Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Creative Mp3s

No description
by

Kim Ho

on 14 April 2010

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Creative Mp3s

Singapore (2008) Operating loss was $54.6 million
Net loss was $19.7 million
(2009) Sales took double-digit dives
Objectives Rationale Methodology -Investigate reasons behind Creative’s loss of market share

-Propose solutions to increase sales
-Questionnaire survey to gather feedback from youths
-Online forums, articles and academic papers
-Promising potential of the youth market
-Usage of MP3 players is dominated by the youth
Synergistic alliance
Licensing
Partnerships

Reinforced strength & leadership in product innovation and R&D

Decreased risk
-More stable position
External Analysis Internal Analysis Survey Analysis High Degree of Existing Rivalry
Porter's Five-Forces High Threat of Potential Entrants
Low Bargaining Power of Suppliers
High Bargaining Power of Buyers Moderate Threat of Substitutes
-MP3 industry is considered to be saturated
-Apple iPod dominate the market
-Many new start-ups entering the market
-Imitation products
-Lack of brand loyalty
-Low switching cost
-Lack of close mp3 players substitutes
-Rise of smart-phones
(Value Chain) Support Activities Primary Activities Financial
Assets Investments in Sigmatel & SMIC
Strengthened balance sheet
Strategic investments in US-based companies
Solid design; R&D capabilities
Carved out niche in fast-growing PDE market
Brands MuVo branding for smaller, flash-based gadgets

Markets to consumers & system integrators
- Trademarks
Procurement Technology
Development ZEN: used in a range of handheld devices
- Successor to the NOMAD line of players
- Programs included in devices to run
players & transmit data

Fresh acoustic standards with launch of latest Xtreme Fidelity (X-Fi) audio platform
- Stellar quality to MP3 music
Human Resource Management Best and largest group of R&D engineers
- Latest technologies
- Greatest competitive strength

Lack of quality service support

vs. Apple
Manufacturing Distribution Advertisement
& Promotion Service Staff Creative has own manufacturing facilities
Superior to Apple with better price, larger range of products and functions
electronic stores
online shops
superstores
Spent US$100million in marketing in 2005
But failed – only 2% market share
Best and largest group of engineers
Support website http://support.creative.com
Lack of customer service centers
Top 5 Factors:
Sound Quality
Quality & Durability
Shape/Size
Battery life
User friendliness
1st impression:
Singapore
CHEAP
Recommendations Problem: A large, however, confusing range of products

Consumer-friendly catalogue of MP3 players with customized features.
Brand association of particular market with a specific product.

Product Differentiation Pricing Strategy Problem: Product quality perceived cheap as the product is priced low

Removes perception that low price = cheap quality
Identifying Creative as a brand to be reckoned with
Increasing
Switching Costs
Conversion of Creative Centrale to online music store
Provision of better quality add-ons – headphones, accessories …

Effects:-
Retain existing customers; increase loyalty
Attract new customers; increase trial rate

Customer Service Increase number of customer service centers
Ensure presence of well-trained technical staff for assistance
Ensure timely assistance to customers
Honour its warranty
Invest in Customer Relationship Management Marketing Strategy Increase & improve Integrated Marketing Communications (IMC)
Increase awareness & trial rates
Promote their flawless sound quality
CONCLUSION Mp3 industry is attractive to enter but too many competitors, profits will be normal. Creative needs to differentiate its products by helping customers focus on its R&D and technology and employ better strategies as mentioned in the recommendations. THANK YOU :)
Full transcript