Research Articles Base: Sample SWOT Analysis

Case Study/SWOT Analysis Of The Rise And Fall Of Esprit Clothing Lines

THE RISE AND FALL OF ESPRIT CLOTHING LINES      Esprit Holdings Limited is the leading manufacturer and distributor of fashionable apparel and clothing lines in Kowloon, Hong Kong China and Ratingen Germany they also distributed other products like footwear, men and women’s accessories, jewelries, cosmetics and other products but they are widely known for their clothing lines and apparel. Esprit Holdings distribute their products worldwide around the world they have 770 retail stores in 40 countries. This Company is founded by Susie and Doug Tompkins and Jane Tise as Plain Jane Dress Company in 1968 and later on become Esprit. Since then it has become an internationally accepted brand until late 1990’s when they slowly drifted low in the market that customers no longer prefer their brand like the way it was. Even Tompkins himself left the company to build his own brand that we know as Tommy Hilfiger. Esprit summary of SWOT analysis includes the following;       Strength –  Although they have become weak in the market they have already establish an international acceptance their strength lies in their experience and ability to produce new styles, use the power of the media to be able to regain their strength in the market. They have also made several networks and contacts in distribution of their products. They can even come up with new product lines that can be accepted. Due to this reasons Esprit re established their sales and distribution using online and retail store selling in various countries in America, Europe and Asia and they have become successful. In their report shows in 2007 to 2008 they generated EUR 2.5 Billion Euro. The strength in their past operation is still there and can be recovered.       Weaknesses – Their weakness shows that they have not introduce a new product line during their peak years in 1968 until the 80’s, they have settled on their designs and style that people look for new fashion and models of products. The research and development has become their weakness although during those times they have gained a good customer’s trust, the owners themselves have not given the customers demand. They have become over confident that they already stopped their promotion and advertisement in media and other brands have overtaken them during those times. This results in closure and weak sales in most of their brands.       Opportunities – Still their strength is their opportunity where in fact they can still be accepted from other countries if they decided to close most of their retail outlets from other regions. In US Esprit suffered continuous loses in the last few years but they can take advantage on the other countries which they have long restricted in distribution, also in their website they still gain good market demand and a good network of distribution. Esprit can also focus on countries through which they can gain a strong acceptance just like in United Kingdom and in Australia. This has been done by the company like Kenny Rogers Roasters and they are very successful as well.       Threats – The market leadership of brands like Ralph Lauren, Gucci, Armani etc. and other competition is very strong. Another threat is the fast booming business of second hand merchandise that offers a very low priced items plus the trust of people in their brand seems to be a threat. In this case they must establish and create new products that the customers desire, good quality, latest fashion and low price products.        Accordingly customers believed that most of their merchandise, apparels and other products were no longer fashionable and their styles run out of date. They have not been making difference in the eyes of the customers who always prefer the current trend. The colors are not trendy sometimes they are too expensive. According to their competition who usually never mention their names some clothing lines like esprit has not featured a unique clothing that is why they are easily beaten, the quality has been very ordinary and their styles are poorly done that they make horrible product lines.       Considering the five porter’s forces in a collective manner the competitive rivalry of esprit to the leading brand is weak in most Asian and American countries but they can concentrate on UK, Australia and other European countries. The threats of the market for a substitute product like the coming of the second hand merchandise that usually divide the market still hinder the company to distribute from other areas because they may be branded out as a second hand but higher in price while the second hand items are half the price. The bargaining power of the customers to buy their products in the higher market level or class A may not be as the same as usual but in most class B or C communities they can gain a better opportunities if they continue to penetrate this market type and if they do, they may have a chance to reach the higher market. Focusing on countries in Europe, UK and Australia is still recommended.       The bargaining power of supplier who usually develops raw materials can hinder their operation and pricing strategy that the cost of materials plus the labor and other services is usually higher now compare to the past decades. In an overall interpretation above it shows that they have a long way to go regain their standing in terms of acceptability just like what they done in the past in the eyes of the market. Credit:ivythesis.typepad.com

Case Study/SWOT Analysis Of The Rise And Fall Of Esprit Clothing Lines

THE RISE AND FALL OF ESPRIT CLOTHING LINES Esprit Holdings Limited is the leading manufacturer and distributor of fashionable appar...

