Critical Thinking and Problem Solving Market Situation

Describe about The Critical Thinking and Problem Solving Market Situation.

Part A:

In order to analyze the market situation of Enjoy Glasses Co., Ltd in this report SWOT analysis has been used. The SWOT analysis is an analytical tool that is used to identify the internal Strengths and Weaknesses along with the external Opportunities and Threats. This will help to gain a broader overview of the organization in an effective manner.

Strengths:

The primary strength of the organization is its pricing strategy, it provides its customers with an effective and efficient pricing that gives them the opportunity to obtain quality products at a relatively cheaper price (Osterwalder & Pigneur, 2013). This is because Enjoy Glasses provides package of frames and lenses. Another key strength of the company lies within the variety and quality of the products it offers. Enjoy Glasses have recently introduced 100 new frames. Besides, the organization promotes its products with the help of eminent celebrities, who are responsible for endorsing the products via various media channels. As a result,  the recognition as well as the brand awareness of the organization in the consumer has increased manifold.

Weaknesses:

One of the major weaknesses of Enjoy Glasses is that it sells only corrective glasses and lens over the outlets. If the company starts selling some other products with the glass ranges, it will be more effective for the company for increasing its sales. Again, in the Korean market for glasses there are no barriers to entry in the market. Hence, there is huge competition in the market for glasses in the Korean market (Molina-Azorin, 2015).

Opportunities:

In the context of opportunities, it is observed that Enjoy Glasses is located in Korea where the weather remains sunny almost all over the year. Moreover, as the business is more dependent on the store or the kiosks, opening a well-designed website, which will be customer friendly as well, will help the company to attract a significantly large number of potential customers (Mayer & Dale, 2014). The organization can manufacture glasses, paying special attention to the needs and expectations of the consumers, aged between 20 years to 30 years. The production of corrective glasses may bring an added advantage to the organization, as there is a huge and unprecedented growth in the sale of the corrective glasses.

Threats:

Threats are obvious from the part of the huge number of competitors prevalent in the market. As the organization is operating in a very competitive environment it is quite natural that if patent right or the intellectual property rights are not executed in a proper manner it will be tough for the organization to maintain uniqueness in its product line. One major threat to the organization is that it does not properly utilize the social media tools that helps an organization build valued relation with its consumers. The organization, by employing social media marketing strategy, could enjoy a competitive advantage over the rival organizations. However, the same is not being possible owing to the fact that the organization is not fully exploiting the social media promotional strategy.

This situation should be dealt with extreme priority, at first the focus of the company should be on its product line and research and development segment. Focusing on the product line will help to design an effective product range and the developed research and development sector will help Enjoy Glasses to design niche products effectively. On the other hand, as there are limited barriers to entry in the market for glasses the new entry cannot be restricted hence the company should maintain unique promotional and advertising strategies that will help the organization to attract a significantly large number of potential buyers along with retaining the existing buyers as well (Marchais-Roubelat & Roubelat, 2015).

This strategic framework will be the perfect one for the organization as this framework is quite easy to adopt and at the same time cost effective. This framework actually can be adopted with the help of the existing resources of the company. There will be no need to buy new resources. Hence, the company will be able to develop its current situation in a cost effective manner.

From the above analysis as well as the data provided it is quite evident that the sales of the company has decreased because the population ranging from 40 and above has decreased in the concerned region as well as the competitors of the company has increased significantly (Marchais-Roubelat & Roubelat, 2015).

The Enjoy Glasses organization, if is willing to sustain itself in future, it must ensure that it adopts the most effective price strategy. The reduction of cost price can largely benefit an organization, as it gets tougher for the organization o survive in a highly competitive market. A slight reduction in the cost can largely help the organization enjoy competitive advantage over the rival organizations. Introducing discounts, providing the consumers attractive offers, can help the organization increase its revenue further. Hence, it is imperative for the organization to adopt the most effective price strategy that will help it in attracting the attention of the consumers. However, it should be remembered that reduction in the price may imply the loss of the organization, and hence the organization may reduce the manufacturing cost before it seeks to modify the price strategy (Willart, 2015).

The corrective eyeglasses have become much popular among the masses, and it has been observed that in the financial year of 2012-13, there has been a huge rise in the sale growth of the corrective eyewear glasses, and yet the rise in the sale growth o the fashion wear has been comparatively low.  While in the year of 2012, 579.9 units were being sold, in the year of 2013, 617.2 units were being sold. Hence, it is evident that the organization will be required to modify the style of the functional eyewear and the fashionable accessories (Bharadwaj et al., 2013).

Further, it has been observed that in the area of Tokyo, the shopping malls recorded the maximum sale of the products of the organization, and hence instead of investing too much for setting up the stores near and around the office buildings and railway stations, the Enjoy Glasses organization must try to promote their products in the popular shopping malls of Tokyo. Using placards promoting the benefits of the eye wear glasses can be helpful in winning the attention of the consumers, and in influencing their purchasing decision (Johnson et al., 2013).

It has been observed that with the consumers aged 30 years or above were the consumers who had purchased the maximum number of the products of the organization.  Hence, it is clear that for medical reasons, the consumers were more in need of buying glasses, rather than for using it as a fashion accessory. Hence, it is important for the organization to manufacture eye wear glasses that best suit the demands and the expectations of the consumers of that age level. Offering free medical test to the consumers, can be an attractive offer that only a very few consumers will afford to miss. By employing the most effective strategies, the organization will be able to enjoy competitive advantage over the rival organizations (Paul & Elder, 2013) .

Conclusion:

From the case study it is evident that the organization has a huge prospect in future. However, the major setback to attaining its organizational success lies in the poor quality consumer service offered by the organization. It has been understood that the working staffs at the EG stores, are not all receptive, and they are not enthusiastic in helping out or solving the queries and doubts of the consumers. Hence, the EG stores will be required to provide training to its employees on the importance of communication skills, and professional skills, needed for interacting with the consumers. Next, the organization will be required to adopt the social media strategy, that will help the organization in establishing good relation with the consumers, beside enhancing the brand recognition. The organization should focus selling its products via shopping malls, as it has been observed that the organization records maximum amount of sales in the shopping malls only. Introducing specialized range of fashionable glasses can help in increasing the sale of its products in Tokyo.

Reference List:

Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. Mis Quarterly, 37(2), 471-482.

Johnson, G., Whittington, R., Scholes, K., Angwin, D., & RegnŽr, P. (2013).Exploring Strategy Text & Cases. Pearson Higher Ed.

Marchais-Roubelat, A., & Roubelat, F. (2015). Designing a moving strategic foresight approach: ontological and methodological issues of scenario design. Foresight, 17(6), 545-555.

Mayer, B., & Dale, K. (2014). Designing The Business Strategy Game To Promote Strategic Thinking And Student Engagement: An Application Of The Four Disciplines Of Execution. Business Education Innovation Journal VOLUME 6 NUMBER 2 December 2014, 86.

Molina-Azorin, J. F. (2015). DESIGNING AND PERFORMING A MIXED METHODS RESEARCH IN STRATEGIC MANAGEMENT. Research Methods for Strategic Management, 336.

Osterwalder, A., & Pigneur, Y. (2013). Designing business models and similar strategic objects: the contribution of IS. Journal of the Association for Information Systems, 14(5), 237.

Paul, R., & Elder, L. (2013). Critical thinking: Tools for taking charge of your professional and personal life. Pearson Education.

Willart, S. P. (2015). Price competition in retailing: The importance of the price density function. Journal of Retailing and Consumer Services, 26, 125-132.

 

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