Module 3: Market analysis
In this section will be a market analysis drawn up. First the market in which the TPM combination operates is defined, then in the next section the TPM combination is analyzed using Porter’s 5-forces framework. In the section that follows the market in which the TPM combination operates is analyzed. In the fourth paragraph the TPM combination is placed in one of the categories of the growth-share matrix. Finally, a short conclusion on the previous topics is made.
For a company such as Canon, if fact for every company, it is of vital importance to define the market of its TPM combinations accurately. A wrong definition may result in a bad strategy and that leads to bad and eventually perhaps even a failure of the product.
The TPM combination cameras can be placed in many markets, it is very difficult to place it just in one market. It used to be considered a luxury good but over the last few years it has become ordinary to have a digital camera and therefore it has become much more of a common good.
A few other examples of markets where cameras can be placed in are gadgets, telephones, laptops and webcams. Because most of these products have a function to capture and store images. So these are possible alternatives for potential customers and cameras can therefore also be placed in these markets.
The number of competitors in the market of digital cameras is large. A few examples of competitors are Sony, Nikon, Kodak, Trust, Panasonic and Fujifilm. Because of the large number of competitors and cameras, the competitive intensity is also great.
The most important customers of Canon concerning the TPM combination will be the non-professional customers, the customers who will use the cameras for private use. Another group of customers are the professional users (i.e. photographers).
Because both these groups of people usually do not buy large amounts of...
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