Situation Analysis of EMWATCH
Introduction
A company such as EMWATCH Incorporation has to be aware of both its internal environment and its external environment. Such information includes change in consumer tastes and preferences, market trends, its strengths and weaknesses and the overall market environment in which it operates in. The process whereby EMWATCH makes an analysis of its internal and external business surroundings is what is referred to as a situation analysis. The process involves the collection of new data and also the study of past data in order to gain an understanding of the market trends, market conditions and market forces that impact the organization’s performance. Given the dynamic industry of information technology that EMWATCH Incorporation operates in, such an analysis is crucial for its success. A vital framework that fits EMWATCH in carrying out the situation analysis is the 5C analysis that focuses on five important areas of EMWATCH namely; company, collaboration, customers, competitors and climate/macro-environmental factors.
Collaborators
Collaborators refer to individuals, groups or corporations that complement an organization’s operations, ideas and make it possible for the firm to explore new opportunities. For a company such as EMWATCH Incorporation to be successful, there is need for collaborations to be formed. Such associations with other players in the market enables synergies to be created and this enables smooth running of the business and an overall improvement in performance. This is because EMWATCH Company might be very good in particular areas but it others it may need some assistance and that is where collaborations come in. Examples of collaborators include agencies, suppliers, partnerships, distributors and alliances. EMWATCH Company makes use of recruitment agencies to be able to source highly talented employees to fill vacant positions in the various departments within the organization which include the marketing department, engineering department, customer support and the finance department. The supplier of raw material and equipment to the company is an established firm that is recognized worldwide. Having a stable supplier ensures that the company operations are not interrupted due to lack of raw materials and equipment which can result to huge losses. The company has an established distribution system that ensures that the watches are distributed all over the world. The fact that the company allows for the watches to be bought online necessitates a very reliable distribution that will ensure that the products reach the customers at the specified time and in perfect condition. Failure to deliver on time will lead to damage to EMWATCH’s reputation and will translate to decreased sales. The company has not formed any alliances nor entered into any partnerships. However, an established watch manufacturer DIGITA WATCH Company has shown interest in the company and had requested to be partners with EMWATCH. The decision of whether or not to partner with DIGITAL WATCH Company lies on the executive officer and officials of EMWATCH. Such a decision has to be analyzed to be able to establish the benefits and disadvantages of such a partnership.
Company
Under this segment we make an analysis of EMWATCH Company’s goals and objectives, performance, product line, and its marketing strategy. Such an analysis is important as it shows areas where some improvement or even changes are needed. EMWATCH’s product line is a multifunction watch that has far more features than an average watch. The features improve the company’s market image as it is the only company to include features such as an MP3 player, internet access and a calculator in its watch. Such a move differentiates the company from other watch manufacturers and helps to establish its brand name. The goals and objectives upheld by EMWATCH’s top official include providing its client with a multipurpose product that can be used every day, ensuring that all customer needs and desires are met, being excellent in customer service and overall being the leading manufacturer of watches all over the world. The goals and objectives help determine the very day operations of the company which must be in line with the mission and vision statements. The company has been involved in massive advertising campaigns which will help establish the brand name. EMWATCH has also allowed shoppers to purchase the watches online which will enable potential clients to access the product no matter their geographical location. The performance of the company has been impressive and sales skyrocketed on the day of launching the new watch. Many individuals were very excited to own a watch that came with numerous features and which had different colors and designs to choose form. The different features and designs of the watch would easily be compatible with diverse tastes and preferences of consumers regardless of age, gender and social affiliation. Given the above success that EMWATCH Incorporation has experienced, we can deduce that it will continue to grow in future and profits will continue to rise as more and more people become aware with the commodity and the brand.
Customers
Currently EMWATCH enjoys a large market share as it is the only watch manufacturer that has included features such as an MP3 player, a calculator, a voice recorder, internet access and a calculator to its watches. The company can almost be classified as a monopoly and is the industry’s price determiner. The watches that it manufactures appeal to both the young and the old as the designs and colors are many and consumers can be able to choose a watch that suits their style and most importantly their needs. The watch retails at $75 dollars and thus its high price limits its usage to high income earners. However, the company allows the watch to retail at $50during sales and thus middle and low income earners can also own the watch. Today’s customers are looking for more variety in a product and also a product that serves many purposes. EMWATCH meets all these requirements and this sets the company apart from its competitors. The company has enabled both online sales and store sales and this enables the product to meet a large number of individuals. Online sales account for 65% of the company’s total sales and this shows the importance online stores to consumers who do not have local access to EMWATCH stores. Consumer information sources are very important as they enable the potential consumers to know more about the product. EMWATCH not only advertises in televisions, billboards and radios but also prints out catalogues which have details about the watch, its features and photos of the watch. These sources also act as a way of making the consumer want to own the watch and translate to increased sales. The company puts much effort on the satisfaction of the client’s needs and specifications which enhances customer loyalty and increases repeat sales.
Climate/Macro-environmental factors
Under climatic analysis we consider the political and regulatory framework, economic environment, social and cultural environment and technological environment that EMWATCH is in. Under the political component, EMWATCH Incorporation has to comply with the government polices and guidelines that govern the technological sector of the country. Breach of such guidelines would result in penalties and in worst cases would lead to termination of the business license and thus it is important for EMWATCH to adhere accordingly. Under the economic aspect, the company’s operations are affected by the rates of interest, rates of inflation and the business cycle Such macroeconomic variables should be monitored and evaluated to be able to anticipate their impact on EMWATCH’s revenue and expenditure. The social and cultural environment refers to the values and beliefs the consumers uphold and also their tastes and preferences. Such aspects are important for EMWATCH as they enable the production of a product that meets the client’s tastes because substandard commodities will have low sales and cause damage to the company’s reputation. The technological environment is the most important aspect that EMWATCH Company should analyze. This is because the products they produce are technology based. As such the company has to invest heavily in technology in research and development and should also recruit experts and engineers who are able to design high quality products that will give the company a competitive edge. New innovations and inventions are coming up every day and EMWATCH have to be up to date with such developments so as to generate more great ideas.
Competitors
Competition is normal for all industries and EMWATCH Incorporation is currently facing competition though not in high magnitudes. The analysis that competitors hold in the market is important because it enables the other firms to make necessary improvements and also identify its weak and strong points. For a free market, competition is healthy as it allows only high quality products to be produced at reasonable prices. EMWATCH Company operates in a very dynamic technological industry where different inventions and innovations come up every day. Thus it has to keep up with the market trends and also keep watch of its competitors. This enables the firm to produce up to date commodities and maintain a competitive edge. In competitor analysis it involves the identification of the competitor (whether they provide same or different products and services), assessment of the competitor (being aware of the competitor’s goals and objectives and making comparisons) and forecasting on the competitors future performance (this helps the firm to prepared adequately for the competitor’s moves). EMWATCH has different categories of competitors including actual and potential competitors, and direct and indirect competitors. Direct competitors are those who provide the same goods and services as EMWATCH and include Swiss Company while indirect competitors refer to those competitors who do not produce identical commodities. It is also important to consider the products and services offered by the competitors, the total market share of the competitors and the strengths and weaknesses of the competitors. One of the major weaknesses of its competitors is the fact that the wrist watches that they manufacture do not contain the additional features that EMWATCH has. All these information is necessary for EMWATCH Incorporation so as to maintain a high market share.
Steenburgh, Thomas & Avery, Jill. (2010). Marketing Analysis Toolkit: Situation Analysis. United States: Trident Press Ltd.
Business Knowledge Center. (2010). Situation analysis.
