Environmental Analysis - Essay Example

MARKETING ANALYSIS By Presented to Environmental analysis PEST Analysis Most countries in the region operate based on free trade policies that extensively affect marketing principles and activities of the company. There are possibilities of outsourcing manufacturing for purposes of managing costs involved in a domesticated production. The political interest is aimed at eliminating existing tariff barriers from international and regional trading blocs. The goal of the political re-alignments includes reducing tariffs by 5% in the next decade. The implication on the limb manufacturing industry is a downward trend in performance as the nations base currency exchange and port regulations on common preferential tariffs (Baines & Fill, 2014, p 64). The high portaging prices, and bureaucracies imposed by sale of bionic products is based on the high production costs and minimized vendor efficiency. The economic policies promote competition through influencing positive performance of sales in artificial limbs. The bionic limb products have extensive sales in the country based on the expected turns of lower annual performance and differences in economic aspects. Primarily, the connection bases its application on global financial crisis that affects most countries’ financial statuses. The governments of such countries predict slow economic growth of their GDP leading to reduced levels of incomes. The implosion on customers’ buying behavior is reduced purchases and solicitation of alternative forms of therapy (Baines & Fill, 2014, p 74). The component is a significant implication of the consideration of bionic components used in making life easier for the users’ lives (Baines & Fill, 2014, p 47). The growth in global population includes various elements of influences within the bionic limb industry. There is an increasing ratio of bionic devices in use through higher levels of patients. The competition increment allows for developments in technology and growth in influence of financial positions for each element of the market. The application of technology offers a viable approach to embracing diversity based on manufacturing’s maturity and capacity (Baines & Fill, 2014, p 23). This concept impacts differently on various levels of innovation in the company. Diversification of technologies allows for increased innovation, interaction, integration, and development potential. Below is a summary of the Company’ Internal Analysis SWOT Analysis Strengths Weaknesses • Good corporate governance • Extensive distribution network (global) • Competitively priced products • Influence of patriotism as global bionic legs manufacturer • extensive government support • High costs of operation • Short history in artificial limbs industry • Low reputation for both product performance and functionality • Insufficient research and development level • Vulnerable to increasing material cost Opportunities Threats • R&D Development • Increased Government support • Provisions of After-sales services such as therapy • Products’ high demand • Growth Opportunity for global business • Collaborate with other players in the industry • Many Competitors for local and international brands • Economic downturn – decrease sales • fast changing elements for engineering technology Buyer Behavior Models The increase in healthcare expenditure coupled with the emergence of extra healthcare facilities the emerging economies to provide more growth opportunities among markets for medical bionic implants. The customers of the bionic products prefer mechanical and electronic replacements and enhancements of legs that provide for increased flexibility (Baines & Fill, 2014, p 65). Global artificial organs’ customers have differentiated needs based on their preferences and needs for orthopedic bionics. Limb bionics sales are critical to the market share that is primarily based on larger global population facing amputations and other limb-associated complications. The procedures and availability of the product determine major outcomes slated in advancing growth of such markets. On the other hand, there are few pivotal factors that restrain market growth such as high cost of devices as well as uncertainty in reimbursement scenarios within different global regions. Customers have a positive attitude towards new and improved forms of technologies and have a constant urge to eliminate increment in limb failure due to age-related disorders. Customers also overlook the burden of costs against the need to recover from accident injuries that lead to amputations. In severe conditions, such patients require a combination of various bionic sets to address multiple injuries (Baines & Fill, 2014, p 46). Markets for limb bionic devices such as bionic orthopedics, exoskeletons, and bionic eye skew to favor various regions based on the strong potential of the regions in comparison with others. The company should focus its efforts towards mass production of bionic devices through the distribution channel such as development of research and development teams to address modifications of artificial bionic legs. Customers in these markets are highly sensitive to limit surgical expertise, as well as high costs involved in the development. Increasing expenditures on healthcare and growing income levels are some of the defining characteristics of consumer behavior in this sector. Such opportunities of the market to new entrants are inclusive of the need to improve income levels, as well as rising awareness for developing economies. North America is a major market for artificial organs with Europe following closely. However, the scope of adoption among the customers depends on the relevance of medical bionics through therapy services among emerging markets to gain momentum based on the increment in population and