Understanding and keeping ahead of competition

-Understanding what the customer wants by doing marketing can help to design a new, unique product, which will be different to the ones already existing in the market. This can help the business to invent a product better than of its competitors, and can also help to find another niche on the market. If the company invents a completely new product, makes it profitable, and finds the niche in the market, it has more chances to become the leader of this niche, because other competitors will not have this product. An example of the company, which introduced a new product by finding the niche on the market, is Sony. 10 years ago, when Sony came out with an idea of ‘Sony Playstation’ there were no producers on the market, who would seriously take this type of business. At that time there was only one serious competitor, Japanese Nintendo. Sony came up with an idea of portable playstaion, on which you could play even more exciting games as on the computer. Also, not everyone could afford to buy a computer on which you could play all games. Sony had an idea of how they could make it real. As soon as they introduced Sony Playstation the demand for buying has risen greatly. Playstation was much cheaper than normal computers on which you could play the same games. At the time nobody else had such a product and by finding this new niche on the market, Sony became a dominant firm which was also specialized at producing games and playstations. Playstation became popular all over the world and in spite of the fact, that some companies didn’t find the idea of making playstation very profitable, Sony proved that it was profitable and became the leader on the market of computer games.

Therefore, understanding what the costumer wants and keeping ahead of the competition helps businesses to find a niche on the market and become a leader in this area of the business, which leads to high profits and growth of the company.

An example of company, which developed a new niche product is Dyson vacuum cleaners.

It wasn’t a completely new product though.

The need to be innovative and enterprising when identifying opportunities in the market place

The companies need to be innovative to be more competitive and up-to-date than its competitors.

Being innovative helps to find what the customer wants much quicker and therefore helps becoming the first company on the market to produce something new what the customer would like to buy. It makes the company, unique and different from the others, because it is always the first one to come up with a new idea of the product.

Being an innovative company helps to be better than your rivals, keep ahead of them and be the first company on the market to satisfy costumers’ needs. This also makes the company innovative. Company always needs to be up-to-date, be aware of what kind of products their rivals are planning to produce.

-It is also very important for the shareholders, that their company is innovative, b

-The shares of fast growing and innovative companies on the market are tending to be very high and constantly increasing. Therefore, if the company is innovative and is up-to-date, its shares increase in value, which leads to higher profits and higher incomes of the shareholders. This makes the shareholders interested in investing more money into the fast growing business, which means the company has more money, which they can spend on the research and development of the new products.

An example of the innovative company is Apple. Basically, Apple took the mp3 player, made it look very modern and hi-tech. They put a lot of memory into it, which was very unusual for the other mp3 players. At current time there was no other mp3 player producer with the same size and design for their players. Apple also designed and introduced the online-music store, where anyone who buys an iPod can access this website and download the music he wants to. This helped Apple to make another niche on the market with ultra-small and functional mp3 players, on which you can play not only music, but videos. Apart from this, apple started producing sound-speakers and other devices which are compatible with iPod. Until now Apple keeps being one of the most innovative companies in the world and constantly comes out with new products.

Therefore, being innovative and finding market opportunities helps the companies to identify the area of the business they’re good by trying to produce completely different products and coming up with new ideas. This helps them to make as much money out of the business they’re good at as possible and become more competitive or dominant on the market.