Express Computers (EC) is a product-based company that was founded in December 2017. Express Computers has its headquarters in Atlanta, Georgia. The company produces and sells personal computers and consumer electronics. The mission of the company is to be the leading manufacturer and supplier of fast, user-friendly, and quality computers and consumer electronics. Consumer electronics produced by EC include DVD players, televisions, and video games. The personal computers are compatible with the existing operating systems (OS) such as Microsoft Windows OS. The Atlanta City was chosen since it is among the top cities in America with the state of the art technology.
The information technology industry provides a foundation for the creation of computer and communication systems. The insight of the environment for Express Computers will incorporate the analysis of competitive, political, economic, sociocultural, technological, and legal forces to understand its business situation. The environmental factors influence the operation of a business, and they include (Khan, M. Alam, & S. Alam, 2015);
Competitive forces: The primary competitors are the Microsoft Inc., Apple Inc., and Dell Computers. However, the EC products are targeting the small consumers who may not afford to buy goods from these companies. Thus, EC will still be able to compete with the big companies.
Economic forces: The computer industry is among the ever-expanding markets in America, and it plays a vital role in driving the growth of the economy. Economies of scales and limitless demand for computer products from both enterprises and consumers promote the growth of this sector. Increase in labor costs will decrease the profit of the company.
Additionally, the unemployment rates, interest rates, and consumer incomes influence the purchasing power of customers and firms. There is low demand for computers and accessories as a result of the recession. The decrease in the income of the consumers reduces the demand for computers hence decline in sales revenue.
Political environment: They relate to opportunities and pressures brought by political institutions. Government policies such as taxes affect Express Computers. Increasing taxes on products is discouraging the company from expanding their investment. Political stability or instability affects the productivity of the company. Political uncertainty resulting to chaos and disruption of the supply chain is affecting EC negatively.
Recently, the demonstrations of no gun violence by students is affecting our consumers who are the learners who need our computers for research. When the political tension stabilizes, the demand for computers and accessories from leaning institutions will increase hence promoting our sales revenue.
Technological factors: Express Computers depend strongly on its technologies. The changing consumers' tastes and preferences demand a market with the most advanced technology. The use of robots in the production unit facilitates faster packaging of Express Computers products for transportation. The use of social media will enable the company to reach more customers by advertising.
Sociocultural forces: The rise of social media has led to the shift of peoples' tastes towards computer products that deliver better flexibility. Thus, the products need to be fast in accessing the internet to facilitate browsing and socialization. Additionally, population change influences the demand and supply of computers and accessories. Areas that are densely populated has increased demand for computers hence the sales are high. In areas where the birth rates are few, the population is low thus the demand declines.
Moreover, cultural aspects affect seasonal sales. For example, in America, back to school period (August) and Thanksgiving and Christmas (November-December), increases the demand for computers and accessories (Lee & Kotler, 2011).
Legal Factors: Adherence to the laws regarding copyrights and patents affects a business. Additionally, failure to comply with the health and safety regulations can lead to consequences that can ruin a company. Thus, Express Computers have legal advisers who ensure that it complies with all the laws affecting the business.
Express Computers is a developing company which has no specific customers at the moment. However, the company targets students and learning institutions as the primary market and businesses such as cybercafe as the secondary market.
The 4Ps (product, price, place, and promotion) will determine the tactics and strategies for implementing an effective marketing mix to maximize sales revenue from the primary and secondary markets (Dudovskiv, 2017).
Product: EC identifies the consumers' preferences and produces products that will meet their need. EC main products are devices and computer games. The devices include personal computers, televisions, and DVD players. The games products include customized video games.
Price: The prices of EC computers and accessories are set depending on the target market. There are different prices for consumer segments such as students and institutions and business sectors. Prices also vary depending on the hardware and operating system chosen. EC will allow consumers to customize their laptops, televisions, and DVD players to increase market share.
Place: EC products are sold on their website as well as though e-commerce sites such as Amazon. EC also has various shops and stores across the major cities which allows customers to view and purchase the products.
Promotion: The promotion strategy used by EC includes; advertising through the internet and television to create a corporate image, sales promotions through incentives and discounts to attract customers, and direct marketing to institutions such as colleges and schools.
