The fragmentation stage is also known as the infancy or the embryonic stage of the industry life cycle. This is where early adopters of new products, technology or processes are carving out a niche market and developing products and services in response to an identified need. We have to note that there is little to no competition unless similar companies have identified the same opportunity. Companies involved in this stage are typically active in sourcing investment capital to execute their business plans. Profits are not yet created because the industry is new to the market and revenue is usually reinvested in business expansion. Growing the industry awareness and positioning the product is the primary promotional focus at this stage. For …show more content…
Research and development funds are allocated to shape products according to consumer needs and demands. This results in product standardization and product positioning to capitalize on key differentiating factors. The goal of marketing efforts at this stage is to differentiate a company’s offerings from other competitors within the industry. The duration of the shake out stage, like all the other stages, depends on the particular industry or product line under study. In the fashion industry there is a fairly short product life cycle because trends and tastes change regularly and move almost immediately into the next stages of maturity and decline. Because many new product introductions fail, the shake out stage may be short or relatively nonexistent for some products. However, for other products the shake out stage may be longer due to frequent product upgrades and enhancements that forestall movement into maturity5. The computer industry today is an example of an industry with a long shake out stage owing to upgrades in hardware, services, and add-on products and features. As the product gets more and more acceptance in the industry, more and more new entrants are likely to join the industry leading to aggressive competition. Finally, it is the survival of the fittest. Only those who survive the shake out stage can move to the …show more content…
The probability of companies in India rescuing their products sinking in the maturity phase of their life cycle and reverse spinning them to the shake out phase is comparatively very high. This is called reverse positioning and here the consumers do not want products with endless features. Once the product is returned to the shake out phase, the industry tends to supplement the stripped down product with a carefully selected feature found in the higher version of the product in the maturity phase. This unconventional combination allows the toned down product with special feature to assume a new competitive position and enables it to stabilize backwards from maturity into the shake out stage in the industry life cycle. While a mature product is well established in the market and is likely to be part of every investor portfolio, it is equally likely to have a declining share in it may be due to the fact that when a new product assures a higher return for the same amount of risk as a mature one the latter seems to be less attractive for investors. The evolution of new products with huge reach also forces established products into
We have to continually keep in contact with our customer. Raising awareness and educate them on potential
A huge sum has been invested, so now it is really crucial for the product to succeed. Moreover the current product mix is not sufficient to bring long term profits for the company. As far as short term goals are considered, management wanted a successful launch for the product which will provide the right marketing and target of the new product line. While the long term goals involved adding variety and diversity to the product line to achieve a long term sustainable growth rather than just achieving short term
Vertical disintegration can shorten the time to bring products to market.
Due to their huge success, control over suppliers can be always be maintained by the company. Rivalry among the competitors is the force to reckon with and it is the one that will decide the future profitability of the fashion industry. Competition in fashion is very high since there are only a handful of competitors when looking at the giants. Future Industry evolution Scenario 1 The future of today’s world is technology.
Before the product enters the market, there are no sales, as the product is being prepared for the market. There is market research that is being conducted. Introduction stage begins with the launching of the product followed by growth where there is an increase in the market share. When the product reaches maturity stage, the sales are at their peak. At the decline stage, the sales are declining.
Concerning apple products, their life cycle is a quite interesting issue. The demand for Apple products, particularly on iPhone is so tremendously high, that millions of them are sold from the first week of sales. After the introduction of iPhone 6, 9 million iPhones were sold during the first week of sales. However, the life cycle of Apple cell phones is not long. In order not to lose its positions to the most powerful and serious competitor in cell phone industry, Samsung, Apple invents and produces new modernized models of cell phones every year.
Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.
Organizational set up has to be favourable to support new product development. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. Others chose to allow employees dedicate a certain amount of work time on new product development. Companies next have to organize the process of development.
The economic profits tend to exist only in the short run in a perfectly competitive industry. Therefore, because an increase in the demand of the product gives the firms to earn more economic profits. That profit tends to attract other new
A company needs to go through extensive regulatory approval, licensing, high financial backing and investment, an effective distribution network, brand patents and strong brand presence make it a difficult industry to enter or exit. This is why the threat of a new entrant is low to moderate to existing companies. Based on factors mentioned above. But now many pharmaceutical companies are progressing in the market by shifting from traditional business approach to emerging new business approach. The new business technique includes contract research (drug discovery and clinical trials), contract manufacturing and co-marketing alliance.
One of their key strategies in meeting this goal is a focus on customer service in order to create an experience for its consumers. Another one of their strategies is to ignite their emotional attachment with consumers. They also have
Redesign is less frequent stabilising forecasting. Conclusion This report focused on Samsung Electronics Company Ltd. is a major supplier of cutting edge electronic components and devices. The key product streams of consumer electronics, IT & mobile communications and device solutions were identified.
This is also helpful to develop fashion-oriented products, which have a shorter time to
Driving forces provide a framework to decide where and how to exercise market leadership. In this case, globalization is one of the main driving force that affect the fashion industry. Gap was recognized as a must have brand. However, through the years it has been losing competitive advantage due to the continual change. During the last years, Gap has been facing struggles because of its clothing design and faltered misjudgment fashion trend.
2. Introduction Defining an effective Marketing Communication Plan and Communication Mix through a well researched strategy will not only help to reach out to potential customers, but it will also help to adapt and respond to the ever changing marketing environment. This report starts by examining the various promotional tools used by marketers in the marketing of their products and services, including the advantages and disadvantages of the tools. The report goes on to examine the meaning of Integrated Marketing Communication (“IMC”) and the importance of measuring the effectiveness of the Promotional Campaign.