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Competitive Analysis

Yuanqing Wang
Westcliff University
BUS510 Marketing Management
Professor: Geraldine Goodstone
May 30, 2021

Competitive Analysis

competitive analysis involves a strategy that identifies significant competitors in researching information related to their products, marketing ideas, and sales strategies. Consequently, competitive analysis builds a strong business strategy for essential improvements. It is important to the business industry as it keeps them informed on the trends and ensures consistent industry standards are met and exceeded. Also, it is mostly conducted by companies that aim at identifying their strategy and evaluates their strength and weakness. Notably, Canon and Nikon are among the many companies that have exhibited market competition in terms of their end products. Consumers are often stuck on which to between the two types of cameras. Consequently, these companies adopt different features on their product to meet the ers’ needs. This paper summarizes a detailed competitive analysis of canon and Nikon, discusses Porter’s five forces and competitive profile matrix, and prepares market strategy based on the element of the 7 Ps.
First, one of the significant competitors of Canon is Nikon. Both Canon and Nikon are among the world’s biggest imaging and optical products producers, including multifunctional devices. However, Canon has been progressively increasing its global production and utilizing local products to avoid a high exchange rate (Kim, 2019). Over the past five years, it has limited its operating margin to approximately ten percent. Accordingly, some of the strengths of Canon include its product portfolio. It has a diverse product portfolio that entails a unique consumer offering driven by a difference in the consumer segment (Kim, 2019). Diversification is important to the company as it minimizes the risks associated with overdependent on one segment. Also, it has employed a search for continuous innovation and evolution. However, some of its weakness includes its independence on HP and defects on the product. HP is a major market of Canons products as it contributes to almost twenty percent of its consolidated sales. Although this is considered a greater strength, it will suffer a huge market loss (Kim, 2019). Subsequently, canon’s main objectives include ensuring growth in universal consumers in the electronic market, development in the digital printing market, and growth in the global electronic market.
On the other hand, Nikon posses market competition in the camera industry. Nikon is a Japanese manufacturing company that majors in producing photographic devices. It set a crucial role in modifying trends in the photographic industry. Nikon’s important strength can be interpreted as its core competency of specializing in photographic technologies. They achieved color recognition devices, processing chain bandwidth, optical VR, and matrix metering (Falatehan et al, 2018). Next, Nikon company puts its focus on low-level issues instead of only majoring in macro problems. They keep their focus on the minor issues as they try to provide a relevant solution. Another significant advantage Nikon has on the competitive review is its history that captures how it has overcome various challenges, calamities, and technological transition. It has a wide market range, including armatures and professional consumers (Onda, & Shelton, 2021). Another strength of Nikon’s company lies in its relationship with other stakeholders. On the contrary, the weakness of Nikon company includes low satisfaction rate of its customers, low speed in creativity and invention, and low ethics. Nikon has applied promotional marketing techniques to capture its customers.
Subsequently, Porter’s five forces analysis and the competitive matrix are essential in determining the market analysis of different products. Porter’s five forces include the threat of new entrants, bargaining power of suppliers, bargaining power of ers, threat from substitute products, and rivalry among the existing stakeholders. The porters five forces on how Canon a sustainable business environment while determining profitable opportunities in the business environment. The first part of the Porter, five force analysis, is threats of the new entrant. New entrants in the industry come with new things, including innovation that will pressurize the canon business industry (Bruijl, 2018). Consequently, Canon is obliged to provide solutions to all these challenges to safeguard its competitive edge. Canon’s approaches to the new entrants include innovating new products and services, creating economies of scale, and building capacities and development (Bruijl, 2018). Besides, the bargaining power of suppliers influences the market and production of canon companies. Cannon tackles these challenges by establishing an effective and efficient supply chain, considering dedicated suppliers whose business depends upon the organization, and testing the product design.
Subsequently, the bargaining power of the ers forms Porter’s five force analysis. Canon experience a problem as most ers intend to spend the minimum price, posing problems with Canon’s long-run profit. Canon company approaches this by forming a large ground of customers who will reduce the users’ bargaining power while providing an opportunity to the business (Bruijl, 2018). Also, constantly coming up with innovative products reduce the ers’ bargaining power. The new products will minimize the existing defects on canon’s company to its competitors (Bruijl, 2018). Furthermore, threats to substitute products caused by the production of a similar product may cause a problem to the company’s profit attainment objective. The product substitute threat can be realized if the company offers unique and more reliable offers than the current offering of your industry.
Moreover, the market strategy of canon applying the elements of seven P, including place, price, promotion, product, process, physical evidence, and people, is relevant because it ensures the desired result is achieved. Canon often sells its products in broad categories while serving as a different product line (Ranst et al, 2020). Also, it sells products in a wide variety to allow users to choose from, giving product diversification to its consumers. In suggestion, the company should innovate the new line as per the latest market trend. Product strategy provides new products that appeal to the new marketing techniques. Accordingly, it identifies opportunities that can be tapped with the new Canon product.
Similarly, setting the Price is also vital in marketing strategy. The pricing should also be logical and comparative to the loss prevailing in the market. Besides, setting the price focuses on the cost. However, when the production cost is high or information about the competitors is not available, the company designates few products to help set the prices. Moreover, the pricing strategy is designed to attract customers through discounts and allowance that lasts for a short period (Ranst et al., 2020). The company also considers place in outlaying the marketing strategy. Notably, the marketing places can either be an online platform where customers make direct or through the wholesalers who act as a channel to the retailers and customers. The company applies an intensive marketing approach which is keen on reaching the product to a bigger number of retailers nationally. The company recommends using online platforms such as social media pages and websites to reach customers. Additionally, promotion is crucial in designing a marketing strategy. The company shall embark on hiring influencers on social media to help in executing the promotion strategy. Furthermore, People are important assets for sales and marketing (Do & Vu,2020). Accordingly, for the people strategy, the sales team should be trained and motivated using incentives. Also in the process strategy, use of computers to boost the sufficiency. In addition, the physical evidence should rely on the feedback from the customers to help identify areas of improvement
In conclusion, Canon and Nikon are among the most competitive industry in terms of their products, marketing ideas, and sales strategies. Companies are advised to conduct a competitive analysis to builds a strong business strategy for essential improvements. It is important to the business industry as it keeps them informed on the trends and ensures. Moreover, Porter’s five forces analysis and the competitive matrix is significant in determining the market analysis of different products

References

Bruijl, G. H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207

Do, Q., & Vu, T. (2020). Understanding consumer satisfaction with railway transportation service: An application of 7Ps marketing mix. Management Science Letters, 10(6), 1341-135
Falatehan, A. F., Syaukat, Y., Hardjanto, A., & Puspito, D. A. (2018). Determining Comparative and Competitive Advantages of Indonesian Tobacco through Policy Analysis Matrix (PAM). Agricultural Science, 1(2), 75-83.
Kim, J. B. (2019). Competitive Analysis among Multi-product Firms. Asia Marketing Journal, 21(3), 47-64
Onda, Y., & Shelton, D. (2021, March). Canon USA, Inc.: Canon LI8020SA 250M Pixel CMOS Sensor. In SPIE Exhibition Product Demonstrations (Vol. 11716, p. 117160C). International Society for Optics and Photonics
Ranst, G. V., Baert, P., Fernandes, A. C., & Grave, J. D. (2020). Nikon–TRACKFlow, a new versatile microscope system for fission-track analysis. Geochronology, 2(1), 93-99.