Marketing Strategies of CanGo Company - Case Study Example

Introduction: Market analysis is oftentimes engaged at a point in which a given firm intends to engage with a specific market and needs actionable research prior to making the changes that they would require as a means of being relevant to the consumer and representing an attractive good or service. As companies that are interested in expanding seek out actionable intelligence with respect to the best path forward, market analysis serves as a key approach that is utilized; in tandem with SWOT and other tools that have long been realized to help firms in their strategic decision making processes. With respect to the firm CanGo, it should be noted that the firm is aware of what industries it seeks to expand in; in addition to what industries they want to continue to remain a viable competitor. Therefore, if the firm is able to increase its sales numbers, the researchers within CanGo will find it necessary to conduct in depth analyses as a means of determining the best approach that should be made. With this accomplished, the research division, as well as the remainder of the firm, will have a means of understanding which markets are the most appealing, which require too high a level of investment, and which should be immediately engaged with. In this manner, Evolve Professional Business Consulting, has set out a baseline criteria through which CanGo should effectively research the options that are presented to them and make informed decisions based upon them. Who is the Market/What is the Market: One of the most important steps that should be taken before the research itself is conducted is the question of who CanGo wishes to appeal to/sell to. Although this is something of a simplistic step, it is absolutely integral if the firm wishes to approach the research from an informed and effective standpoint. Far too many firms overlook this aspect of preliminary inquiry and set off to perform further research with incorrect assumptions that ultimately serve in misguiding the information that they are able to retrieve. Additionally, CanGo also should consider performing research for current and future sales; as a means of determining what movements in consumer markets are likely to impact the firm within the coming months and years. Market Size: Market size is another fundamental aspect of business strategy and review of performance and projected business engagement that is essential in performing effective planning. As such, by identifying the target market, CanGo will be effectively able to seek to meet consumer needs within the current time frame; as well as in the near future. Yet, beyond merely identifying the target market, CanGo needs to be cognizant of the fact that market size is not static and the demographic that they appeal to will likely shift in the coming months/years. As such, if the firm intends on engaging with a rapid expansion, they need to ensure that they do not engage with too much of the market at one time. The rationale behind this warning has to do with the fact that many ambitious firms have found themselves inadequately placed or marketed; so much so that they are not able to provide the necessary investment to continue their market presence and either collapse or retract from the markets they have spread into. Market Trend / Profitability: EPBC has also performed a level of preliminary research that denotes how successful several of CanGo’s main competitors have been. Within this understanding, CanGo has a direct and immediate need to prepare for expansion and consider the determinant ways that the competition might likely respond to their expansion. Furthermore, EPBC determined that as online gaming was one of the fastest growing sectors of the economy, it would be highly beneficial for the firm to branch out and embrace this as part of its expansion plan. However, before this can take place, it will be incumbent upon the firm to undergo an examination for how the competition is currently exhibiting best practices within this field and seek to match it. As an example, the operating cash flow of CanGo increased 48% to 4.98 billion over the past twelve months; this is compared to an increase of 3.37 billion from the twelve month period preceding that. On the other hand, gree cash flow decreased by 3.37 billion for the twelve months ending on September 30, 2012. Likewise, this compares with a 1.06 billion dollar decrease for the twelve months ending September 30, 2012 (Amazon, 2013). It is not well understood why this is happening ;however, analysts conclude that the increase and decreases noted above are contingent upon the way in which the free shipping policy of Amazon Prime customers has affected the industry. Market Strategic Recommendations: Ultimately, expansion within the online gaming market serves to be the greatest potential for the firm in the immediate future. As this particular market is defined as a “heated” market, the potential for rapid gains and quick profits for a relatively small amount of investment encourages would be participants to engage with the market in a rapid manner. Additionally, the faster that CanGo will be able to branch out and engage more markets, the quicker they will be able to have the potential for drastically increased profits. Furthermore, the sooner that CanGo will be able to implement such a plan, the sooner that profitability can be effected and the sooner it can plan on additional expansions within other markets. Due to the fact that the “heat” of this market requires CanGo to make a very quick decision and perform the relevant amount of research in a short time period, the need to actively engage in this process and dedicate the proper amount of time, personnel and money to it is essential for the expansion efforts and success that the firm might hope to achieve. It is the further understanding of EPBC that the ability to expand will rely upon the quality of the information that CanGo is able to derive from its research efforts. In this way, the firm will find it necessary to balance the need for immediate action with the need for quality and useful information.   Reference Comscore, Image (2013), Retrieved on February 8, 2014, https://www.comscore.com/Insights/Press_Releases/2013/12/Final_Online_Shopping_Week_Falls_Short_of_Expectations_as_Shortened_Holiday_Calendar_Weighs_on_Season-to-Date_Growth_Rates Amazon, (2013)vRetrieved on February 8, 2014http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1868098&highlight= Read More