In this piece of coursework, I am to find out why Martin is successful and how they have gained competitive advantage against other viable substitute goods. Also where are they on the spectrum of competition. Could they be a monopoly or in an oligopoly? With references to my research and personal knowledge I aim to show the competitiveness of Martin PLC. What is competitive advantage? Competitive advantage is 4 factors which together can increase the success of a business and increase their profit.
These 4 factors are key to the maintenance of a business so that it can grow and increasing gain more notification. Martin has used these factors and has gained competitive advantage compared to its viable substitute goods. the way Martin has done this are; Innovation In 1987, martin was established. From then on they have been creating new “intelligent lighting”, moving lights which are used for effects in shows (will have page reference to appendix here).
As no other company have come up with a viable substitute product, Martin have the innovation of “intelligent lighting” in the entertainment market and having few Alternatives mean this market is an oligopoly. There innovation has led them in a certain security as no viable substitute oods are able to copy their design to the same standards. Martin has 3 main departments it offers for entertainment. For visual they have the “Mac” range and “Jem” range. “Mac” is there “intelligent lighting”.
They have produced many different types of “Mac” and have recently released their latest “Mac”, “the Mac 700”, the most computerised and the largest range in visual effects since it predecessors. They have a large range in audio equipment as well; which is used for large productions. “Jem” this is there stage effects including smoke machines and low lying fog machines Lastly they have a structural department. They provide staging and other rigging equipment for shows and other different entertainment needs.
Cost Due to the demand of “intelligent lighting” in the entertainment market and Martin being the world leaders in this, they are able to charge what ever they want to consumers. This is because of a high demand, Martin can afford to have high prices because of not having any viable substitutes. Relationships Martin has very strong relationships with their customers and also with beneficial investors. Their relationship with customers is providing a non doubtable amazing and long lasting product which is fairly priced due to ts unique selling point; there are not alternatives.
As Martin has grown worldwide, its relationships have also grown. This is including its suppliers of the raw materials to make there products. There products are very complex so a lot of materials are need at a low cost. Because Martin are successful, the suppliers will trust them and carry on supplying because of their reliability. Reputation Martin has one of the biggest reputations worldwide. Because of their quality products to due the efficiency and high demand. Martin are recognisable and as their products advance they become more ecognisable.
These are how martin gain competitive advantage. Market The Entertainment market is a huge market with a lot of products in it. With Martin, because of they innovation and unique selling of their product, they do not have little or no competition. There are only few viable substitutes. Martin is mainly used in theatres and by professional companies like the BBC. With having a cheap cost of purchase and hire, martins are more widely used for these instances rather than other companies like vari-light. A company which also produces intelligent lighting of a considerably high standard.