PreliminaryMarket Analysis
InstitutionAffiliation
PreliminaryMarket Analysis
Marketanalysis is part of a business plan that describes the customers ofan organization, unique characteristics of a particular marketanalyzing the market and obtaining information about customerpreferences and their purchase power to help the organization basetheir decisions on the market research. This enables the organizationunderstand their customers, determine pricing strategies, as well asunderstand the level of completion in that particular industry.Assuming ToolsCorp Corporation is an organization dealing in motorvehicle spare parts and motor vehicle servicing the following is apreliminary market analysis as the company strategies to go to theglobal market.
ToolsCorpCorporation is in the automotive industry dealing with motor vehiclespare parts and servicing of motor vehicles. The organizationcollaborates with motor vehicle manufacturers to help service theirvehicles in our area of location (Tennessee). We also offer the wholesale of motor vehicle parts to other organizations in the automotivesector. We specialize mostly in small vehicles such as sedans, SUVs,and light commercial vehicles. We also sell motor vehicle parts tomanufacturing companies.
Ourtarget market is the local public as well as the global populationthat owns private and light commercial vehicles that require originalcar parts and focused customer service. Currently, in Tennessee, newmotor vehicle sales, as well as second-hand sales, have increased byabout 20% which we expect to exploit to increase our local sales toenable financing of our global strategy. We forecast that, if thecurrent trend continues our company will benefit highly as we alsostrive to partner with car manufacturers to also offer car sales. Weproject that our customer base will increase steadily at the rate of7% annually. Our target customers are regular buyers of motorvehicles with most of them changing vehicles regularly. We have alsorealized that the local community prefers Ford vehicles and we are inthe process of partnering with Ford to ensure we do not lose ourmarket share. We project that in the long run if we strike a dealwith Ford, it will be to our benefit even though it will not seem soin the short run.
Thecustomer behavior currently favors our organization, and we areputting up measures to ensure the continued growth of our companyeven if the current customer behavior changes. Quality currentlyinfluences customer behavior in 85% of our regulars. Most customerswant quality products even if the prices are high (Baker2012).Our company is ensuring that we only produce quality products thatsatisfy our customers which guarantee us continued loyalty from thecustomers. This will, in turn, ensure our company makes higherprofits as we also try to cut our production costs while maintainingquality. Globally, we project that price will influence customerbehavior. Therefore in collaboration with the finance department, weare trying to ensure our costs of production are as low as possibleso that we can offer our products and services at lower prices thanour competitors.
Ourmain competitors are smaller businesses with very few employeescompared to our company. They have been in business longer than usand therefore control majority of the local market share. They,however, have fewer resources compared to our company. We can utilizethis superiority to our advantage and be able to lure some of theircustomers to join us. Due to the resources constraints they cannotmaneuver financially like us. Therefore if our company can go global,we will attract some of their loyal customers which could lead tobetter financial performance.
Ourcompany mission is to offer quality and expert services and productsat lower prices and ensure that each and every customer is satisfiedwith us. This position can be well utilized by the company to ensurethat the company can attract a larger market share not just locallybut also globally. In future, we expect to increase our market shareby double digits by opening more outlets globally. This will positionour company as a leader globally as well as regionally which will, inturn, grow our brand further.
Ourmajor weakness currently is that, if we expand too rapidly withoutensuring we have proper resources in terms of finances, expertise,and proper strategy implementation is that we could lose ourcustomers. Therefore it is important for our company to properly planfor the globalization and ensure that the strategy is implementedentirely and if new challenges are found along the way, they areresolved by top management and decisions that are made be in linewith the company strategy. Our company also should continueconducting and observing any changes in customer behavior such aschanges in preferences and purchase patterns as well as look at whatour competitors are offering and their price ranges. This will helpour company come up with measures that will ensure we have acompetitive edge. For our company to be able to compete efficientlyand effectively in the global market, there must be differentiatedproducts and services from competitors. Cutting the costs withoutaffecting product and service quality, be customer focused andensuring customers are satisfied and ensure that our employees arefast in offering services and that our products are readily availablein the market will also prove helpful a lot. If all these are takeninto account, globalizing our company will be a smooth processwithout any hiccups.
References
Baker,P. L. (2012). An Analysis of Double Taxation Treaties and theirEffect on Foreign Direct Investment.
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