Trade Market Analysis Technique †Free Samples to Students

Question: Discuss about the Trade Market Analysis Technique. Answer: Introduction In the current scenario, market analysis has become an important part of business development (Agrawal, Atasu and lk, 2016). Through the process of market analysis every small and large business organizations get the chance to identify both the internal and external challenges and opportunities in the market. Here the study has shed light on the company named Metro AG, which is a non-food and food product selling organization. Both the internal and external environment of the company have been discussed in the study. Through SWOT analysis the strength and weakness of the company have been highlighted in this study. The main purpose of the study is to discuss about the business report of the company by comparing it with the global industry report. At the end of the study, it has pointed out the effective strategy for launching new product in the market. Metro AG is a famous retail and wholesale operating organization, which was established in the year 1964, by Wilhelm Schmidt-Ruthenbeck and Ernst Schmidt (Metroag.de, 2018). It has introduced large number of non-food and food products in the market under the name of Makro and Metro brand. It provides its service in different sectors such as real sectors, information and technology sector, logistics, restaurants and hotels by the name of Metro logistics, Metro properties and many more. The company has established its strong brand image in the global market. It provides its services in near about 35 countries in Western and Eastern Europe. The company earns approx 7247 million from the European market (Metroag.de, 2018). On the other hand, this can be said that Metro AG has introduced diversified products in the market. In the year 2017, Metro AG has grabbed the market of Berlin Kreuberg for developing the digital information process. The company has brought various development in the European market, as its result, it has got corporate award named Europe's Corporate Startup Stars 2017 for its contribution in the market. Market description According to Li, Zeng and Stevels (2015), the term consumer electronics market indicates the total business revenue, which has been generated through the sales of photographic and audio visual equipment. These equipment are being designed for the domestic uses. Optical instruments such as cameras, telescopes and binoculars are photographic equipment and radios, video recorders, televisions are considered as the audio visual equipment (Bhaumik, Driffield and Zhou, 2016). After analysing the business market of Metro AG in China this has been identified that the Consumer electronics market has grown in the fastest way in between the year 2010-2013 (Warnick, Bojanic and Xu, 2015). However, the declined market in 2014 has brought various challenges for the company. From this report, it can be assumed that in the year 2019, the growth rate will be moderate. It has been identified that in the year 2014, the total revenue of Metro AG was $40.6bn (Metroag.de, 2018). The growth rate between th e year 2010-2014 was 1.7%, which has been affected the revenue of 2014. On the other hand, the reason behind the declination has been identified by this study. Due to declination in the Singapore market, the annual growth rate reached in -7.7% (Metroag.de, 2018). If the Chinese consumer electronics market has been analysed, it will be identified that in the year 2013, the electronic market value was in its highest point. As the study has focused on the audio visual equipment, therefore, this can be said that the entire china market is target market for the company named Metro AG. As stated by Jang et al., (2016), the demand for audio equipment in the China market is near about 91.7% and the demand for photographic equipment is 8.3%. If the geographic segmentation will be analysed, it can be identified that in the year 2014, near about 54.1% Chinese consumer electronics market has been grabbed by the company. As the country has huge business opportunities for audio visual equipment, therefore the company named Metro AG has given major priority in the C hinese market. As opined by Djauhari, M.A. and Gan (2015), China market has largest market size, hence, like Metro AG, many organizations have tried to develop large customer base in the Chinese market. After analysing the external environment of the company, the study has highlighted the name of the market leaders, which are creating competition for Metro AG to develop its business in China market, namely Suning commerce group, Best Buy Co., Inc, Amazon.com, Inc and many more. If the business revenue of the competing organizations will be analysed this will be identified that business revenue of the company named Best Buy Co., Inc has reached 40.339.o in the year 2015. Revenue of Suning commerce group was 109,116.0 million in 2014 (Huang et al., 2017). Amazon is another important rival of Metro AG in Chinese market and its business revenue was 88.988.0 million in 2014 (Segarra et al., 2016). On the other hand, the company has faced various challenges due to availability of substitute products in t he market. SWOT table Strength Weakness Metro AG has established its strong brand image in the global industry (Metroag.de, 2018). It has introduced diversified products in order to grab the attention of the customers. Modern technology has been introduced in its manufacturing unit. It has large customer base in 35 countries It has introduced FSD players in the market, which has helped it to maintain its uniqueness (Metroag.de, 2018). Due to the changing demands among the customers, Metro AG has experiencing the pressure to introduce unique product in the market or maintaining its popularity (Shen et al., 2014). Before purchasing any products from market, the customers are getting various options in the internet. This has created competition for the company in order to expand its business. Conflict among the employees has created disturbing working atmosphere in the organization. Opportunity Threats As the global business industry is developing in the fastest way, therefore, this can be said that it will be helping in the case of expanding its business all over the world in near future. Due to popularity of the company in the market, large number of candidates are showing their interest in the company. Therefore, this can be assumed that it will help the organization to employ large number