Market Analysis
Market Analysis
Andrews Corporation is a $40 million electronic sensor manufacturer. We are in a business-to-business market, providing sensors for our customer’s products. The sensor industry is increasingly growing at about 14-15% each year. The low-tech segment of the market has a 10% growth rate while the high tech segment has a 20% growth rate. Currently, the low-tech segment of the market makes up for more than 2/3 of unit sales. However, overtime the high tech segment will control a greater percentage of the overall market. Andrews Corporation will take advantage of the changes in our industry by introducing a high-tech product in the future to increase our overall market share and profit.
Market Segmentation
Our market is made up 6 firms with 2 segments: low-tech and high-tech. As of Dec. 31, 2015 our current demand for the low-tech segment is 5,544 and the demand for high-tech is 2,592. For the low-tech segment of the market, the customer’s buying criterion from most important to least important is price, age, reliability and position. For the high tech segment of the market the customer’s buying criterion from most important to least important is position, age, price and reliability. Andrews Corporation currently has a total market share of 13.31%. Our product, Able, currently makes up 14% of the low-tech market and 12% of the high-tech market. Next year, our market share for the low-tech segment should increase to 15.4% as well as the high-tech segment to 14.4%. Our competition consists of 5 firms: Baldwin, Chester, Digby, Erie and Ferris. Most of the companies are lowering the price of their product to appeal more to the low-tech segment of the market and to obtain more share of the total market. Majority of the companies lowered their reliability to cut back on material cost and to increase their overall profit.
Products and Services
Able is our current product on the market, which is primarily located in the low-tech segment of the market. It
Andrews Corporation is a $40 million electronic sensor manufacturer. We are in a business-to-business market, providing sensors for our customer’s products. The sensor industry is increasingly growing at about 14-15% each year. The low-tech segment of the market has a 10% growth rate while the high tech segment has a 20% growth rate. Currently, the low-tech segment of the market makes up for more than 2/3 of unit sales. However, overtime the high tech segment will control a greater percentage of the overall market. Andrews Corporation will take advantage of the changes in our industry by introducing a high-tech product in the future to increase our overall market share and profit.
Market Segmentation
Our market is made up 6 firms with 2 segments: low-tech and high-tech. As of Dec. 31, 2015 our current demand for the low-tech segment is 5,544 and the demand for high-tech is 2,592. For the low-tech segment of the market, the customer’s buying criterion from most important to least important is price, age, reliability and position. For the high tech segment of the market the customer’s buying criterion from most important to least important is position, age, price and reliability. Andrews Corporation currently has a total market share of 13.31%. Our product, Able, currently makes up 14% of the low-tech market and 12% of the high-tech market. Next year, our market share for the low-tech segment should increase to 15.4% as well as the high-tech segment to 14.4%. Our competition consists of 5 firms: Baldwin, Chester, Digby, Erie and Ferris. Most of the companies are lowering the price of their product to appeal more to the low-tech segment of the market and to obtain more share of the total market. Majority of the companies lowered their reliability to cut back on material cost and to increase their overall profit.
Products and Services
Able is our current product on the market, which is primarily located in the low-tech segment of the market. It