TEAM B: PICTORA STRATEGIC PLAN Richard Wehner Doris M. Rodriguez Alphrin Norman Monica Asuako of Maryland College Turnitin Score: SWOT Analysis Pictora operates in a very competitive environment but has tried to remain competitive despite the challenging business environment. Strengths The company has been in performance for many years and has gained knowledge of the market. This places them in a better competitive position over their competitors who have recently joined the market. Pictora has has large economies of scale which are helpful in terms of expansion and product development. They produce a wide of products that satisfy the varying demands of the market.
The company has many suppliers and hence they have the bargaining power over costs of products being supplied to them. Weakness The company has been slow to innovation due to the economic difficulties that they have been experiencing. This has made them lag behind in terms of technological developments for their products. The kind of business they operate has many competitors and hence there are many substitutes for their products. Availability of substitutes for the products of Pictora is their major weakness.
The company’s rate of innovation has limited their competitiveness and has resulted to reduction in sales. Opportunities The camera manufacture business has been growing rapidly due to global technological advancements most of which require cameras. Therefore, there is a ready market for the products that Pictora produces. The company has maintained a positive image in the market and many loyal customers. They have an opportunity for growth since they have already identified themselves in the market. Modern developments in production technologies allow the company to produce their products at considerably low prices that can enable them engage in price competition.
Threats Competitive rivalry poses the biggest threat to Pictora. The number of competitors has increased in their major markets which have resulted into reduction of their sales. The market has o limitation to new entrants and therefore the level of competition is expected to continue rising. The market demands are very dynamic and matching the demands requires capital investment. Their competitors are suing pricing strategies to compete, and this is expected to reduce the profit margins of Pictora.
Pictora External Environment Pictora has developed good customer relationships, and it has enabled them to thrive in the Asia-pacific and Europe-Africa markets. Pictora has ensured constant developed its products to fit the demands of their customers. Their good relationship has built customer loyalty which is one of their competitive advantages (Gillespie & Hennessey, 2011). The company prioritizes their customers, and they have opened various customer help centers to attend to their customers. Although the company has experienced problems in the Latin and North America, their management has worked on the market challenge and has increased the number of customers in these regions.
The company’s brand image has drawn many customers to the company The camera manufacture industry has grown rapidly, and the numbers of manufacturers have increased. Pictora therefore faces high competition that has is a persistent challenge to the company. However, the company’s improvement in marketing strategies has provided better solutions to the stiff competition. The company intends to globalize, and they hope that the new markets will offer a solution to competition. Their continuous market research in order to understand the market demands has provided working plans to curb competition.
Pictora sources it products from different suppliers and therefore have buyer power. They obtain their products a low prices and it helps reduce the market prices which they set their cameras. The industry has few government regulations, and the company has not experienced any difficulties sprouting from government regulation. Lack of limiting government regulations have been a major boost for the company since they determine most of their costs. However, high taxation in foreign nations has increased the price of the commodities of Pictora, and it reduced the customers purchasing ability.
Positioning and Differentiation Differentiation is defined as the procedure of adding value and meaning to the company’s products in order to distinguish it from other company’s products (Gillespie & Hennessey, 2011). Pictora has differentiated their products, services and personnel in order to gain unique market recognition. Their products are customized, and they are easily identifiable. They have developed new design and integral features which make their products attractive and exceptional. Their distribution systems ensure that all their product reach their customers at a cheaper cost and in a timely manner.
They have trained their marketing personnel in such a way that they have high convincing skills which increase their sales. Pictora has built warehouses and distribution centers in all their large markets, and it makes the customers feel like part of the business. Their multifunction website serves a global sales center since their customers can make orders direct from the company. Their long-term existence in the market has created an experience brand which most customers associate with. Positioning is defined as the ability to create a good organizational image in the mind of the user or customer.
The cameras produced by Pictora have high definitions and zoom power which is the key element that photographers look for. The technologies used by the company have helped reduce the camera sizes to which helps in portability. Travelling camera users prefer easy to carry cameras. The company has vested in technology development and research, and they are able to keep adjusting the technology of their products to suit customers’ demands. They offer long-term warranties for all their products which give confidence to the customers purchasing the cameras.
Pricing Strategy Pictora marketing team is efficient in price determination, and they set prices depending on various market factors. Their prices are favorable to penetrating the market in terms of high sales. Their new products are sold at a cheaper cost in order to penetrate the market and gain recognition. The company skims their profits and t benefits them in having high sales. The prices set for each commodity bring a small amount of profit but due to the large volume of sales they eventually have a lot of profits (Sandhusen, 2009).
For the products with very high specifications, the company sets high prices since customers associate high prices with high quality. The company uses the strategy of loss leaders when they have dead stock that does not match the market demands. All through its operation, they have used psychological pricing to lure customers to purchasing their products. Most prices of their commodities appear to be cheaper that they really are. For example, a camera with a price tag of 99$ appears to be cheaper that a camera worth 100$ yet the difference is minimal.
Distribution Strategy A distribution strategy refers to the channel through which manufactured goods reach the targeted consumers (Sandhusen, 2009). Pictora serves a wide market since their products are sold in many countries worldwide. The have developed distribution centers in all their markets where wholesalers and even retailers can purchase the products directly from the company. Apart from using this method, the company uses agents to supply their commodities. Agents can either supply the cameras directly to the consumers or can sell them to retailers.
Their major customers are media houses, and they supply cameras to them directly upon request. The company’s website helps in selling products directly to customers since customers can make orders online. However, the company encourages direct sales to their customers since involvement of middlemen increases the final cost charged to the customer. The company has great value for their channels of distribution since they determine their final volume of sales. All their distribution strategies are aimed at getting the right service/product at the right time, to the correct people and in the correct place (Gillespie & Hennessey, 2011). References Gillespie, K., & Hennessey, H.
D. (2011). Global marketing. Australia: South-Western Cengage Learning. Sandhusen, R. (2009). Marketing. Hauppauge, NY: Barrons.