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MARKET ANALYSIS1.1 MAREKT SIZES AND TRENDSThe market for the product can be divided into two segments: the Consumer and the Business Segments. Within the consumer and Business segments, it can be further segmented into four different sub-segments each, based on different characteristics or profile of the sub-segments.1.1-1 BUSINESS SEGMENTSThe market size of the Business market has grown from about 6.3 million units in Period 1 to about 7.1 million units in Period 3. It is expected to grow to about 7.7 million units by Period 4. For the business market, it is further sub-segmented to: Professionals, Wired Groups, Outsourcers and Traditional. The profiles of the four sub-segments are shown below.Table 1: Profiles of Business's sub-segmentsBusiness Type of Business Purchase Habits Products SoughtProfessional(+10% growth) High-Tech firms, consultants, growth industry. Have high purchasing power Seek efficiency in purchase. Need to focus on their company growth. Like high-end products, not particularly price sensitive.Wired Groups(+20% growth) Large Corporations Like human interface.

Decision makers buy for the rest of the company, so need to 'trust' the supplier. Also seek some efficiency. Large volume purchasers. Cost per unit is important to these customers.Outsourcers(+15% growth) Lean operations. Medium Size companies which focus on core business Seek efficient purchasing, are willing to give up the human touch in order to gain efficiency and cost reduction Seek low prices, product itself is not seen as core business for them. Very price sensitive.Traditionals(-5% growth) Traditional, often family owned stores and businesses Like human interface they can trust

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Seek best product. Not price sensitive.The market size of each sub-segments of the business market from the period 1 to Period 4 is shown below in Table 2.Table 2: Market Demand (in units) in the Business Segment for Period 1 to Period 4Periods 1 2 3 4Professional 1,452,000 1,597,200 1,756,920 1,932,612 Wired Groups 1,440,000 1,728,000 2,073,600 2,488,320 Outsourcers 529,000 608,350 699,602 804,542 Traditionals 2,888,000 2,743,600 2,606,420 2,476,099 Figure 1:Market demand (in units) in the Business Segment for Period 1 to Period 4At Period 3, the market size of the Traditionals is the biggest (36.5% of the total business segment), decreasing at a rate of 5% annually. The market size for the Wired Groups, with a growth rate at 20%, is increasing steadily from about 1.44 million units in Period 1 to 2.07 million units in Period 3. By Period 4, it would be about 2.49 million units and is about 32.3% of the business market. It would then be the largest market size among all the sub-segment within the Business segment, with the Traditionals closely behind in size. The Professional is increasing by 10% annually and it would be about 1.9 millions units by Period 4 (about 25.1% of the business segment).

The Outsourcers is growing at a rate of 15% annually but it is the smallest of the sub-segments (less than 10%).In summary, the largest sub-segment of the consumer market is currently the Traditionals but the Wired groups would be the largest by Period 4.1.1-2 CONSUMER SEGMENTSThe market size of the consumer market has grown from about 8.9 million units in Period 1 to about 11.6 million units in Period 3. It is expected to grow to about 13.8 million units by Period 4. In comparison, this is about 1.8 times larger than the consumer market.For the consumer market, it is further sub-segmented to: Experienced Users, Regular Wireds, Deal Seeker and Conservatives. The profiles of the four sub-segments are shown below.Table 3: Profiles of Consumer's sub-segmentsConsumer Socio-demo Type Purchase Habit Products SoughtExperienced Users(+30% growth) High-tech people. Have purchasing power but no time to shop as they work long hours.

Seek efficiency in purchase. Focus on work and leisure Like high-end products, not that price sensitive and are high volume buyersRegular Wireds(+50% growth) Early adopters and early majority in connectedness. Non-IT, non-telecom jobs. Some blue collar A mix of efficiency and human interface A mix of product differentiation and priceDeal Seekers(+20% growth) Progressive, working parents who also manage the households. Typical middleclass Cost and time effectiveness drives suppliers switching behaviour. Not intrinsically 'techies', but willingly to go out of the way to save time and money.

