Strategic Management of Magic Pixel Company-Samples for Students

Question: Discuss about the Marketing Strategy of Magic Pixel Company. Answer: Industry Analysis It is predicted by the by Technavios market research that the international digital camera market has the potential to achieve a market value of approximately USD 5 billion by 2020. The shipments of Global digital camera unit were analyzed to be 98.6 million units in 2012; by 2020 it is expected to reach 171.7 million units. The force that is accelerating the expansion and growth of the global advanced digital cameras is the demand for the product which is increasing constantly. Technology has advanced in leaps and bounces this advancement has led to the improvement with advanced features of digital cameras. Growing globalization, rising of new products and solutions, buying behavior of the consumers, advancement of manufacturing technology along with product innovation, the free flow of companies in the industry and changes in the cost are some of the factors that is effecting the growing demand of digital cameras. In the case of Magic Pixel Company globalization has played a key role and has added to the advantages of the organization to expand its operation in order to reach the target market in a global level. For example, recognizing the scope of ownership penetration in the digital cameras industry has reached a point of maturity in North America Europe especially in the US owing to the increasing demand. Magic Pixel has concentrated its resource and efforts on improving the sales and market share in those international markets in the areas where the demand is high and heavy profit margins. Low product penetration is a lucrative opportunity for the company to expand its reach to global customers in countries such as India and Brazil. On the other hand, Magic Pixel recognize and indentify that the demand for the digital cameras especially compact point and shoot cameras has been significantly affected by the growing Smartphone utility among the target market. Factors like accessibility, hig h-resolution in Smartphone cameras and other mobile devices are the main threat to the digital camera industry. Hence attention is being drawn towards research and development in order to encourage product innovation. The products are also allowing multiple advanced features in the devices in order to make it more useful for the consumers. Consumer buying tendencies and differences in the cost are other factors that will affect the market of digital cameras. Increasing purchasing power along with the tendency of the consumers to invest in technology advanced and expensive items is anticipated to be a factor to improve the profit levels for digital cameras industry. People who demand for AC Cameras and UAV Drones are the target market for the digital camera market as well; the utility is to document their adventures for personal use or commercial use and also to share their experiences in social media. The company identifies the fact that there can be big discrepancy in the prices and presentation of the different brands. Hence, Magic Pixel focused the efforts of the company to meet customer expectation by ensuring high quality, advanced features, expert attributes at a price which is reasonable for the consumer.