Samsung Market Analisis

Topics: Marketing, Strategic management, Market research Pages: 6 (1238 words) Published: May 28, 2013
Market analysis

A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and this in turn of the global environmental analysis. Through all of these analyses the opportunities, strengths, weaknesses and threats of a company can be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company will be defined.[1] The market analysis is also known as a documented investigation of a market that is used to inform a firm's planning activities, particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company.

|Contents |
|  [hide]  |
|1 Market segmentation |
|2 Dimensions of market analysis |
|3 Elements |
|3.1 Market size |
|3.2 Market trends |
|3.3 Market growth rate |
|3.4 Market opportunity |
|3.5 Market profitability |
|3.6 Industry cost structure |
|3.7 Distribution channels |
|3.8 Success factors |
|3.9 Applications |
|4 References |

Market segmentation [edit]

Market segmentation is the basis for a differentiated market analysis. Differentiation is important. One main reason is the saturation of consumption, which exists due to the increasing competition in offered products. Consumers ask for more individual products and services and are better informed about the range of products than before. As a consequence, market segmentation is indispensable.[2] Segmentation includes a lot of market research, since a lot of market knowledge is required to segment the market. Market research about market structures and processes must be done to define the “relevant market”. The relevant market is an integral part of the whole market, on which the company focuses its activities. To identify and classify the relevant market, a market classification or segmentation has to be done.[3]

Dimensions of market analysis [edit]

David A. Aaker outlined the following dimensions of a market analysis:[4]

• Market size (current and future)
• Market Trend
• Market growth rate
• Market profitability
• Industry cost structure
• Distribution channels
• Key success factors
• Key success Details
The goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses.

Organizations use the finding to guide the investment decisions they make to advance their success. The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. Affected areas may include inventory levels, a work force expansion/contraction, facility expansion, purchases of capital equipment, and promotional activities.

Elements [edit]

Market size [edit]

The market size is defined through the market volume and the market potential. The market volume exhibits the totality of all realized sales volume of a special market. The volume is therefore dependent on the quantity of consumers and their ordinary demand. Furthermore, the market volume is either measured in quantities or qualities. The quantities can be given in technical terms, like GW for power capacities, or in numbers of items. Qualitative measuring mostly uses the sales turnover as an indicator. That means that the market price and the quantity are taken into...
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