Extremely price sensitive.Conservatives(-6% growth) Typically older people of many classes of society Do not seek efficient channels but require the human touch. They are 'technology averse'. A mixture of price sensitivities and non-price sensitivities seeking medium and high end products.The market size of each sub-segments of the consumer market from the period 1 to Period 4 is shown below in Table 4.Table 4:Market Demand (in units) in the Consumer segment for Period 1 to 4Periods 1 2 3 4Experienced User 380,250 494,325 642,622 835,409 Regular Wireds 787,500 1,181,250 1,771,875 2,657,813 Deal Seekers 4,320,000 5,184,000 6,220,800 7,464,960 Conservatives 3,401,860 3,197,748 3,005,883 2,825,530 Figure 2: Market Demand (in units) in the Consumer segment for Period 1 to 4At Period 3, the market size of the Deal Seekers is the biggest (54.2% of the total consumer segment), growing at 20% annually. The market size for the Regular Wireds, with a growth rate at 50%, is increasing rapidly from about 0.78 million units in Period 1 to 1.77 million units in Period 3. By Period 4, it would be about 2.65 million units and is about 19.3% of the consumer market.

The conservative, though is large in market size in Period 1, is decreasing at a rate of 6% annually and it will reduce its consumer market percentage from 38.3% in Period 1 down to 20.5% in Period 2. The Experienced User is increasing by 30% annually but it is still small compared with the other sub-segments.In summary, the largest sub-segment of the consumer market is still the Deal Seekers and the Regular Wireds is growing larger with each period and it has become a significant ub-segment in term of market size. 1.2 MARKET NEEDS, PERCEPTIONS AND ACCESSThere are basically two main products offered by various companies in the market: The Basic Product and The Value Product. For the Basic Product, the offering from the various companies is similar, without much product differentiation. The Valued Product can be differentiated as it can have more varieties (up to 250 types), depending on what each companies offer.1.2-1 BUSIENSS SGEMENTSa. Market NeedsThe Professionals, in general, like high end products and are not particular price sensitive. As the Professionals need to focus on their company's growth, they seek to order the products efficiently.

The Wired Groups are the decision makers for their company in term of purchase of the products. Their needs are that the trustworthiness of the supplier and that there is sufficient human interface or touch in their ordering process. The cost per unit is important to them as well. The Outsourcers' needs are low prices as they are very price sensitivity, efficient ordering process and are willing to give up human touch if it saves them time and money. The needs of the Traditionals are the best product (not price sensitive) and trustable human interface.b. Product PerceptionsFor the Valued Product offered in this segment, the Business Segment perceive the Company 5's Valued Product as the most expensive but it is also one of the highest end (or premium product) in the market. The Business segment perceives the cheapest Valued product is from Company 3, offered through its Call Centre.

The perceived lowest valued product among the Valued Products is offered by Company 3 through its online trade system. For the Basic Product, the perceived most expensive offering is from Company 2 through their Brick & Mortar outlet while the cheapest is from Company 3 through its online trade system.c. Channel PerceptionsThe customer perception of the various companies' channels is shown in the table below. The perception is based on how efficient the channel is and how much human interface the channel offers.Table 5: Channel Perception by Business SegmentChannel Efficient HumanBricks & MortarCompany 1 30 68Company 2 32 69Company 3 26 63Company 4 30 71Call CentreCompany 1 63 52Company 2 57 46Company 3 53 45Company 4 58 52Company 5 65 63Interactive WebCompany 4 30 30Company 5 40 50Online TradeCompany 1 92 10Company 3 77 46Company 4 92 10Company 5 92 10The perception of the Bricks and Mortar channel is quite similar for all the companies involved. The perceived most efficient channel is Company 2 while Company 4 is the one with the most human interface.

The perception of the Call Center operated by all the companies is slightly different. Company 5's channel is perceived to be the most efficient and with most human interface, with Company 1 not far behind. Company 2 and 3 are perceived to be the least efficient and lack human interface among the five companies.The perception of the Interactive Web channel is that Company 5 is better than Company 4 (the only other company offering this channel) in both efficiency and human interface. However, both companies are perceived to be low in efficiency and human interface. The perception of the Online Trade channels is that all except Company 3 is highly efficient and low on human interface. Company 3 is perceived to offer the least efficient online trade channel in the market.d.

