Practise market-research purpose by linking findings to customer needs, launch risk and decisions about product design or market gaps.
Huawei has to maintain the quality of its products to be able to compete with other businesses, as well as generating profit. It must also ensure that the products it produces meet the needs of its customers as well as introducing new and different forms of technology. On its website it states 'Huawei are committed to bringing digital to every person, home and organisation for a fully connected, intelligent worlds'.
In January 2019 Huawei launched the Huawei 10 Pro smartphone in the US at a cost of 5353 Renminbi (CNY).
The exchange rate was $ 1=6.70 CNY (Chinese Yuan Renminbi)
Evaluate why Huawei would carry out market research before designing a new product. You should use the information provided as well as your own knowledge of business.
AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks
- Market research finds out what customers' needs and wants are
- By carrying out market research Huawei will be able to make informed decisions as to actions it should take
A02
- If Huawei produces a watch that very few customers want then it could waste a great deal of money
- Huawei may decide to add additional features or reduce or increase the size of its smartphones from comments made by potential customers
A03
- This could have a negative effect on Huawei's financial situation and also impact upon the development of other products such as tablets that Huawei makes and sells
- This could help increase sales of tablets and smartphones and enable Huawei to remain competitive
A04
- However, producing a watch that no other business is offering could mean that it sells more of the products and gains a competitive advantage
- However, there is no guarantee that all the market research carried out is worthwhile as customers' tastes and needs are changing constantly in light of new technological developments
(12)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-4
- Demonstrates elements of knowledge and understanding of business concepts and issues, with limited business terminology used (AO1).
- Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).
- Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3).
- Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made (AO4).
Level 2
5-8
- Demonstrates mostly accurate knowledge and understanding of business concepts and issues including appropriate use of business terminology in places (AO1).
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3).
- Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made (AO4).
Level 3
9-12
- Demonstrates accurate knowledge and understanding of business concepts and issues throughout, including appropriate use of business terminology (AO1).
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3).
- Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made (AO4).