Product Specifications Toshiba BSX8R Rewritable Printer - Statistics Project Example

Toshiba B-SX8R Rewritable Printer Product Specifications: Product is launched in Japan in the year 2006. Toshiba B-SX8R Rewritable Printer has the unique characteristic that the same paper can be used repeatedly even up to 500 times. Thus this environment friendly gadget minimizes the wastage of paper. And the move is certainly a strategy move. This printer is operating by the thermal technology. The paper will be put in a hopper and after the usage, it will again put in the same hopper and the ink will erase when it passed through the machine. (Toshiba Promotes Green with its re-writable Printer). Technology: It is using special kind of paper such as thermal paper which is used in the earlier fax machines. These sheets are made by plastic and there is a heat sensitive pigment. When the heat is about 130-170 degree, the color will be turned into white and thus the image will be erased. Cost: The cost of the printer is fixed to 5,000 and that of paper it is 5. Marketing environment analysis: The printer first introduced in Japan. And company scared about venturing it in other market. "We're going to approach customers to see if there's an interest in the technology,' said Keane, who also admitted that the technology's limitations mean it 'will never trickle down to a consumer product." (Toshiba Rewrites Printer Rules with Reusable Paper). The company estimated they will launch the product in Europe only after the middle of 2007. And it will be done only after the critical analysis of the market and full fledged back support. "One thing that may put European consumers off is the cost. According to Toshiba's commercial manager for printers and related products, Michael Keene, the company is still some way off setting its European and UK pricing." (Barker). Market size: They were targeted a five figure sales over three years in a country and for that there should be at least 10,000 unit of sale. SWOT analysis: Strength: Firm claims that it is the first entrant into the re-writeable printer and thus they can exploit the initial advantage as an earlier entrant. Environment friendly: "Toshiba is touting reduced CO2 emissions created during the paper production process. Traditional paper manufacture and waste creates 6.5kg of CO2 emissions per 1,000 sheets, compared to 1kg for the same quantity of rewritable paper pages." (Toshiba Printer Erases and Reprints on a Single Sheet). Company is able to find a niche market in the initial stage itself. They are focusing on the commercial entities rather than single customers. And their product specification is suitable for that. Weakness: High cost: Since there are several problems associated with the operation of the printer, the company considering the launching as test marketing. The company finds its customers who need of more copies but having a shorter life period. Thus the main target market is the commercial entities rather than single customer. Work instructions, picking list, shipping instructions, inventory slips and process checklists etc. are the main beneficiaries Poor Technology: It is using old technology of thermal printer technology which is using in 1970 and 1980s. The printer using approximately 300C and the critics believe that this will offset the environmental goal. Another criticism was the inconvenience for handling the paper. Even after the erasing the previous content, there is a shadow in the paper. And if the paper is in the day light for a longer period the image will be permanently fixed. Again it should be collected separately and if it uses for several times it should be washed with a separate washing machine in order to remove the dust and other wastes. And it cannot be folded, or toned. If any damage is in the paper, the image also will not be quality one. Since these several problems are associated with the printer, there is need for monitoring also. (Barker; Toshiba Printer Erases and Reprints on a Single Sheet). Opportunity: As a pioneer in the field Toshiba can skim the market before others enter the arena Threat: The recession has already crippled the market. Marketing Strategy: Value is added through the competitive priority such as cost, quality, delivery and flexibility. There are three new trends which offer firms' competitive advantages. 1. Use of environmentally, friendly process and products. 2. Corporate responsibility in supply chains. 3. Use of information. Order qualifiers and order winners: Terry Hill of the London Business School has developed the strategic concept of order-qualifiers and order-winners. Order-qualifiers can be defined as the minimum elements or characteristics that a firm or its products must have to even be considered as a potential supplier or source. Basically, when very few firms offer a specific characteristic, such as high quality, customization, or outstanding service, that characteristic can be defined as an order-winner. However, over time, as more a more firms begin to offer that same enhancement, the order-winner becomes an order-qualifier. In other words, it becomes the minimum accept-able level for all competitors. As a result, the customer uses some other new enhancement or characteristic to make the final purchase. "When a firm's perception of order winners and qualifiers matches the customer's perception of the same, there exists a "fit" between the two perspectives. When a fit exists one would expect a positive sales performance." (Order- Winning and Order- Qualifying Criteria). Core capabilities: To successfully launch a marketing strategy certain core capabilities must be identified. These core capabilities allow the firm to establish its competitive priorities in the marketplace. Core capabilities can thus be defined as that skill or set of skills that the operations management function has developed that allows the firm to differentiate itself from its competitors. Technological, political, legal and economic factors influence our marketing strategy Let us examine how have companies in this industry adapted