Sonic, a hypothetical start-up company, is getting ready to introduce a new multifunction personal digital assistant (PDA), also known as a handheld computer. Sonic's new product in entering a marketplace crowded with offerings from palm, Handspring, and other PDA makers. Despite intense competition, Sonic can rely on numerous strengths. First, its PDA has a superior handwriting recognition system, which simplifies use. Second, it bundles valuable feature found only on higher-price rival products. Third, Sonic's PDA can accept any palm-compatible peripheral; and fourth it is priced lower than competing models. However, it weaknesses include: lack of brand awareness and image; lack of color display screen; and slightly heavier weight than most competing models.
1. Scanning the Market Environment
a. What demographic changes are likely to affect Sonic's target market(s)?
b. What economic trends might influence the future of the PDA market?
c. What technological changes can potentially affect PDA development, buyer acceptance of PDAs and the development of substitute products?
d. What current or emerging political-legal issues are likely to affect PDAs?
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Scanning the Market Environment:
We will analyze the effect of various environmental factors :
Economic Forces: One has monitor the economic trends like GDP trends, Interest rates, Money supply, Inflation rates, Unemployment levels, Disposable income. Currently in USA there is recession but in other parts of world there is growth especially in Asian countries. Individual economies becoming interconnected into a global economy. Thus there is a huge growth of PDA market especially in emerging markets.
Technological Forces: The various technological factors that can affect the PDA merket are:
1 New manufacturing processes
2 New products and services of competitors
3 New products and services of supply chain partners
This explains the concept of Scanning the Market Environment