MARKETING

Executive Summary                       The industry of olive oil is very competitive globally. There are large manufacturers of olive oil in Italy, Greece and Spain. One of the most popular producers is the. In Australia, olive oil is widely used, although they import most of their olive oil products, there also some supermarkets that produced their own olive oil. It was predicted that in 2008, the quality of produced olive oil will only be surplus. That is why, in Australia, producing their own local olive oil to replace the imported olive oils is seen to be the solution to the problem. However, this solution will sacrifice the pricing and distribution of their olive oil products. This study aims to analyzed the above mentioned problems and hopefully, will come up with comprehensive recommendations to its solutions using the concepts and marketing strategies.                       I.                    Case Background   Olive is considered to be the most essential for the diets of the health conscious people. According to some researchers, people in Greece and Southern Italy lived long and healthy lives. Illnesses such as heart disease were almost not popular among them, unlike in many Western countries. Aside from these benefits, olive oil has monosaturated fats, researchers are now discovering that it is more advantageous when it comes to the dozens of potent, anti-oxidants and related compounds. Olive oil also gives more flavors to food especially extra olive oil.               There are well-known brands from Italy although Spain is the largest producer globally. While, is produced by the well-known,  there are no dominating brand globally especially in USA, UK and Australia, the major supermarkets in this country have their own olive oil that dominates the industry locally. Australian manufacturers, like Group, developed brand and distributed in the local market.               There are 1200 million olive trees in the world and 2.5 million tons  are produced every year, and 50% of these are extra virgin. European Union and Tunisia produce 85% of the oil. According to the Olive Oil Council, the UN-authorized production is funded by the EU and predicted that by 2008 there will be 126,000 tons of world surplus which means 4% of the over all production.               In Australia, production will be proportioned to the consumption in 2006. Most manufacturers are exerting their efforts to produce extra virgin and will sell it for per 500ml. These oils will be of high quality however it is strong flavored and dark in color, not the kind the consumers buy.   II.                  Case Issues   According to the case, the following issues were identified:   ·         Production is forecast to move into a surplus quality by 2008. ·         Australia has imported most of their olive oil. ·         Price will be the problem if home-produced oil replaces imported oil. ·         Olive oil consumption is considered to be a commodity and it is sensitive to price and promotion. ·         Current olive oil prices in Australia are not motivating the consumers. ·         Short term consumption prospects for olive oil in Australia and extra virgin olive oil will most likely take up some of the share of the other quality of olive oil.       SWOT Analysis   The SWOT Analysis of the company is made to show the companies potential against new entrants and its advantages over them. SWOT ANALYSIS Strength             -           strong brand association             -           nationwide coverage             -           unique products and ingredients             -           growing profit, earning and dividend growth             -           sound reputation of quality products             -           ability to expand to supply base to meet sales             -           good product and market knowledge             -           strong market research team. Weakness -          seasonal downturns (summer) -                      high product wastage -                      poor peak time control -                      decline in traditional staples of olives -                      late delivery / arrival times Opportunities -                      diversification (selling extra virgin olive oil in supermarkets) -                      plans to sell extra virgin olive oil locally and globally -                      increasing adoption of market research -                      future outlook to include seating -                      possibility to extend to pre-order foods -                        Threats -                      competitors -                      hot weather -                      increasing health cautious society -                      increasing cost of ingredients -                      bad media coverage of olive oil industry -                      increased concern for hygiene -                      increased government regulations in relation to hygiene and contents of ingredients.   