellular phone market. Though Apple has not been always on top, they have always come up with tactics of ensuring that they surpass their competitors in the industry through their product quality and pricing. Presently when you walk into any super store you will not fail to find Apple’s products. Apple is known for various products such iPhones, iPods, iPods, Mac and so on. Apple’s product on focus is the iPad; this is a tablet that can be used by virtually anyone from students to business people. Apple was among the first manufactures of the tablet and since it’s a device that is quite easy to use it is still on demand by many consumers. Apple uses its own operating system that is known as iOS which is designed specifically for its devices such as the tablet.Apple has been enjoying and commanding a great market share of the tablet market. This is because Apple is a household name and the company is well known. Therefore it has been easy for Apple to sell the product and hence continued to cement its presence in the market.

Demand, supply, and equilibrium pricesSome of the factors that affect the demand for tablets are factors such as their cost, portability and the specifications of the tablets in terms of its abilities and what it has to offer.as the demand for tablets goes up its supply goes up too. Besides Apple there are also other many companies which are selling the tablets at competitive prices. This creates a problem in the area of supply for tablets since the demand for the product is so high. From the time tablets began being sold the demand for the product has been going up. Keeping up with the manufacturing of tablets has proven to be difficult at times .in the case of tablets their demand and the difficulty of supplying them that has been projected has kept their cost relatively high.

On the other hand the tablet is not something new to the public and more people are now [purchasing the tablet and a lot of competition is being introduced its now proving to be difficult to keep a company’s product in a higher demand as compared to another company’s product. This is particularly since there has been a lot of technological improvements has become consistent hence the process are becoming more affordable with time. There are many more companies that are manufacturing and selling tablets and hence their prices are now becoming more and more affordable. Some of the companies that manufacture tablets are Apple,Samsung,Polaroid,and Microsoft and so on. The potential customers or potential buyers of tablets are so many out there. The buyers of the tablets can be students,those in business,teachers,lawyers,doctors and virtually anyone from any profession. These are devices that aremeant for personal use and therefore anybody can own one. The potential customers have greatly increased since more and more people are developing the interest of tablets. Further more the tablets are easy to use and convenient to carry and hence they are attracting so many people (Prenhall.com, 2011).

Issues or opportunities faced by cellutant electronicsThere are various issues or opportunities that cellutant electronic is facing as it is entering the market. There are various companies which are involved in the manufacturing of tablets as stated above. For this reason there are some issues that cellutant electronics will have to deal with such as the price elasticity of demand. Priceelasticity of demand refers to the elasticity or responsivenessof a product to any change in its price. Generally demand for products is termed as being inelastic when the price elasticity of demand is less than one .this means that any price change has a small effect on the quantity of the products that are demanded. Price for products is termed as elastic when its price elasticity of demand is more than one. This means that the changes the changes in price have a significant effect on the quantity of products that are demanded. When it comes to tablets we can say that it is elastic this is because if the prices of tablets go down more and more people will buy them. This is because there are so many people who would want to one a tablet but they can not buy one simply because they are not able to afford it (Moffatt, 2012). Therefore cellutant aims to manufacture tablets that are affordable compared to those of its competitors in order to ensure that 6they increase the demand for their tablets. Another issue which is an opportunity is technological innovation. Cellutant electronics will ensure that they employ the latest technology in the manufacturing of their tablets. This will involve the use of up to date technology and operating systems such as android that will make the products more user friendly.

Another factor is the relationship between the amount of labor & capital employed and the law of diminishing marginal productivity. Once the relationship is established it will become easy for cellutant electronics to determine whether the production of tablets is worth.as the marginal product of the labor employed decreases the marginal costs usually goes up. If a company has to pay more for every worker as compared to the total number of products each of them makes then the labor cost for each item increases thus the cost to make each of the items will become higher. Marginal costs decrease when there is a falling marginal product of labor that is when the company is using less on each item on additional items needed to make tablets than the extra amount of money for paying the workers (Novinson, 2012).When coming up with the cost structure cellutant electronics will look at the expenses it is incurring when they are manufacturing the tablets. These costs are fixed costs, variable costs, marginal costs, and so on. Variable costs are affected by productivity, as well as changes in supply and demand of labor. Therefore the manufacturing of tablets by cellutant will be determined by variable costs such as supply of labor and productivity.

References

Abahe.co (2011) .Marketing strategy and competitive analysis.Retrieved August 28, 2013 from http://www.abahe.co.uk/business-administration/Marketing-Strategy-and-Competitive-Analysis.pdf Beranek, M., &Pearson, C. (2001). How Demand and Supply Determine Market Price. Retrieved August 28, 2013 fromhttp://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis972Entrepreneur Media, Inc.(2013). Competitive Analysis.Retrieved August 28,2013 fromhttp://www.entrepreneur.com/encyclopedia/competitive-analysisMoffatt, M. (2012).Price Elasticity of Demand.Retrieved August 28, 2013 fromhttp://economics.about.com/cs/micfrohelp/a/priceelasticity.htmNovinson,E. (2012).Explain the Relationship Between the Marginal Product of Labor & Marginal Cost.Retrieved August 28, 2013 fromhttp://www.ehow.com/info_7888762_explain-product-labor-marginal-cost.htmlPrenhall.com. (2011).Demand, Supply, and market equilibrium.Retrieved August 28,2013 fromhttp://www.prenhall.com/behindthebook/0132447029/pdf/O%27Sullivan_CH03.pdfWeintraub, E. (2010).CMA Comparative Market Analysis.Retrieved August 28, 2013 fromhttp://homebuying.about.com/od/sellingahouse/qt/062107CMA.htm