Best Cost Provider - Essay Example

Best cost provider As a producer of Entry and multi-feature cameras, it is important to come up with the best marketing strategy that would ensure that the selling price for the Entry and multi-feature camera outmatches the competitors’ prices. However, it is important to understand the customers’ perception of these two forms of camera. Market research shows that the selling price is a major factor that the users of the entry-level segment camera consider. On the other hand, quality and performance are the major factors considered by the users of multi-featured cameras (Strickland & Thompson, 2001).

Best cost provider is a strategy that works towards striving to give customers value for their money by combining an emphasis on low cost with an upscale differential. Porter's power of supplier strategy is one form of best cost provider. It is a basis through which the producer can understand where power lies in a business situation. Based on the above scenario, the porters' power of suppliers would help the producer determine where to invest. It is clear that the power for the above-named products lies in quality, price, model, and durability because these are the main factors driving the marketing of these products.

Market research reveals that quality is the power source for multi-featured cameras. This means that the producer must consider the quality as far as the multi-featured camera is concerned. On the other hand, the price is the power source for the entry-level camera. Because of this, the producer must ensure that the price matches the one in the market (Strickland & Thompson, 2001). SWOT analysis strategy is a tool for determining the strength, weaknesses, opportunities, and threats. Opportunities are important as far as the best cost-provider strategy is concerned.

They are external changes that help to improve performance (e.g. make greater profits) in the environment. As a producer of the Entry and multi-feature camera, it is essential to determine the opportunities for each of these products. There are a number of opportunities. These include the price/quality ratio, the model selection, attractive discounts, advertising, and special promotion. The producer should utilize one or a combination of these opportunities based on the product in question (Strickland & Thompson, 2001).

Based on the above discussion, it is clear that the best marketing strategy is determined by considering those competitive factors that determine the market share. It is clear that the price/quality ratings are the main factors to consider. Consequently, the best marketing strategy is achieved by increasing the quality of the multi-featured camera and lowering the prices for entry-level cameras (Strickland & Thompson, 2001).