Strategic Industry Model: Emergent Technologie

Strategic Industry Model: Emergent Technologie

1. Based on the perceptual map, define the bases for competition in the market. Are there any “strategic groups?

As per the perceptual Map, there are 4 bases of competition aligned with 14 different attributes. These attributes are the foundation for Emergent and these will help it in entering the market as a new entrant. These attributes are going to help Emergent with the position in the market and bring out the best of information regarding what customers perceives for Emergent.

• Breadth of computing lines
• Time to market
• Price
• Availability of Finance

We can identify the following strategic groups:

• Alliance, Beta, CPS (competing on the computing line)
• Stobart, Penucchini, Attwood (competing on the time to market)
• Kojima (price)

1. How “well-positioned” is Emergent with its proposed attribute levels?

Emergent is well positioned in market based on its unique attributes which will attracts client to its offering:

• Time to market as they are just one month behind the competitors
• They are standing with leaders in processor speed, Training, Hardware Services
• When it comes to support response, Emergent is coming as a leader in the market

1. In general, assess the utility of perceptual mapping by comparing the insights available from examining Figure 1 to those obtainable from examining the raw data of Exhibit 2.

Perceptual mapping gives relative positioning of the offerings by the competitors. It can be used to understand the customer’s preferences/market structure and gives an idea about how to position of the offering.

We can analyze the positions of all the leaders in market against each attribute and their strengths. Exhibit 2 helps Emergent to judge its stand against its competitors in the market. If we compare Emergent’s position for each attribute then the stand will be as:

1. Based on the Factor Level Sensitivity, what attributes are most important to consumers? Does the factor level sensitivity report give any insight into the segmentation of the marketplace?

Based on factor level sensitivity table, the most important attributes for the consumers are

• Price
• Installation and Maintenance
• Hardware service
• Warranty
• Processor speed
• Product line

As far as the factor sensitivity report is considered it does not help Emergent with market segmentation. The factors like demography, geography, gender, socioeconomic are nowhere discussed and highlighted in report.

1. What are the key leverage points for Emergent?

As per the data the key area Emergent can leverage as below:

• Time to market
• Financial availability  
• Support response
• Training
• Market support

1. Emergent does not have the resources required to improve its product line breadth in the short term. Second, it believes its margins are just barely adequate now so it would not look too favorably on anything like a price cut unless it gave big return. Nevertheless, it would like to improve its market share position. Without any cost data, you can’t get too precise on this but what general directions would you suggest Emergent pursue? What market share gain could they expect?

Based on the data gathered and analyzed as part of exhibit-4, there are options which can increase market share of Emergent without impacting cost as such.

• Increase the warranty period from 9 months to at least 12 months to get market share by 7%
• Increase payment term to 60 days without increase in cost to get 6% market share
• Reduce response time on support issues
• Reduce response time on hardware issues (we can achieve max 4 to increase the market share 18.2%)

1. If Emergent follows your strategy and gains share, who would they hurt? Can you tell anything about this from either the perceptual map or the factor level?

It can hurt Attwood, Penucchini and Chenog on the aspect of Warranty, payment terms and response time to support issues.

As per below analysis (attributes are ranked 1 to 5 scale and compared as a whole). We have derived the above solution with the help of below analysis table and perceptual mapping.

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1. How does this “hands-on” capability help Emergent? What insights do you get?

Based on the data mentioned in Exhibit -5, Emergent can increase its market share from 7.5% to 10.3% if it follows below