Channel AccessThe business segment channel access to the various channels available is shown in the table below.Table 6: Business Customer access to channels at Period 3 Professionals Wired Groups Outsourcers TraditionalsBricks & Mortar 90% 90% 90% 90%Call Center 99% 95% 93% 85%Web 73% 76% 55% 29%In general, all segments within the Business market have very high accessibility to the Bricks & Mortar channel and the Call Centre channel. The Professional and Wired Groups have quite a high access to the web (about 73% and 76% respectively) while the Traditionals has low access to the web channel.1.2-2 CONSUMER SEGMENTSa. Market NeedsThe Experienced Users, in general, like high end products and are not that price sensitive. As the Experienced Users seek to focus on their work and leisure, they seek to order the products efficiently. The Regular Wireds need a mix of product differentiation (Basic and Valued Products) and price.

At the same time, they require a mix of efficiency and human interface from the channels. The Deal Seekers' needs are cost and time effectiveness of the product and channel and are extremely price sensitive. The needs of the Conservatives are a mixture of price sensitivities and non-price sensitivities for medium and high end products.b. Product PerceptionsFor the Valued Product offered in this segment, the Consumer Segment perceive the Company 5's Valued Product as the most expensive but it is also one of the highest end (or premium product) in the market. The Consumer segment perceives the cheapest Valued product is from Company 4, offered through its Online Trade channel.

The perceived lowest valued product among the Valued Products is offered by Company 1 through its Bricks & Mortar channel and Online Trade channel. For the Basic Product, the perceived most expensive offering is from Company 2 through their Brick & Mortar outlet while the cheapest is from Company 5 through its online trade channel.c. Channel PerceptionsThe customer perception of the various companies' channels is shown in the table below. The perception is based on how efficient the channel is and how much human interface the channel offers.Table 7: Channel Perception by Consumer SegmentChannel Efficient HumanBricks & MortarCompany 1 30 68Company 2 32 69Company 3 26 63Company 4 30 71Call CentreCompany 1 63 52Company 2 57 46Company 3 53 45Company 4 58 52Company 5 65 63Interactive WebCompany 4 30 30Company 5 40 50Online TradeCompany 1 92 10Company 4 92 10Company 5 92 10The perception of the Bricks and Mortar channel is quite similar for all the companies involved. The perceived most efficient channel is Company 2 while Company 4 is the one with the most human interface.The perception of the Call Centres operated by all the companies is slightly different.

Company 5's channel is perceived to be the most efficient and with most human interface, with Company 1 not far behind. Company 2 and 3 are perceived to be the least efficient and lack human interface among the five companies.The perception of the Interactive Web channel is that Company 5 is better than Company 4 (the only other company offering this channel) in both efficiency and human interface. However, both companies are perceived to be low in efficiency and human interface. The perception of the Online Trade channels is all equally highly efficient and low on human interface. Basically there is no difference in the perception at all.d. Channel AccessThe business segment channel access to the various channels available is shown in the table below.Table 6: Consumer Customer access to channels at Period 3 Experienced Users Regular Wireds Deal Seekers ConservativesBricks & Mortar 90% 90% 90% 90%Call Centre 95% 93% 92% 88%Web 71% 57% 31% 21%In general, all segments within the Consumer market have very high accessibility to the Bricks & Mortar channel and the Call Centre channel.

The Experienced Users has quite a high access to the web (about 71%) and the Regular Wireds has an above average access to the web channel (57%) while the rest has low access to the web channel.1.3 PRODUCT/CHANNEL MARKET STATUS1.3-1 POSITIONINGa. Product PositioningFor Company 1, its Basic Product seems to be positioned to be average price but come with good after sales support, with one-year return policy in place. Its Valued Product relatively cheap in the market but it has the least product range. It seems to be positioned as a cheaper lower-end Valued Product in the market.For Company 2, its Basic Product is priced relatively higher in the market while its Valued Product is slightly more expensive but come with large product range. The Value Product is positioned as a high-end product in the market but it is not the most expensive in the market.For Company 3, its Basic Product is positioned to be one of the cheapest in the market.

Its Valued product is positioned to be cheapest non-frill product in the market.For Company 4, it only offers Valued Products and it is positioned to be a mid-end product (with 100 product range) with average price in the market.For Company 5, its Basic Product is positioned to be the cheapest through its online trade channel but is priced higher in other channels. Its Valued product is the among highest-end product (with 250 product range available) and it is the most expensive. It is positioned as a premium product with good after sales support.b. Channel PositioningFor Company 1, its Bricks & Mortar channel is the second largest (with 160 outlets) selling both Basic and Valued Product. For its Call Centre, it is run using Advance IT system, selling both Basic and Valued Products.