BCG Analysis       The business of olive oil is successful because based on its BCG analysis, the following benefits were achieved over the years. ·         Financial Stability Financial stability is crucial especially in the pursuit of research and development activities. In the olive oil industry, it is important to remain updated with the latest technological developments that can be used to improve production to be able to stay competitive in the market. ·         Excellent Product Performance and Price Manufacturing best olive oil products comes as a result of well-funded research and development activities. The strong performance of these products in the market could also be linked to their cost-effectiveness. However, the company has to be aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the market. ·         Effective Distribution of Products High brand awareness among the buyers has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new olive oil products. ·         Economies of Scale and Scope in manufacturing and research and development arising from its numerous facilities situated in the worldwide. ·         Unique Quality Technology The olive oil company should commit to research & development activities have always been one of its top strategies to remain competitive in the market.           ·         Differentiated Products Through the production and marketing of differentiated products originating from their research and development activities, the olive oil company is able to create its own firm-specific advantages. The continuous pursuit of research and development processes enables the company. to produce a steady stream of originally differentiated products which makes it difficult for competitors to find substitutes. Because of this differentiated approach, the company. is able to market their products worldwide, which enables them in turn to maximize the returns on research and development expenditures (, 1997). There is definitely a need to reconcile both the inside-out and outside-in capabilities. While the olive oil company business strategy involves focusing on the results of the B.C.G. analysis with market position following its resource base, the company will be put into a disadvantageous position should it choose to neglect both the macro as well as industry environment. Therefore, the company has to be aware of the latest technological changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring (2002). BCG Matrix of the Company The olive oil company can be considered as a cash cow because it distributes extra virgin olive oil to its consumers and equipped with new innovative olive oil products such as salad dressings and other famous delicatessen in Australia. At the same time the company can also be considered as Stars because they put a lot of efforts to increase the awareness of their consumers to the positive effect of using extra virgin olive oil to their health. III.                Case Analysis   In the case of the extra virgin olive oil industry, there are multinational competitors based in Italy, Spain and EU. However, these companies cannot sustain the consumption of olive oils globally and will lead to low quality oils in two years. That is why Australia is trying hard to produce high quality olive oils for national consumption. The relationship of the case issues is simple, using the law of supply and demand, there is a very large demand for high quality olive oil, then there should be more large supply of high quality olive oil.   In terms of ingredients, olive oil uses approximately millions of olives. For each ingredient, there should be many suppliers globally. In addition, due to its strong relationships with suppliers, the company became the first in adopting a number of new technologies around the world. Competitive advantage has always been an issue in business. The olive oil industry issues can be analyzed using  five forces model. An industry is a group of firms that market its products closely substituted from each other.  According to (1980), some industries tend to become more profitable and competitive than the others, hence, an existing industry such as the Extra Virgin Olive Oil should always remember that their industry will only survive by utilizing a strategy that would enhance the competitiveness of the business.  Using  Five Forces Model, the analysis of the industry sector of the Extra Virgin Olive Oil will be analyzed .   New Market Entrants             Five Forces Model includes threat of entrance of new industries.  Primarily the goal of the Extra Virgin Olive Oil is to establish a position in the olive oil industry and to become a company that would always be competitive in the marketing arena.  Extra Virgin Olive Oil is considered as a small company in the olive oil industry, that will compete with large companies like Unilever, and other olive oil manufacturers from EU and, Italy and Spain is not necessary unless the one who will handle such company will have the strategy to outgrow them.   Supplier Power             It is said that the conditions and the present arrangement in the olive oil supply market largely determines the extent in which effective competition can be achieved.  The bargaining power of a supplier could be a threat for the profit of the company, and Extra Virgin Olive Oil should be very much aware of it.  In this manner, Extra Virgin Olive Oil is should try to have a good contract with its supplier.  Herein, the company should make it sure that they are also benefited in the said contract while the suppliers enjoy the agreement with them (1989).         In this kind of business, there is only a limited competition in the olive oil supply market.  The company must avail their olive oil resources from local suppliers in Australia.  This limited competition in the olive oil supply market illustrates a major obstruction to competition in terms of olive oil market.     