Industry Analysis Opportunity & Threat: Marketing Essay

Industry Analysis
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D. Opportunities in the industry.
1. Serving additional customer groups/expanding into new markets
Entering new markets to (1) increase sales, (2) strengthen brand name, (3) more access to talented workers, and (4) higher rates of foreign investments (van Rossum, 2017). An organization that operates in new local or foreign territories reach more consumers, thus increasing sales and profitability. It gives a competitive edge over rival companies since serving additional groups, which also strengthens the branding of the organization, and increases awareness and popularity. An organization can have access to more talented people since there is a larger pool of employees to choose from. Lastly, expansion to foreign territories gives an organization access to other raw materials that are costly to import in the main branch (van Rossum, 2017).
2. Expanding the product line
The expansion of the product line is making several new versions of an existing product (Thompson, 2020). For instance, the product Coca-Cola introduced a cherry flavor or coke zero in their product line. In the expansion of the product line, the organization boosts market share by increasing the number of groups of people that the product can reach. The organization caters to the needs of new markets that were initially reluctant in buying the product. For example, the original flavor of coke is not bought by people that are conscious of their calorie intake. But when they introduced Coke Zero, the people that are reluctant to buy tried the product because of its zero-calorie content.
3. Integrating forward or backward
In forward integration, the organization merges with the distributor or the retailer of their product, while in backward integration, the distributor combines with their supplier (Dili, 2017). In both forward and backward integration, the whole supply chain can eliminate the transaction and transportation cost that increases the price of the product. As a result, the operation can be more cost-effective, and the product can be sold cheaper (Dili, 2017). The purpose of the forward integration is to gain access to a larger market share of the products, while the backward integration aims to produce better quality products more efficiently (Dili, 2017).
4. Complacency among rival firms
Complacency happens when the company became satisfied with their current business model and does not seek to improve to be more attractive to customers (Swyers, 2020). The company becomes too lax about its ability to sell products that they do not consider the possibility that other companies are always trying to improve themselves. When other companies become complacent, it is a signal for a progressive company to do better and outdo those who stopped in improving themselves. There is no such thing as a perfect product, so there is always room for improvement (Swyers, 2020).
5. Strong increase in market demand
When creating a product, the consumers will patronize it if solve their problems. If a company sells a solution, it will get higher demands for the product (Aboulhosn, 2020). Increasing demand means more opportu...