Analysis of the hi-fi industry - Assignment Example

?Strategic Marketing Introduction The hi-fi industry was doing pretty well within the UK sector when the iPod came about. This was because the hi-fi market was catering well to the audiophiles, who then again seemed to be the biggest and most famous customers of high fidelity music instruments, gadgets and tools. This all came to an end when the introduction of iPod happened. What was even worsening was the fact that the hi-fi market was hit bad by the sudden technological rise of the online music industry which was brought into motion by the iTunes, especially drafted in for the iPod category. AVI was able to change the course of the music industry and the production values that were being rampant at the time. What this meant is the fact that AVI management knew exactly what to target and in which capacity so as to make sure that the success graph remained strong in a consistent way. This made life easier for the people who were associated with the field of music, its production and its eventual transmission across the board. The evolution and the eventual revolution within the hi-fi sector were achieved through sheer hard work and a vision to bring out new musical facets so that the success graph would continue over a period of time. The main emphasis was paid on bringing the best possible music to the ears and eyes of the people, and this was achieved with diligence and a sense of purpose on the part of the entire hi-fi industry. This paper will discuss the different analysis techniques so as to make sure that the path taken by AVI was sound and had a number of positives for not only the organization itself but also the people who purchased its instruments over a period of time. These analysis techniques include the SWOT analysis, the PESTEL analysis, the value chain analysis and lastly the Porter’s Five Forces analysis model. SWOT Analysis The SWOT analysis of the hi-fi industry is such that its strengths, weaknesses, opportunities and threats are studied in the light of its own basis as well as the competing products with which it has been marketed within the domains of the marketing landscape. This has been the case ever since the hi-fi industry came into being and was thus shown the way to increase its basis within the related settings. The growth and developmental basis of the hi-fi industry has come about with the comprehension that its strengths lie in the wake of the potential growth that remains within its fore. What this means is that how well the strengths are being highlighted and what the hi-fi industry as a whole is bringing out with each passing day. This has been represented in the examples that have been given of the hi-fi industry within this case study. The strengths are therefore enclosed within the people who buy the products that are produced by the hi-fi industry and thus cater to its relevant market domains (Nixon, 2010). The weaknesses are present within it as well. These comprise of the immense shortfalls that happen each year in terms of the production estimates of the hi-fi products that are required by the audiophiles and the tech fanatics spread all over the world. This is an important consideration that should be given enough weight because no one expects the audiophiles to go for something which is not easily digestible on their part as far as their audio and video requirements are concerned. This has been shown time and again with delay times in processing which has been the norm for all the wrong reasons. What is even worse is the fact that the hi-fi industry depends a great deal on its own people and if these people fall short on its expected count, then there is bound to be serious anomalies within the relevant system domains. The industry would also suffer as a result of the same as the customer expectations would shift by a long stretch. Since the strengths and the weaknesses are something that is internal to an organization, the opportunities and threats are external and thus have a very wide perspective attached to the same. This would mean that the opportunities and threats would comprise of the forces which play either well or havoc with the hi-fi industry as a whole. The opportunities and threats are spoken of in the same vein because the new competitors are thronging the market and not only that but also with the advent of the new music products the scene has been completely different. The opportunities for the hi-fi sector comprise of the linkages, acquisitions and mergers of other audio and video companies and processes to make sure that there is immense growth and development within the related ranks, and one does not feel left out on this count at all (Giles, 1989). This has been made possible through collective work realms which have meant that similar organizations within the hi-fi sector have merged for building the hi-fi industry as a whole. It has also meant that the hi-fi industry has been dependent on these players to bring about the very best in terms of sound, high technological facets and so on and so forth. The threats come up from the mushroom products and features which are thronging the mass market and thus infiltrating the hi-fi industry for a number of reasons which could also be remarked as negative. These threats cannot be justified under any extent and has looked to devalue the hi-fi industry due to immensely negative facets which keep on getting the limelight time and again. The SWOT analysis therefore pinpoints the four significant pointers which were not possible with any other analysis technique. PESTEL Analysis The PESTEL analysis takes into consideration the political, economic, social, technological, environmental and legal factors before it is remarked as somewhat important towards the hi-fi industry as a matter of fact. The political factors that are deemed as significant here highlight the stability of the hi-fi industry as a whole and what kind of incentives it is receiving from the stakeholders which shall make its job easy in the long run scheme of things. Similarly the enactment of the policies is believed to be a very imperative task which will set out things in the larger contexts and spell a new life within the hi-fi industry. Also the entry mode for the new players and the hi-fi companies as well as a host of new technologies would be studied under the political facet of the PESTEL analysis. The economic factors behind the hi-fi industry take into account the disposal income of the buyers when they have decided for themselves to purchase the hi-fi products or even the newly launched gizmos, some of which might just replace the tangents attached with the hi-fi industry. Also there has been significance paid on the credit accessibility for which the hi-fi industry has to comprehend its due role within the related settings of growth and development for the sake of the people at large. The social factors understand how the society analyzes the entire nuance of the hi-fi and the related industries and what their take is on understanding how these companies and the industry as a whole has evolved over a period of time (Glykas, 2004). This would take into perspective the manners under which changes in lifestyle of the people are concerned and their trends towards buying and using new and advanced hi-fi systems and the related technologies within the same aegis. The lifestyle aspect is such an important one that it can literally make or break a potential customer. If the lifestyle is such that he wants