References

Statista. (2016) ‘Number of smartphone users in the United Kingdom from 2014 to 2019’ (online)

http://www.statista.com/statistics/494632/smartphone-users-in-uk/

(Accessed 17th April)

(March 17th 2014) ‘The real story behind the hugely successful dating app Tinder’ (online)

http://www.news.com.au/finance/business/the-real-story-behind-hugely-successful-dating-app-tinder/story-fn5lic6c-1226856885645

(Accessed 10th April)

(February 21 2016) ’37 Impressive Tinder statistics’(online)

http://expandedramblings.com/index.php/tinder-statistics/

(Accessed 10th April)

Walsh, MJ. (April 16 2015) ‘5 Dating Apps Giving Tinder Some Stiff Competition’ (online)

http://www.mydomaine.com/tinder-competitors

(Accessed 12th April)

http://www.datingsitesreviews.com/staticpages/index.php?page=Tinder-Statistics-Facts-History

‘Tinder information, Statistics, Facts and History’ (online) (Accessed 9th April)

Leidecker, J., & Bruno, A. (1987). CSF analysis and the strategy development process. In B. Taylor (Ed.), Strategic planning and management handbook (pp. 333-351). Van Nostrand: Rheinhold.

Rockart, J. (1979). Chief executives define their own information needs. Harvard Business Review, March/April, 81-92.

Blatchford, E. (April 12 2016) ‘Tinders teen version raises cyber safety concerns’

Huffington Post, Australia http://www.huffingtonpost.com.au/2016/04/11/tinders-teen-version-raises-cyber-safety-concerns/ (online)

(Accessed 1st July)

Statista. (2016) ’Smartphone ownership penetration in the United Kingdom 2012-2015, by Age’ http://www.statista.com/statistics/271851/smartphone-owners-in-the-united-kingdom-uk-by-age/ (online) (Accessed 1st July)

Statista. (2016) ‘Distribution of Tinder users Worldwide as of second quarter 2015, by age group’  http://www.statista.com/statistics/426066/tinder-age-distribution/ (online) (Accessed 1 July)

BBC News (February 12 2016) ‘The dating game. Which dating apps are winning the hearts of the world’ http://www.bbc.co.uk/news/resources/idt-2e3f0042-75f6-4bd1-b4fe-9056540c65f8 (online) (Accessed 1st July) 

Russell I, H. (1968) ‘Benefit segmentation A decision oriented research tool’ Journal of Marketing(pg. 30-35)

Hill L, C. & Jones, G. (2011) ‘Building competitive advantage through business level strategy’ (pg. 155) London 

Khalaf, H. (January 18 2015) ‘What blocking Tinder in the UAE means for users’ http://www.thenational.ae/arts-lifestyle/what-blocking-tinder-in-the-uae-means-for-users The National (online) (Accessed 29 June)

Huynh, T. (January 5 2015 ‘Tinder experiment reveals Online predators are using the app to meet underage girls’ http://techgeek.com.au/2015/01/05/tinder-experiment-reveals-online-predators-using-app-meet-underage-girls/ (online) (Accessed 29 June)

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Explain the importance and value of conducting a market analysis for short, medium and long term decision making within your chosen organisation

Explain the importance and value of conducting a market analysis for short, medium and long term decision making within your chosen organisation

Date of Entry – 5/7/2016

Short Term

Market analysis in the short term is all about quick fixes for your business, tackling today’s problems and to set yourself up to tackle future challenges. In order to stay on top of your short term decisions you must be aware of your target market; for example, if customers were to change their buying mentality for the product or methods of buying the product you must be able to adapt quickly to suit the needs of the consumer so that your market share does not diminish. Keeping a steely eye on your competitors is paramount to short term decisions as you may have to adjust your pricing strategy to suit; if Tinder’s competitors were providing free extra features for their consumers then Tinder would have to quickly consider providing free ‘superlikes’ perhaps for their consumers. Short term decisions are made much easier if your market analysis is continuous so that there are no surprises.

Medium Term

Seeking the views of your consumers is of paramount importance when deciding where to go forward with your business. Holding discussion meetings for your consumers is a very small outlay cost when compared to the positive value of the feedback received. These sessions can provide your business with information on what your consumers want more of in your product, what they do not like about your product and what new features they would like to see to make their experience better. With this information you can assess whether what your consumers want suits your business financially and,  if it does, then what tasks need to be set to complete these new features, as well as ironing out features which the consumers do not like. Without market analysis and customer feedback, making medium term decisions could send you business down the wrong path, not give your consumers what they want and so ultimately losing market share.

Long Term

Retaining your market share and identifying a steady growth strategy are the main focus of long term decisions. Market analysis is important when making these decisions to understand, for instance, how demographics will change, how long term economic changes will impact the cash people have to spend and how new technology may be made available which could change your particular sector. However, in reality you can only predict so far where the market may go and no market research is likely to foresee sudden economic downturns for example, which may have a significant impact on your profitability, market share or short term revenue.

