The electronics industry is wide and engages in the production of a large number of commodities with an aim of satisfying the number of customers that demand the products. This necessitates the need of engaging in a production of electronics that are highly reliable as well offer a guarantee to the customers on the good functionality of the electronic products (Karabag and Berggren, 2014; Jandova, 2014). Firm in the electronic industry ensures that they strategize to ensure that they come up with innovative ideas that the competitors will not copy. Industries in the electronics sector produce consumer electronic products such as DVD players, Hi-Fi systems, computers, televisions, and other electronic devices (Di Nino, 2015). This sector has a value of over $300 billion dollars globally, and Asian electronic companies take about 5% of the pie (Estimated growth rates for the global electronics industry from 2016 to 2018, 2018). TAKIMAKI is one of the firms that is actively involved in the production of electronic products. It is a Small and Medium Enterprise (SME) based in Tokyo. The company has strategized and ensures that it produces a range of electronic products licensed from a number of multinational companies. But due to current trends in the global market, TAKIMAKI needs to formulate new skills and expertise, or develop those gained during prior involvement, to evaluate new markets and create new opportunities in the growing markets. This means that the management team needs to come up with ideas that can help TAKIMAKI maintain the leadership it has enjoyed over the years since its inception (Dunning, 2015). New services/products and designs also need to be created to be better competitors and attract more clients. Measures need to be taken to counter any ethical, social, managerial, or cultural issues that may arise from the state move as it engages in changing the approach adopted in the production process. This paper will discuss the emerging markets and demand, opportunities that TAKIMAKI can establish in various sectors, e.g. automotive industry, the innovations they can make to better their products and services, and the economic strategies that the company will employ to meet desired goals.
Emerging Markets and Demand
Global emerging markets show a significant growth in the latest technology in televisions, Smartphones, and PCs (Funk and Luo, 2015). The thirst for ownership and purchase of these products opens up a whole new market for companies and also growth for newer designs of electronic products. The demand for new gadgets has been exhibited more in countries such as the United States, Japan, France and Germany (Fortune, 2018). Countries such as India have an emerging market in the urban areas where consumers have, in the past year, had a significant increase in their annual income on various consumer electronic products. Other countries following the same trend include China and Japan (Chen, Ho, and Wang, 2016). Analyzing the trends taking place in other industries will help TAKIMAKI prepare for a change in the conduct of business. Once there is a change in other industries, there is a high probability of the transformation affecting businesses directly or indirectly.
TAKIMAKI can grab such opportunities and capitalize on these lucrative and myriad opportunities. This justifies the need of the strategic management, working together with the IT department of coming up with ideas that will help TAKIMAKI penetrate the market, and meet the demands of the clients (Breau and Brown, 2011). This step involves studying the market trends by collecting data while interpreting the information with an aim of creating strategies. The data collection process involves taking a feasibility study which will help gather information about the customer preference and wants. In the long-term, an organization design commodities that satisfy the needs of customers.
Opportunities for TAKIMAKI
Some of the opportunities that TAKIMAKI has in the automotive industry are coming up with products that can be installed in vehicles and should be small enough but produce enough sound effects to appeal the customers. Vehicles manufactured in the modern day are large and have a space in which the drivers can install a music system. This includes coming to a place where a small DVD, television, and radio can be installed (Kohler, 2011). Customers can be entertained as they travel. The advantage of this is that TAKIMAKI can come up with different designs while allowing the customers to personalize the music system according to their needs. The fact that the music system can serve both public and private vehicles will attract a large number of customers. TAKIMAKI will also charge the initial adopters of their products a small amount of cash they can demand more with time as the market picks (Liao and Wei, 2013; Baldwin and Yan, 2016). This strategy will help attract and maintain the attention of clients, by sending a message to the customers on the high quality of products that the company produces. Price differentiation will help TAKIMAKI sell its products to customers depending on the quality, size, and sound effects expected from their products.
TAKIMAKI has another opportunity in the automotive industry by partnering with manufacturers. This collaboration will allow TAKIMAKI be involved in the designing process of the vehicles' interior. This means that drivers and owners of vehicles will not need to purchase an external music system. It will be cheaper for the drivers as they will not incur more expenses in the purchase and installation of a music system (Alam and Afza, 2017). The benefit and competitive advantage that TAKIMAKI ha is that it can partner with more than one vehicle manufacturing company locally and internationally. The main focus that the company must have is maintaining the high quality of products which will help prevent having a large number of negative feedback from clients.
TAKIMAKI has opportunities in the market by considering the economic strategic approach. This will require the organization to consider the target market of its products and factor in the ability to purchase its commodities at the prevailing prices (Nee and Opper, 2010). For instance, the company can consider ranking the prices of its products depending on the quality and cost of the production process. When a commodity incurs a large number of resources in the production process, then it can cost more as opposed to one that did not accumulate a large expense (Vaz, 2013; Nyanga and Van Der Merwe, 2015). This means that customers of different economic strengths will be in a position to enjoy the quality services and products from the company. Therefore, TAKIMAKI will enjoy profits both in the short-term and in the long-term. The main focus should be to make the customers satisfied, which will lead to more demand for commodities, as well as special requests.
Another economic strategy that TAKIMAKI can adopt is in the target of different markets that will generate diverse returns. Segmenting the market into manageable units will help ensure that the marketer and strategic management teams will design commodities that meet the specific needs of the clients irrespective of the cost since the return on investments will be made by the company (Aggarwal and Urata, 2016). TAKIMAKI can market its products to the local and international markets and still charge different amounts of buying prices. For instance, developed countries can purchase the products from TAKIMAKI at higher prices compared to the developing nations.
Innovation helps a company come up with ideas that help the firm perform well in an industry full of firms that produce similar products and services. It sends a message to the customers that an organization is putting effort to ensure that its clients get value for their money (Wang and Wu, 2016). It also ensures that an organization strategizes and develops a competitive advantage. It also ensures that an organization incurs the lowest amount of resources when producing goods but charges an amount of the competitors.
In conclusion, modifications made in TAKIMAKI should aim the development of the company, with an aim of maintaining the leadership in the industry, as well as satisfying the needs of the clientele base. Innovative and creative thinking skills are needed in the management team that makes decisions on what to produce. The marketers should come up with information that will allow the management team design strategies aimed at improving the operations of the company. With growth and development, the company will experience a growth in the number of customers and the employee base. It will also necessitate the need to penetrate more markets at the international level. Partnering with like-minded organizations will ensure TAKIMAKI reduces the burden of investing in the market. For instance, the partnership with the automotive industry will ensure that TAKIMAKI reduces the cost of marketing its products to the market.
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