Its Online Trade channel is using advance system selling only Valued Product.For Company 2, its Bricks & Mortar is the largest (with 330 outlets), selling both Basic and Valued Products. Its Call Centre is using Advance IT System, selling both Basic and Valued Products.For Company 3, the Bricks & Mortar has 150 outlets selling only Basic Product. Its Call Centre, supported by Advance IT System, offers both Basic and Valued Products. Its Online Trade For Company 4, it has the smallest Brick & Mortar outlets selling only Valued Product. Its Call Centre is being supported by the Advance IT system.

However, its Interactive Web channel is currently using only basic system. Its online trade channel is using advance system.For Company 5, its Call Centre is supported by Advanced IT system selling both Basic and Valued Products. The Interactive Web channel is using advanced system and sells only Valued Products. The Online trade channel is also using advance system, selling only Basic Products at this moment.1.3-2 AWARENESS AND PURCHASE INTENTa. Product Awarenessa.1 Business SegmentsThe product awareness for the Business market as at Period 3 is shown in Table 7 below. Table 7: Business Market Product Awareness at Period 3 Professionals Wired groups Outsourcers TraditionalsBasic productCompany 1 15% 17% 53% 26%Company 2 42% 57% 40% 41%Company 3 50% 54% 63% 64%Company 5 30% 31% 31% 36%Value productCompany 1 69% 69% 56% 74%Company 2 48% 35% 36% 53%Company 3 35% 50% 40% 20%Company 4 69% 65% 56% 60%Company 5 55% 59% 51% 64%a.1-1 Basic ProductFor the Basic Product, the Professional is most aware of Company 3's product (50%) while least aware of Company 1's product.

For Company 5, it is relatively low, at 30%. In general, the awareness of all companies' basic product is not that high as well. The Wired Groups are most aware of Company 2's Basic Product while least aware of Company 1's product. Similarly, overall awareness is not high as well. The awareness of the Company 5's basic product is low at 31%.The Outsourcers are most aware of Company 3's basic product offering while least aware of the Company 5's basic product.The Traditionals are most aware of Company 3's basic product offering while least aware of the Company 1's basic product. The awareness of the Company 5's basic product is low at 36%.For Company 5, it has been noted that the awareness of its basic product has decreased from the last period across all segments in the Business market.a.1-2 Value ProductThe Professional is most aware of Company 1 and 5's value product (at 69%) while least aware of Company 3's value product (35%). The awareness of Company 5's value product is at 55%.

For the value product, the Wired Groups are most aware of Company 1's offering while least aware of Company 2's product. The awareness of Company 5's value product is at 59%.The Outsourcers is most aware of both Company 1 and 4's valued product and least aware of the Company 2's value product. The awareness of Company 5's value product is at 51%.The Outsourcers is most aware of Company 1's valued product and least aware of the Company 3's value product. The awareness of Company 5's value product is at 64%.The awareness of the company 5's value product has increased across the board over the three periods.a. 2 Consumer SegmentsThe product awareness for the Consumer market as at Period 3 is shown in Table 8 below.

Table 8: Consumer Market Product Awareness at Period 3 Experience user Regular wired Deal seekers ConservativeBasic productCompany 1 23% 29% 31% 33%Company 2 41% 37% 36% 35%Company 3 55% 61% 64% 67%Company 5 30% 31% 31% 32%Value productCompany 1 55% 56% 57% 59%Company 2 44% 46% 48% 52%Company 3 24% 19% 17% 11%Company 4 55% 58% 60% 61%Company 5 46% 49% 51% 51%a.2.1 Basic ProductFor the Basic Product, the Experienced User is most aware of Company 3's product (55%) while least aware of Company 1's product. For Company 5, it is relatively low, at 30%. In general, the awareness of all companies' basic product is not that high as well. The Regular Wireds are most aware of Company 3's Basic Product while least aware of Company 1's product. Similarly, overall awareness is not high as well except for Company 3.

