Question

Miso company is a family business where Mr. Mohamed is in charge of the commercial part, and Mr. Khaled is taking care of the production. The idea for the business came when Mohamed thought that the future is lying in the field of manufacturing where more sustainable profits can be attained, eventually he established Miso Company in 1993.

The company is working in the field of producing abrasives which works on providing production supplies needed for polishing and finishing granite, and marble. It is mainly targeting the segment of marble, and granite factories where the big blocks are cut, sliced, polished with abrasives, and then sold.

During the inception phase, and for some years, Miso Company was concentrating on selling its products to companies working in the field of natural stones like marble and granite. Nowadays there are other potential customers including ceramic factories which need abrasives for polishing its products.

There were some challenges for establishing Miso company at the beginning, this is where Mohamed asked his brother Khaled to be a partner. The company is manufacturing products which require a high degree of technical knowledge, which in turn requires that the company develop its own formulas to stay away from the competition of other Egyptian, and international competitors. Engineers working in the company must be always updated about the latest technology of marble, granite cutting, and polishing machinery in order to create the most suitable abrasives which can serve the industry.

General research reports on the other hand show a considerable potential for growth in the abrasives retail industry, which represents, as indicated by the report, a golden opportunity. However, for Miso to create their own retail store, they need to give up on expanding their current facility.

Mr. Mohamed is still considering the option of expanding their manufacturing facility versus opening their own retail stores.

Case Questions

Explain what is a market segment using your knowledge and the discussion in the case. (3 points)

Answer 1

A market segment refers to a distinct group of potential customers identified by specific needs and characteristics within a larger market. Miso Company initially targeted a market segment involved with marble and granite, but is now considering expansion to include ceramic factories. Their potential for growth highlights the importance of understanding and meeting the specific demands of each segment.

Step-by-step explanation:

A market segment is a specific group of potential customers within the larger market that has been identified as having specific characteristics and needs which differentiate them from other groups. The Miso Company initially focused on the market segment comprising of companies dealing with natural stones such as marble and granite. However, they are now considering expansion to include ceramic factories as a new market segment. A company, when identifying a market segment, looks at factors like common needs, purchasing behavior, demographic profiles, or other attributes that merit a unique approach.

For Miso, their market segment has distinct needs for abrasives for polishing and finishing granite and marble, requiring specialized products that can handle the rigors of such a task. Their consideration to segment further into the ceramics industry indicates an intention to cater to a different set of needs with the potential for expansion. The engineers' need to stay updated on the latest technology for marble and granite cutting and polishing machinery is an essential part of tailoring their products to meet the specific demands of their market segment.

Choosing between expansion of manufacturing facilities and creating retail stores is a strategic decision that hin-ges on understanding the specific needs and potential profitability of each market segment Miso intends to serve. The decision between focusing on manufacturing for their current market segment or expanding to retailing points to the challenges a business can face when trying to cater to various segments within their market.