to these factors The above factors can be broadly classified under the head of globalization and technology. Competition in most industries intensified in recent years and this trend towards hyper competition is likely to continue. The technological gap between developed and undeveloped countries is shrinking. To not only survive but also to prosper in today's fiercely competitive marketplace, a SBU(Strategic Business Unit) needs to have a successful strategy. In this type of situation, Michael Porter, a professor at the Harvard Business School and perhaps today's leading authority on competitive strategy, believes that there are three generic strategies for succeeding in an industry: cost leadership, differentiation, and market segmentation. Cost leadership implies that the firm has the ability to successfully under price its competition. Differentiation refers to ways in which an organization distinguishes its products and services from its competition. For example a company could offer higher quality products or services than its competitors. Market segmentation refers to the focus of the products or service offering on a segment in the market. Toshiba's main competitors in the field of rewritable printers are Sony and Kodak. Both are international firms of high reputation and how to overcome their potential competition is a matter of concern for Toshiba. Because of the recession the above two firms are slow in their new project of re-writable printers. Toshiba should be able to capture the market before others enter the fray. Toshiba as a wide reputation for not only electronic goods but also for heavy electric goods. So they have a broad brand image. Then Sony and Kodak whose brand image is limited to consumer goods. Recession will affect heavy electrical goods first and consumer goods next. So, Toshiba should utilize the opportunity to concentrate on their consumer division. Market segmentation can be broadly classified in to four categories. Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty and benefits sought. (Marketing: Market Segmentation). "Companies need to embrace the twin strategies of resonance marketing and hyper differentiation, and need to master the technologies that enable each." (Clemons and Spitler). Firms today are under more pressure than ever to develop new goods and services and the process necessary to produce and deliver them. Two of the major causes for this increased emphasis on developing new products are (a) increased competition, (b) advanced in technology, (c) customer demand, and (d) regulation changes. Those firms with the ability to bring new products to market quickly have several advantages over their slower competitors. Second, when a firm is the first to bring a new product to market, it has little or no competition, and can therefore charge premium prices. This combination of market share and price premiums translates into significant profits. Thus, the faster a product is introduced into the market ahead of the competition, the more profitable that product is over its entire life cycle. In fact, products that are late to market have much more negative impact on profitability than do cost overruns in either the product development phase or production. Toshiba has launched its product in Japan in 2006. Its next market target was Europe in 2007. Although the product had good response in Europe. The market could not be sustained because of the recession in 2008. India is one of the few countries which did not have the full impact of the recession because of its high domestic consumption. Hence, Toshiba should target India substantially during 2009 for its market share of re-writable printers. A company that has the resource capability to bring new products to market quickly is also in a much better position to respond quickly to a competitor's surprise announcement of the introduction of a new product. With such resources in hand, the firm can significantly limit the competitive disadvantage that is usually associated with being a market latecomer. Categories of New Products: New products can be grouped according to the degree of innovation associated with them in comparison to existing products. Within this framework, we define three broad categories of new products a) incremental or derivative products, (b) next generation or platform products, and (c) breakthrough or radical products. Each of these types of products places specific requirements upon the firm, with those that are the most innovative usually requiring the greatest commitment of resources. Equally important is the fact at each plays an important role in the long-term success of the firm. "The Intel XScale processor family combined with the NVIDIA Mobile Media platform provides a great balance of features and power saving technologies while delivering world class digital media content at high performance levels." (NVIDA Delivers Fast and Easy Solution for Developing Windows-Based Mobile Devices). Toshiba's new printer model is Toshiba B-SX8R Rewritable Printer has to be priced little less than that of Sony and Kodak to be the cost leader. For product differentiation it has specific advantages over Kodak and Sony in terms of quality. The printer should target Europe first and Asia next in terms of assimilation of technology. Works Cited Toshiba Promotes Green with its re-writable Printer. Gizmo Watch. 23 Nov. 2006. 12 Apr. 2009. . Toshiba Rewrites Printer Rules with Reusable Paper. PC PRO. 22 Nov. 2006. 12 Apr. 2009. . Barker, Colin. Toshiba Invents Reprintable Paper. Cnet UK. 23 Nov. 2006. 12 Apr. 2009. . Toshiba Printer Erases and Reprints on a Single Sheet. Vnunet.com. 22 Nov. 2006. 12 Apr. 2009. . Order- Winning and Order- Qualifying Criteria. Advameg Inc. 2007. 12 Apr. 2009. . Marketing: Market Segmentation. Quick MBA Knowledge to Power Your Business. 2007. 12 Apr. 2009. . Clemons, Eric K., and Spitler, Rick. The New Language of Consumer Behaviour. FT Mastering Innovation. . NVIDA Delivers Fast and Easy Solution for Developing Windows-Based Mobile Devices. Nvidia. 2009. 12 Apr. 2009. . Read More