The purpose of this assignment is to provide an opportunity to conduct some research into emerging trends and market potential using non-traditional data/information sources through a detailed SWOT and a market potential and anticipated market share analysis. ILYK is a company manufacturing and selling digital display software and digital tags to retail stores throughout Hamilton and surrounding areas.
Digital displays are labels that can be affixed to store shelves to display pricing, product description, weight, allergy information, any promotions and a bar code. With this new technology retail store employees can change the prices of the products in one shot. ...view middle of the document...
Our vision is to become Canada’s leading manufacturer of high quality digital product information displays. Positioning our employees and customers first, ILYK is the company people want to work for and do business with.
• Newly introduced to the Canadian market
• Target customers growing
• The most economic way of pricing (Green Technology)
• Less competition
• Cost/effectiveness and range of applicable technology are increasing
• Product may not pick up in the market
• Change in technology
• New competitors introducing design and sourcing complexity
• Educational/work background (IT and Process Automation)
• Enthusiastic staff
• Cost advantage (low startup cost)
• Limited targeted market (only retails store)
• Limited financial base
• Lack of reputation
New to Canadian market
This technology is widely known and used in Europe, China and Israel; however, this is considered a new product in the Canadian market. There are a few distributors in the United States of America, but only one in Canada. By manufacturing the product in house and selling it locally, we see a huge advantage if the product picks up in the marketplace.
Citation: (PRLog (Press Release), JRTech Solutions partners with Pricer to provide ESL technology to Canadian Retailers, May 26, 2009)
Target customers growing
The population of Hamilton has grown significantly since May 2001, the population of the city of Hamilton was 490,268. The entire province of Ontario was 11,410,050 people. In the five years between 1996 and 2001, the population of Hamilton grew by 6.1%. With the increase in population there has also been an increase in retail stores. Some of which are expanding and others are being built from ground up. We see that the demand for more retail stores is an opportunity for our product to sell as most retail stores need to cut costs in areas where they can improve product management using the latest technology. This new technology will allow retailers to cut down on employees and labels costs.
Citation: (Dana Flavelle, Wal-Mart to expand; other retailers wary, Feb 24 2010)
http://www.thestar.com/business/article/770397—wal-mart-to-expand-other-retailers-wary (Wal-Mart to expand; other retailers wary. Retail giant plans to open 35-40 more supercentres in 2010, creating 6,500 jobs)
The most economic way of pricing (Green Technology)
Most Canadians are emerging in to the “going green” concept to become environmentally friendly. This has been the case for the past few years. Corporate see a benefit to this from a profit stand point. Over a long period of time retail stores will see a major reduction in labels (paper) by using this...