Analysis Of Greetings Fi Sector Marketing Essay


Music plays an important role inside our lifestyle, with the introduction of technology people buying and tuning in habits change, many digital music devices look such as Apple's ipod device or Sony' Mp3 player which are all threat the hi-fi sector, how and where you can compete become the most crucial issue to the hi-fi manufacturers. In this article, the next issues will be discussed: SWOT research of the hi-fi sector, Strategies of Ansoff matrix and Apple's business models.

SWOT Analysis


Produce sound system at highest quality.

High performance criterion provides a fantastic customer service before and after sales: many of the personnel are audiophiles themselves, they can offer the professional knowledge to their customers.

Reputation: Linn, Naim and Meridian have high brand value, produce the best hi-fi machines with high price premium which will make many audiophile customer stick with them.

Integrated product profile: the product portfolio of Linn now protects a variety of options, amplifiers and speakers including surround systems and multi-room home installations.


High price: The entry-level systems from the Hi-fi businesses typically start between 1000 and 2000.

High cost services: Linn provide their potential clients to audition the merchandise at size before they purchase and Naim run non-profit-making basis servicing and repair.

Financial Low turnover: the twelve-monthly turnover of Phillip of almost 20bn but to the three hi-fi organizations it only remained in million position of and success of them are less than 2 million.


Social: from the perspective of Maslow's hierarchy, the hi-fi product remain needed in the esteem need stage.

Technology: with the growing of network technology, the three hi-fi companies can use the Internet to expand promotion, expend circulation network to attract more potential clients.

Consumer market: Still have the buyer market. You may still find many customers seeking hi-fi products.


New competitors appear: Apple, Philips and Sony. Apple now retains a dominating position in the digital music current market with 65% of the hard-drive-based music market.

Global CD sales and aged technologies have dropped 23% in value over the last five years as the sales of Ipod device increased of 207% and MP3 are booming.

Illegal Downloading: Illegal downloading can make the company lose customers.

Change in buyer behavior : Together with the change of the development people seems focus more on variety and fashion than quality and affordable technology is popular.

Take advantages of opportunities

It holds true that the specialist hi-fi businesses faced many external risks, such as new technology, a high competitive rivalry (Phillips, Apple, Sony), however, they can beat the threats using their functions and their primary competencies to adopt benefit of those opportunities. They produce audio system of the highest quality, offering superior costs and unique customer service. What's more also, they are the experience of hi-fi sector and have professional understanding of these high quality products. Also their reputation in hi-fi sector is absolutely high. Recently, They are still the benchmark of the hi-fi industries.

Strategic options of Ansoff matrix

Ansoff matrix provides a simple way of generating four basic substitute directions for strategic development. There are is without doubt that change produces market can gain opportunities and the prospect of dramatic expansion, however, change may also involve fierce competition. As product development is definitely an expensive and high risk activity so we choose market development instead.

Market development Strategies

To modify the marketing development first we should make sure the Critical success factors (CSFs) of specialist hi-fi sector. It really is clear that highest quality of sound system is their CSF. So the manufacturers should continue steadily to provide such a good quality of audio and keep on fulfilling their "audiophile" and maintain brand value by keeping high premiums on products. After that manufacturers should utilise resources, capabilities and competences to increase opportunity.

New sections :

Online buying: Together with the developing of internet technology, The hi-fi manufacturers should completely use the internet to show services to customer, let customer understand the hi-fi product in comprehensive straight through internet, purchasing products without departing home and express the high quality lifestyle ideas to their customers.

New users:

Actually, hi-fi system isn't just use to listen to music, customer can hook up the hi-fi product with Television set, video, computer to enjoy auditory feast all the time. Specialist hi-fi manufacturers should promote their Hi-fi system in different ways such as cooperate with luxury hotels to set up audio system in their hotel or sponsor some big occasions to make more people more familiar with the hi-fi system.

New geographies:

As Linn, Naim and Meridian have been establish for quite some time, they curently have ability to operate development. Develop market to China, India seems a good choice. While using development of culture, some people in growing countries are now actively seeking high-quality standard of living. The hi-fi system are also easier accepted by the abundant people in these countries. So Manufacturers can consider beginning branches in these countries.


As the sales of turntable and Compact disk products keep lowering, the hi-fi manufacturers can consider to lessen production of the products to focus resources on new market.

Strategic alliances

Since iTunes have already dominate the music current market, and there's also have demand for high quality music, therefore the manufactures can make strategic alliances with iTunes to gain market subjection and catch the attention of more iTunes users to buy hi-fi products. Also apple may use the know-how of hi-fi sector to boost their quality of audio.

Apple's Business Models

Innovation and creation ˜ ipod touch+iTunes˜.

The perfect integration of ipod device and iTunes, creating a complete new business style of Apple. While using iTunes released in 2003, Apple commenced being able to access to the music market, iPod users through iTunes can easily find their desired music of cheap prices with convenient payment and gain best music experience from it. Also, iTunes greatly marketed the selling of ipod device and allow ipod touch distinguish with other music players, within a brief period iPod occupied almost 90% of the marketplace and now Apple occupied 65% of the hard drive based mostly music market show.

Perfect product line

iPod is one of the most successful and progressive products of Apple with a perfect product line. For different market sections iPod have different product lines. The new training video iPod will occupy the high-end market, allowing users to take pleasure from full range of audio-visual and iPod nano will occupy the mid-market, while iPod shuffle main in low-end of the marketplace. .

Good quality /price ratio

Apple's products are trendy and impressive and the iPod is cheaper than the high 'admittance -level' audiophile system with capacity to store huge amounts of data.


New variants of the iPod are released which can play video recording and store images and the iTunes store is beginning to provide chance to buy videos and shows of popular Tv set series online. (shu)

Make money from music activities

Hardware products

iTunes is free for users and it is very user friendly and to download but it have to make use of with Apple, if customers want use the iTunes they have to buy Apple's hardware products, which let Apple gain high benefit from it.


iTunes achieve long-term secure earnings growth. Customers pay for each download when they use iTunes. Though it seems that iPod have more income than iTunes, the key to successful is it integration of iTunes. ipod touch, after all, have a product pattern, and iTunes music service will have been provided along with iPod, from this perspective, iTunes is not only offers a new profit model for Apple but also provides long-term secure source of gains.

Deep range of accessories

iPod created a huge and growing accessories market. Besides, Addititionally there is a large quantity of third-party accessories, from saving to the game. What's more, there are other iPod-based device and adapter associations and almost every day services appear.

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