Retail Business Charter
Introduction:
The Intech Company produces and sells mobile technology. The company is situated in the United States but seeks to expand its boarder. Gradually, the company has developed to a bigger corporation such that they can extend into the international market. The target is a country in Asia such as India. The target market for the company includes the middle-upper class. Also, their focus is on the elements that attract more customers to buy the products. It is the primary aim of the current state market as well as the Asian market.
Objectives:
They also need to establish the suppliers who will market the products in the market. The Intech Company shows a perfect competition kind of market structure. Evidently, the company operates in an environment that has more than one similar service providers. Additionally, the company continually competes on its prices about their competitors. The company has placed marketing strategies that can demonstrate the product’s and build an efficient marketing plan around the competitors. They also consider the pressure from other market dynamics that alter their strategies. On the other hand, overlooking these factors could often lead to disasters. As a result, the company should remain true to its products and control the factors that will keep them successfully in the market.
Intech Company has a good position in the market that is the strength of the company. In addition, there are diverse opportunities that the company can utilize to promote its product hence improve their revenues. However, the company needs to set reasonable goals and marketing strategies that will enhance their competition in the market. In addition, the launch of the new branch has a great potential in the market because it is at a growth process and the prospects are high. Consequently, the company can expand its market in areas where they identify high potential. The company should also tailor products that will alleviate competition in the market. As a result, the company has the potential to grow due to the huge market that readily waits to purchase the product (Wymer, 2011). In summary, Intech Company should identify the right goals and marketing strategies to increase their sales in the new market.
Assumptions:
• Intech Company has unique products hence attract a wide interest in the customers. After the analysis, the market strategy in the promotion of the products involves passionate clients and sustainable marketing strategies.
• There are competitors who have diverse competitiveness hence pose a threat to the company. For this reason, the company needs to evaluate its product’s price cost of it to remain competitive in the market. In addition, Intech needs to understand their target audience for them to promote awareness of their products and encourage the customers to purchase the products (Misra, 2013). Additionally, the mobile devices should be in remote computing application to enhance their usage. As a result, the company will have explored the business with computer capabilities even for class user endowment.
• The company also needs to increase customer awareness of the mobile devices to the target market. From observation, most of the people in the market are aware of the competitor companies than Intech Company. Consequently, the company will use marketing strategies that will increase knowledge of the product.
• Finally, the company should perceive prices that are fair to customers who purchase the products. However, the company should consider the geographical location before pricing. In summary, the issues around Intech Company mobile devices are that the market does not have a wide knowledge of the products and that the prices are high targeting a few customers.
• The perfect competition is described in the market where a participant does not have sufficient market power for them to set the price of the homogeneous product. The need to consider the market structure is for the company to establish its possible success rates.
• Additionally, it provides the company an opportunity to define the product gap. Therefore, they can establish whether they can meet the demand in the market. For example, Intech Company products are leading brands in the largely dominated industry where there are other types of smartphones of the same quality (Wakabayashi, 2015).
• However, the condition of the perfect competition also has strict conditions. For example, the participants in the industry cannot sell their smartphones below particular price levels. Arguably, the Intech Company offers the benchmark to this industry as it is a leading seller in the market. Usually, the perfect competition has a natural benchmark on which the industry contrast the other market structures (Wakabayashi, 2015). As a result, the Intech Company shows that it operates in a perfect competition market because they are a benchmark. It also operates in a market with other company with similar products. Further, they can conduct a SWOT analysis of the market to consider their potential in the new market. Consequently, the Intech Company operates in a perfect competition market.
Risks and Assumptions:
1. There are numerous advantages to the perfect market structure. The participants in the market are a large seller where they are willing and able to supply the product at a certain price. Moreover, there are no barriers to their entry or exit from the market hence is easy. Another advantage is that the perfect market structure is known for its mobility that allows the company to adjust over the long term with their changing market conditions (Dunning, 2014).
2. Also, the buyers and sellers do not encounter transaction in making the exchange of the goods. Finally, the participants have the ability to maximize their profits. For this reason, Intech Company has an advantage, and the ability to succeed in the new market. Moreover, it provides an element of sustainability in the long-run.
3. There are also disadvantages to this market structure that may pose a challenge to the participants. One of the disadvantages is that the small participants do not have control over the prices of the products. As a result, they may not maximize their profits. Also, participants may struggle as they try to differentiate their products from other producers, especially with agricultural products. Arguably, it also reduces the incentives that should be used in research and development.
4. The structure lacks government interventions (Dunning, 2014). As a result, the participants are affected by the changes in the market such as inflation. In summary, the disadvantages of the perfect competition could hinder the successful running of the new company.
Strategy:
Intech Company needs to come up with the most effective strategy to advertise its products in the new market. Their spread to Asia is a mark of growth hence the need to increase the spread of the public awareness of its products. The marketing plan is realistic because it is based on real-life factors such as the environment and limited resources.
An effective strategy to use in the modern market is to advertise the product on screen. In the world today, people easily access the internet. Therefore, it is a convenient strategy especially because online marketing has become increasingly known and is timeless.
The Bases for the segmentation of the consumer markets include demographic, benefit, psychographic, and behavioral characteristics (Winston & Mintu-Wimsatt, 2013). Additionally, marketing considers the demographic segmentation that includes the characteristics of age, gender, family size, family life cycle, race, generation, occupation, education, income, religion, nationality, and social class. The benefits of segmentation are that the consumers buy the product because it gives them a god feeling, it also makes them feel useful.
The products have these characteristics because it gives these feelings to the users. Additionally, psychographic segmentation encompasses lifestyle such as outdoors, athletic, and personality. Finally, the behavioral features that include occasions such as Valentine’s Day, birthday, usage rate, e.g., attitude loyalty, or light, medium or heavy users.
Concerns:
I. Intech Company’s spread to Asia is due to a favorable legal and political environment. There are no legal restrictions that companies from the United States cannot function in their states.
II. However, there are legal requirements that the company employs three-quarters of the employees from Asia. The employment of these citizens should be spread across to the leadership positions.
III. The political environment provides an opportunity for foreign investments in their countries. As a result, there has been a positive response from the global markets as diverse companies’ branch to the Asian countries. It is an opportunity for Intech to have a healthy competition with other leading companies in the industry.
Conclusion:
Intech Company is in a good position based on its strengths in the market. In addition, there are some opportunities that the company can take advantage of to improve on its revenue. However, it has to deal with the various weaknesses and take note of the threats presented by factors such as competition in the market. The company’s marketing approach demonstrated how to build efficiently a company’s product and marketing plans around its main competitors, notwithstanding the great pressure from altering market dynamics.
References
Dunning, J. H. (2014). Explaining International Production (Routledge Revivals). Routledge.
Misra, S. (2013). Consumer Surplus and Prices in Perfect Competition and Monopoly. Available
at SSRN 2256073.
Wakabayashi, D. (2015). “Apple’s Latest Challenge: Topping Its Own Success. After a year of
strong iPhone 6 sales, analysts predict muted growth for coming models.” The Wall Street
Journal.
Winston, W., & Mintu-Wimsatt, A. T. (2013). Environmental marketing: strategies, practice, theory, and research. Routledge.
Wymer, W. (2011). Developing more effective social marketing strategies. Journal of Social Marketing, 1(1), 17-31.
