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MARKET ANALYSIS
1.1 MAREKT SIZES AND TRENDS
The market for the product can be divided into two segments: the Consumer and the Business Segments. Within the consumer and Business segments, it can be further segmented into four different sub-segments each, based on different characteristics or profile of the sub-segments.
1.1-1 BUSINESS SEGMENTS
The market size of the Business market has grown from about 6.3 million units in Period 1 to about 7.1 million units in Period 3. It is expected to grow to about 7.7 million units by Period 4. For the business market, it is further sub-segmented to: Professionals, Wired Groups, Outsourcers and Traditional. The profiles of the four sub-segments are shown below.
Table 1: Profiles of Business's sub-segments
Business Type of Business Purchase Habits Products Sought
Professional(+10% growth) High-Tech firms, consultants, growth industry. Have high purchasing power Seek efficiency in purchase. Need to focus on their company growth. Like high-end products, not particularly price sensitive.
Wired Groups(+20% growth) Large Corporations Like human interface. Decision makers buy for the rest of the company, so need to ?trust' the supplier. Also seek some efficiency. Large volume purchasers. Cost per unit is important to these customers.
Outsourcers(+15% growth) Lean operations. Medium Size companies which focus on core business Seek efficient purchasing, are willing to give up the human touch in order to gain efficiency and cost reducti ...