Competitive Rivalry             The company should dominate the extra virgin olive oil in the Australian market.  This means that the company should stay top of the competition among other olive oil company at least in Australia. The company should enjoys its competitive position in the region and still trying to sustain its competitive advantage among its rivals.    Buyer Power ’s also include in his model the concept of the bargaining power of Buyers. Hence, the Extra Virgin Olive oil secure that their clients and customers in all aspects will be satisfied for the quality products they provide. Specifically, the company has focused their marketing approach on the demands and needs of the buyer for an energy source that satisfies the and heavily positioned their products in this segment .  The company should also use their environmental responsibility as a good public image to make the company more appealing to their customers.  The competitive aim of the company is to do significantly a better job of providing what buyers are looking for and, thereby enabling the firm to gain competitive advantage and out compete rivals within the marketplace (, 2003).     Threats of substitutes             In terms of threats and substitutes, although the company is aware that there were threats for substitute products, specifically now that technologically advanced materials are used to find new sources of oil which is more environmental friendly, the company still have the assurance that their quality service and the satisfaction they give to their clients and customers will hinder any substitutes to have their way.   IV.               Recommendation   Market Segmentation   The new olive oil products should be introduced by the company will be a plain, extra virgin olive oil. This new product will be named as Extra Virgin Olive Oil once it is already launched. As observed from both the desk and consumer research, new olive oil ideas will be supported by a huge market, increasing the possibility of a successful product launch. Another rational for developing this olive oil product is based on the company’s aim to meet the needs and wants of the customers (1990). The olive oil seems to be a major choice among consumers, particularly among women respondents. The preference for olive oil serves as the gatekeeper when deciding on what olive oil to buy. Thus, by concentrating on this particular gatekeeper, the chances for the success of the new product will be increased.                             Another factor that motivated the company to create this new product idea is the increasing awareness of local consumer on the importance of healthy eating. When healthy food choices are taken into consideration, olive oil normally do come into mind. The company intends to make their consumers be aware that by creating a product that suits consumer palate and good for the health. This aim can be achieved through the use of olive oil in their other food products and delicatessen as the main component.             Packaging The package will be designed in a way that will represent the product’s image as healthy, creating a strong appeal to the adult female target market. The selected combination of colours for this product will be white and blue to reflect attractiveness, with the addition of a beige colour to represent its olive oil content. The product will be manufactured in 250 ml and 500 ml packages.               Pricing   The price recommendation for the new product is based on the research done for consumer price preference as well as the calculated costs that will entail the product production, promotion and distribution. For the pricing aspect, the company proposes a .50 and .00 price values for the 250 ml and 500 ml  Extra Virgin Olive Oil packages respectively. The products will be distributed through the company’s extensive network of wholesalers and retailers. Specifically, the product will be distributed initially on the through supermarkets, big and small retail stores, and sweet and gift shops as well as in other related establishments found nationwide.               Promotion The communication strategies that will be used by the company in launching Extra Virgin Olive Oil will be an integrated approach of three marketing approaches: print, television and the internet. These three approaches were selected as the company believes these are the strategies capable of attaining faster market response.   Print. The new product of the company will be advertised using print media by means of newspaper and magazine advertisements, billboards and posters.   Television. A television commercial will also be launched by the company as a means of marketing strategy. Basically, the concept of the commercial will feature female adults and the product. The main idea is to emphasize on the good taste and healthy content of the product.   Internet. One of the recent and most effective communication strategies in marketing is the internet. By means of the company’s own official website, the new product can easily be advertised and put on sale. Moreover, internet marketing will be a useful tool for the company in preparation for international distribution. By measuring and evaluating the response of international consumers of the company regarding the new product, the company will be able to determine the right time to market the product on the global level.                         References     Credit:ivythesis.typepad.com

