Term Paper on "Product Analysis Organizations Are Formed to Increase"

Term Paper 7 pages (1932 words) Sources: 7

[EXCERPT] . . . .

Product Analysis

Organizations are formed to increase the residual claim and mitigate the expenses. Inevitably, organizations have to take numerous actions to direct their performance. Actually, organization is a place in which people belongs to different mindset and demographics exist and works together to achieve a specific target (Alvin, 2006).

Everything which the organizations produced is merely for its end users. Organizations have different departments operated in its premises. Among a number of departments, marketing department has a real significance in the long run of the company. Marketing department is the one that performs and handle all the marketing related activities of the organization. Truly, there is no single definition available of the term 'Marketing' because of its continuous changing nature and broadness (Alvin, 2006). Basically, marketing is function use to enhance the revenue of the organization. Marketing is way to present the product in front of the end users.

Marketing management is the most widely researched area in the current competitive world. The main perspective of this study is to do a marketing product research (Baker, 2007). Actually in this assignment we have to select a product of a renowned company and analyze the product with the help of different marketing tools. Marketing tools which have been used in this assignment include SWOT analysis, CPM and marketing mix. The product which has been chosen on which this entire study has based on is iMac, a product of Apple Inc. In the next section a brief discussion regarding the product and the company has incorporated to give a clear idea to the readers about the choice of the product. After the discussion, the researcher will shift the gears towards the other things of the paper.

Description about the Product & Company

iMac is basically a range of desktop computers called Macintosh desktop computers which manufactured by Apple Inc. The company has made and launched this product in the year 1998 in five different forms. iMac G3 and iMac G4 are the two well renowned products launched by the Apple Inc., which not only liked by the consumers but get international recognition as well. The biggest advantage get by the consumers in the Macintosh desktop computers is its cost competences stance. In the shape of iMac, the consumers get excellent quality in reasonable prices.

iMac is one of the dominant products launched by Apple Inc. Generally Apple Inc. is an American-based multinational corporation which designs electronics items, computer software and personal computers. iPod, iPhones and iMac computers are the best selling items of Apple Inc. The company has been count as one of the most powerful companies operated in the United States in terms of financials. Currently the company has more than 300 stores operating in more than 10 countries worldwide. The company earned net revenue amounted to U.S.$65.23 billion for year (FY) 2010 with the net income recognition amounted to U.S.$14.01 billion for the same. The company has a large workforce comprises on around 49,400 employees worldwide. Due to the remarkable performance in the world of technology, the company has received numerous awards and Apple Inc. has now surpassed Microsoft in terms of technology and computing-based products.

Let's now examine the annual sales turnover of Apple Inc. And then we'll drive the session of SWOT and other matrix analysis.

Sales Analysis

It is prerequisite for the assignment that we have to select a product whose sales figures must exceed $20 million and the product we have chosen mirroring the same. The annual sales figure chart of iMac is mentioned below,

Revenue of iMac was very high in the year 1998. A sharp decrease of 46.2% had been envisaged in the sales figures of Apple Inc. from the year 2000 to 2005 due to the arrival of Microsoft new products. Nonetheless, the company is still earning huge number of figures as far as net revenue or sales are concerned and the product is continuously performing (Apple Inc. Website, Corporate Reports 2000-2008).

SWOT Analysis of iMac

In this section, we will do a SWOT analysis of the product and Apple Inc. Before jump over the analysis straightaway, it will be better to incorporate a short description of the SWOT matrix.

Basically analysis is the name of identifying the loopholes of the organization. In fact organizations used different tools to accomplish the same task (Brannan, 1995). Among a number of tools, SWOT is also a dominant tool uses by the organizations to evaluate the Strengths, weaknesses, opportunities and threats of an organization. SWOT analysis is one of the most sophisticated and powerful tools which uses to eradicate the consternations and imbroglios from the operations of an organization. The model appraises the organizations to focus one of the four elements of the tool to direct it in achieving the organizational goal. One school of thoughts also consensus that through the utilization of the SWOT analysis, the management of the company can certainly revamp the dodges they envisage and try to restrain these perilous situations to be arise in the future.

Strengths: iMac is known as one of the most renowned brands of the world which is enjoying a high profile Global presence. Macintosh desktop computers are well-known in the world due to its ad hoc quality and cost competitiveness. The marketing strategies used by Apple Inc. are aggressive, which is the biggest advantage they have on their major competitors. Due to the high revenue and profit, the brand has a strong market position and portfolio.

Weaknesses: The biggest weakness either faced by the brand or by the company is the continuous decline in the technological product due to the scarcity of money among the individuals. Continuous development in the technology is also a major factor of such decline. iMac is very strong in South America but not as strong in other regions as Microsoft. The biggest disadvantage of the company is that, it did not get any alliance with the other companies worldwide like Microsoft did which not only reduced its sales figures but also gives a push to the competitor's product.

Opportunities: This world has enormous amount of opportunities in it but provided that how much a person is eager to find it. Consumers are now concerning with regards to use new and powerful technologies, so it will be a very good chance for Apple Inc. To launch its already marketed product with sophisticated technology and excellent quality. Europe is one of the great destinations in which the organization can penetrate to inflate its revenue figures. The increasing Hispanic population in U.S. will also be fruitful for the company in terms of revenues as well.

Threats: The biggest threat for the company is the continuation in the new product development of technology. The second biggest challenge encountered by the company is the escalating pressure of Microsoft new technological products that increased its marketing and innovation spending to $750 million globally. The sluggish growth of technological products especially among individuals and intense competition are also some dominant factors which may become a serious challenge for iMac in future. The oil and gadgets prices are increasing drastically, that is why the company should seek new territories rather emphasizing on South Americans territories.

In the next section, we will compare the product with two of its major competitor products. To complete the same task, we will use competitive profile matrix (CPM).

Competitive Profile Matrix

Competitive profile matrix (CPM) is used to analyze the essence of competition among two peer companies. This is one of the most widely used tools to analyze the performance of the organization strategically (Ronald, 1995). Analysts usually compare the company with its major competitor to analyze its performance. The two competitors of iMac are Microsoft Computers and Advance Micro Devices (AMD) desktop computers.

Microsoft

iMac

AMD

Critical Success Factors

Weight

Rating

WS

Rating

WS

Rating

WS

The Essence of Advertisement

0.11

4

0.48

3

0.24

2

0.24

The Essence of Financial Planning

0.16

3

0.51

4

0.68

4

0.68

The Essence of Distribution Channels

0.20

3

0.51

2

0.51

3

0.49

The Essence of Research & Development (RND)

0.05

2

0.16

3

0.24

3

0.24

The Essence of Cost Effectiveness

0.10

2

0.28

1

0.28

4

0.24

The Essence of ad Hoc HR Policies

0.07

1

0.03

2

0.09

2

0.09

The Usage of Quality of Material

0.07

2

0.14

1

0.10

1

0.09

The Essence of Authenticity of Matter

0.02

1

0.05

2

0.10

2

0.10

Up-to-date Help Lines

0.06

4

0.36

3

0.36

1

0.36

The Essence of Management Efficiency

0.08

4

0.32

3

0.24

3

0.24

Totals

1.0

3.01

2.90

2.75

CPM is one of the most important tools to analyze the functions of an organization strategically. From the analysis, we can say that Microsoft desktop computer is the most powerful and strong brand of the world followed by iMac and AMD respectively. Management efficiency and research and development are some major attributes on which Apple Inc. has to work hard like Microsoft doing. By considering and implementing, the… READ MORE

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