Essay Sample on Competition in the MP3 Player Industry
In the MP3 industry, because of the intensive competition, and the trend is that more MP3 player manufactures are going in the industry, so MP3 player manufactures have to make their products with their own features to satisfy consumers. All MP3 player manufacturers were always developing their products with larger storage capacity, a longer battery life, a simpler user interface, and physically smaller. Good quality, low-price, multifunctional, and good brand property are the good artifices to help them to survive in the industry.
Recommendations 1. Develop price strategy because lower price with same functions and good quality are very attractive customers. 2. Seeking ways to develop own products’ features, younger consumers are will to buy cool products. 3. Using attractive advertisements to introduce the new products to market. 4. Merger or acquisition, or form a strategic partnership with the local businesses to gain benefits from local partners’ knowledge. 5. Operation MP3 manufacturer’s own online music stores and monitor illegal online downloading.
Significant Factors 1. Over 100 companies manufactured MP3 players within extremely competitive market in the world. 2. Customers would not like to purchase the outmoded MP3 player and use simple functions products. 3. MP3 player industry has relationship with some musical industry, since they have own online store to sell the MP3 songs. 4. All MP3 player consumers would be attracted by light and portable products with low prices. Justification How come can the MP3 player manufactures survive in the intensive competition?
Obviously, the price is the important strategy in the future. Most customers are willing to buy good quality product with a low-price. First, MP3 player manufactures have to find out the ways to reduce the manufacturing cost such as increasing producing efficiency, reducing transportation fee, or setting up off-shore factories. Second is keeping and increasing products’ quality. Quality is also an important factor when customers choose their products. If a MP3 is with both advantages low-price and good quality, this MP3 must be popular in the market.
Over 100 companies manufactured MP3 players in the industry; therefore, there are thousands of MP3 players in the market. A good MP3 player should give consumers good impression about their feature. Why consumers prefer iPod products than other companies’? Because iPod give customers about iPod’s good feature such as cool design, colorful, high technology, feature click wheel, and so on. Youth customers consider that iPod MP3 players are cool, so they will even pay more to own iPod’s products. Some MP3 players only have simple design even they have good quality and low-price.
Customers will like to choose feature design even they have to pay more. In the intensive competition, MP3 player manufactories have to produce feature products to attract customers. Even though the MP3 manufactory has feature, good quality, and low-price products, advertisement plays an important role in competition. A good advertisement can build up a good brand property. Advertisement is a good way to tell customers about the new products, introduce what are new designs, new functions, and new price of the MP3.
No one will know about the new products come out if the manufactories don’t present about their merchandises. Advertising is also a competition between companies. Why many well-know companies keep on advertise their products because advertisement can affect customers’ buying decisions. Like De Beers advertising, “Diamonds are forever”. The famous and successful advertising made woman crazy for diamonds. Using merger, acquisition, or joint venture strategy to increase market shares.
Two companies merge together may have greater leverages. One plus one equals three. If small companies want to survive in the MP3 industry, merger is a good way to increasing their market shares and competitiveness. Operating online music store is companies’ diversification. However, there are a lot of illegal online music download. All MP3 player companies have responsibility to mintor the illegal music online download. Customers may buy one MP3 player in their life, but they may purchase unlimited music songs in their life.