Content Streaming Services
Content streaming services are experiencing exponential growth in the US and worldwide. Parks Associates researched to determine the major player in the emerging market segment. According to the findings, the major players in the segment include Netflix, Amazon, and Hulu. Netflix has been ranked the largest content streaming site globally with 51 million subscribers originating from the US (Pressman, 2017). The second in rank is Amazon while Hulu wraps up the top three players.
Coincidentally, the three major players in the content streaming services are in the growth stage of the product lifecycle. In the growth stage, the products are characterized by an increase in sale. Netflix, Amazon, and Hulu have recorded an increase in the number of subscribers since their inceptions. The number of subscribers is directly proportional to the amount of profit the company obtains. In this case, an increase in the number of subscribers for the three companies shows that profitability improved.
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At the moment, it is premature to conclude that the market segment is on the verge of moving to a new stage of the product life cycle for various reasons. First, content streaming services is a new product that is steadily gaining acceptance in the societies; therefore, as many nations adopt digitization, many people will subscribe to the services. Second, many companies are joining the segment to offer competition. The new companies are introducing new services that are enhancing competition. However, with the introduction of new products within the company or competition catalyzes the transition of the old product to the next stage of the product lifecycle.
Carbonated Beverages
The carbonated beverages are a highly competitive industry considering the number of players in the market segment. Despite the elevated levels of competition, the companies like Coca-Cola, PepsiCo, and Dr. Pepper Snapple have a competitive edge. According to research conducted by the Grand View Research, the market segment was worth 392.6 billion US dollars in 2016 (Grand View Research, 2018). The major players in the segment are enjoying the brand loyalty that has been established for hundreds of years. Additionally, the companies have improved their methods of production by using advanced technologies. The success of the companies operating in this market segment is predicated on the ability to introduce new products that satisfy the ever-changing customers’ choices and preferences.
Coca-Cola and PepsiCo are in the maturity stage. First, it is significant to note that the brands have been in existence for many years. Second, both Coca-Cola and PepsiCo have established a strong brand image in different parts of the world. Coca-Cola has been a significant player in corporate social responsibilities by sponsoring many projects and activities. Analyzing the financial performance of Coca-Cola and PepsiCo reveals a steady profit margin. Both companies have a low cost per customer regarding how much the customers pay for the products. Lastly, the Coca-Cola and PepsiCo have a stable number of competitors in the market stage. Dr. Pepper Snapple is in the growth stage because its sales have been increasing steadily over the years. Conversely, the profits of the company have been on the rise. The company is facing competition from new entrants into the market.
There is no evidence that carbonated beverages are on the verge of moving into the next phase of the life cycle. Carbonated beverages are products that are consumed by many people, and hence changes in consumers’ preferences are limited. Introduction of new products or competition will, however, accelerate the movement into the next stage of the product lifecycle.
Smartphones
The main players in the smartphone market segment include Samsung, Apple Inc., and Huawei (Gadgets Now, 2017). The three companies are in the growth stage judging from the market characteristics. The sales of the products in the company have been increasing. The companies are enjoying the rising profits from the sale of different models of phones. For instance, each version of the smartphone produced attracts a different number of consumers. The companies have ensured that new smartphones have enhanced functionalities, a competitive advantage for the businesses. In this stage of the product lifecycle, there are more competitors. For instance, companies like Oppo, Vivo, Xiaomi, LG, ZTE, Lenovo, and Alcatel are fighting to capture significant market share.
Smartphones are the product for the digital generation. As such, it is anticipated that companies producing them will remain in the growth stage for many years before other innovative products better than smartphones are introduced to the market. New product or competition, affects the life cycle of a product by influencing customers choices.
Pizza
The main players in the Pizza market include the Pizza Hut, Domino’s, and Papa John’s International (Pizza Today, 2017). The players are ranked based on the number of units sold and the gross sales. Pizza Hut and Dominos are in the maturity stage. The two companies have a stable market, with high sales and profits. Additionally, the two companies are facing stiff competition from other players. Papa John’s International is in the growth stage. The company is recording an increase in sales and profits. Again, the number of customers has been steadily improving.
There is insufficient evidence on the transition of the market to the next phase of life cycle due to the nature of the product. Pizza is a food implying that it is a recurrent need for the consumers. Moreover, with globalization, pizza culture is proliferating to different region meaning that the consumption rate will increase. New products can affect the life cycle of the stage by altering the customers’ choices.
References
Gadgets Now. (2017, August 3). World’s 10 biggest smartphone companies . Retrieved from https://www.gadgetsnow.com/slideshows/worlds-10-biggest-smartphone-companies/photolist/59889191.cms
Grand View Research. (2018). Global carbonated soft drinks market share| Industry report 2018-2025 . Retrieved from https://www.grandviewresearch.com/industry-analysis/carbonated-soft-drinks-market
Pizza Today. (2017, November 1). 2017 Top 100 pizza companies . Retrieved July 15, 2018, from https://www.pizzatoday.com/pizzeria-rankings/2017-top-100-pizza-companies/
Pressman, A. (2017, November 9). Here how the top internet video services rank' and it's not what you'd expect . Retrieved July 15, 2018, from http://fortune.com/2017/11/09/ott-internet-video-netflix-hbo-hulu/
