The paper "Success and Potential Risks of Kids Market Consulting" is an amazing example of a case study on marketing. Kids Market Consulting has witnessed a steady growth in a span of 4 years (from 2000 to 2004) in Ukraine’ s market research industry. The company, however, faces increasing competition and slowing revenue in the kids, tweens, and teens market niche. This paper evaluates the market attractiveness of Ukraine’ s marketing research industry, the reasons underlying the success of Kids Market Consulting, the potential risks and the future potentials of Kids Market Consulting.
Further, it suggests relevant potential strategic directions for the company (Brattå s and Sandung, 2011). Kids Market Consulting: Strategic Analysis Overview This paper presents a strategic analysis of the company based on a case scenario. The company basically utilizes the business-to-business (B2B) model (Chopra, Dougan and Taylor, 2007). This paper further provides a detailed analysis of the company’ s strategic management based on the market situation, policies, management processes, economic climate and the logic behind its strategic choices. It also provides an assessment of the company’ s strengths and weaknesses based on RBV, and suggestions for a continued substantial advantage over competitors in the kids, tweens and teens niches. Market Attractiveness of marketing Research Industry in Ukraine Market attractiveness describes the possibilities of making profits in a given industry or market segment.
Typically, when the market is more attractive, it implies high potentials for making profits (Spohn, 2004). In the case scenario, Kids marketing Consulting enters into the marketing research industry in Ukraine, a move that is viewed as timely as it offers the potential for high profitability and accelerated growth for the company. Several factors that influenced the attractiveness of the company played in the company’ s favor, including the available competition, size of the market, influence of customers and suppliers, the prevailing climate of the market, regulation of the market, inflation and political climate (Smith, 2001).
Different approaches can be applied to examine the intricacy of factors affecting the attractiveness of the industry. For the purpose of this essay, ‘ Porter’ s five forces model’ is adopted to explain the attractiveness of the marketing research industry in Ukraine from the perspective of Kids Market Consulting (Brattå s and Sandung, 2011). Segment Rivalry/ Competitors According to Porter (1980), competitive rivalry is the major causal factor for profitability.
The influx of competitors and the multiplicity of competitors are typical drivers of competition. In addition, if the products are difficult to differentiate or are similar, there will be higher competition while the margins will be lower. Also, if the marketing segment has numerous excess capacity and many exit barriers, prices will be lowered hence causing lower profits (Porter, 1980).