of efficient candidates in the company (Rugman, 2016). Availability of substitute products in the market in lower ranges has created challenges for the company. The competitors has also creating pressure on the company to expand its business. As the electronic business market size is large, therefore, various new entrants are creating competition in the market. On the other hand, international and competitive rules are different in different countries, which have affected the business plan of the company. (Sources: Created by the author) Explanation of SWOT table From the SWOT analysis, this has been identified that, the major strength of the company is, it has established its popular brand identity in the international market. This can be said that using this the company will be able to enter any business market it wants, because in this case customers are already aware about the company. On the other hand, the study has shed light on its diversified products in the market. As the study has already discussed that it has introduced near about 80,000 products in the market. Therefore, this can be said that it is the biggest strength of the company. In the third position the study has discussed about its modern technology in the manufacturing unit. According to Fang et al., (2015), after the globalization, the business industry has focused on increasing the advanced technology in its promotional and manufacturing unit. As its result, the company has got the chance to attract the customers with its uniqueness. If the business opportunity of the company will be discussed it will be identified that it has developed its business in different sectors. In this study, it has focused on the electronic market of China. As the population is gradually increasing, with the increasing rate of population, demand for the products are also increasing (Miao and Jayakar, 2016). On the other hand, the government of China has also take various initiatives in order to develop strong business industry in the country. Therefore, this can be assumed that the company has great opportunity in the China market in near future. The study has also focused on the popularity and demands of modern technology in the current business industry. As its result, the educational institutes are also providing various technological development related courses. Hence, this can be said that in the long run, the rate of efficient employees in the business industry will increase. The major weakness of the company is, due to the changing demands of the customers, it is not being able to satisfy the customers needs even after introducing large number of unique products in the market. On the other hand, availability of competitors in the China market is very high (Li et al., 2018). In the current scenario the rate online shopping has increased, which has provided various options for the customers in market. Therefore, before purchasing any product, they are getting many options with the prices. It is creating pressure on the company. Like every organization, it has also faced problems regarding its internal environment. Due to employee conflict and less active managers, disappointing environment has been created in the workplace (Jang et al., 2016). The biggest threat of the company is the availability of competitors with substitute products in the market is very high. On the other hand, this has been also identified from this study that the customers are Amazon and Suning commerce have increased the business revenue within last five years. Therefore this can be said this is creating biggest threat or the company. On the other hand the market size is also large and different international business rules are creating various challenges for the company in order to enhance its business. Recommendation As the company has focused on providing audio visual equipment in the china market, therefore this can be said that the target customer base of the company will be large. The equipment, which are being provided by the company can be used in many sectors. In this case the company has targeted the instruments for professional people. In the case of office, school and firm the equipment can be used. Therefore, from the target market it can be said that it has targeted the age group between 4 to 50 years. Although the company introduced the products for commercial and educational purpose, but this can be used in every places. Here the study has focused on old product by including advanced technology and better getup. The company has decided to introduce Smart LED in the market by adding more features in it. The product has been introduced with large display and excellent image quality. The product can be connected through Bluetooth and Wi-Fi. The display has been introduced with cumulative displaying effect. The warranty period for the product has been increased with free installation. Customer value proposition The company named Metro AG has introduced the unique LED in the market with its attractive shape and look. It has introduced consistent brightness and good quality of picture. On the other hand, it has used harmful ray protected screen, so that while watching, the eyes will not get any disturbance. This is mainly helpful for the children. On the other hand, it has introduced front camera with the LED screen, which will be helping in the case of video calling through this screen in professional places. Hence, this can be said that it is a TV cum computer. Using these features, it will be able to increase its value in the market by defeating all its competitors. In order to introduce the Product in the market, the company has adopted strong promotional strategy. Through the social media and television it has introduced its product to the customers. As it has introduced HD quality of screen with 25 megapixel front camera, therefore it has highlighted these features through various campaigns in different offices and schools. In order to grab the attention of the customers it has offered free smart phone with the LED to first 1000 lucky customers. This strategy of the company will be able to attract large number of customers towards its product. Reference list Agrawal, V.V., Atasu, A. and lk, S., 2016. Modular upgradability in consumer electronics: Economic and environmental implications.Journal of Industrial Ecology,20(5), pp.1018-1024. Ahson, S.A. and Ilyas, M., 2017.RFID handbook: applications, technology, security, and privacy. 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