increased awareness of the players and patients (Baines & Fill, 2014, p 27). Marketing Mix Product The MBC CEO should aim at introducing a product customization strategy for appropriate designs among requesting customers within favorable and competitive process. While advancing on the strategy, MBC CEO will launch improved products with identifiable difference from previous bionic limbs products and unique designs unlike those of competitors. The impact is that it continues strengthening product portfolio for multi-purpose use and deliveries of high-quality devices that reflect the diversity, social orientation, and modern lifestyle aspects. Appropriation of right technology and inclusion of customer needs will allow MBC CEO to increase the company performance to achieving major product portfolio goals. Distribution MBC CEO should focus product channel planning through introduction of new and improved retailing centers and depots in subsequent years. Success will be illustrated through successful in contracting logistics partners and experienced vendors to channel products to the customers. The other objective includes identifying and rewarding prominent vendors who continuously satisfy customers. The strategy can be established through product development based on the incorporation of customer needs and expectations against capacities of the intermediaries of the value chain. Research and development will be critical in emphasizing on appropriate combinations for distribution and transport strategies (Baines & Fill, 2014, p 45). Price Pricing perspectives for bionic legs will be implemented through differentiation of production factors such as costs, product differentiation, barriers to entry, product diffusion rate, economies of scale, and the firm’s resources. The pricing objectives introduced by MBC CEO, which properly identify the income levels of the target groups. Pricing goals are contributors to the established long-term profit-making purposes and increment of market share and lowering the involved costs (Baines & Fill, 2014, p 112). Determination of optimal pricing levels involves competencies in pricing objectives that are involved in achieving profit maximization objective. The application attempts to reduce the gap between actual performance and intended performance while considering different revenue and costs. Promotion The cost effective campaigns can focus on webpages and sites, direct marketing, publicity, and advertising illustrated through organizational marketing goals elements.MBC CEO’s promotion strategies will vary based on the various global target market segments. Word of mouth marketing technique will be applicable to most American and European market segments. However, lack of strategic and direct action towards strategy implementation causes a variance in performance and incorporation with different processing activities (Baines & Fill, 2014, p 38). The deliberation on promotional strategies will determine the sales promotion element conducted through different communications aspects and attempts if availing added value or incentives to prospective consumers. Requirements of Market Segments The bionic legs reports on market surveys provide high compounded annual growth rates for all market segments. The medical bionics and artificial vital organs markets are inclusive of current scenarios and future market potential on bionic legs in the global frontier. Major artificial vital limb segments, as well as medical bionics market, can be analyzed and categorized based on different product classes. Artificial bionic legs have larger market size forecasting broader revenue streams for the segments as provided for in periodic performance. Artificial vital limb products can be segmented based on the customer interests and market focus of the company. Bionic leg products are aimed at segments that ate either institutional or individual (Baines & Fill, 2014, p 36). Global market players can be categorized through attributes of the financial overview, company overview, recent developments, product portfolio, and business strategies the companies adopt to maximize profits and ensure sustainability. The medical bionics and artificial limb markets are highlighted by competitive market landscapes where market share analysis for important players within the market are based on services presented to the topics discussed. Various recommendations are included with the aim of addressing new entrants and cushioning existing market players in establishing a strong presence for an artificial limb market coupled with accentuate market shares (Baines & Fill, 2014, p 74). Artificial legs and bionic products market shows a broad profile of major players having presence within the market such as AbioMed, Abbott Diabetes Care, SynCardia Systems, Thoratec Corporation, Baxter International, Otto Bock Healthcare, Fresenius Medical Care, Inc., and WorldHeart Corporation. Geographically, the bionic leg segments are categorized into four distinct regions namely; Asia, Europe, North America, and the Rest of the World. Market overview sections for bionic legs market performance presents qualitative analysis for the entire overall market based on the factors that determine market dynamics including opportunities and restraints drivers. The bionic leg markets provide high compounded annual growth rates for the geographical market segments for the performance forecasts between 2012 and 2018. For purposes of understanding the future and current market scenario for bionic legs market, market forces analysis and attractiveness analysis show positive aspects of the market environment. Market sizes and forecasts based on revenue for the segments are availed for the periodic considerations. Reference Baines, P., and Fill, C. 2014. Marketing 3E P. Oxford: Oxford University Press. Read More