Marketing Decisions of Desktop Innovations - Case Study Example

? Federal Express (Canada) Executive Summary The assignment briefly describes the organization of Desktop Innovations (DI) and its position in the market of Kitchener in Ontario. It also includes the problems or issues experienced by DI while transporting the software packages from Kitchener to Simpsonville of South Carolina in order to display its products in the trade show organized in the market of South Carolina. Moreover, it also includes situational analysis of both the internal and external environments of DI with the help of SWOT analysis and Porter’s five forces model. In addition, an alternative recommendation is also proposed in this assignment for DI to accomplish its objective of enhancing the range of customers along with an action plan to achieve it. Table of Contents Executive Summary 2 Background 4 Statement of Problem(S) or Issue(S) 5 Situation Analysis 6 Analysis of Alternatives 8 Recommendations 9 Implementation or Action Plan 9 Reference 10 Appendices 11 Background Desktop Innovations (DI) is recognized as one of the renowned organizations operating in software sector, which enhanced at a rapid pace in this era of globalization and industrialization. The underlying cause of this fact is high level of incorporation of information technology (IT) and automation in every aspect of business operations. This has facilitated the organizations operating in this sector like DI to augment its productivity and profitability (McDougall & Dorken, n.d.). According to the evidences provided in the case scenario, it can be observed that to enhance the corporate image and brand loyalty, DI attempted to display its software products in the trade show organized in Charlotte in North Carolina. This might also facilitate DI to attract new array of customers, leading to amplification of its dominance over other competing corporations of the similar industry. For this reason, the office manager of DI desired to transport two different types of software packages from the head office of Kitchener, Ontario with the help of Federal Express (FedEx). Besides, due to loss of bill in the midpoint, the parcel of DI could not arrive at the stipulated location at exact time, resulting in varied types of intricacies. This resulted in initiation of investigations by the management of DI in order to realize the lost box from FedEx (McDougall & Dorken, n.d.). Statement of Problem(S) or Issue(S) DI is one of the reputed organizations of software segment, attempting to offer innovative products and /or services to its customers. The main attempt is to enhance the dependency and consistency of the customers, resulting in augmentation of its brand identity and portfolio among other competitors in the market. Besides, in order to retain the market share and distinctiveness, it is essential to attract new array of consumers. In order to do so, DI attempted to transport two diverse types of software packages to the markets of Simpsonville, South Carolina to be displayed in a trade show through a trader which would lead to amplification of its brand awareness and total sales, which is extremely essential in this era of competitiveness. Unfortunately, the loss of the invoice bill of one of the product packages by FedEx resulted in varied types of difficulties for the management of DI. This type of negligence by one of the world renowned logistic providers resulted in a critical situation for the dealer of DI. As a result of this negligence in the delivery system of FedEx, the dealer of DI became unable to display the products within the trade show in North Carolina. Due to which, it lost large number of prospective customers, ensuing decline of its brand image and revenue, which might prove extremely challenging in future period (McDougall & Dorken, n.d.). Situation Analysis In order to evaluate the competitive advantage of DI, it is extremely necessary to analyze its position in the market. It includes evaluation of both internal and external environments of DI, with the help of SWOT and Porter’s five forces model. SWOT Analysis DI is a small but a reputed software organization having the intention to offer inventive products and/ or services to its customers. It helps to attract new customers and to retain the existing ones, resulting in augmentation of consumer consistency and reliability. Moreover, the markets of Kitchener, Ontario and South Carolina also include quite limited number of competitors related to software segment, which is a considerable factor, acting as the strength of the organization. Consequently, high quality of the products of DI and experienced dealers, also act as the other considerable strengths, enhancing its brand value among others in the market. Besides, apart from strengths, DI also includes certain limitations as well. Small size and lack of skilled human resources are certain limitations, which hindered its growth in the market. The growing demand of software based products among various places such as offices and colleges can be a major opportunity for DI to explore and expand its brand identity. However, due to its existing small size it faces certain threats from the already established market players in the software business in the markets of Ontario and South Carolina. Similarly, in order to analyze the external situation, Porter’s five forces