Clearly identify how Critical Success Factors (CSFs) can be derived from the market analysis. Explain how you would prioritise the CSFs

Clearly identify how Critical Success Factors (CSFs) can be derived from the market analysis. Explain how you would prioritise the CSFs. (500 words)

Date of Entry – 3/7/2016

In order to identify your Critical Success Factors from your market analysis I would start by measuring your strengths against your threats and your weakness against your opportunities. Then once you’ve identified at least three major CSFs that need to be addressed you should prioritise them. Prioritising your CSFs in ranking from one to three should be related to your business’ main aim for example.If the business’ main goal is profit for shareholders then you should rank each one on the amount of profit they will bring in or the smallest amount of profit loss.

The three main CSFs I have identified with Tinder were; the safety of its users, its pricing strategy and providing a unique feature to differentiate itself from its competitors. Safety online has become such a focus point with online apps today, and especially dating apps. Unfortunately Tinder’s security has been subject to criticism as there have been many cases in which the Facebook age of an over 18 year old can simply be changed to between seventeen and thirteen to access younger profiles, causing inappropriate matches with predators or pedophiles. I have ranked this at the top of my critical success factors because if cases like this continue to happen then current Tinder users will look to other dating apps with much better safety settings, since nobody wants to match with someone who is not who they say they are. This will also deter future users from downloading the app in the first place, costing Tinder a loss of revenue. This CSF show be tackled by using some proof of identification so thirteen to seventeen year olds can only match with each other, avoiding inappropriate matches.

Tinder’s pricing strategy was another critical success factor which had to be assessed by  looking at my market research, because one of Tinder’s strengths is that the majority of its service is all free. However they charge for more features such as the ‘superlike’ and by doing this two problems occur; it puts people off using the feature as they know they will run out of subscription quicker and so will have to provide additional funds, therefore limiting their experience on the app. It also opens Tinder up to its competitors as they will now be looking for ways to make services that they charge themselves free to their users. Ultimately Tinder will need to find a way to either drop the prices of these extra features or get rid of charges altogether to make sure they do not lose any of their consumers to their competitors.

Finally, the majority of Tinder’s threats were due to their competitors providing a different tool to make the experience more personal to the user. By incorporating a small questionnaire at the start of every use of the app, asking three quick fire questions about dating, and then correlating the answers to possible matches in the  area with similarly chosen answers, this should provide a unique feature ultimately making matches more compatible.

Provide a summary of how to do a market analysis. This should include identification of key elements of a PESTLE analysis and a TOWS analysis using examples to illustrate key points.

Provide a summary of how to do a market analysis. This should include identification of key elements of a PESTLE analysis and a TOWS analysis using examples to illustrate key points.

Date of entry 1/7/2016

In order to orchestrate yourself to perform thorough market analysis you should break your chosen product into two sections: PESTLE analysis and TOWS analysis. Then breaking these sections down further into six parts for PESTLE and four sections for TOWS. By doing this it should make further marketing decisions clearer to see. To help explain these market research methods I will be using Tinder as an example.

PESTLE Analysis For Tinder

Political – Tinder must recognise that some governments around the world will not agree with the social interaction which tinder provides as it goes against those countries’ moral values. For example Khalaf, H(2015) explains how some Islamic states are not comfortable promoting such apps. By recognising this they can be sensitive and understand that Tinder cannot penetrate those markets, therefore saving themselves time and money.

Economic – Tinder is available to two bands of consumers: thirteen to seventeen year olds and eighteen and above. Tinder must enhance its ability to attract a younger demographic as well as an older grouping to keep growing, therefore advertising must be a prioritised looking at the economic side of the business.

Social and Technological – One can see that the dating world has evolved massively with the change to technology, many people prefer to meet online first instead of the older and more conventional way of a blind date or speed dating. Tinder will need to galvanise this technological boom and use it to their advantage by connecting with their consumer through their smartphones. This graph shows that smartphone usage is only going to continue to increase.

Screen Shot 2016-02-23 at 15.26.43

 

Legal – Huynh, T(2015) states that Tinder must recognise that legally there are some flaws in their security which can lead to legal disputes and ultimately the safety of their customers. These security issues will have to be ironed out to keep their current consumers and encourage new subscribers.

Environment – An awareness of your competitors is key in this section as you must understand their benefits, drawbacks and the features that they provide which are different. For example, Tinder’s main competitors are Happen, Bumble and Hinge. They provide unique services such as a timer on your conversation working as a catalyst, matches more suited to your daily routine and a friend of friend match.

TOWS Analysis For Tinder

I would tackle this by first making a column for the strengths and weaknesses of your chosen product. Once completed this would enable you to pick clear selling points and failings in your product. Recognising these then use two more columns, labelled Opportunities and Threats, to access how you can improve your product from the identified strengths and weaknesses. For example, Tinder has a unique selling point of its simplicity to use, the superlike and rewind features, so these can be taken forward. However the threats would be that its security has loop holes which will need to be adjusted to obtain a bigger target audience , and its competitors have some unique features which effectively provide a different service.