The best way to the success of the business is to gain through the way of people in the market to identify which customers will best fit with the company (Armstrong, Kotler, Harker & Brennan, 2012). The market will be segmented on the demographic factors that entail the age and gender, lifestyle of the people. I will apply a comprehensive profile matrix tools and techniques to identify the strengths and weaknesses of the competitors in the market and the clients on the critical success factors. Then design a winning mechanism of the new product that is being brought in the market. For example, in this case, posture enhancer using the Lumo Lift. The product will target the old in the society and those with the back problems. They need the brought to maintain an upright posture for keeping fit while walking or perhaps for the patients with back recovery. The unique niche is in the medical health where the people with back recovery issue. The market targets all the health care and the old people in the society who want to maintain an upright posture (Wilson, Zeithaml, Bitner & Gremler, 2012).
However, the people lifting heavy loads and would like to maintain an upright posture is essential and therefore the limo lift will assist during the situations (Lift, 2016). The people in the society have been facing some back pains, and the health provider has provided a health report on maintaining an upright posture. The older adults who tend to get through their long-age needs a Limo lift to remind them on keeping the required position. A general survey of the health care will assist a great deal in the estimation of the target group. Moreover, demographic information from the national consensus on the population of the old that would like the product and its services would be a primary source on the estimation of the target market. The limo lift is highly needed in the healthcare, and hence this provides a perfect market gap that would be necessary for analysis (Hoo, 2015).
Positioning vs. the competition
The market segment does not easily provide an easy way to succeed. Therefore, the position of the new product or service in the market will assist in standing the competition that is happening. The higher the level of the product or service in the market the stronger will it withstand the pressure from the competitors that would strive to bring the firm down. The active forces in the markets create a hostile environment that will cause the small businesses to exit the market. Therefore, a constant understanding of the market is viable for survival to be enhanced. For example, there are various competitions like the use massage to straighten the back and relieve the pain (Schorer, Cobley, Büsch, Bräutigam & Baker, 2009).
Michael Porter’s Five Forces Analysis
Michael Porter provided a layout that models an industry that is being influenced by the five forces. Most business uses this model to override the nature of competition that is happening in the market segment where the firm operates. The five forces are the supplier’s power, the threats of the new entrants, and the threats of the substitute and the power of the buyer. The product and the service of the Limo lift are new to the market and therefore have the capability of getting through the market segment. The product has a well-advanced health concern that is based on the providing an alternative for keeping fit with a Limo lift technologies. The society, especially the elderly, has a tendency to forget and therefore the product has a reminder like structure for keeping the right posture that is intended. Therefore, according to Porter’s model the company will have a threatening influence to the market due to the new entry that will make the customers go for the product. The kind of market brand dictated by the firm promotes the usability of the services from a well-levered society through an educative system that is raised without doubt or any cohesion (Grundy, 2006).
The threat of the substitute to the existing product makes the product more diverse from the market segment. The firm provides a different product regarding technology and is consumer oriented as opposed to the other product that is finance oriented and hence limits the possibility of the product selection. The cost of the Limo lift is also favorable, and hence the society provides an efficient alternative for the organization to make a choice based on the affordability and efficiency. Therefore, the power of the supplier takes into effect on the product enhancement. The firm makes to affect the affordability ratio in the supplementation of the market segment for the sake of providing an adequate environment for the entire global market. The older adults are the one who has retired and therefore they cannot afford if the cost of the product surpasses their expenditure levels. Since the product is thought to have only leisure advantage but on the same not, the health benefit is also attached to the value to make the product more diverse. Moreover, the new product is flexible based on the terms of walkability and the ease of movement (Millington, 2016).
The Value chain
The process that the product undergoes to reach the customers is essential for the determination of the effectiveness (Citron & Feinberg, 2006). The longer the value chain, the more the services that are being outlined to the product and the more valuable the product tends to be. The products value chain extends from the developers to the social media for promotion and advertisement. The enhancement of the value chain is on the viability of the product that it has to the market segment (Büyüközkan, Feyzioğlu & Nebol, 2008).
Structure of the industry
This is perhaps a well-framed layout of how success is to be achieved in the firm. In this case, a well-situated firm in the position of the structure is essential. Based on Porter’s analysis, the forces on the market segment that influences the operation of the business creates a clear stand on the market segment (Shahrur, 2005). A well-designed structure is based on the active communication network that is propagated through having the right channel. Therefore, the structure is initiated to a well-framed network of analysis the threat posed by other competitors. The position that is more stable can understand the market and be customer oriented and not money was driven. These will lead to the success of the firm despite the forces that are present in the market.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2012). Marketing: an introduction. Pearson Prentice-Hall, London.
Büyüközkan, G., Feyzioğlu, O., & Nebol, E. (2008). Selection of the strategic alliance partner in logistics value chain. International Journal of Production Economics, 113(1), 148-158.
Citron, L. A., & Feinberg, M. A. (2006). U.S. Patent No. 7,134,969. Washington, DC: U.S. Patent and Trademark Office.
Grundy, T. (2006). Rethinking and reinventing Michael Porter’s five forces model. Strategic Change, 15(5), 213-229.
Hoo, J. J. H. (2015). The Effects of a Postural Intervention Using the Lumo Lift on Mood (Doctoral dissertation, University of Auckland).
Lift, L. (2016). Lumo Lift-Posture Coach & Activity Tracker. Retrieved September, 21.
Millington, B. (2016). ‘Quantify the Invisible’: notes toward a future of posture. Critical Public Health, 26(4), 405-417.
Shahrur, H. (2005). Industry structure and horizontal takeovers: Analysis of wealth effects on rivals, suppliers, and corporate customers. Journal of Financial Economics, 76(1), 61-98.
Schorer, J., Cobley, S., Büsch, D., Bräutigam, H., & Baker, J. (2009). Influences of competition level, gender, player nationality, career stage and playing position on relative age effects. Scandinavian journal of medicine & science in sports, 19(5), 720-730.
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hill.