The awareness of the Company 5's basic product is low at 31%. The Deal Seekers are most aware of Company 3's basic product offering while least aware of the Company 1 and 5's basic product.The Conservatives are most aware of Company 3's basic product offering while least aware of the Company 5's basic product. For Company 5, it has been noted that the awareness of its basic product has decreased from the last period across all segments in the Consumer market.a.2.2 Value ProductAll segments in the consumer market are most aware of Company 4's value product. Only the Experienced Users are also equally aware of Company 1's value product in addition to Company's 4. All segments in the consumer market are least aware of Company 3's value product.

For Company 5, the awareness of its value product has increased over the three periods across all the segments in the consumer market. The awareness ranges between 46% to 51%.b. Channel Awarenessb.1 Business SegmentsThe channel awareness for the Business segment is shown in the Table below.Table 9: Business market channel awareness in Period 3 Professionals Wired groups Outsourcers TraditionalsBrick & MortarCompany 1 22% 25% 28% 65%Company 2 22% 25% 29% 58%Company 3 28% 32% 34% 45%Company 4 4% 5% 5% 7%Call centreCompany 1 39% 56% 58% 43%Company 2 59% 55% 42% 35%Company 3 33% 40% 65% 48%Company 4 31% 52% 40% 49%Company 5 46% 49% 34% 60%Web SiteCompany 1 35% 16% 15% 7%Company 3 44% 56% 26% 13%Company 4 59% 34% 34% 26%Company 5 47% 47% 49% 43%For the Bricks & Mortar channel, all segments except the Traditonals are most aware of the channel operated by Company 3. The Traditionals is most aware of Company 1's Bricks and Mortar outlets. All segments are least aware of Company 4's Bricks and Mortar channel.For the Call Centre, the Professionals are most aware of Company 2's Call Centre, Company 2 for Wired Groups, Company 3 for Outsourcers and Company 5 for the Traditionals.For the Web site, the Professionals are most aware of Company 4's web site, Company 3 for the Wired Groups and Company 5 for Outsourcers and the Traditionals.b.2 Consumer SegmentsThe channel awareness for the Consumer segment is shown in the Table below.Table 10: Consumer market channel awareness in Period 3 Experience user Regular wired Deal seekers ConservativeBrick & MortarCompany 1 37% 44% 48% 53%Company 2 34% 42% 46% 52%Company 3 33% 41% 44% 49%Company 4 4% 5% 5% 6%Call centre Company 1 30% 33% 33% 31%Company 2 47% 38% 34% 28%Company 3 33% 40% 41% 39%Company 4 39% 48% 51% 56%Company 5 36% 45% 49% 55%Web Site Company 1 20% 14% 10% 6%Company 3 35% 24% 19% 10%Company 4 34% 27% 23% 15%Company 5 43% 37% 32% 23%For Bricks & Mortar channel, all segments within the Consumer market are most aware of Company 1 while least aware of Company 4's channel.For Call Centre, all segments except the Experienced Users are most aware of Company 4. The Experienced Users is most aware of the Company 2's Call Centre.For the Web Site, all segments are most aware of Company 5.

However, the awareness for web site for all companies are relatively low, not more than 50%.c. Purchase Intent c.1 Business SegmentsThe percentage of the Business segments intending to buy in the Channel, Basic Product and Value Product as at Period 3 is shown in Table below.Table 11: Business percentage intending to buy in Channel, Basic & Value Product Company 1 Company 2 Company 3 Company 4 Company 5Bricks & mortar Professionals 37 51 55 39 47 44 32 45 0 39 0 45 N/A* Wired groups 42 59 51 44 52 33 36 52 0 44 0 37 N/A Outsourcers 33 67 46 35 58 21 28 60 0 34 0 27 N/A Traditionals 52 49 56 54 45 47 47 42 0 55 0 48 N/ACall Centre Professionals 52 53 56 45 51 44 42 49 57 49 0 48 59 48 23 Wired groups 51 61 52 43 57 33 41 57 56 48 0 40 58 54 17 Outsourcers 53 70 48 46 65 21 43 67 55 49 0 31 59 60 11 Traditionals 47 51 57 40 49 47 39 46 57 46 0 50 58 47 24Interactive Web Professionals N/A N/A N/A 19 0 49 35 0 22 Wired groups N/A N/A N/A 19 0 43 37 0 17 Outsourcers N/A N/A N/A 19 0 35 34 0 11 Traditionals N/A N/A N/A 19 0 51 39 0 24Online Trade Professionals 51 0 57 N/A 39 50 54 51 0 60 51 51 0 Wired groups 41 0 53 N/A 31 59 53 41 0 57 41 58 0 Outsourcers 61 0 50 N/A 47 70 51 61 0 53 61 67 0 Traditionals 18 0 58 N/A 11 47 55 18 0 61 18 49 0* N/A: Not ApplicableLooking at the purchase intent of all the segments through the Company 5's Call Center, it is noted that there is a relatively high intention to purchase Basic Product through this channel. The purchase intent through the Company 5's Call Centre, is in fact, the highest among all the companies.For the Web Site, it is noted that the purchase intent of all the segments is lower than through the Call Centre. The purchase intent for the Value product through the Company 5's web site is low (ranging from 11% to 22%).For the Online Trade channel, all segments except the Traditionals have relative high intent to purchase the Basic Products through this channel. The Traditionals has low intention to purchase through the online trade channel.

