Market Analysis for Acer Hi-fi System - Essay Example

Acer has been known for a long time as an electronic producing company, especially computer products. Recently, the company has entered the music product industry where it's asserting its presence in the market by introducing unique and superior products in the market, a hi-fi clear system being one such product. To assert its presence in the music industry, Acer has embarked on a market analysis mission for its hi-fi music system for business growth and an increase in its market share.

2.0 Situational Analysis/ Opportunity Identification
Situational analysis and opportunity analysis involve a clear definition of opportunities available to an organization’s operating environment both internally and externally and the challenges thereof (Stevens, Sherwood, and Dunn, 1993, 7). This helps the managers to make appropriate strategic decisions to tap into the opportunities and overcome the challenges present.

2.1 Market Analysis
Given that Acer group of companies has a global presence, it has a market potential to market its Acer hi-fi system to over 300 million middle and upper-income class who forms its target market. This market segment has a higher purchasing power and superior taste for high-quality products. In addition, this market segment comprises technology-literate individuals who are quick to adopt and use the product. Buyer behavior shows a strong peer influence and appeal for quality features. Acer’s market intelligence shows that the majority of the target customers have had experience with other Acer products in the past a factor the company seeks to utilize to capture a sizeable market share. Initial sales figures show that the company has the potential to grow its market share in this market segment given the unique and superior quality of its product.

2.2 SWOT Analysis

The analysis process involves a critical review of the strengths and weaknesses focusing on internal factors on one hand and opportunities and threats addressing the external factors (Cheverton, 2004, 84). A detailed SWOT analysis is presented in the table below.

3.0 Market studies in the music products industry show that the industry is registering impressive growth due to high adoption rates and improved technology lowering the cost of production. However, the market remains competitive with Sony, Samsung, and LG being some of the popular brands. Acer is only ranked among the top five brands and is not very visible compared to its major competitors. The competition is expected to increase and mergers and acquisitions are possible as companies position themselves in the global market. The critical path of plan activities. It is expected that successful market/ opportunity analysis and effective completion ion planned activities will requinto a better rollout for the Acer hi-fi system. Addressing the weaknesses and putting in place the necessary strategies to overcome possible threats will help to grow and increase the market share for the hi-fi system. Read More

 

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