Diamond’s Strategies: Market Analysis and Growth Strategies
8.As the ‘night-watch man’, the government should not directly intervene in the market operation, so it should provide further deregulation for companies. Except for this, the government should supervise the market and regulate economic activities to provide companies like Diamond with a stable and peaceful environment. Besides, the government can provide Diamond with more financial sources or support and implement some reward investment to facilitate the expansion of Diamond. And Diamond needs to make more trade agreements with other countries’ governments.
9.Firstly, the price has an inverse relationship with demand; the higher the price, the fewer people will choose the product. The downward pressure on prices might lead to more demand for Diamond’s products. Secondly, technology is of great importance, and Diamond identified the market trends and then uses the latest technological developments to satisfy customer needs; by doing so, more customers will be attracted and the demand will increase. Thirdly, the purchasing power of people will directly affect the demand; since Diamond is cutting the prices, more people will be able to afford the costs of Diamond’s products, and the demand will increase.
10.Firstly, cutting prices can attract more subscribers and make Diamond more competitive. Secondly, cooperating with the local well-known firms can establish the recognition of the brand. Thirdly, demand can be improved by advertising and other promotional activities. Fourthly, Diamond can share the resources with other companies to enhance the competitiveness of the whole industry. Fifthly, cooperating with international companies, such as Nokia and Siemens, can attract and share their loyal customers and enhance the international reputation. Last but not least, Diamond needs to develop the technology and provide consumers with new and updated products with more functions.
11.Product, price, promotion, and place are the four elements of the marketing mix. As for products, firstly, Diamond can concentrate on the development of environment-friendly mobile phones, devices, and relevant mobile phone applications since it is the characteristic of its products. Secondly, Diamond may be able to continue investing in ‘Smartphone’ or intelligent technology. It currently produces over 120 models within its portfolio, including devices that use state-of-the-art smartphone technology. Lastly, Diamond can develop 4G technology. Diamond is working with a number of electronics companies and network operators. Based on 3G technology, Diamond can develop the 4G technology under their technological assistance.
As for the price, firstly, Diamond has the unit cost advantage for a low-price-based strategy. Diamond can cut prices of products since the costs are lower; the new plant of the art production facility can produce handsets for the global market at significantly lower unit costs. Secondly, Diamond can charge their network customers for WAP usage, texting, and calling since the value-for-money services have been provided. In addition, Diamond can use targeted pricing for the emerging markets. The cooperation with Huawei helps Diamond to ensure its pricing method can be specifically targeted at meeting the local needs and demands of the Chinese market.
As for promotion, targeted promotional activities, Push and Pull Strategy, word-of-mouth promotion, and online and offline promotion can be used by Diamond. Cutting prices is an effective way for sales promotion since the costs are lower. Diamond can choose personal selling to specifically introduce their products and services one by one. Word-of-mouth promotion is also suitable for Diamond, given its strong stance in relation to the environment and its good reputation for its sense of responsibility and the quality of goods and services. Online or offline advertising and support for programs for public goods can help Diamond to improve its recognition and reputation among consumers.
Fourthly, after the reorganization, Diamond has established a marketing section to regulate the distribution activities and supply chain operations. The development and management of the supply chain enable Diamond to manufacture in a developing country and sell in a developed country, which can help to generate more profits. And with the development of e-commerce, Diamond may be able to enter into partnership agreements with e-commerce retailers to achieve direct sales to final users.