to adapt it courtesy the technological prowess that has happened in the industry, he would surely go for adapting the same. But on the flip side, this would not happen if there are serious anomalies in choosing to adapt the intended lifestyle – one which is taken on by the customers and the potential ones as well. If the iPod is a lifestyle product, then this would have a better and long-lasting appeal for the growing and booming markets. And this has surely been the case in the past and even today as well. The fourth facet of the PESTEL analysis concerns most of the customers within the hi-fi and the related industries. This is the technological aspect which comes close to them in more ways than one. This has been made clearer by manifestation of newer technologies which are on the rise like the iPod, the iPad, the Apple products and the AVI line of audio series which has made its mark within the world of audio and video related equipment. The new innovations and the pace with which they are coming to the fore are represented duly by the technological factor of the PESTEL analysis. The new technological platforms would be duly highlighted which would in essence be one of the more glaring aspects that are studied within the same domains. The fifth factor comprises of the environment regimes which are playing their due roles within the understanding of the hi-fi industry. This has meant that the surrounding environment is taken into perspective and its due role is studied within the thick of things (Thomas, 2009). The last factor is that of the legal realms which are always significant to gain insight from. This is because the legal factor discusses those tangents which have not been analyzed or given a silent hearing in the past by all concerned. It covers the litigations, the patents, the trademarks, and the copyright issues which give an organization the much needed legal cover that it so requires. Value Chain Analysis The value chain discusses the activities for an organization within a specific industry which in this case is the hi-fi industry. The value chain for the hi-fi industry suggests that the firm infrastructure for producing state of the art music and audio systems would indeed be the basis of its growth and development for a long period of time. This would also mean that the basis of manufacturing such products would continue as time moves on and there would be immense growth within the related domains as far as these companies are concerned (Lancaster, 1999). Superior performance would be ensured if the infrastructure is solid and when there are high level processes which are in place to make sure that quality remains supreme and solid at the end of the day. The value chain analysis is therefore a good enough depiction of how technology, human resource management and procurement play their dire role within the support activities for a product or a firm under consideration. The primary activities remain in the wake of the inbound logistics, the operations, the outbound logistics, the marketing and sales, and the services which are provided as a result of all these undertakings. The hi-fi industry deserves a great deal of credit because the processes are being seen from a number of primary as well as support activities, all of which play their due roles within the success of the hi-fi industry and indeed the music industry as a whole (Bowman, 2010). Therefore the value chain analysis takes a keen look at how well the hi-fi industry is coping up with the day to day operations and tasks which are significant from the long term scheme of things. This would pave the way for eventual growth and development of the industry, and thus account for a number of benefits in the long run as far as the consumers and potential ones are concerned. Porter’s Five Forces Analysis The five forces analysis model is a framework that discusses the industry analysis and the business strategy development. It takes into consideration the important facets of competitive rivalry that exists within an industry, the bargaining powers of the suppliers and the customers, the threats of new entrants and the substitute products. These are some of the most significant factors that in essence discuss and contemplate how well the product exists within the market and what the industry shapes up to achieve success in the long run. The five forces are inherently drawn up to gain an understanding of the industry and how well the product is faring within its realms. The five forces therefore will dictate the basis of success that the hi-fi industry can attain as a result (Elango, 2011). This would mean that the threat of new entrants would eventually take into perspective the manner under which new players would come into the fray and thus move the basis of its existence for a number of different reasons. Also the threat of substitute products and services would account for the new and mushroom products and services which will throng the market or the industry in wholly different ways and means. This could mean that there is absolute wrath written in the face of the hi-fi industry or there could be competitive rivalry which might come about with the passage of time. The five forces model is a perfect analysis technique that gauges the effect of the product which is under the aegis of the hi-fi industry so that its long term value for the sake of the customers and the potential ones is determined. This helps all and sundry to understand the exact nuances through which growth levels could be deciphered and hence the hi-fi industry would grow as a result of the same endeavors (Karagiannopoulos, 2005). What is even more significant here is the fact that the five forces model gives a clear cut indication of how well the product is faring and what its competitors think of it both from the present day perspectives as well as in the long range scheme of things. This will be indicated through goals and objectives that need to be achieved over a period of time, and which shall make everything else seem possible. Conclusion In the end, it would be fitting to state that the hi-fi industry is dependent on the new technological changes that are happening within their fore. It would also implicate for serious growth and progress within the related concerns of audio and music industries. This is in line with the comprehension that the world is moving ahead at a frantic speed and hence all such efforts to upgrade the organizations in terms of their products would bring about success for them in entirety. All said and done, the analysis models discussed within the length of this paper and indeed the case study are derived from a solid understanding of the hi-fi industry and how the companies like AVI and Apple have been able to manifest their own selves within the booming hi-fi industry and the market of yesterday, today and in the future. One should always look ahead towards the future towards gaining an understanding of the hi-fi industry because much success can be envisaged from the related domains of growth, development and eventual progress. This shall solve the quandaries that are in the minds of the people who can bring about a serious change in such industries. Bibliography Bowman, C., 2010. How value is created, captured and destroyed. European Business Review, 22(5) Elango, B., 2011. Does market context impact payoffs to internationalization? European Business Review, 23(5) Giles, W., 1989. Making SWOT Analysis Work. 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