Analysis of the company Monika is involved in manufacture of mobile phones and its accessories. The Company’s business segment is divided into four which includes: 1) Mobile Phones, 2) Multimedia, 3) Networks and 4) Enterprise Solution.
The first segment is to provide data device and mobile voice. It provides hand phones which based on EDGE/GSM, CDMA and G/WISDOM cellular technologies. There are many different models and types of analysis to identify company’s strength and weaknesses or to create future framework for further development.
SOOT analysis is a technique from which we an understand Ionians or any businesses Strength and Weaknesses and we can identify its Opportunities and Threats. The Strength of Monika includes 142 years its experience, strong financial support, wide range of products for all classes, global expansion, one of the largest network of distribution and selling.
The weaknesses are less stylish in low priced products, not enough quality compare to others, market skimming price of high set models, latest models are struggling to compete with Apple and Samsung phones.
The opportunities for Monika are the new growing arrests, well designed stylish models, focus on 46, improvement in touch screen and in the processor of the phone (speed is the trend of today) partnership with the Microsoft. The threats are Chinese cheap phones, china mobiles which copies Ionians models, declining sales due to economic downturn, high competition taking away Ionians customers AS I Strength I + Value I Weakness I -Value I 1) Product a.
Design b. Quality c. Variety d. Features e. Accessories f.
Branding g. Warranties I a. Various design “flip, slide, flat sets. High quality. In every series a large number of sets. ACH series got their own features.
Any accessories. Got good brand names. Always gave I a. Attracts more customers. Good reputation c.
Gives a chided. Makes is unique. Makes life safes. Helpful for market penetration. Increases customer loyalty I b. Low quality.
Many accessories f. Low brand equity “changed customer perception” I b. High dissatisfaction d. Extra charges. Constantly losing customers | 2) Priced.
Price Skimming. Price Penetration I a. Selling expensive at the first time. Selling in low price I a. Good for company.
Good to enter to new markets I a. Expensive price I a. Less sales | 3) Place.
Direct Selling I a. Dixon and others. CARAPACE warehouse & Link. MONIKA galleries I a. Market expansions.
More dealerships. It makes all products available I a. Dioxins interest charge I a. Will make product expensive 4) Promotional. Free gifts. Advertising.
Competition I a. Original Blue tooth and Leather wallets. Uses all forums of advertisement I a. Increases customer loyalty. More close to customers I c.
Company’s instability and high competition I c. Losing market share and low profit I 5) Peoples. Management. Employees. Customer Service I a.
Public relations. MONIKA CARE I a. Creases public trusts. It will give safety for customers I b. Losing jobs I b.
Year by year many peoples are becoming unemployed | 6) Processor | 7) Physical Evidence a. Smarts. Comfort I a. The design and the materials. Extra covers in different colors I a. Gives confidence to customers.
Every day different color I a. Sometimes too expensive I a. Some models are too expensive and not every customer can effort it I http://www. Marketing . Com/marketing-mix- Monika/ PASTEL with Opportunities and Threats analysis Factors: I Opportunities I + Value I Threats I -Value I Political. New laws in Sub.
Focus on India I b.
Market liberation’s and simplified regulation and rules I b. Mobile users are doubled from 50 to 100 million I a. 63 technology constraints and Quality control I a. It stops companies from using cheap materials I Economical.
Decreasing demand for SIMIAN Sob. Remained demand in ASIA I b. Cheap phones to ASIA to capitalize on an eager populations. Expected 40% market growth over the next five year I b. Monika can become the world’s largest handset maker again I a.
I-J, Simian market:29. 6% in 2010, 14. 5 I a. Less profit year by year, more and more consumers are choosing % in 2011 there brands I Social. Increasing trend in smartness I a. More consumer choose smart phones less consumer choose standard phones I a.
Can attract more customers with new models and features I a. Rising competition I a. Decreasing number of customers, less profits Technological. ALUMNI Market b. Partnership with Microsoft I a. Easy penetration to new markets and more stable for competitions.
Cutting annual cost by 1 billion I a. It is completely different from other models. Sales rose by 9% to 10. Ban euros in 2011 I Environmental. Reducing GAG emission in UK I I a.
