MARKET ANALYSIS OF BLUE MICROPHONES
Executive Summary
The business analysis report is based on the Blue Microphones Company which is an established brand in the international market. Its best value products are already serving the market efficiently, but its expectation doesn’t match to the actual result which the company is trying to increase. The company has aimed to increase its business presence in the international market. In this business analysis report, a thorough discussion will be done in support of different business analysis strategies including SWOT, PESTLE, STP analysis and porter’s five forces analysis. The business projection will also supported by the financial projection.
Table of Contents
Executive Summary 1
1.0 Background 3
1.1 Company Details 3
1.2 Product Range and Details 3
1.3 Distribution Channel Used 3
1.4 Mission, Vision & Objectives 3
2.0 Business Analysis 4
2.1 SWOT Analysis 4
2.2 PESTLE Analysis 5
2.3 Competitor Analysis 6
2.4 STP Analysis 7
3.0 Financial Projections 7
4.0 Market Promotion Strategies 7
5.0 Conclusion 8
Bibliography 9
Background
1.1 Company Details
From more than two decades Blue Microphones is engaged in providing quality audio solutions to the industry at affordable rates. Founded in the California, the USA Blue Microphones has a wide market share in its international business platforms. The audio production company is going through a hardship situation and need to improve its business activities by applying relevant business strategies and performing them in the best possible way. In this marketing plan report, the detailed market analysis of Blue Microphones will be done with the support of past activities, current market situation and required future growth (Kitching & Smallbone, 2012). The current case is to study the market for its headphones and its competitor analysis in establishing it in the competitive market like its other products successfully.
1.2 Product Range and Details
Blue Microphones has a wide range of products including microphones, headphones, signal processors, recording tools and music accessories. Its value products are designed specifically to support the audio professionals, youngster music lovers and musicians. Its latest innovation includes the Satellite headphones which the customers are expected to like due to its wireless Bluetooth feature with high audio quality than its preceding.
1.3 Distribution Channel Used
The company uses to sell its products online and at the selected brand stores. The company tries to utilize the advanced technological facilities and mostly use the online platforms, websites, social media and online stores to perform its promotional, marketing and selling activities.
1.4 Mission, Vision & Objectives
The mission of the company is to touch each corner of the world by providing the high quality audio system with innovative product features.
The vision of the company is to generate huge customer value through its quality products and keep its market position ahead which will push its business activities to diversify to other areas.
The objectives of the business are to increase the sales revenue through its strategic marketing activities. The company also aims at concentrating on innovative ideas through continuous research and development activities (Okpara, 2007).
2.0 Business Analysis
2.1 SWOT Analysis
SWOT analysis refers to the internal or organizational environment which represents two positive and two negative attributes. The strength and opportunities are the positive attributes whereas the weaknesses and threats are the negative attributes of a business (Osita, Onyebuchi, & Justina, 2014). The company needs to strengthen its internal business environment for the next five years by strengthening its strength and opportunities and minimizing the weakness and threats. Being an international business leader in the field of Audio and music accessories, Blue Microphone has the capacity to enter in more international borders and attract the new customer market through its high-quality products. Its concentration on the business development strategies is increasing gradually which will support the organization’s future business expansion (Ommani, 2011).
Though, Blue Microphones deliver a high-quality service to the customers the price of the audio products comparatively high than the other competitors. This will be a negative attribute for the company in creating the customer market. The company needs to introduce low to high budget products in the next years which can facilitate it in expanding its business market. The growing competition in the international market has made the business entry into new areas complex and difficult for Blue Microphones (Valentin, 2005). To minimize the complexity, Blue Microphones needs to introduce new products with innovative features which will differentiate it from the other marketers.
2.2 PESTLE Analysis
PESTLE refers to political, economic, social, technological, legal and environmental factors which are included in the external environment of an organization. The political environment of different countries is going more complex with more rigid government rules and regulations. This will directly affect the business of Blue Microphones. To enter in the international territory in the next five years, Blue Microphones need to check the international economic trade regulations and should utilize whenever it gets a chance to enter a new market. The economic conditions of the different countries differ from one to another. Mostly the products of Blue Headphones are suitable for developing and developed countries (Gupta, 2013). In order to make an entry into the underdeveloped or economically backward countries, Blue Headphones need to introduce low price products which will suit the middle and low-income groups.
The social beliefs of the people about their culture can also helpful to the company. The more cultural programs a country have the more audio products Blue Microphone can sell to the customers. It needs to analyze the demand and find out the opportunities accordingly. The technological advancement has reached the high which the company needs to maintain in the future. Its recent innovation of satellite headphone will also enable to capture the new markets with its high-defined features. It also needs to add more advanced features in the recent future which will give a strong competition to its competitors. As Blue Microphones mostly use online and internet to promote its products and performing selling activities, it needs to improve its way of online promotion activities which will enable it to reach more customers (Issa, Chang, & Issa, 2010).
