Market Opportunity Analysis

Market Opportunity Analysis
Ruonan Tan
0423688
Introduction
In our modern society , lots of companies are surrounded by the numerous competition and dealt with many questions , for example , are your products consistent with your customers’ current and future needs? Do you have a flow of new products to meet the information needs of your market? Are the products you’re developing strategically significant? The answer is unkown , because the market opportunity analysis for every product is playing an important role in company s philosophy .


Jerry Y. Wind has argued that “Market opportunity analysis is key to the survival and growth of any firm including national and international companies , particularly in the competitive marketplace.” ( The Lauder Professor and professor of Marketing, The Wharton School, Trustee, The Philadelphia Museum of Art) .
The ever-accelerated updating of economic and commercial brings about a great number of changes and challenges in modern society , especially in the expansion of marketplace and influence of market opportunity research and analysis for different firms . It seems that market opportunity is playing significant role .Recently Hi-Micro company was established and have identified that the on-going globalization of the world economy, its strategic location, and the existing market structure provide them with a potential opportunity to develop as an international high-tech computer market leader. In recognition of the risks involved, Hi-micro test the market of Innovators and Mercedes to examine the basis for the opportunity, assess how these two products measure up against competing other companies , such as Wellbox and KnLs , determine potential market niches, and develop a strategic marketing plan. This current report, the Hi-Micro Market Opportunity Analysis, represents the process of marketing through the analyses of the following sections mainly for Hi-micro that are closely related to market opportunity analysis .
The business environment and the forces
What is an on demand Operating Environment? It is defined as ” a set of integration and infrastructure management capabilities that customers and partners can utilize, in a modular and incremental fashion, to enable the transformation to e-business on demand. It is not: a single product, nor a brand, nor a platform, nor an architecture”.

The design of an on demand operating environment must match the design of the business itself. In order for more and more flexibility and componentization to be achieved in the business design, the infrastructure must evolve from silos of complex, over-provisioned, proprietary hardware and software – to a standards-based infrastructure where capacity can be optimized across the entire organization.
Through four quarters , it seems Hi-Micro is on a demand operating environment because of the following businss forces :
“Businesses always continue to look for ways to overcome new and existing challenges. They develop new strategies, look for ways to innovate, drive to increase productivity, evaluate their organizational structure and corporate culture. They may also evaluate their market needs and existing technology to determine how to create business flexibility and optimize the market infrastructure”.
In pursuit of achieving their business objectives, our company Hi-Micro face four main challenges in today’s business environment :
Continuous change ( technology innovation)
Rigorous Competition ( with same color groups )
Financial Pressures
Unpredictable Threats
Due to the forces , Hi-Micro have to take the challenges , and these challenges for Hi-Micro require :
New levels of business flexibility resulting in component-based business models that lead to greater flexibility. These business models reside on horizontal end-to-end business processes that are built to change as the needs of the business change. The new imperative for Hi-Micro is to support these business designs with a services oriented hi-tech infrastructure.
Corresponding IT flexibility : an evolved infrastructure to support changing business needs, component-based applications that support horizontal processes, the automation and virtualization of resources, and business performance management
Getting a high technology infrastructure that supports Hi-Micro’s on demand initiatives involves an evolutionary approach whereby existing technologies deployed today within customer environments can be used to extract immediate value and benefits to the business.
The market’s structure and where your new product is likely to fit in the market.

According to the sources of the recent changes and at the forces allowing a single country to earn most of the producer rents. The change in the character of the market’s structure in the world which is from US leader of the persistence of international technological and competitive advantages to more than one market .
For Hi-Micro ,why were the United States and European countries, and not other countries, able to make profit from the opportunities to become world technological and competitive leader? What are the key performance characteristics of the Hi-Micro model of industrial organization?
For answers the above questions, we must look at the interrelationships among four very distinct areas:
1> Technology . Hi-Micro focus on the hi-tech computer production and sales , US and European countries are considered the most developed countries with newest and highest technology , most of people could accept our computers , such as Hi-Master and Hi-Magic.
2> Firm market . US and European s market is quite small but firm , it is good for Hi-Micro to set up sales office and web center there .
3> National support institutions . For US military , they could use our type of Mercedes “Hi-Master” to control some military weapon .
4> National innovation system.

The minimum requirements to serve the market as determined by profiles of end users,channel c.ustomers, and competitors
Firstly, standards for creating services and allowing them to communicate have evolved and are agreed to by major vendors in the industry. With major vendors in agreement and providing broad industry support, interoperability moves beyond simple connectivity toward business level interoperability.
Second, infrastructure to support self defined, loosely-coupled services has emerged.
Third, tools to incorporate existing assets are available.
Finally, automation and virtualization solutions are available to manage the infrastructure.
Establish and evaluate your product’s unique contribution to the market
Hi-Micro’s first brand ” Hi-Magic” is a unique contribution to the modern history of computers. It focuses on engineering alternatives rather than business and general management considerations and reveals the significance of imaginative solutions to problems in design and technology, from initial experiments with electronics in digital machines to the threshold of the System. This fair and balanced account of Hi-Master’s role in shaping today’s electronic technology revolution.

Hi-Magic has designed as the importance of standards in all industries and has a history of creating them and adopting them to help what matters most – our customers. The adoption of standards in the hi-tech IT market is critical to continued growth of this market.