c.2 Consumer SegmentsThe percentage of the Consumer segments intending to buy in the Channel, Basic Product and Value Product as at Period 3 is shown in Table below.Table 12:Consumer percentage intending to buy in Channel, Basic & Value Product Company 1 Company 2 Company 3 Company 4 Company 5Bricks & mortar Experience user 38 0 50 40 46 50 33 44 0 39 0 46 N/A* Regular wired 41 0 43 43 53 39 36 53 0 43 0 36 N/A Deal seekers 32 0 36 33 60 27 26 63 0 33 0 24 N/A Conservative 51 0 48 52 49 46 45 47 0 53 0 42 N/ACall Centre Experience user 52 0 52 45 50 55 42 48 0 49 0 49 59 47 24 Regular wired 51 0 45 44 58 46 41 59 0 48 0 38 58 55 17 Deal seekers 54 0 38 46 68 37 43 70 0 50 0 28 59 62 9 Conservative 48 0 49 41 53 52 39 52 0 47 0 45 58 50 21Interactive Web Experience user N/A N/A N/A 19 0 50 35 0 23 Regular wired N/A N/A N/A 19 0 42 36 0 16 Deal seekers N/A N/A N/A 19 0 33 34 0 9 Conservative N/A N/A N/A 19 0 47 39 0 20Online Trade Experience user 50 0 52 N/A 38 0 0 50 0 56 50 53 0 Regular wired 42 0 46 N/A 31 0 0 42 0 49 42 63 0 Deal seekers 63 0 40 N/A 50 0 0 63 0 42 63 73 0 Conservative 22 0 50 N/A 14 0 0 22 0 53 22 57 0* N/A: Not ApplicableLooking at the purchase intent of all the segments through the Company 5's Call Centre, it is noted that there is a relatively high intention to purchase Basic Product through this channel. The purchase intent through the Company 5's Call Centre is, in fact, the highest among all the companies.For the Web Site, it is noted that the purchase intent of all the segments is lower than through the Call Centre. The purchase intent for the Value product through the Company 5's web site is low (ranging from 9% to 23%).For the Online Trade channel, all segments except the Conservatives have relative high intent to purchase the Basic Products through this channel. The Deal Seekers have the highest intention to purchase the Basic product through this channel.1.3-3 Market Sharea. Business SegmentsThe Business market share per Channel and Segment at Period 3 for all five companies is shown below.Table 13: Business market share per Channel and Segment in Period 3 Company 1 Company 2 Company 3 Company 4 Company 5Bricks & mortar Professionals 37% 40% 19% 4% Wired groups 34% 39% 23% 3% Outsourcers 43% 28% 27% 2% Traditionals 45% 39% 14% 2% Total 42% 38% 17% 2% Call Centre Professionals 26% 28% 15% 12% 19% Wired groups 30% 22% 19% 13% 16% Outsourcers 40% 13% 32% 6% 10% Traditionals 28% 15% 17% 15% 26% Total 29% 20% 19% 13% 19%Interactive Web Professionals 64% 36% Wired groups 50% 50% Outsourcers 58% 42% Traditionals 37% 63% Total 54% 46%Online Trade Professionals 23% 25% 40% 12% Wired groups 12% 47% 24% 17% Outsourcers 11% 35% 27% 27% Traditionals 13% 13% 41% 32% Total 17% 34% 33% 16%Total Business Market 29% 20% 20% 15% 15%In the Bricks & Mortar channel, Company 1 has the largest market share (42%) with Company 2 closely behind (38%).