The 5Cs (company, customers, competitors, collaborators, and climate) are used to perform a situational analysis. EC produces computers and accessories. Their goal is to reach more customers and provide quality products. Their customers include college students and businesses who resale consumers and accessories to the household consumers. EC offer products hence customers get tangible benefits. Additionally, customers can get information from EC website. Express Computers compete with Microsoft and Apple to reach schools and students. EC has collaborated with Microsoft to use the Windows operating system on their computers. EC also partner with Ingram Micro Inc. for distribution of computer products. The climate includes factors in PESTEL analysis which affects the business environment. Express Computers serve their target markets by complying with all legal regulations, keeping their technology updated, paying taxes and getting certification for their stores, and targeting the consumers who can afford computers (Grant, 2016).
Express Computers uses STP (segmentation, targeting, and marketing) for marketing their products. EC creates marketing strategies that encourage their target markets to purchase their products. Television and social media enable the company to reach their targets. Their sales representatives visit schools and colleges to market the product and build good relationships with customers.
The short-term goals of EC include; to create customer profiles that help with monitoring their needs and preferences, provide excellent services that increase the customer retention and attract new customers. These goals lead to an overall short-term purpose of raising the number of students and businesses purchasing EC products. The company target to sell more than a million computers in the first year which will increase the sales revenue.
The short-term goals will be measured by tracking the sales using computer programs. The company will draw charts weekly and monitor the sales pattern. The pattern will be assessed weekly to determine which marketing tactics will increase sales towards reaching the yearly target. When the customer engagement and retention increases, then the company is moving towards achieving their goals.
Express Computers intends to enjoy a global market share. China is the primary target, and if EC enjoys a good market share, it will be a significant breakthrough for the company. Additionally, EC targets to develop a trust fund program to support children from needy families pursue education.
The long-term goals will be measured by monitoring international clients requesting EC products in the social media pages. Additionally, the increase in the local market share will drive the company towards venturing into global markets. If the growth rate and customer retention increase within the second year, then it will be a good sign that the company is developing towards fulfilling their long-term goals.
SWOT analysis is an assessment conducted by organizations to show the internal strengths and weaknesses and the external opportunities and threats affecting the company (Gregoriou, Karavas, Lhabitant, & Rouah, 2011). The SWOT analysis for Express Computers is as follows;
- EC products are customized as per consumer specifications hence attracting many clients
- The computers, televisions, and DVDs are stylishly designed to perform well.
- Design computers with batteries lasting for more than 12 hours thus recommended while browsing outside the premises.
- Strategically positioned near schools and businesses hence easily accessible.
- EC does not have their operating system hence their laptops depends on Microsoft operating system.
- The products lag in innovation.
- The products are not available internationally.
- The spare parts are few due to the limited number of outlets.
- The desire to expand globally to countries like China with a vast population.
- Increase customer relations to enhance ownership experience.
- Availability of growing economies that facilitate growth and expansion.
- There are huge markets due to the presence of many schools and businesses in need of computers.
- EC faces stiff competition from companies such as Microsoft Corporation and Apple Inc.
- Rapid changes in technology which can affect the design of the product.
- The market shift to globalization
- Lawsuits due to copyrights infringement while using Microsoft products.
Express Computers main rival is the Microsoft Corporation which has dominated the computer industry. However, Microsoft Store in America ships their products only during business days (Monday to Friday) (Microsoft Store Support, 2018). Therefore, Express Computers has identified the need to deliver their products 24/7 throughout the week. This will ensure that EC remains competitive since it will attract customers who order during weekends. Additionally, EC aims to open many stores in every state to lower the delivery time to one day or less. This will attract customers who need fast delivery of computers and accessories.
Dudovskiv J. (2017, Mar 6) Microsoft Marketing Mix (Microsoft 7Ps of Marketing) Retrieved from https://research-methodology.net/microsoft-marketing-mix-microsoft-7ps-of-marketing/
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Gregoriou, G. N., Karavas, V., Lhabitant, F. S., & Rouah, F. D. (Eds.). (2011). Commodity trading advisors: Risk, performance analysis, and selection (Vol. 281). John Wiley & Sons.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce, and Management, 3(6), 955-961.
Lee, N. R., & Kotler, P. (2011). So...
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