Competition Analysis and Marketing Strategy

CompetitionAnalysis and Marketing Strategy

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CompetitionAnalysis and Marketing Strategy

OBC Build plansto develop ODC Deploy, a software that will deploy constructionmanagers, crews and other persons to perform tasks. In addition, thesoftware can manage scheduling, planning, and encompasses capacitiesto integrate AutoCAD, GPS, and other fixtures, and allow users toinitiate projects and track all information pertaining to tasks. Inthis regards, the software can attain all the tasks of a MicrosoftProject software thus, an assessment of the market will help drawaspects that the company need to integrate and consider inpositioning the software.

CompetitionAnalysis

The ODC Deploy application falls under the building and constructionindustry, specifically, construction management. Capterra.com (2014)reveals that the top three Construction Management Software in themarket include Aconex, Build Tools Construction Management andProcore. Aconex is one of the world’s most widely used SaaS andmobile platform for construction management and engineering projects,both small scale and large scale. It is a web-based solution, whichallows the construction crew to design and review construction andengineering projects from anywhere, using any mobile devise. Thesoftware handles information that concerns models, contracts andreports. Currently, it has around half a million users. BuildToolsConstruction Management is also a web-based software, which peoplecan use to gather data about communications in architecturalcomponents and designs. People can access the software from anylocation thus, allowing users to have the desired flexibility in itsutilization. It provides information about client, contractor andarchitect communication. It manages all forms of communication suchas e-mails and weekly reports. According to the developers, thesoftware handles all aspects of home building and remodeling. Procoreis a cloud based construction management software, which servesclients globally. It is an award-winning suite of constructionmanagement tools, and currently has over 100,000 users.

Below is a competitor array of the three top performing constructionsoftware that the brief has reviewed.

Table 1:Competitor array for the three main competitors, Aconex, BuildingConstruction Management and Procore

Major Industry success factors

Weighting

Aconex rating

Aconex Weighted

BLD Const. Mngt. rating

BLD Const. Mngt. weighted

Procore rating

Procore Weighted

Distribution

.4

7

2.2

6

2.1

5

1.9

User friendliness

.3

5

1.8

4

1.7

4

1.6

Product innovation

.2

2

.7

1

.5

2

.4

Economies of scale

.1

6

.9

4

.6

3

.5

Total

1.0

20

5.6

14

4.9

14

4.4

From the abovetable, Aconex is rated highest on all the four key industry successfactors, making it the main competitor for ODC Deploy.

Market planning

  1. The Market environment

The company realizes that competition in the construction industry isvery stiff. Currently, the market of the construction managementsoftware is divided amongst many companies most companies developmore than one software for a specific purpose. As the software basedconstruction management becomes popular, analysts expect the marketto flood soon thus, emerging companies need to create a nicheaspect, diversify, and develop aspects that ensure full satisfactionof clients. For this reason, the company must make a move in advanceto ensure that it creates its own niche and maintain a huge customerbase.

  1. Economic forces

Sadler (2003)and Kinney &amp Raiborn (2012) assert that most companies resort toreducing their promotion budgets as a move to reduce the expenses.However, these reductions mostly occur for media advertising.Therefore, while considering all the economic forces that may hinderthe advertisement of the software, the company must stick to moreinnovative means of advertisement, such as construction expos andsocial media. In fact, Wilhelm (2011) and Quinn, Doorley, &ampPaquette (2013) assert that innovation in promotion is thepredominant component of business success factors. In this regards,the company should incorporate differentiation and promotion inintroducing the application to the market.

  1. Target Market

By putting allfocus on commitment to service and quality, the software shalleffectively implement a niche differentiation strategy. The clientsshall use this software as an assistant tool to schedule and planconstruction projects. For this reason, the target clients shall beconstruction crews, managers and other personnel who work for theleading construction companies in the United States, and laterworldwide. OBC Build has for a while maintained long-termrelationship with top construction personnel, who have consequentlybeen consulted while designing the software. In this regards, thecompany expects these to form the foundation of an ever-growingcustomer base.

The table belowis a SWOT analysis of ODC Build software.

