Kids Marketing Consulting
Attractiveness of the market research industry in Ukraine based on Porter’s Five Sources (from CMO point of view).
Industry Competitors (Segment Rivalry):
Also there is competition, the market research industry in Ukraine does not have numerous, strong, or aggressive competitors in the kids, tweens and teens niche. Actually, KMC could be considered a pioneer in this niche and as all pioneers company had enjoyed solid growth and profitability and developed a strong customer base. However due to rising competition, company has to shift towards protecting its niche.
Competition does not seem to have high stakes in staying in the segment (major leaders are large international company’s belonging to global ESOMAR community). …show more content…
If, for example, he withholds one of necessary supply to conduct a business such as tools for market research, I will have to look for newer, higher cost options. Raising prices on the rent or any other resources can potentially harm my business as well. Luckily, DDI benefited from KMC because it expanded DDI’s area of specialization and became another source of customers for all of DDI’s companies.
Overall, this segment is somewhat unattractive if the company suppliers are able to raise prices or reduce quantity supplied. There are few available substitutes to my supplier and cost of switching is high. PART 2. SWOT ANALYSYS
• Exclusivity (the only market research company in both Ukraine and the former U.S.S.R. that focused exclusively on kids, tweens and teens).
• Competitive advantage in comparison with other firms due to proximity of Ukrainian largest market (higher level of expertise)
• Somewhat better credible and respected than others due to association with UMA
• Being 100% Ukrainian owed and operated presents significant cost reduction in taxes and operations (international firms are paying higher rates) and could represent a solid sales point in the eyes of the Ukrainian clients.
Number of corporate resources available thru DDI at lower cost such as:
• Assess to customer base and experience
• Office space including web hosting and utilities
• Business promotion