Hi-Micro’s contribution to the open-source community is unarguably a development , many people would like to see hi-tech computer used individually ..
Hence, Hi-Magic and Hi-Master represent an unusual and important contribution. But if you’re a no-nonsense, pragmatic developer or manager, your decision on which embedded technology to use is not likely to be swayed by the simple fact of open source. You’re still looking for the best product that fits your needs. Hi-Micro is trying to improve their products to fit the customers better .
Outline in brief your strategic approach based on the items 1 to 4.

At Hi-Micro , we strive to lead in the invention, development and manufacture of the industry’s most advanced information technologies, including computer systems, software, storage systems and microelectronics.


Also , we translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.


Hi-Micro ‘s revolutionary approach to computing just might offer a new direction in strategy — one that bridges the gap between brilliant insight and flawless execution.


In the IT market of the future, a key source of service provider competitive advantage will be business agility and flexibility through cost structure optimization. To achieve this, Hi-Micro challenged not only to develop a more comprehensive and enterprisewide approach to business transformation, but also to finance a series of cost optimization initiatives that will achieve the overall transformation goals of the corporation. In support of these objectives, Hi-Micro put factory in Brazil to reduce the production cost . By taking advantage of Hi-Micro’s solution and approach, more profits and benefits could be made and also effective for the pc market .

Estimate in broad terms the sales forecast for the new venture
Sales – Total
BrandNet DemandLost Sales Due to Stock OutsNumber of Units SoldSales RevenueRebatesCost of Goods SoldGross Margin
Hi-Magic1490149521,20214,900251,825254,477
Hi-Master237-02371,066,02623,700425,238617,088
Total386-03861,587,22838,600677,063871,565
Sales – Sales Office Channel
BrandNet DemandLost Sales Due to Stock OutsNumber of Units SoldSales RevenueRebatesCost of Goods SoldGross Margin
Hi-Magic1310131458,23813,100221,403223,735
Hi-Master2090209940,08220,900374,999544,183
Total34113401,398,32034,000596,402767,918
Sales – Web Channel
BrandNet DemandLost Sales Due to Stock OutsNumber of Units SoldSales RevenueRebatesCost of Goods SoldGross Margin
Hi-Magic18-01862,9641,80030,42230,742
Hi-Master28-028125,9442,80050,23972,905
Total45-146188,9084,60080,661103,647
Source : http://web4.marketplace6.com/engine.php
According to the table above , during four quarters , Hi-Micro test the market and seems to be successful for sales utill the fourth quarter . In the near future , Hi-Micro will design and produce the workhorse type of computers and open up the new market , maybe in China , because there is the biggest market in China , and it’s pity to lose the market share in China . However , to get better sales , it is not enough to produce hi-tech computer for relative small market and necessary to open a new bigger market for more customers . Therefore ,I predict that the sales for Hi-Micro will be 500 units including the stocks .

Evaluate the attractiveness of the market opportunity
“This expanded global agreement builds on two decades of collaboration with the world’s largest information technology company and will reinforce our business transformation strategy that helps companies determine how they can perform most efficiently and effectively,” said N. Chandrasekaran, executive vice president of TCS.

It appears that there are some attractiveness of the market opportunity for Hi-Micro .Firstly, global expansion is one of the most popular strategic options. The global nature of the industries that participate in exchanges like steel, chemicals, or electronics-in which is significant .-make it a natural path to follow.
Secondly ,Europe represents the leading global expansion option, with excellent market opportunities and strong development of B2B markets. Indeed, European online B2B transactions accounted for approximately 20 percent of online B2B worldwide transactions in 2000 while representing less than one percent of total transactions in Europe.
This challenge is compounded by Europe’s market fragmentation. While Europe is reaching a critical mass both in Internet usage and in B2B transactions, it lacks uniformity. Europe is a collection of markets in different countries, with different languages, business customs and regulatory bodies.
There are four key success factors in expanding to Europe. The winners will be those who achieve scale on a pan-European basis while adapting to the local needs and specificity.
1,Assess and Prioritize Potential Markets
All countries do not offer equal opportunities. Some countries do not have the maturity or the scale to support all marketplaces. In selecting their priorities, marketplace executives should consider two market attractiveness drivers: Internet penetration and trade volume opportunities.
The traditional approach of using the United Kingdom as a beachhead, favored by Americans for linguistic and cultural reasons, simply does not work. Instead, companies are more successful in Europe if they conduct expansion in waves according to market attractiveness indicators.
2. Localize Marketing and Sales
Equally important is the development of local content and pricing. Marketplace executives need to recognize that products and services have different values for the customers in each country and that each country has different competitive environments.
3. Establish Local Relationships
Developing relationships with local players is another prerequisite for the success of B2B marketplaces in European markets. In many cases, an expanding company simply cannot generate the speed or acquire the local talent and depth of local knowledge required to enter new markets on its own.
Conclusion
In conclusion , although the Hi-Micro has been developing for some time . The updating of technology and rules brings into the good market share and sales. Moreover , the modern international market lead to the innovation and evolution of the pcworld which is changing with each passing day. Meanwhile , more competitors, such as Wellbox and KnLs , result in the concussion and challenge which make the necessary change in market development for Hi-Micro
Griseri , P quoted that “There is always one moment in childhood when the door opens and lets the future in” , said by Graham Greene (1904-91) from “The power and the Glory”(1940). Looking back into history to view the future , it is hard to believe that the Hi-Micro has been competing in the marketplace for four quarters Of course , developing and opening up bigger market is difficult among furious competition. However, this is a good time for hi-tech computers marketplaces to use globalization opportunities to deliver on their promises and become the leader in hi-tech pcworld.
Consequently , learning from the past can provide some bearing on the future , it appears that the future of Hi-Micro will be hi-tech market leader with bigger market .


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