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.
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