Written assignment

Market Analysis to Determine Market Feasibility

Terry J Freeman 

Thomas Edison State University

13 August 2017

Introduction

The technology market is a unique system in the global bazaar. It exhibits unique attributes that significantly differentiate it from other commodities. Further, these unique attributes are continually shifting as market conditions and consumer preference change (Färe, 2012). The success of a technological product or service is greatly influenced by the capacity for the producer to conduct a thorough market analysis that takes account of all significant environmental factors (Ahlbrecht, 2013). This work highlight significant factors that play a crucial role in determining the success of a technological product in the marketplace. In this case, the technological product is a Fitbit body scale used to track weight, body mass index, and fat percentage. It especially pays attention to qualitative data, quantitative data, and the potential threats that such Fitbit body scale would face.

Market Analysis

Conducting a market analysis is a core function of any successful organization. The unique setup of an organization determines the factors that should gain priority. There are other considerations such as the vision of the organization, as wells as the resources available to it. If an establishment aims to attain long term success, its market analysis will differ to that of if it aims to attain short term success. These considerations are important for overall success, and determine the nature and type of success that the organization attains in the end (Ahlbrecht, 2013).

In the technology industry, market trends are more significant when conducting a market analysis than in most other sectors. Technological advances are constant and mostly undefined. Market trends in the sector are one of the best ways to gain access to knowledge to the successes that will be attained (Färe, 2012). Market trends can be in the form of qualitative and/or quantitative data. They can also be in the form of potential threats that an establishment had to get ready for or avoid. For most part, the success of a technological product or services is determined by the competency exhibited by an organization in conducting a successful market analysis and reacting to them.

Qualitative Data

One of the key areas of personal health technologies that has greatly advanced in the recent time is the nature of the quality of the finished products. Continued competition in the growing market has meant that manufacturers with better quality devices have gained a competitive advantage over rivals. This is a trend that has been consistent, and one that is expected to continue in the future. For Fitbit body scale, it is important to pay attention to consumer preferences especially relating to the quality of technological products they prefer. Further, the company should identify quality that the market does not want, and be aware of what to avoid (Karelaia, 2010).

Quantitative

The recent surge in growth within the fitness sector has been attributed to a growing market. People are increasingly becoming aware of the benefits associated with better health habits. For this reason, it has become increasingly important for manufacturers to be aware of the types of products demanded as well as growth in demographics. This growth is expected to continue into the near future. This is because there are many uses where technology is relevant and can be continually advanced to meet emerging needs. For instance, Fitbit body scale has incorporated different measures in their scale to match market demand. Before the body scale is introduced into the market, it is important to take account of the numbers in the specific market place; determine whether the market segment is growing, and by how much. It is also important to identify other quantitative data such as the number of competitors (Karelaia, 2010).

Potential Threat

The continued growth in the personal fitness market has introduced many opportunities for businesses. However, it has also posed distinct threats for manufacturers. There are unique threats for new entrants into the market. To begin with, the growing market has lured many entrants that have made the market competitive. Because of the many market players, there are many substitutes for products made available in the marketplace. New entrants risk failure because of stiff competition (Aulakh, 2010). For most part, the availability of close substitutes is the greatest threat for new entrants into the market.

Summary

The success of Fitbit body scale in the market space is greatly influenced by the capacity to conduct a comprehensive market analysis (Ahlbrecht, 2013). The main objective of such an analysis is to take account of the prevailing market condition in order to align all relevant aspects of the business with such conditions. This means that such the manufacturers can be successful in the marketplace. In this paper, three considerations of a successful market analysis are highlighted: quantitative data, qualitative data, and potential threats.

References

Ahlbrecht, M. (2013). Venturing Early or Following Late? Timing, Patterns and Success of

Market Entry into Central and Eastern European Countries. MIR: Management International Review, 53(5), 635-658.

Aulakh, P. S. (2010). International technology licensing: Monopoly rents, transaction costs and

exclusive rights. Journal of International Business Studies, 41(4), 587-605.

Färe, R. (2012). Market Power and Technology. Review of Industrial Organization, 40(2), 139-

146.

Karelaia, N. (2010). The attraction of uncertainty: Interactions between skill and levels of

uncertainty in market-entry games. Journal of Risk and Uncertainty, 41(2), 141-166.