Free Report About Evaluation Of The Wholesale Market

An evaluation of the wholesale market indicates that the primary competitor to our firm in the industry is Company I. The company has a closer performance to our business in terms of the pricing and S/Q rating as shown by the wholesale strategic group market maps 1 – 3 presented in the appendix. According to the analysis, there are other firms that move close to our firm’s strategic group, but this does not pose a strong competitive base to our company due to the larger market share and high S/Q rating. Despite the similar pricing strategy that is applied by our company, the S/Q ratings are relatively higher compared to the close competitiveness in the market.
The current prices of our products range between $39 and $41 according to the analysis in the strategic plans. This gives an S/Q rating of 5 stars which is an indication of a better performance of the company. Marketing competition based on the pricing and S/Q rating in the market makes our company more competitive in the market. Therefore, to ensure that we remain competitive market with favorable market prices, the management will ensure that it adopts an intensive marketing strategy which entails advertising and rebate offers. For the three years in the strategic maps, our company has continued to be competitive due to the lower prices and high S/Q ratings. This translates to high market share and increased level of competition. Other than the pricing and S/Q ratings, the other variables that can be used to determine the competitiveness in the market include the market share, number of outlets and the rebate offers. These market metrics indicate the company is highly competitive market. Company I has an advertising cost of $6,000 compared to the other market companies which are relatively higher. The models availability is also rated at 200 units.
As a key competitor in the market, Company I has captured the market share it currently holds in the market for several reasons. For instance, the models available have been high, which makes it more competitive in the market. Models availability in the market determines the level of competitiveness in the industry. High model availability in the market implies that the company enjoys a larger market share which makes it more competitiveness. In addition, the company has a higher advertising expense compared to our firm. Advertising costs determine the level of competitiveness and market share that a company will have in the wholesale market. Finally, the company has managed to capture the market share it currently holds because of the pricing strategy it adopts. It offers relatively lower prices (see figure 4) as compared to the other companies in the market.