The Company 4 has the least market share (2%). Within each segments in the Business market, Company 1 has the biggest share in the Outsourcers and Traditionals segment while Company 2 in Professional and Wired Groups.In the Call Centre channel, Company 1 has the biggest market share (29%) but Company 2, 3 and 5 are not far behind (20%, 19% and 19% respectively). There is no company dominating in this channel. Even within the segments, there is no company that dominates the channel at this moment.In the Interactive Web channel, both Company 4 and 5 share the market, with a market share of 54% and 46% respectively. Within the segments, Company 4 has a bigger share in the Professional segment while Company 5 has a bigger share of the Traditionals.

The other segments are almost shared equally by both companies.In the Online Trade channel, both Company 3 and 4 have the biggest share (34% and 33% respectively). The Company 3 has the biggest share within the Wired Groups and Outsourcers while Company 4 has the biggest share in the Professionals and Traditionals segments.In overall, Company 1 has the biggest share in the Business market with 29% market share while the other four companies are not far behind. There is no company that dominate the Business market at this moment.b. Consumer SegmentsThe Consumer market share per Channel and Segment at Period 3 for all five companies is shown below. Company 1 Company 2 Company 3 Company 4 Company 5Bricks & mortar Experienced user 29% 49% 19% 3% Regular wired 25% 46% 27% 2% Deal seekers 22% 44% 33% 1% Conservative 27% 46% 25% 2% Total 25% 45% 28% 2% Call Centre Experienced user 17% 34% 12% 18% 19% Regular wired 15% 25% 19% 17% 23% Deal seekers 14% 22% 25% 14% 24% Conservative 15% 17% 17% 23% 29% Total 15% 22% 22% 17% 25%Interactive Web Experienced user 52% 48% Regular wired 53% 47% Deal seekers 63% 37% Conservative 47% 53% Total 56% 44%Online Trade Experienced user 25% 46% 30% Regular wired 19% 42% 38% Deal seekers 15% 37% 48% Conservative 16% 45% 39% Total 17% 40% 43%Total Consumer Market 18% 27% 22% 15% 19%In the Bricks & Mortar channel, Company 2 has the largest market share (45%) with Company 1 and 3 far behind.

The Company 4 has the least market share. Company 2 has the biggest share in all the segments for this channel.In the Call Centre channel, there is no company dominating in this channel. Even within the segments, there is no company that dominates the channel at this moment. In the Interactive Web channel, both Company 4 and 5 share the market, with a market share of 56% and 44% respectively. Within the segments, Company 4 has a bigger share in the all segments except in the Conservatives segment.In the Online Trade channel, both Company 4 and 5 have the biggest share (40% and 43% respectively), leaving only 17% for Company 1.

The Company 4 has the biggest share for all except the Deal Seekers segment as Company 5 has the biggest share in the Deal Seeker segment.In overall, Company 2 has the biggest share in the Consumer market with 27% market share while the other four companies are not far behind. There is no company that dominate the Consumer market at this moment.COMPETITIVE ANALYSIS2.1 OVERALL ASSESSMENT OF EACH COMPETITORCompany 1Company 1 is used to be a purely Bricks & Mortar, however its business is started to shift to the call center and online trade business due to part of the customers get involve in the e-business. In the pass two periods, the company upgrade its system a lot, for instance, supplier EDI, advance call center's IT system, and online trade. The listprice of company haven't change for both basic and value product but offers some discount on Bricks and Call center. And it's communication budget were cut in the TV and press and put some budget in the magazine, online banner and direct mail.

The company put a heavy effort in developing the Call center to compete other companies. Due to company 1 is the bricks and mortar base company, thus it's market share is quit high. Company 2It used to be a Bricks & Mortar, but has recognized the threat of other distribution modes and stared investing in call center channel for its consumer segment. For the basic product, the company was decrease the price and improve its system, and se ...

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