MARKETING

Executive Summary The industry of olive oil is very competitive globally. There are large manufacturers of oli...

SWOT Analysis of Marriott Hotel Chains and Resorts

THE STRENGTH, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) IN MARRIOTT HOTEL CHAINS AND RESORTS   Marriott is considered the   most leading hotel and leisure companies in the U.S. that has various business brands in the global market.  At the corporate level, Marriott operates in most countries in the world.  The company which has been known with its strong brands like Marriott Hotels and Resorts, JW Marriott Hotels and Resorts, The Ritz-Carlton, Bulgari Hotels & Resorts , Grand Residences by Marriott, Courtyard by Marriott and Towne Place Suites by Marriott;  is the most admired and recognized in the  hotels, resorts and casinos industry  worldwide.  In fact, it has been receiving various prestigious awards across the countries.  Marriott has reached its peak of success because of its own eight positive traits which still continuously imbibed by the company itself and the people who work in the different branches of the company.  These eight outstanding characteristics of Marriott include innovation, excellent people management, proper use of corporate assets; the entire workforce has a strong social responsibility, effective management strategic plans, there are   stable   investments; as well as remarkable profits and return of investments; and  the most important  trait is the company always caters for best quality products and services for diversified clienteles in the world.  In addition to that, Marriott  has its own product range and pricing strategies that  enables to serve  its wide range of customers; as well as it enables to address the individual demands of the   international market.  Aside from that, the company has a strong technological   foundation that serves as its one of the strongest competitive advantage for Marriott over the other competitors; as it owns the world’s seven largest consumer retail website, the Marriott.com.  The website provides the company with gross property-level income of US, 200 million in 2008 fiscal year.  Additionally, the company also offers booking facilities and services to its customers through mobile services.  During its fiscal year, Marriott recorded more than US million revenues through its mobile booking engine.  And, because of the company’s exceptional   technological facilities and abilities, it tremendously reduced its promotional expenditures for the fiscal year.  (http://www.reuters.com/article/2008/07/10/us-marriott-idUSWNAB025420080710) However, after all the success and achievements of Marriott, still there are challenges that the company has to hurdle.   In April 2009, the Marriott’s credit rating had lowered by Standard and Poor Ratings Service.  The downgrade in Marriott’s credit rating makes it difficult and expensive for the company to access again in the credit market.  Eventually, there would be an increase of capital cost of Marriott’s; if its credit rating continues to fall down.  More important to know is the threats that the company would be going to experience with its operating margin that   dropped to 6.1 percent from 9.1 percent in 2008; this only indicates that Marriott has not been able to manage well its cost structure.  Subsequently, declining operating margins have great impact on the profit making process of the business.  And, even until these days, Marriott reportedly declined its net income to US7 in the second quarter of June this year; from    US7 million   in the previous year.  Moreover, Chief Executive J. W. Marriott stated that the other Marriott chain of hotels outside the United States are continually benefiting from the strong global demand of the customers.    But still, the domestic market in the US territories is as not as active as the other branches in other countries.  Equally important is the major concern of the hotel industry towards US airlines, which are cutting routes as their way of fuel cost cutting for their own survival.  There are many hotel executives in the United States who are hoping for the reduction of fuel prices so that business travel and hotel industry   can boom again in the domestic market.  (http://www.reuters.com/article/2008/07/10/us-marriott-idUSWNAB025420080710) On the lighter side, Marriot has been doing its very best to apply initiatives to cover up its areas of improvements for the past years.  In this connection, the company decided to make changes or renovations on its existing chain of hotels.  For instance, the Atlanta Marquis has able to complete its renovation of hotels recently with a total expenditure of US$ 138 million; as well as the Renaissance Hotels and Resorts division has completed also its  three-year renovation contract which costs  up to  US,000 million.  In the same manner, there are many business opportunities for Marriott to expand its business in China and Indian resorts.  Based on the geographical research made, the travel and tourism condition in India and China is remarkably growing; it even doubles the   growth rate of other competitors in the rest of the world.  Therefore, Marriott can benefit largely from the   business travel and tourism market in both countries.  (http://answers.yahoo.com/question/index?qid=20090719172405AA4Fsd2) References: (http://www.reuters.com/article/2008/07/10/us-marriott-idUSWNAB025420080710) (http://answers.yahoo.com/question/index?qid=20090719172405AA4Fsd2) Credit:ivythesis.typepad.com

SWOT Analysis of Marriott Hotel Chains and Resorts

THE STRENGTH, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) IN MARRIOTT HOTEL CHAINS AND RESORTS Marriott is considered the most lea...

