Mobile Company Analytical Report - Assignment Example

Mobily Company Proposal Mohammed Alhashil & Balakrishna Krishnamoorthy – (100443318 & 100527374) Analytical report Kristen Boujos Melissa Mastrangelo UOIT Table of Contents Company background 3 The Problem 3 Possible options to resolve the problem 3 1.Market research and investigation 3 2.Technological development and innovation 5 3.Overall cost leadership strategy 6 4.Focus and differentiation strategy 7 Budget Estimates 8 CONCLUSIONS 8 References 9 Company background Mobily is a new entrant in the mobile phone manufacturing industry. The company has been engaged in business for almost two years, and is now planning to increase its potential coverage and market share. Melissa Mastrangelo, the supervisor of the marketing department and in-charge of the expansion program is requiring the staff to participate in finding possible options they shall take. To address this concern, the staff of this proposal seeks to first identify the potential problem facing the company. The Problem The company at present can hardly compete due to the sophisticated and aggressive marketing techniques and innovative technologies that the big competitors are employing in the industry. Even though it looks like an external problem, it has a significant impact within the company’s actual market performance. Possible options to resolve the problem 1. Market research and investigation From the business definition, it is true that this may act as stepping stone for the company to maintain effective operations. Market research refers to the process of appreciating the ability of a given product to satisfy the needs of the customers through obtaining information related to it. Research and investigation works through accessing the emerging trends in the market, demographic structure and the buying habits exhibited by the customers. All these three aspects have made market research a suitable tool towards increasing the market share and potential coverage. The four major ways in which the company would feel the significance of the tool include: enabling effective communication, identifying and understanding opportunities, pinpointing problems that are characteristics of operations and acting as a benchmark for evaluating success (Mazzoni et al, 2007). The following is a chart showing the cycle for carrying out a market research The market research will allow the company to identify existing opportunities in the market towards establishing an empire of loyal customers. As stated in the case, the company exhibits inability to compete in the market because of the inability to adapt to the existing technological advances embraced by its competitors (Wei, 2008). The most perfect way to solving this would require the company to gather information about the market niche. The market niche information, obtained through market research and investigation will help in orienting the company to use other alternative ways for increasing market share and coverage. For instance, through market research, the company may realize that there is existing empty space such as the inability of the competitors to provide the customers with low priced products. This will trigger the company to embrace price-lowering strategies. The gathered information about the goods and service helps the company to realize the associated hiccups with the operation. The company can effectively realize the problem acting as the basis for its failure to adapt to the technological advancement. For instance, through market research, it may pinpoint a problem of shortage of skills after carrying out market research and investigation. The company will then seek to recruit skilled workers to help in orienting the company towards technological advancement in the contemporary market. Market research will enable the company to communicate effectively during it operations. Effective communication forms an essential part in increasing the market coverage and market share considering that it instils harmonized production between the members. The critical forms of communication that market research will allow the company to embrace are the business-to-customer communication. Market research will allow the company to understand the various needs reported by the customers (Wei, 2008). This creates a favorable atmosphere for gathering information which the company will then use in orienting the operation of the employees. Through market research, the company will be able to use the obtained information effectively in communicating to the workers. 2. Technological development and innovation Technological development and innovation acts as an integral tool for the company to increase its market share and coverage. It is always true that the need for higher market share require a company to improve the loyalty of the customers. This pinpoints the ability of technological development and innovation towards improving the quality of company’s product, as a perfect way for the company to ensure favourable competition. The tool allows a company to ensure customers’ loyalty because of the expected improved quality of the products (Abu, 2010). By embracing the use of this tool, the company will be able to streamline its actions towards meeting the needs by the customers. In the modern market where technological development and innovation acts as the incentive for success, the company should consider improving the quality of its product. Through the management adopting this tool it will be able to satisfy the product needs of the technological oriented customers. For instance, most of the multinational corporations such as Apple and Samsung have higher market share because of their kindness to technological development and innovation (Abu, 2010). The quality of product provided by such companies acts as incentive for the higher preference by the consumers. Apart from using technology and innovation as quality-driver for competing in the market, the firm can also use this strategy in ensuring low priced products. Mobily can employ cheaper forms of technology and innovation in its production process to ensure reduction in the prices it charges on its products. The cost spent on technological development and innovation normally forms part of the operating costs. Intuitively, the ability of the company to reduce on the cost spent will have the same effect on the operating cost; consequently, making it possible for Mobily to reduce the prices favourably. “Favourable” means that which cannot harm the profitability of the company while still maintaining the loyalty of the customers. 