Introduction
EMI (Essential Monitors Inc) has suffered slow growth in its sale of computer LCD monitors. This presentations explores the computer equipment market to identify opportunities and device ways of using the opportunities to the advantage of EMI.
Opportunities available for growth
The following are the reason why the computer equipment industry is perfectly suited for growth.
- Increased use of technology.
- The dynamic nature of technology.
- A variety of equipment to suit user preferences.
- High quality innovations giving users unlimited choices.
These reasons have worked together to ensure continuous entry of new computer equipment users and necessitate continuous change of existing equipment by users and thus they have contributed to market expansion.
The opportunities available for growth in computer monitor sales are as follows:
Firstly, there is the increased use of technological equipment in the contemporary society. This means that more people and organizations need technology equipment in order to survive in the society today. This gives this industry a ready market for its products. The second reason is that the technology industry is very dynamic and thus new and better equipment are continually replacing outmoded technologies. Consider for example the introduction of LCD monitors in the industry, these monitors have replaced the CRT monitors and thus brought about revolution in the computer equipment industry. The computer equipment industry is also characterized with continuous introduction of a variety of equipments to suit user preferences.
For instance, introduction of bigger monitors than the existent monitors has helped in implementing several computer projects with commendable efficacy. The innovations evident in the computer monitor industry are also a contributor to the growth opportunities in the computer equipment industry. The quest for high-definition display has seen innovations leading to introduction of plasma and electroluminescent displays. These give a perfect opportunity for computer monitor companies to beef up their sales (Baker 2006, p. 1).
Possible growth alternatives
EMI should take advantage of the available opportunities for growth to increase its computer monitor sales.
The following strategies can be used to improve the sales of the company.
- Determining the size of their market and coming up with market expansion plans like the contracting of resellers in unexploited markets.
- Collecting data related to the sales volumes that are realized with the current high prices, predicting sales upon reduction of selling prices of equipment and comparing the prices with their respective profit margins to see whether a reduction in prices of equipment will yield good results.
- Analyzing different markets to determine their contribution to the overall sales of the company and implementation of product selection to suit different markets.
- The company should also analyze its network of resellers and determine the output of each reseller and the reasons for the success of the successful resellers.
- The company should also analyze its competitive advantages and study the reasons for the relative success of the most successful competitors.
The appointment of resellers in unexploited markets will definitely lead to increased sales but comparisons should be made to ensure that the best market is chosen. EMI’s sales are low because of the high prices of LCD screens. This means that if the profit margin per product is reduced and large volumes of sales are realized, the company will make more profits (Law 2003, p. 1).
An analysis of the contribution of different markets to the overall sales will make the company to know where to concentrate its efforts on. If the leading markets have several other characteristics that are similar to other markets, a research can be conducted to deduce the reason for the relative low sales of the latter. This way, problems can be solved to increase sales. Product selection will be very crucial in the efficiency of sales. This is because different markets are characterized with different user preferences and abilities. This way, the company will know where to supply CRTs, LCDs, plasma displays etc. and at what price to sell them. The reseller analysis will enable the company to distribute resellers better and get new resellers with guaranteed performance. Finally, competitor analysis will help EMI develop policies that will enable it to beat its competitors and thus realize larger sales volumes (Baker 2006, p. 1).
The best strategy
The best among the stated strategies is an integration of the price reduction strategy with the strategy involving addition and placement of resellers. This can be substantiated by the fact that lower prices will attract more customers and reseller addition and placement will provide new markets and thus increase the market size. This will ensure an exponential increase in sales that will increase the profit margin.
Possible difficulties
In implementing the above stated strategy, the company may encounter a number of difficulties.
- Firstly, respondents may provide wrong information during research leading to incorrect information about the market. This will in turn lead sales that do not agree with projections.
- A reduction in monitor prices may not attract the sales volumes required to exceed existent profit margins. This could lead to poorer performance.
Controls to avoid these problems
Appropriate controls should be put in place to ensure that these problems are not encountered. These controls include:
- Proper projections for future sales after market expansion by conducting a thorough research on demographics of markets and technology use in the markets.
- Ensuring that a large number of respondents are contacted during data collection to ensure that accurate information is obtained.
Conclusion
With the current extensive use of technology and continuous introduction of new, sophisticated and desirable technology products, companies in the technology sector should beat all odds to realize growth. EMI should, therefore, follow the stated guidelines for growth to ensure that it improves its sales and profit.
Reference List
Baker, J. B. (2006). “Market definition: an analytical overview”. Web.
Law, G. (2003) “Monitor sales go flat.”. Web.