The USA based Blue Microphone is aware of the rules and regulations of different regions in different countries where it has already established its business successfully. Still, to avoid future uncertain possibilities, it needs to keep itself update the new rules regulations of the countries as well as the rules and regulations of the new countries where Blue Microphones wants to establish its business. The environmental factors can also affect the business growth and development in the next five years. The places where the natural disaster possibilities are more can wipe out the business transactions time to time and will bring loss. Before establishing the new business activities a thorough analysis can be effective for the company. The existing business activities also needed to analyze so that the company could able to strengthen more business possibilities at that existing area (Koumparoulis, 2013).
2.3 Competitor Analysis
To make the competitor analysis, the use of Porter’s five forces analysis is highly effective. The five forces include competition rivalry, bargaining power of the suppliers, bargaining power of the buyers, the threat of substitutes and threats of new entrants. The competition rivalry in the market is a natural but critical aspect for a business which strongly affects the business operations. The market status of Blue Microphones is not quite satisfactory in comparison to the other marketers including Moto, Sony, BoAt and JBL. These all competitors have a huge customer following for which they enjoy the freedom of increasing their sales revenue easily in the market (Jaradat, Almomani, & Bataineh, 2013). To build a strong marketplace in the international market, Blue Microphones need to increase its product features, product varieties, product lines; adoption of innovation and need to stay technologically advanced which could be possible with deliberate research and development activities. Blue Microphones have different production plants situated at different places around the world. The suppliers of the raw materials charge a different price at different places. This directly affects the cost of the products which can be controlled if the supplier prices can be analyzed and controlled in the best possible way. In the next five years, the company’s plan to expand the business can be effective if it could able to minimize the cost of production by controlling the supplier bargain (Ogutu, 2015).
The customers are become more aware and check the features of the product till they are satisfied with it in making their purchase decision. To attract more customers and control the bargaining power of the customers, Blue Microphones need to add more features and technology-based advancements into its products so that it could create more sales revenue. The threats of new entrants from the international market can be a negative possibility for the company as it is trying to establish a strong marketplace in the international market which will be spoiled by the other marketers. The substitutes can be a threat if they provide comparatively similar features at low price. The customers who need to use the products with minimum features without seeing the brand value will opt the local substitute products (Njambi, Lewa, & Katuse, 2016). This will also decrease the business transactions of Blue Microphones. To have a strong control over the substitutes, the company needs to keep its products advanced and ahead.
2.4 STP Analysis
The segmentation, targeting and positioning strategy is helpful in establishing the products in a new market. As Blue Microphones have planned to increase its business potentiality by establishing its business at new regions, this strategic analysis is highly helpful. In making the segmentation it is needed to divide the market into different segments including geographical, behavioral, psychographic and demographic. This will help to understand the market more effectively in placing the products. After successfully segmenting the market the target customer is chosen. In its next five years of business operation, Blue Microphones have targeted to reach all categories of customers as it wants to wide its business operation to support its business growth and development possibilities (Hajar, Mahrani, & Sinarwati, 2014). In its positioning activities, Blue Microphones need to increase its current promotional and marketing activities. It needs to promote its products through more celebrities which will impact more effectively in attracting more customers in the next five years.
3.0 Financial Projections
The company is trying to increase its market share by 10% annually in the next five years for which it has planned to invest a sum of $4,00,000 for its various growth and development activities. Currently, it has a number of 1 million customers worldwide which the company has targeted to make triple in the next five years. It has estimated annual revenue of $3.05 million. The projected costs include research and development $80,000, production and development cost $1,20,000, distribution and marketing activities cost $60,000, personnel and administration expansion cost $40,000 and $1,00,000 as reserve fund.
4.0 Market Promotion Strategies
In accomplishing the market promotion activities, Blue Headphones need to establish its own smart outlets which will increase the brand value of the product. Other than availing the products at the shopping malls, the company also needs to avail it at the mini stores and local electronics stores. The company should ensure the availability of its products at as maximum places as possible (Evans, Bridson, Byrom, & Medway, 2008). Before entering into a country in expanding its business Blue Microphones needs to make its research and development activities effectively so that it could collect maximum information which will be helpful in its future business activities in the country.
5.0 Conclusion
As Blue Microphones have already the expertise in satisfying the customers with best value products, this will help the company in maximizing it more efficiently with best possible features. Its new satellite headphone has the latest features which easily give a strong competition to the products of other competitors except for the price factor (Teece, 2010). The company always concentrates on delivering best value products to its customers which will be continued till it accomplishes the utmost sales revenue as per its expectation in the next five years.
Bibliography
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