3. Overall cost leadership strategy The strategy of overall cost leadership involves a given company providing it goods and services at the cheapest price in the market. Porter asserts that it is a means of marketing to new firms which would like to establish higher coverage and market share (Porter, 1998). The following image represents the Porter’s interpretation of cost leadership as a drive for achieving competitive advantage through permitting for lower cost. Retrieved from: http://www.organicmonitor.com/r2010.htm Mobily, acting as a new firm in the market will need to incorporate this tool in the journey towards sustaining the strong competitors. This strategy may not work if the firm do not consider proper ways for reducing its prices lower than that in the market. Some of the strategies which may help the company in achieving overall cost leadership include ensuring efficient supply chain, division of labor, efficient operations and offering basic services. The company can ensure efficient supply chain through obtaining its raw materials from cheap local suppliers and low wage foreign markets (Wei, 2008). These two parties, cheap local suppliers and low wage foreign market helps the company to cut down on its operating costs. The reduction in the operating cost makes it favourable for the company to adopt cost-leadership cost-leadership strategy while remaining relevant in the market. Embracing division of labour in its performance promise the company of lesser amount spent on the salaries of workers. The company can resolve to hire and train less experienced employees rather than the already trained ones who usually require higher salaries. Further, the ability of the company to offer basic services at cheaper prices will also help it gaining a higher market share. For instance, the company can specialize in provision of such basic sevices such as making calls, games, messaging and time and date system. Everybody in the market require this. 4. Focus and differentiation strategy A new firm, such as Mobily, requires to embrace differentiation as a strategy towards withstanding the already stiff competition in the market. This strategy helps a company to design products which are different (in terms of branding, labelling and pricing) to the competitors’ products. Consequently, the established difference triggers the company to avail some characteristics which the potential customers consider absent in the other companies. Since the firm is new in the market, it needs to focus its differentiation strategy to avoid the inefficiencies arising from non-targets. A focused differentiation will enable the company to achieve differentiation within small segments of target markets (Porter, 1998). The segments act as the basis for the realization of product opportunities not embraced by the other competitors. The achieved differentiation will help the firm in attracting more customers into its operation thereby leading to increased coverage and market share. Budget Estimates Requirements Estimates Researchers Two required staffs Timeline A three-week study Budget for Travel (visiting the local markets to study the existing business niche for the product) $500.00 Budget for Allowance $1,500.00 Budget for Miscellaneous Expenses (including expenses on gifts to the audience, meals, communication and stationary. $1,000.00 CONCLUSIONS It is true that the company needs to carry out market research and investigation works through accessing the emerging trends in the market, demographic structure and the buying habits exhibited by the customers. All these three aspects makes market research a suitable tool towards increasing the market share and potential coverage. Effective communication forms an essential part in increasing the market coverage and market share considering that it instils harmonized production between the members. Further the company also needs to embrace technological development and innovation since the tool ensures customers’ loyalty because of the expected improved quality of the products. By embracing the use of this tool, the company will be able to streamline its actions towards meeting the needs by the customers. The newness nature of the firm in the market makes it needs to focus its differentiation strategy to avoid the inefficiencies arising from non-targets. A focused differentiation will enable the company to achieve differentiation within small segments of target markets. The segments act as the basis for the realization of product opportunities not embraced by the other competitors. References Abu, S. T. (2010). Technological innovations and 3G mobile phone diffusion: Lessons learned from Japan. Telematics and Informatics, 27(4), 418-432. Mazzoni, C., Castaldi, L., & Addeo, F. (2007). Consumer behavior in the Italian mobile telecommunication market. Telecommunications Policy, 31(10-11), 632-647. Porter, M. E. (1998). Competitive Strategy. New York, NY: Free Press. Wei, R. (2008). Motivations for using the mobile phone for mass communications and entertainment. Telematics and Informatics, 25(1), 36-46. Read More