Table 2:SWOT and TWOS analysis for ODC Build Software

External Opportunities (O)

  • Market developments-vulnerability of major competitors,

  • Niche market targets

  • Unfulfilled customer needs

  • Loosening of industry regulations

External Threats (T)

  • Market demand-new technologies and services

  • Developments in IT

  • Obstacles-lack of sustainable

  • emergency plan, competitor intentions and emerging regulations

  • Changes in clients preferences

Internal Strengths (S)

  • Extensive and sustainable service chain

  • Enough financial reserves for advertisement and promotion

  • Qualified team members, certification

  • Innovative aspects

  • Resources-processes, systems and large data handling capability

  • Significant merchandise technology and innovation

  • Strong social and ethical dynamics

SO (Maxi-Maxi strategy

  • Use optimized searches and promotion to appeal to new markets

  • Use of differentiation strategy in introducing new product

  • Use of the Extensive and sustainable service chain to reach markets and clients

  • Use of resource processes to appeal to clients and compete favorably in the market

ST (Maxi-Mini strategy)

  • High differentiation of the software

  • Being flexible and change before the market

  • Promoting the brand for recognition

Internal Weaknesses (W)

  • Lack of strong and optimized structure

  • Lack of comprehensive content for product-related searches

  • Lack of enough competition strength

  • Weak brand name

  • Reliability on data from other sources

  • Continuity and chain supply robustness.

WO (Mini-Maxi strategy)

  • Developing content that encompasses millions of information

  • Using most visited sites as the area of optimization products

  • Creation of its own data platform to ensure independence

WT (Mini-Mini strategy)

  • Creating great content for its application

  • Promoting its niche market and acting on the mission as the sole provider of success

Marketing plan

Matchingstrengths to opportunities, and solving weaknesses and threats

OBC Build company acknowledges that technological advances insoftware building and desires to collectively create a special teamto monitor any advancements and incorporate them in the softwareengineering. This way, the software will be up-to-dated and willmaintain its competitive advantage in the market. McGeorge &amp Zou(2012) and Quinn et al (2013) assert that a company in theconstruction industry has many opportunities during the high seasonof construction, and during this, OBC can take lead given theresources and labor that it has dedicated to making the software asuccess. The management hierarchy of the company also has to modifyin order to get the correct personnel on the right tasks, and throughthis, marketing will be decentralized categorically. Futurestrategies for cooperation with software developers of the sameinterest, such as Autocad have apply correct plans. Additionally,Wilhelm (2011) asserts that such a company can initiate possibleinvestment in satellite facilities in collaboration with GISdevelopers is a good contingency plan. The company also has to surveythe customer base and meet with clients in order to have a feedbackabout the functioning of the software, and if necessary, anymodifications that the company has initiated.

Overall market strategy

Section

Notes

Target customers

  • Construction crews.

  • Construction managers.

  • Contracting companies.

Packaging

  • Primary packaging- single software installation media

  • Secondary packaging – Boxes of installation suite

Service uniqueness

  • Focus on small construction companies.

  • Cost-effective personal interaction with individual contractors.

  • Networking of consultants.

Unique selling proposition (USP)

  • Market and advertise with slogan “Time for real building”.

2

2

2

2

2

10

Benchmarks→

Target customers

Packaging

Service uniqueness

Competitors` decisions

Unique selling proposition (USP)

Score

Options ↓

0

Optimizing promotion

3.5

1.0

1.5

2.0

2.0

10

Flexibility

2.0

4.0

3.0

1.0

10

  • Use of differentiation strategy in introducing new product

2.5

1.0

1.0

1.5

4.0

10

Use of resource processes

1.5

1.5

4.50

1.5

10

10

Pricing

Pricing will determine on a number of factors. First, the companyshould give special customers a special discount. Special customersare determined by the level of business relations with the company.The second factor is the number of installation packages paid, whichwill be discounted accordingly. Thirdly, pricing will be determinedby the level of application, whether student, premium, golden orprofessional.

Distribution

Thediagram below shows the distribution channels for the software.

Whole-seller

Table 3: The distribution channel

The maindistributors encompass whole-sellers, such as software shops, andindividual distributors (brokers and agents). Institutional buyersform a special line of the distribution channel, and they includeprivate construction companies, schools and the government.

References

Capterra.com. (2014). Top construction management softwareproducts. Retrieved on 31 October 2014 from:http://www.capterra.com/construction-management-software/

Kinney, M. &amp Raiborn, C. (2012). Cost accounting: Foundationsand evolutions. Mason, OH: Cengage Learning.

McGeorge, D., &amp Zou, P. (2012).&nbspConstruction management:new directions. John Wiley &amp Sons.

Sadler, P. (2003). Strategic management. London, UK: KoganPage Publishers.

Quinn, J., Doorley, T., &amp Paquette, P. (2013). Technology inservices: rethinking strategic focus.&nbspSloan ManagementReview, Win-ter1990QuinnWinterSloan Management Review1990.

Wilhelm, M. M. (2011). Managing coopetition through horizontal supplychain relations: Linking dyadic and network levels ofanalysis.&nbspJournal of Operations Management,&nbsp29(7),663-676.