Str_WJ Essay Example
Based on the information in the case, conduct a Five Forces Analysis for Qwerky Industries. Your answer should state who the main competitors for Qwerky Industries, and specifically the QwerkyWriter product, might be.
Threat of New Entrants
The threat of new entrants is high especially if the customers respond positively to the Qwerky Industries keyboard. Apple Inc. and Microsoft have the financial and resources available to replicate or produce similar product they increasing chances of their entry in to new market especially if they are seeking to consolidate the market. Even though the Apple Inc. and Microsoft have related products in the market, they do not meet the standards that Qwerky Industries has establshied.
Threat of substitutes
The threat of substitutes is low at this point given that some people do not want keyboards to go with their tablets and it is this target market that the company has focused on. Therefore, the customers do not have large choices to choose from given that the existing keyboards are not functioning in the right manner and the inbuilt keyboards are not suitable to some customers. Furthermore, the desktop key boards cannot be used given that they are large and cannot function properly with the tablets.
Bargaining powers of Customers
Bargaining power of customers is low especially given that the existing alternatives in the market do not provide the solutions and the tactile feel that the Qwerky Industries keyboard offers. Furthermore, given that the existing alternatives may not provide the solutions needed, the bargaining customers may be low. However, this depends on the size of the market given that low demand gives the customers large bargaining power.
Bargaining power of suppliers
Bargaining power of suppliers in also moderate given that they are multiple of suppliers that produce keyboard related products. Therefore, Qwerky Industries have a variety to choose from which minimizes the supplier dominance. However, those who provide unique technologies have a higher bargaining power due to the limited supply of the technology.
The industry is low however, it may be higher in the long run as the mobile phone companies such as Apple and Microsoft produce equally competitive products. The Microsoft and Apple produces related products but do not have the unique style that QwerkyWriter has.
Question 3: Based on information from the case, provide an explanation for Qwerky Industries’ choice to market the QwerkyWriter into Europe, Oceania, and the United States. This should identify both the BLS strategy and the target segment.
The Qwerky Industries’ should venture either in to the Europe, Oceania or the United States market. The retail price of the device is USD329 and therefore this is a premium price that should focus on the developed economies where the population have the ability to afford the device. Targeting the United States, Europe and Oceania gives the company the ability to target large market segments given that the products targets middle income and the high end consumers where there are consumers with higher disposable incomes and have the ability to afford the products. Furthermore, mots countries in Europe are either developing or developed economies which means that they have the disposable income able to cater for the high price of the device. The success of the Qwerky Industries’ product will be determined by the ability of the target market to respond with the production of the product in the market which may differ depending on the market that the company decides to venture. Furthermore, the European, Oceanic and United States are characterized by stable economies unlike the third world countries who may not be able to meet the price point set by the company.
Question 2: Based on the information in the case, and as a senior manager for Qwerky Industries, nominate a business level strategy and explain the strategic advantages of using this strategy to produce the QwerkyWriter in Thailand, China or India
The strategy chose by the senior manager for Qwerky Industries should be able to give the company the competitive advantage in the market. Therefore the senior manager should settle for the strategic alliance with the company either in Thailand, China or India which has the specialized knowledge in the production of the products or various key components. This will help in distribution of risks and will help the company in gaining a competitive edge in the market given that it would be able to produce products within a short period of time. Strategic alliances with the manufactures helps the company in the production process and through this it has the ability to focus on other areas such as promotion of the products since the combine resources will help the company in utilizing the economies of scale. This will also help in speeding up the production process, Form an industry technology standard, Share risky R&D expenses and Overcome uncertainty in the production process. The reliance on the strategic alliance is important to the production process especially in cases where the company does not have enough knowledge of the market and how it works. Therefore, in this cases there is a need for the company to unite with a company that has already established operations ion any of these countries.
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