Economics Essay Example | Topics and Well Written Essays - 1500 words - 12

Economics - Essay Example The second step entails getting training that may help an entrepreneur to identify the most suitable sources of business financing (U.S.Small Business Administration, 2013). Therefore, Sonny Erriccsson phone was identified as a product of study, whereby, its life cycle and future market scope has been discussed under the following subheadings. a). Specifically identify the product; its life cycle and the initial and future scope of the market intend to serve. The product in this case entails Sonny Erriccsson phone, this product falls under electronic and communication industry. Sonny Erriccsson phone entails five phases of product life cycle development namely; development phase, introduction phase, growth phase, maturity phase and finally, decline phase. The introduction phases focuses at creating awareness to both new and existing customers about the existence of Sonny Erriccsson phones. However, this stage tends to experience numerous challenges such as low sales volumes, low prof its, higher marketing and advertising expenses. On the contrary, is the growth phase, this phase involves creation of brand preference and market share. In addition, sales and profits tend to be higher in this phase as compared to the introduction stage (Grieves & Michael, 2006). In the fourth phase (maturity phase), marketers focuses at maintaining the already established market share through modification of Sonny Erriccsson phones to make its product more competitive. The final phase is declining phase whereby, the market has become saturated and the product start losing customer causing a decline in sales volume and profitability to decline significantly. Therefore, marketing managers may respond to this stage by either selling the business to a market niche or carryout phase withdraw before incurring losses (Grieves & Michael, 2006). b). Recognize and evaluate the market structure, degree of competition and the availability of substitutes initially and in the future, locally and globally for the proposed product. Sonny Erriccsson mobile is a wholly owned subsidiary of the parent company known as Sonny Corporation. Sonny mobile become part of Sonny Company through acquisition of Telefonaktiebolagate shares on 15th February 2012. The market structure for Sonny Erriccsson has been highly restructured with an aim of increasing future operational efficiency. For example, Sonny moved its operation structure from Sweden to Tokyo Japan. Additionally, the company CEO announced that sonny his company had integrated all its subsidiaries located in different regions to increase market share as well as to reduce operating cost. The CEO further issued a notification that to the Sony authorities in Sweden that the company was aiming to enhance efficiency by eliminating redundancy in the entire company (Sony Inc, 2012). The degree of competition in this market tend to be very stiff due to globalization and new scientific innovation hence, making different phone manufactur ers such Samsung, LG, Nokia, Motorola among other competitors who are continuously modify their products by adding more features to make their products more attractive before the eyes of the customers. In addition, there are numerous substitutes available in the market that can serve the same purpose as Sonny Erriccsson phones. For example; I pads, I phones and Samsung galaxy phones may act as a good substitute. The above substitute may not only serve the local meets but also