Master Entry Program Group 3
MEP1 – Business Research Methods
An investigation of
“Price as a competitive advantage in electronic products in Colombia
A case study of Sony Electronics”
RINA LISBETH MEZA PALACIO
This proposal will first examine the meaning of competitive advantage. Then it will give a brief overview of thecompany, Sony in Colombia and how it has been affected by the economic crists It will examine the competitive advantage of Sony by analysing it through a Political (P), Economical (E), Sociological (S) and Technological (T) framework which is known as the PEST model. All the strands of he PEST model will be compared to another company i.e. Sony and will examine them in terms of consumer behaviour.This groundwork will lead to a hypothesis and a methodology to test this hypothesis. It will conclude with some possible recommendations.
Meaning of competitive advantage.
Brief overview of the company of Sony
Brief outline of how the economic crisis affected the Columbian electronic market.
The effect of politics on consumer behaviour
The effect of the economical factors on consumer behaviour for
The effects of sociological factors on consumer behaviour
The effects of technological advances on consumer behaviour
The better the innovation, quality and standard of Sony products the greater the increase oftheir sales.
Some possible recommendations
Invest in research
Invest in technology
Invest in Personell
Invest in Training
Competitive advantage: Concept in economics that a country should specialize in producing and exporting only those goods and services which it can produce more efficiently (at lower opportunity cost) than other goods and services (whichit should import). Comparative advantage results from different endowments of the factors of production (capital, land, labor) entrepreneurial skill, power resources, technology, etc. It therefore follows that free trade is beneficial to all countries, because each can gain if it specializes according to its comparative advantage. Basic concept of international trade theory, it is founded on thework of the UK economist David Ricardo (1772-1823) on comparative cost.
Read more: http://www.businessdictionary.com/definition/comparative-advantage.html#ixzz16CYLJhlG
When marketing their products firms need to create a successful mix of:
* the right product
* sold at the right price
* in the right place
* using the most suitable promotion.
To create the rightmarketing mix, businesses have to meet the following conditions:
* The product has to have the right features - for example, it must look good and work well.
* The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
* The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is animportant operation.
* The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.
For example, a company like Kellogg's is constantly developing new breakfast cereals - the product element is the new product itself, getting the price right involves examining customerperceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains.The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production...