Strategic Marketing Planning Sample Paper

Table of Contents     Introduction……………………………………………………………………………..2 Strategic Marketing Planning………………………………………………………..4 The Case of TESCO and ASDA………………………………………………………7 Conclusion………………………………………………………………………………9                                 Analyzing the competition   Introduction               The ability of a business to stay in the industry is one measure of the business success. This means that being able to survive is a necessity and survival translates to the ability of a business to compete. Since the 1980s, marketing strategies have played key roles in planning to overcome challenges. It is believed that this line of thinking will continue to direct the activities of business into the 21st century (1999). In addition, it is also believed that good managers have the ability to formulate and implement competitive strategies. This is the case since competitive strategies have the capacity to make the business organization stand out among the sea of competitors within the same industrial sector. Therefore, competitive strategies can ultimately aid business organizations in increasing their profitability and achieve their goals. The following sections of the paper will be discussing the rationale behind competitor analysis. In addition, how competitor analysis can help in ensuring the survival of a business organization will also be tackled.   In order to present the theories in a more practical manner, a specific industry will be used as an example. Doing so will allow the paper to present the theories in action and how they work in real business situations. For this particular paper, the chosen industry is the food retail industry. One of the reasons behind the proliferation of groceries and public markets can be attributed to the introduction of money, making the evolution of the grocery dependent on economic changes as well as settlement patterns of people ( 1993). Along with these changes, the nature of grocery stores also changed. Mass production of food products affected the grocery trade tremendously since they would no linger have to depend on local and regional food supplies.  During this time, the storekeepers solely carry out the management of store including serving the customers’ needs on top of keeping an eye on wholesales and barter trade.   The convenience that grocery stores offer to the public can also be considered as one of the stores’ positive attributes.  Being able to buy all of the things needed in just one-stop sure makes these retail stores an attraction for the consumers. However, the concept of convenience is not the only focus of grocery nowadays. To be to able to compete grocery stores must be able to find ways of  at least maintaining their customer base, customer retention, before tackling the task of attracting new ones.  In addition, in order to this, most store managers use the concept of customer satisfaction as the basis of implementing store regulations. Providing total shopping experience is seen as one way of pleasing the customers. This process involves the offering varied products and services that will be more valuable to the consumers.    One of the leading food retail companies is TESCO. It is one of the biggest supermarket chains in the United Kingdom employing 195,000 staff in UK and 260,000 worldwide.  They have 979 outlets worldwide, in South Korea, Thailand, Taiwan, Czech Republic and Slovak Republic, 729 of which are in UK. TESCO is estimated to be enjoying 16.7 percent of market shares (). However, TESCO is still aware that they must be able to maintain their competitiveness if they are to continue experiencing success. This means that the company acknowledges the presence of competition and they are also aware that competition needs to be taken seriously. What makes competition such as integral part of the business cycle?  How does competition affect the overall performance of a business? These are some of the questions that this paper will attempt to discuss.   Strategic Marketing Planning               Strategic marketing planning is defined as an organization-wide planning as a way of responding to market opportunities, external environment and target audiences; when doing strategic marketing planning, the decision must be in line with the mission, vision, internal strengths and resources available to the company (1992;1996; 2003; 2003). It has been stated that strategic marketing planning takes place in the context of corporate planning (1985;1992;2003).               This may be the case since strategic management is an organization-wide task. Corporate management is process of leading an organization by deploying and manipulating resources.  As such, strategic management, which includes strategic marketing planning, takes place in the context of the corporate planning. In addition, the analyses being performed include the investigation of the internal weakness and strengths of the company in relation to the competitors. This means that the whole organization is involved in the process. Aside from investigating the weakness and strengths of the company, strategic positioning is also and important aspect of strategic marketing planning (1996;1998;2001).               According to  (2003), strategic positioning is the process that allows organizations to develop a level of positioning, whose objective is to differentiate the organization from others within the same field or industry. This means that strategic positioning will allow organizations to have a competitive advantage over their rivals. However, once competitive advantage it does not ensure the continued success of the organization. It should be the goal of business organization to be able to achieve a sustainable competitive advantage (1985). This will allow them to be one-step ahead of their competitors.               According to  (2000), competition is important since it affects the success of a business venture.  