Introduction
The basis of business growth and competition in the new era business industry depends on the preferences of the target market segment. From the case study (Boone & Kurtz, 2015), in the current business world, millennials are the largest population with high buying potential and diverse product preferences. According to Altinbasak-Farina, Ayaz-Arda, and Bicer (2014), the preference and needs of the buying market population shape the business marketing strategies and product design through the adoption of new technologies and innovation to cut competition and enhance market share. The preferences of the millennials, therefore, dictate the success and future expansion of all types of businesses. Thus, diverse preferences of products and services among the millennial population significantly adjust the flexibility of business firms in product design and innovation.
SWOT analysis and 4Ps of the Hotels
SWOT analysis and the 4Ps are the two major mechanisms utilized by business firms in analyzing and developing products specific to the target market segment. SWOT analysis enhances business understanding of its strengths, weaknesses, opportunities, and threats, which are factors that are significant in shaping business competitiveness and profitability (Boone & Kurtz, 2015). The 4Ps refers to the product, price, promotion, and place essential in meeting customer needs and promoting brand loyalty. The 4Ps promote brand differentiation and influence the strength, weaknesses, opportunities, and threats of the business industry. According to Williams and Page (2011), the millennial population has unique tastes of products, which are customized to their needs. Therefore, in the case study, the hotel industry utilizes improved technology in meeting the diverse needs of the millennial generation.
In SWOT analysis, product features influence the strength of the hotel industry. Product features include designer showerheads, improved comfortable lounges, modern gym facilities, Wi-Fi and stable internet networks, stylish bars, and social online joints and apps. The diversity of products acts as a strength that provides a variety of choices to the target market population and significantly enhances the competitive edge, profitability, and growth of the hotel industry. On the contrary, weaknesses in the industry include product pricing; a result of diverse product features, limited social apps, and quiet lobbies. The value of the products influences customer attitude, shapes buying behavior, and enhances loyalty among the millennial population. Williams and Page (2011) argue that the attitudes of the millennial generation on product brands and their social values are key aspects that determine their buying behaviors. In the case study, the values of the millennial population include desired interest and diverse product tastes. These values shape customer product needs, price, and ultimately alter their buying behaviors.
The adoption of improved technology and innovativeness in service delivery and product design dictates threats and opportunities in the hotel industry. Promotion and place are the two aspects of the 4Ps shaped by technology. Opportunities in the hotel industry targeting millennial generation include peer group interaction, referrals, high interest for partying, social networking, and high usage of the internet. Brooks, Heffner, and Henderson (2014) argue that the Internet and social media acts as an effective business-to-customer communication channel providing an essential business selling point. The business opportunities and threats experienced are due to advanced technology and the diverse needs of the millennial generation. Threats include stiff competition, diverse customer interest, and lack of brand loyalty among the millennial population. Therefore, hotels adopt improved technology, online platforms, high-speed and stable internet connectivity, and availability of social apps to promote customer interaction and market their products.
SWOT analysis and 4Ps of Columbia Sportswear
Columbia Sportswear is a manufacturing firm for outerwear and sportswear garments. The company experiences great growth potential and challenges from the diverse weather conditions, customer needs, and stiff competition from existing local and global sportswear firms. The 4Ps that influence the market growth and expansion of the company include stable prices for their products, increased high-quality product designs, adoption of the Internet, online presence. These 4Ps influence customer buying interest and product promotion strategies adopted by the company to enhance its competitiveness and growth. The influence of the 4Ps on the market share of the Columbia Sportswear determines the strength, weaknesses, opportunities, and threats faced by the company.
The strengths of the Columbia Sportswear include highly designed, and diverse quality outwear and sportswear garments, sponsorship programs, adoption of improved technology, and a high number of distribution outlets. Sponsorship programs of sports organizations and broad product lines enhance the company’s brand promotion and product loyalty. Customer taste, interest, and peer influence determine the buying behavior in a market segment. The millennial generation value product image and have a great preference for customized products (William & Page, 2011). Therefore, the company products are highly designed to meet the image needs and interest of the millennial population.
The diverse product needs designed for different environmental conditions and the diverse market segments provide an opportunity for product diversity and growth in the sports industry. The millennial population has lifestyle changes with great interest in travel and involvement in outdoor and recreational activities including fishing and skiing. Moreover, technological advancement and innovation enhance the opportunity for business and product expansion. Internet use by Columbia Sportswear enhances customer communication and relation that provide adequate information for product development and expansion of distribution channels to foreign markets.
The industry weaknesses experienced by Columbia Sportswear include diverse customer needs, lack of brand loyalty, and the dynamic interest of the millennial generation. Additionally, the company sales chiefly depend on cold weather conditions and the United States localized market (Columbia Sportswear, 2017)). The dynamic customer needs and weather changes interfere with the consistent production and supply of the company products, which ultimately affect market product pricing and brand loyalty.
Threats faced by the company include stiff competition from established local and international outerwear and sportswear firms that include, Under Armour, Adidas, and Nike. These sportswear companies have a strong established brand image, customer loyalty, sponsorship programs, highly developed product diversity, high-quality garments, and diverse distribution channels. The presence of these firms and their products threaten profitability and expansion in the sports industry.
Analysis/Discussion Questions
- Would you refer to the CDC study or ignore it?
I would refer to the CDC study as it provides relevant information on the needs, behaviors, tastes, preferences, and interests of the target market segment important in establishing the goals and objectives for success and expansion of the business.
- Use of the words “heart-healthy”
Yes, I would bring to the attention of the marketing group. The marketing group should have knowledge of the packaging to customize product promotion and avoid wrong customer perceptions of the company’s products that destroy brand loyalty.
Conclusion and Recombination
Growth and expansion of businesses depend on tastes, preferences, and interests of the target market segment. In the hotel and sports industry, the target market is the millennial generation that has diverse interests and product preferences. The 4Ps promote product differentiation and penetration of the markets. The SWOT analysis provides an understanding of the business internal and external environments, which are essential in establishing business strategies. Businesses need to utilize SWOT analysis and 4Ps in developing products and designing market strategies to promote their competitive edge and growth.
References
Altinbasak-Farina, I., Ayaz-Arda, O., & Bicer, B. (2014). Targeting millennials in an emerging market: A qualitative study on the value systems of generation Y in Turkey. European Journal of Research on Social Sciences, 1(2), 12-18.
Boone, L., & Kurtz, D. (2015). Contemporary marketing. New York, NY: Cengage Learning.
Columbia Sportswear. (2017). Outdoor clothing, outwear, and accessories. Web.
Brooks, G., Heffner, A., & Henderson, D., (2014). A swot analysis of competitive knowledge from social media for a small start-up business. Review of Business Information Systems, 18 (1), 23-31.
Williams, K., & Page, R., (2011). Marketing to the generations. Journal of Behavioural Studies in Business, 3 (1), 1-12