Case Analysis: Compoint Australia

2041 words - 8 pages

IntroductionCompoint Australia was a market player in the computer peripherals devices industry. Who had acquired a small but significant 3 percent share of the Australia market for pointing devices for computers, which include the mouse, cursor keys, light pens, and touch screen. By far the dominant competitor was Microsoft, which was the clear leader in terms of industry standards and the dollar share of the retail market. Logitech and KYE(Genius) also were much larger players than was Compoint Australia. Mr.Wally Silva CEO of Compoint Australia ,who had ten years of rich experience working in IBM clearly realized to face two challenges. One was the short term challenge of delivering on the large sub-contract Compoint Australia had won to develop hardware and software for use at the Sydney Olympic Games in the coming year 2000. He had enough five years for this, and so this was not his main concern. The other one was to expand market share in peripherals market which was more important for Compoint Australia in the coming year. The Study is to explain and evaluate the various components in Compoint Australia's marketing strategy relevant to Marketing theoretical principle.1. New opportunity emergingAs the market rapidly grew in Australia, there were new needs emerging there were unmet by existing suppliers. The challenge was to develop a product with pointing attributes that consumers would want in order to satisfy newly discovered needs in a changed marketing environment. Australian government had passed laws to protect workers from repetitive strain injuries, this workplace hazard was associated with user spending long hours before computers. Recently users were becoming more conscious of such downsides of computer use. A need was emerging to maximize the benefits from computer use while minimizing its risks to health.The opportunity was to be caught by Compoint Australia. They targeted the new emerged market and divide it into three segment. The first segmentation is home-personal user market. User were those most price-sensitive and interest in the intensity of use of computers, as well as their health conscious about repetitive strain injury. They were expected to account for about fourth of the sales of Compoint Australia. The second one(home-business) were those who use computer more intensively than the home-personal segment, and less concerned about compatibility with software. Which segment hope to account for about half of all sales of the Compoint Australia. The Corporate market segment was expected to make-up only 25 percent of Compoint mouse sales. They were decision-makers in this segment were highly brand conscious and very concerned with the compatibility of the mouse with future hardware and software products.In order to target a market, there must first take place the process of market segmentation. Market segmentation involves dividing up the market into groups of people have similar needs for better tailor (N.Samuel, 2002)....

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