UK climate Change Act 2008 | a. De to pay new imposed taxes and reduce energy demand I Legal. Patent, copyright, stealing designs I I a. They can lose customers if someone will copy their models I a. Losing customers and deteriorated profit I The PASTEL analysis provides a significant framework for companies to identify their stage and at the same time to improve specific tactics to reduce the risk in the market environment. PASTEL stand for Political, Economic, Social, Technological, Environmental and Legal.
These factors are used to describe an analysis that is used to determine the risks and opportunities in particular market.
Political factors: these factors are directly related with government because if company wants to stay stable in the market or if they want to enter to new markets government will be the first partner whom they need to deal with. In Ionians case it very important because it is multinational company and every nation has their different rules. To achieve success they are dealing with government instability, rules and regulations such as quotas (limit to imported goods), tariff and tax charges by working “hand to hand” with authorities to get more benefit. E.
Monika moved one of its main manufacturing lands to India, when they are inside the country they started to follow to the rules and regulations which are set by the government such as Health and Safety regulations in order to operate as efficiently and effectively. One of the main reasons for entering Indian market was its doubled mobile phone users “from 50 million to the result of competition are now focused on that type of products. But despite this there is a more government support for the businesses in India. Firstly Indian Government is simplifying its regulations and liberalizing their market.
Secondly government has issued unified licenses to operators.
At the result of this operators can offer wider products to consumers. Thirdly lowering interconnection charges has direct influence on mobile service and fixed to mobile and mobile to mobile services will get huge benefit. Economic factors are related to production and consumption of services and goods. Economic system is so powerful it can control what and how organization need to produce and which category of customers should use that product. In this factor Monika need to deal with economic practices such as inflation rate, exchange and employment rate and income of society.
These things are very important for financial safety and for future planning. It good for Monika to be a multinational supplier but the previously mentioned practices also will be different. Nowadays Monika has a problem with it consumption there is less demand for Ionians phone compare 2008-09, peoples changed their behavior or habits. In the first quarter of 2011 the Ionians semaphore market share was 22. 8%, in the second quarter it fell to 22. 1% but in 2010 it was around 40%.
At the result of financial crisis in Europe there is unequal wealth distribution in I-J and peoples are becoming more selective with their choice of mobile phones.
They are looking for other factors also rather than achieving the most basic user needs and they are now more concerned about price. Source (http://velocity. Com/2012/04/04/in-the- major- markets- Ionians- maintained- presence-can-help-boost-Microsoft-semaphore-market-share-while-rims-only- hope-remains-in-Canada-and-the-UK/ ) Socio-cultural factors focus on how Monika goes well with a society including its culture, social class, demographic and psychological factors and lifestyle. In terms of Western market they need to understand those aspects and need to give to market most up to date phones.
Western market especially I-J market is considered about innovation and fashion icon.
There is huge demand Semaphore industry because of social trend in today’s society. Monika need to make sure that their model must be competitive in the market in order to survive. Http://www. Mbabane. Com/business-analysis/pest-analysis-of-Monika/ Technological factors: company now introduced ALUMNI series for the lower end of the market where Monika has been strong with its features. According to Steven ELOPE Ionians president and chief executive they will push the price of Windows Phones down market, with affordable prices.
The partnership with Microsoft will allow company to use Americas SO system in Finnish phones. Environmental factors are obviously related to environment. There are some challenges for Monika the first is I-J climate act. The act has a binding target to reduce emission by 80 % by 2050. Act says industries need to reduce energy demand, use more efficient processes and install more renewable energy connection. The second challenge is Rupee’s green concern.
This concern creating new types of taxes and commodity and raw material prices are unpredictable.
The some taxes are directly effecting to the supply chain of the management. Http://www. Prospers. Com/essays/Pastel-Analysis-Uk-Environment/ business and each company tries to be protected to ensure that business does not lose anything.
When they announce their innovations it is vital to protect it from copying. Competitors are not only threat for the company there is a lot of thing which company need to make sure such as different kind of laws all over the world including Health, Safety and trade laws.