added that competition is more than just producing and distributing products and services that matches the needs of the consumers. Competition is about the company’s capability of positioning itself in the market so that they will stand out among the rest in the perception of the consumers.               Therefore, it is important to know the factors that help in shaping the perception of the consumers towards certain products and services. On way to do this is to implement a PEST analysis. PEST stands for political, economic, socio-cultural and technological forces. These factors affect business through the consumers. Since these factors help in shaping the perception of the consumers, it suggests that it also affects the purchasing behavior of the market base.               Business can also use Porter’s Five Force and SWOT analysis to understand the competition. SWOT analysis is one of the widely accepted and used strategic tools. It is success is attributed to the fact that it is straightforward. This makes the tool easy and simple to use. The objective of the SWOT analysis is to determine the presence of factors that will help the business in achieving its goals as well as factors that will hinder its improvement both internally and externally. In doing the SWOT analysis, the company will be able to match the resources and their capabilities with the competitive environment.               On the other hand,     Porter’s Five Forces Model implies that business are being influenced by five forces namely supplier power, threat of substitutes, buyer power, barriers to entry and rivalry. This model also implies that business must be able to understand the industry context in which they operate. This must be done in order to better design the strategy that the business will use to be able to compete with rivals within the same industry. It is important for businesses to determine the level of competition present within the industry. This will allow them to address potential risks before they even strike.   The Case of TESCO and ASDA               In the case of TESCO, their main competitor is ASDA. The competition is tight between the two food retail companies as well as with others like Sainsbury. ASDA is owned by Wal-Mart the largest grocery chain in the United States. They are known for low priced items. This is one of the reasons why people tend to go to their stores for their shopping needs. When they expanded in the United Kingdom, they brought with them their cost leadership strategy. This resulted to the same success that they have in the United States. However, TESCO was able to thwart ASDA last year. How was TESCO able to overtake ASDA?               According to  (1985), a business positions itself based on its strengths and strength are categorized into two – cost advantage and differentiation. Furthermore, when these strengths are applied in either a narrow or a broad sense, it will result to three generic strategies – focus, differentiation and cost leadership strategy. Of the three generic strategies, cost leadership strategy played an important role in the achievement of TESCO’s competitive advantage over ASDA.               Cost leadership strategy means that the company is the low cost producer or provider of a certain quality item in a given industry. This kind of strategy is being implemented for two reasons and achieved through two ways. The first method and reason is to sale items at average industry price so that the company will be able to be more profitable compared to rivals. The second method and reason is to sale the products at below average industry price in order to gain market share. According to  (1985), a company that has the ability to produce or offer less costly products will be able to remain profitable for a longer period. It is important to note that this strategy targets a broad market.               These conditions were used by ASDA to their advantage and the results showed that it worked for them. TESCO is operating under the same conditions as ASDA. Theoretically, the cost leadership strategy should work for them too. When TESCO implemented the cost leadership strategy, they were able to prove that the theory is correct. In 2005, The Grocer published that TESCO was able to increase their market share from 26.8 percent to 29.1 percent (cited Desjardins, 2005) . However, if TESCO and ASDA were operating under the same condition how TESCO able to overcome ASDA just by implementing cost leadership strategy?  It must be remembered that TESCO has always been a UK based grocery and they have been operating longer in the region compared to ASDA. This means that have an established market base before the entrance of ASDA. When the latter entered the scene, they were able to capture some of TESCO’s customer due to cost leadership strategy. Therefore, when TESCO implemented the same strategy they were able to regain their lost customers.               Conclusion               Based on the above discussion, it is clear that competition allows business organization to plan strategies that will allow the company to gain a lead and thus improve their services or products, which are both, beneficial to the company and the consumers. In order for this to be achieved, the company must know who their competitors are as well as the strategies that their competitors implement in order to gain profit and market share. Acquiring these details allows companies to formulate their own strategies or copy the strategies of their competitors, which ever is more beneficial. The importance of competition analysis and strategic marketing planning has been illustrated in the case of TESCO versus ASDA, where the former was able to gain competitive advantage by copying the strategy of the competition.               In this light, it can be stated that the object of the paper to present the importance and impact of competition on business has been met. This was done through the discussion of the underlying theories and practices in relation strategic marketing planning.   Credit:ivythesis.typepad.com