model is utilized (McDougall & Dorken, n.d.). Porter’s Five Forces Model Threat of New Entrants Due to low economies of scale, the entrance into the market of software industry is quite easy as compared to others. For this reason, the threat of new entrants for DI is quite high, which can be mitigated only by presentation of inventive products and/or services (McDougall & Dorken, n.d.). Bargaining Power of the Suppliers Bargaining power of the suppliers in the markets of Kitchener, Ontario and South Carolina is also quite high due to non-availability of skilled workforce (McDougall & Dorken, n.d.). Bargaining Power of the Buyers Bargaining power of the buyers in case of DI is also quite high as there exists varied other service providers as well with similar services in Kitchener, Ontario as well as South Carolina (McDougall & Dorken, n.d.). Threat of Substitute Products Threat of substitute products and /or services for DI is also quite high due to the existence of varied other substitute products of other competing firms (McDougall & Dorken, n.d.). Intensity of Rivalry The intensity of rivalry is extremely strong, due to existence of diverse number of apparent players in the markets (McDougall & Dorken, n.d.). Thus, it can be affirmed from the above analysis that DI might offer high concentration upon introduction of inventive products and/or services to retain its market value. Analysis of Alternatives In this era of aggressiveness, sustainability and market value are the most significant requirements of any organization operating in diverse sectors. This is due to the fact that these aspects might facilitate an organisation to retain its competitiveness in long run among other firms in the global market (McDougall & Dorken, n.d.). For this reason, DI also attempted to enhance its market share and position, by attracting the customers of North Carolina, to augment its range and reach in global perspectives. Therefore, in order to fulfill this desire, the management of DI might decide to display the software package within the market of Simpsonville, South Carolina rather than North Carolina, which might prove valuable for the organisation in augmenting its sales and profitability as well. Therefore, it might facilitate DI to maintain a dominant image in the markets of Simpsonville, resulting in reduction of business risks and threat of new entrants (McDougall & Dorken, n.d.). Recommendations Although DI is a recognized organization in the market of Canada, still, the management might offer more attention upon the research and development department. This is because it is essential to present inventive products and/or services to its customers in order to cope up with their varying demands and desires. This might facilitate DI to enhance customer reliability and dependability over the brand thereby reducing its operational threats. Moreover, it might also enhance its supremacy in the market among other apparent competitors, acting as a competitive advantage for the firm in long run (McDougall & Dorken, n.d.). Implementation or Action Plan In order to accomplish the objective of the management of DI to enhance its brand awareness and individuality, it is essential to attract new customers of diverse market places. This can be possible only by introducing inventive products and or services for its target customers to satisfy their desires. Therefore, in order to do so, experienced and skilled employees are required within the organization of DI. Moreover, in order to market the software products, the management or the dealer of DI might attempt to offer extensive promotions or advertisements to draw new customers to amplify its position in the market of Simpsonville as well. This might facilitate DI to augment its characteristics by presenting value-added products at an efficient cost to its customers. It might help in reduction of switching costs of the customers by enhancing the level of loyalty, which is extremely necessary for an organization penetrating in a new market. Reference McDougall, G. H. C. & Dorken, K. (n.d.). Federal Express (Canada). Marketing Decisions, pp. 144-151. Appendices SWOT Analysis Strengths of DI High quality of the services offered Experienced dealers Innovation of new products or services Weaknesses of DI Small size Lack of skilled employees Opportunities of DI Increasing demand of software products Rise in use of software based products in offices and Colleges among the regions of Canada and the US Threats of DI Due to small size it can face threat from already established competitors as consumers might not prefer to purchase product provided by a small software based corporation Porter’s Five Forces Model Action Plan for DI Action How Sensible Measurable Achievable Realistic Timed 1)Introduction of new products and/or services According to the requirement of the customers of the market of Simpsonville It would improve brand image It can be measured by evaluating the total sales of DI With the help of management Reasonable cost Within 4 months 2) Reallocation of skilled employees Due to the requirement of DI Productivity of DI By evaluating the profitability of DI With management Reasonable cost Within 4 months 3) Extensive promotion In order to improve the awareness of the products Profitability of DI To improve the efficiency of DI With management Reasonable cost Within 2 months Read More