Essay About Smart-Phones Industry Essay
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According to the task, I select the smart-phones industry as an example to figure out my own opinion. The marketing environment always consists of particular elements within a business’s external competitive environment and operating environment which is related to the demands of one product’s target consumer, that is also known as the target market member. The operating environment includes investors, employees, customers, creditors, and the marketing environment, and how to use a business and its obtained resources. The elements beyond the scope of the company’s control is a company’s remote environment composed of .
Elements about the remote-environment incorporate current and expected economic, social, technical and political factors. The industry environment, which describes the situations of businesses supplying a similar kind of product or service, is also called the competitive environment. Analyzing the remote business environment is doing good at helping business people understand the innate character and tendency of the nowaday conditions. Remote analysis tells hidden issues and predicts directions.
Competitive or industry analysis lends a hand for business managers knowing how can they make their outputs diverse and better than their competitors’. Operational analysis provides people an wide profile about the company. The operational profile benefits
analysts in learning which business strategies are efficacious and after all which strategies may be needed to be optimized or abolished.
The macro environment involves the external factors which can totally influence a business or industry. However, these factors are not often in the control or the management ability that a company equipped with. Factors typically also include economic, demographic and social, political, technological, and legal forces in business. Business managers as well as the owners often spend a lot of time and efforts to evaluate the worldwide economic environment to finally make a determination about the number and the effectiveness of all these factors.
Economic factors are generally comprised of supply and demand, the actual number of competitors in this given market, availability of recently economic resources, and efficient manufacturing methods used by companies. All these factors influence this company’s output and latent profit margins while they are selling goods and services to their consumers. Free market economies obviously have more competition for the sake of that more individuals and businesses can benefit themselves through the raw materials, labor, and facilities in the market.
Demographics and society refers to information which is about the buyers in this economic market. This information involves statistics on not only the consumer age, sex, race, religion, education, but also their household size, marital status, and also other similar information. Companies that use that information to create productions and marketing strategies in order to meet the demands of all the consumers in the designated macro environment. Whatever, this information interacts on general economic factors. Companies must have the ability to decide the consumer supply and need by assessing consumer benefits.
Political forces generally indicate that the government agencies or apartments and policies must be responsible for this particular nation’s economy. Policies may involve business taxes, interest rate as well as the availability of currency. Otherwise, companies regular make a business
decision that is based on the government involvement within a set business industry. Creating business distributions in these regions sometimes can reduce one company’s incomes and make it adapt to more regulations and laws, which also rises operating costs.
Technological changes these recent decades have changed the method companies do trades in the very macro environment. Websites, network station, software based on Internet, and the fulfillment centers permit companies to put their goods and services in multiple and international economic markets.
Strategies and performance reviews can favor owners as well as the managers to use the macro environment elements to product a few competitive advantages for their subsidiary companies. Recognition of strategic groups is the crucial side for industry itself analysis. A strategic group is comprised of firms in this industry which is following almost the same strategies that aimed at the same target market groups.
Marketing environments are related to the stage which the product stand on in the whole business marketing life cycle. The life-cycle marketing environment, thus, the four marketing life-cycle stages incorporated introduction, growth, maturity or decline. New products emerge on stage Introductory which is often described by an invention or an original service. Environments in the growth stage are with high competition, that means there are many firms attempting to divide shares of the similar target market. When it comes to the maturity stage, sales are growing slowly since most buyers who buy this kind product are those people who have already bought the product before. Sales slow to a halt in the decline stage. However, there may be some types would not go through every stage in this marketing life cycle.
Marketing environments could also be depictured obviously of no concern of the marketing life cycle. None market leaders exist in Fragmented marketing environments. And this kind environment consisted of plenty of relatively small firms. The global marketing environment is the station for worldwide selling products businesses. Smart phone companies are illustrations of
businesses which connected close with this free global marketing environment.
Since I am one of Samsung’s loyal customers, let’s take Samsung LTD as an individual firm within the cellphone industry. Samsung is a famous company selling smart phones all around the world. When we go back to see the last ten years, the rapid development of the mobile technology is an very outstanding phenomenon which really forever changed nowadays society we live in. In spite of the challenges that the current mobile industry environment brings, mobile future buyers growth are continuing without stopping with the emergency of markets to lead the way. However, the mobile industry is facing with a good many key issues, the economic downturn as well as the saturation of the spectrum concerns included.
Before going next, we must say something about marketing assets. It can fall into four categories as the following: Internal or marketing support assets is the first sort. For instance, cost advantages emerge when Samsung try many ways to save its cost; while, on the other hand, information systems together with market intelligence is also of consequence; moreover, Samsung do business bases on the feeling of their existing customer; technological skills is irreplaceable in today’s mobile industry. There are many other aspects in this professional realm. The next is called the Alliance-based assets which can be described by the following questions: do the company have a market access to entry the big market? How to access to this market? And what is their management skills? How to share technology and so on. Supply chain assets is another category. In this part, Samsung pays enough attention to distribution network and the relationships between workers and buyers; they deal well with the pockets of strength; they ensure the delivery lead times and security of supply which is hard to come by. The last one is Customer-based and reputation assets. Relationships between Samsung supplier and customers is good. Samsung has great company name as well as good reputation; nowadays Samsung really have the smart phone market’s domination and it can not get without superior products and the after-sale services.
