Market Research
Pentax incorporation is a firm that is well established within the information technology industry. The firm deals with the development of software. The management of the firm has realized that the magnitude of competition within the software industry has increased in the recent past (Joshua 1). This is due to the lucrative nature of the industry. On the other hand, there are minimal barriers to entry into the industry. According to Joshua; this has increased the number of investors who have ventured into the industry (1). Despite the increased level of competition, the management has identified that there are potential opportunities in the market. To remain competitive, the management of the firm has formulated a strategy that will ensure the firm attains a higher competitive edge. The strategy involves the development of new software. To ensure that the product succeeds in the market upon its launch, the management will undertake comprehensive market research. This will enable the management to determine whether the product will be accepted by the consumers to minimize the risk of failure.
Product description
The new software will have unique features. The software will be able to predict the future product and services needs of the consumers. This is because the software will use historical data about the consumer’s buying behavior. The software will be able to predict future consumer product and services needs with a 95% degree of confidence. The historical data that the software will utilize will come from the consumer’s bank and credit cards.
The unique feature about the high degree of accuracy in predict the customer’s future product and services needs makes the software to be better positioned in the market. This means that the software will not be easily substitutable.
The objective of developing the software
The impetus for developing such software resulted from the feasibility of firm increasing the competitive advantage. The opportunity resulted from the realization of the fact that the institutional and individual consumer’s decision making process is long and results into inconveniences. For example, with regard to institutional consumers; the buying decision process is more complex than that of individual consumers. This is due to the fact that the decision making unit is involved in the buying process of an institution. The decision making unit in an organization consists of various departments of the organization (Kotler 2). This may result into delays in the process of making the decision.
Target customers
In developing the software, the management has targeted both individual and institutional consumers. The institutional consumers include organizations such as the government and non governmental organizations for example schools. With regard to the individual consumers, the management has targeted the youth and other elderly customers. This is due to the fact that these categories of customers have incorporated technology in their buying process such as on-line buying. On the other hand, these customers use electronic mode of payment in their buying process. The disposable income of these customers is relatively high. This makes them to have a repetitive buying behavior.
The firm has also targeted business firms that deal with a variety of merchandise such as retailers, wholesalers and manufacturers. This is due to the fact that these firms are characterized by a repetitive buying behavior in an effort to restock their premises. By using this software, the firms will be able to effectively conduct their business. There is a high probability of the software succeeding in the market. This is due to the fact that it will be incorporated by diverse categories of individual and institutional customers.
Method of data collection
In order to effectively develop the software, the management of the firm will collect market data from the various consumers using primary and secondary methods. The primary methods will involve use of questionnaires to a sample group (Kotler 3). These questionnaires will consider factors such as the mode of payment used by the consumers. With regard to secondary sources, the firm will use data from firms such as credit card companies and banks. The firm will also collect data from the internet services providing firms. This will enable the firm determine the extent to which consumers conduct their purchases on-line.
Market trends
In the past decades, there has been enormous advancement in technology. This has resulted into emergence of new technologies that utilize various softwares. In the 21st century, most of the organizations such as banks and supermarkets have updated their technology by changing their systems (‘Software market trends’ par 2). In the development of the software, the management has ensured that there is ease of implementation of the software in the buying process either by the institutional or individual customers. Considering the fact that the emerging technologies can support diverse softwares, there is a possibility of the software being integrated by these institutions. This is due to the fact that they will not incur additional cost of changing their systems so as to support the new software. These technologies have also been positively embraced by consumers.
The information technology industry is characterized by a high rate of dynamism. This is due to the high rate of innovation. For example, the emergence of internet technology resulted into development of electronic commerce. This presented an opportunity of conducting business more efficiently. Most of the consumers have integrated electronic commerce in their buying process (‘Software market trends’ par 4).
Competitor analysis
According to Joshua, the software industry is characterized by a cut throat competition (1). This is due to the fact that most of the software firms are devising new methods to attain a competitive advantage. Currently, the most common concept being adopted involves formation of mergers and acquisitions. The large software incorporations are acquiring the small software development firms. Through mergers and acquisitions, these firms are able to dominate within the software industry. The major players within the software industry include International Business Machines (IBM}, Hewlett-Packard (HP), DELL, Microsoft and Motorola (‘Software market trends’ par 7). These firms present a risk to other small firms within the software industry in terms of competition.
In order to cope with the intense competition, the firm will invest heavily in research and development. This is through conducting continuous market research. This is due to the fact that consumers are very dynamic in their buying process (Kotler 3). Through continuous market research, the management of the firm will be able to add value to the software by implementing the changes in consumer buying behavior into the new software. This will ensure that the software remains competitive in the market resulting into a competitive advantage for the firm.
Works cited
Greenbaum, Joshua. “ Tribal technology: competition in the technology industry ,industry apps or events.” Technology industry 1997. Web.
Kotler, Phillip. “Kotler on marketing: how to create, win and dominate markets”. London: Free Press, 1999.
Soft resources, “ Software market trends.” LLC Incorporation.2009. Web.