In analyzing Apple and other competing firms, TC Management Consultants found that, relative to its competitors, CanGo occupies a very small position in the Music, Video, Book and Entertainment Retail Industry. Market Analysis The CanGo Company experienced substantial growth in 2009 developing into a $51 million dollar business. This makes it strategically important to analyze the challenges CanGo will encounter with book sales and MP3 sales in 2010 as well as their new $30 million venture into Online gaming. The market analysis will examine CanGo’s position in the book, MP3, and gaming industry.
(Davis) Relevant Factual Information about the Problem or Decision the Organization Faced The collapse in industry profitability in 2007–2009 and the bankruptcies of General Motors and Chrysler were not simply consequences of the financial crisis. They also reflected the massive structural problems of the industry—most notably, too many firms with too much capacity chasing too little demand. The catastrophic decline in industry revenues and profits in 2008 promised a major industry restructuring. (Grant) Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials A SWOT analysis can work to generate effective solution for Ford and the auto industry: Strengths Strong position in US market. Ford is the second largest automaker in US, the second largest vehicle market in the world.
Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
The photographic paper market similarly declined from a peak in 2003 to about 60% of the size by 2011 (4). In short Kodak lost ground in its shrinking primary market which had been a much better revenue generator than digital proved to be (5). Kodak belatedly declared a digital strategy in 2004; eight years after its revenues had peaked. This strategy was still based on photographic prints as an end point for consumers, which proved flawed. Kodak both invented and successfully marketed professional and consumer digital cameras.
Introduction Intel and AMD have been competing for over 40 years in the semiconductor industry. The chip industry’s major consumers are manufacturers of computers, digital consumer appliances, and mobile communications. Intel has continually been the worldwide industry leader. In 2002, AMD began to lose market share in Japan (slid from 25 percent in 2002 to 9 percent in 2004) and they started to worry about Intel’s exclusionary practices in Britain, Germany, and Japan. They believed Intel was offering rebates to Japanese computer makers in return for exclusivity.
October 23, 2012 Case 3: Mattel’s Misfit Toys BUAD 455 Synopsis Mattel is the United States leading toy manufacturing company. Mattel features toys from Barbie, Fisher-Price, Hot Wheels, etc. On August 1, 2007 Mattel announced their largest toy recall, due to lead paint tainting their product. This caused Mattel’s financial fallout. Critical Factors of Success The high standard of Mattel’s toys and products is a critical factor of success, because it put the company on a petal stool as a role model in the toy industry.
Samsung Electronics 2. To what extent could Samsung’s profitability be attributed to its low cost advantage? What has Samsung done to achieve it? Samsung’s semiconductor divisions are the world’s the most advanced technology, and they are leading the DRAM, SRAM, Flash memory markets. In 2004, Samsung did sharp drop in the market prices.
It is a also important to note that strategy of launching iPod and other subsequent new products were very much in synchronization with the ‘Digital Hub’ strategy. Analyzing the industrial environment based on Porter’s 5 force model we get: 1. Intensity of Rivalry: Apple faced competition from other iPod players such as Zune (Microsoft), San Disk, Creative and Samsung. However despite these companies having more or less the same hardware had less than 10% of the market share because of the launch of iTunes. Within the industry the intensity of rivalry was high though Apple was vey ahead of it competitors even when it was charging a premium price which was $50 to $100 higher than the ASP of other iPods.
Exports are expected to rise to 65% of total sales by next year. Major issue that Minolta is facing is of distribution of Cameras to Export markets through unauthorized channels. Mr. Nakamura who is the manager of International division of Minolta cameras expects the sale of Minolta cameras through ‘Gray markets’ to be lesser than 10% of total camera sales. But the magnitude of this camera movement through unauthorized channels is increasing continuously. Few major distributors of Minolta have accused firms in Hong Kong for these gray market sales in US and Europe.
However, a successful company like Amazon.com also has its own actual problems. What is the actual problem? Since the 1990s the company has invested heavily to quickly develop the best-in-class retailing, fulfillment, and customer service capabilities required to support its rapidly growing and increasingly complex business. During 1998 and 1999, Amazon.com spent over $429 million to build a state-of-the-art digital business infrastructure and operations that linked nine distribution centers and six customer service centers located across the United States and in Europe and Asia. However in late 1999 this distribution infrastructure provided 70 percent to 80 percent overcapacity.