In order to develope Samsung’s marketing capabilities which refers to its ability to perform their fixed marketing-mix activities this firm must marshal all kinds of resources they have and then deliver the value to customer. Fortunately, Samsung did this, too. We can see advertising of Samsung’s product wherever we go, such as GALAXY S4.
Resources portfolios are related to the project that organizations is described as collections of resources, assets, and capabilities. The crucial dimensions of resources portfolios are the significance of resources when it comes to create values for customers together with resource advantage relative to other smart phone producer, namely, competitors.
What is the competitive advantage of Samsung? First, they save costs as possible compared to competitors based on the large-scale production or intensive production. Second, they have unique production and after service. Otherwise, Samsung has done good job in developing and exploiting all their resources.
Since the emergency of Apple’s iPhone in phone market, most rival mobile manufacturers are spot in a hard ‘catch-up’ stage due to they fell behind after they did not find out how to use ‘touch screen’ technology through their cellphones’ production process. However, Samsung is a winner just like Apple. It exploited not only a unique system for Galaxy but also good screen-touch technology and applications.
Around this rapidly developed world, the mobile industry is standing out. America is moving forward faraway but other countries keep banging away at their spectrum plans. The mobile industry, obviously, wants their governments to say something to clarified and regard their spectrum policies. Samsung start to research and develop spectrum since that more spectrum is needed whether they want many new opportunities to use mobile and wireless broadband technology to offer this society and the worldwide economy more help.
With the number of mobile users are growing up day after day worldwide, the
mobile industry is still put up with the declining Average Revenue Per User. The economic downturn, nevertheless, would not be the only element that driving down the ARPU; I believe that price wars involving in the increasingly competitive market and the trend for mobile users growth.
Total cellphone sales and the mobile phone revenues were also decreasing in early years after the strong financial crisis. There is also evidence showing that the whole sales of smart phones are mounting while the handset sales totally being declining. Since Nokia has been losing its hegemony in market shares in the recent times. In spite of only this recent two or three years in the mobile market, Samsung has also become very very popular.
Sellers have three choices when they come in a market. Mass marketing is decided by a mass-produce mode and mass divide one product into pieces and try to attract each types of consumers. Target marketing is the decision to distinguish the different groups which make up a market to develop corresponding products and marketing mixes for each target market.
Sellers in the last decade are continuing moving away from the mass marketing and they are moving towards their established target marketing since the latter is more helpful in cramping out market opportunities and developing successful product marketing mixes.
Market segmentation is the procedure of dividing and measuring distinct groups of customers or potential buyers finally into subgroups in view of the same needs or preferences.
Competitive positioning pay attention on how consumers consider about the sundry providing on the mobile market contrast with the other mobile producers. Not only the competitive positioning but the market segmentation must be formulated in this way so that the demand for consumers are fulled in ways which are better than competitors. Talking about so much, the definition of market positioning is not told. It is a sure process about formulating competitive positioning for each kind of product and the detailed mix of the product in marketing. The firm should be quite sure about their plan for how to introduce the function and advantage of the product to all these the consumers. How Samsung’s consumers think about it on significate attributes and decide the product’s position. That is to say, a company’s positioning relates to Samsung finding the appropriate ‘location’ among a group of buyers as well as their market segment is good so that they could develop a new product or provide better service in a customer desired way. While we define market segmentation as the process of placing the buyers in our target product-market and then divide them into multiple sub-groups for the members in every segmentation showing similar respond to a special positioning strategy. Market segmentation bases on the real information but not the marketers’ intuition. Obviously, Samsung catches the value of the procedure of market segmentation. They find out that customers are not all the same and other different products may probably take the fancy of buyers on multiform stages through their lifetimes. Considering about the mobile industry, for the sake of an illustration of this conception, Samsung practices what one preaches.
The segmentation procedure refers to separating the big market into different groups of customers who might require separate products or marketing mixes, recognised that all buyers have unique needs and wants.
It is generally possible in buyer markets to ensure comparatively homogeneous parts or segmentation of the whole mobile market rely on shared preferences, views, or actions that separate them from the others in the smart phone market. Diverse products and separate mixes may be needed in these segments, and one-to-one marketing approach segment is a decisive step in this contemporary. Generally speaking, B2B or B2C mode are used bu Samsung for a long time and its markets can be divided into parts using geographical and demographic descriptors, while diverse forms of behavioral descriptors and psychographics. Demographic descriptors include age like how old their customers are, gender which means female or male, household life cycle, income about their benefit, their occupation, their education degree, and race. Behavioral descriptors contain a plentiful collection of segment bases that benefits sought, behaviour about purchasing, usage about this kind of
product, loyalty to distinct brand, their attitudes towards product and relationship seeking characteristics are included. Psychographic descriptors include personality and lifestyle, Samsung research every class for their buyers to gain more.
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