Marketing Analysis for Acer Hi-Fi System Essay Example | Topics and Well Written Essays - 1000 words

Marketing Analysis for Acer Hi-Fi System - Essay Example Acer has been known for a long time as electronic producing company especially computer products. Recently, the company has entered the music product industry where its asserting is presence in the market by introducing unique and superior products in the market, hi-fi clear system being one of such products. To assert its presence in the music industry, Acer has embarked on market analysis mission for its hi-fi music system for business growth and increase in its market share. 2.0 Situational Analysis/ Opportunity Identification Situational analysis and opportunity analysis involves 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 ha s 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 tastes for high quality products. In addition, this market segment comprises technology literate individuals who are quick to adopt and use the product. Buyer behaviour shows a strong peer influence and appeal for quality features. Acer’s market intelligence shows that 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 fact ors (Cheverton, 2004, 84). Detailed SWOT analysis is presented in the table below; Internal Factors Strengths Weaknesses Product offerings Capable of connecting to all of the devices on your home network and devices Unique sound quality and affordable Largely unknown compared to competitor brands Somehow sophisticated to some customers Acer brand Known for its quality Producer of affordable goods Not ranked among the top electronic companies Positioning problem Management Experienced in new product development and marketing strategies Understands the target market’s purchase behaviour patterns Slow to react to changes in customer demand Organizational structural challenges Market Huge global market of over 300 mn customers Better product adoption among target customers Strong tastes and preferences Rapid changes in demand Low adoption rates in some markets Human Resources Skilled manpower with strong product development, financial and marketing skills High turnover Financial considerations Revenue estimates are good given the margin/product Low cost of production ROI very promising Rising cost of raw materials and energy R&D Competent R&D teams Rapid dynamism in the music industry Capital and time intensive External Factors Opportunities Threats Consumer market High purchasing power Technologically savvy Rapid changes in tastes and