Strategic Marketing Planning Sample Paper

Table of Contents Introduction……………………………………………………………………………..2 Strategic Marketing Planning………………………………………………………..4 The Case of T...

Strategic Planning

Marketing Planning   Introduction If an organization wanted to conquer the market, it is important that they consider strategic marketing planning of the business (2000) and as part of this plan, it is important that a company should understand its competitors. Principally the goal of this paper is to determine the reasons why a certain organization should be able to understand its competitors and how this can be helpful for the company. In this particular study, the discussion of the concept of strategic marketing planning will be given. Moreover, the discussion of the comparison of corporate, strategic and marketing management will also be cited. And lastly, this will also tackle the role of strategic planning versus its competitors. A strategy is a plan that integrates an organization’s major goals, policies, decisions and sequences of action into a cohesive whole. It can apply at all levels in an organization and pertain to any of the functional areas of management and this include marketing plan. Strategy is concerned with effectiveness rather than efficiency and is the process of analyzing the environment and designing the fit between the organization, its resources and objectives and the environment. The strategic process refers to the manner in which strategy is formulated. There are several approaches. First, the rational approach, making use of tools such as SWOT analysis and portfolio models; second, the flexible approach, which employs multiple scenario planning. The creative approach reflects the use of imagination in planning. The behavioral approach reflects the influence of power, politics and personalities. And finally, the incremental approach is based on small adjustments or changes to previously successful strategies. Marketing is about satisfying customer wants and needs and in the course of doing so facilitating the achievement of an organization’s objectives. By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in the marketplace. Of course, organizations have to compete with each other and so also have to satisfy customers’ wants and needs at least as well as their competitors. Fortunately, organizations can do this in different ways. Competition involves finding a different way to satisfy customers from other organizations in the market place. In the pursuit of this end, products and services need to be seen as more than physical entities—it is the benefits they offer customers that are being purchased. Hence, Strategic marketing planning aims to effectively deliver the company’s competitive advantage to the marketplace so that the firm can exploit this profitably. In addition strategic marketing plan is the vehicle via which the cash is earned to make that return on capital (1999).  In this study, the organization that will be considered is Blair Company Inc. which plans to enter the Indian market.  This paper will also attempt to analyze and evaluate the competitive situation, in which Blair Company Inc. as it considers entering the Indian market for home water and purification equipment. This will also provide some marketing plans that the company can use for the Delight purifier. Blair Company Inc. was founded by  in 1975.  The company’s mission is to provide equipment that will meet the needs of its target market in terms of filtration and purification of water for having high quality water.  As part of the organizational goal, the company is also aiming to enter international market to be able to be known in both local and international level and position itself in the global competition. As part of the geographic expansion of the company, they are trying to produce innovative products to meet future needs in terms of water purification and filtration. Herein, the challenge for the company is to determine a marketing strategy which will make their product profitable in the Indian market.  The company is also being challenged by other industries who offered quality water in India.   The Concept of Strategic Marketing Planning             Strategic marketing planning is concerned with predetermining both short and long-run courses of action, and with arranging the marketing elements so that a firm’s position will be optimized over time. Both the marketing concept and the systems approach imply marketing planning. Planning emphasizes that companies do have an opportunity to shape their own destiny and provide basic directional guidance for future activities. Marketing planning is linked directly to sales forecasting and leads to two results: establishment of a corporate perspective and the development of marketing programs. The application of computer technology and the use of new analytical techniques have added greatly to the efficacy of planning activities. Such tools as critical paths, input-output analysis, payoff matrices, decision trees, linear programming, and simulations, discussed in later chapters, are used extensively in marketing-planning operations.   Comparison Corporate/Strategic/Marketing Management In the marketing concept, there are many approaches that can be used in order to make a company more competitive and successful. These approaches include corporate management, strategic management and marketing management. Corporate management adheres to all other management concepts needed by the company.  Herein, corporate managers are responsible for determine the best management system to be implemented within the company.  Corporate management may include the task of monitoring the company performance, risk and competitive advantage. On the other hand, strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organization to attain its objectives.  As this definition entails, strategic management gives emphasis on integrating management, marketing, finance, production/operations, research and development and computer information systems to achieve organizational success. The term strategic management is also used synonymously with strategic planning (2001). Strategic management is guiding an organization relative to challenges and opportunities appearing in the contingent environment. This environment is composed of those external elements that most directly affect organizational goal achievement and new goal development. Thus, organization system design and management should complement strategic actions taken for productive subsystems, as well as those providing output delivery and other support functions for the organization. To the extent possible, the organization bases its actions on strategic planning that, rather than a one-time effort, is an ongoing process of adaptation of original conceptions of mission, goals, structure, roles, and so forth relative to environmental dynamics (1992). And lastly, marketing management covers the application of management techniques in the utilization of marketing resources. It is concerned with the responsibility for planning, organizing, actuating, and controlling marketing activities. It achieves its aims by establishing marketing objectives, policies, plans, programs, and standards, allocating marketing resources, and evaluating the effectiveness of marketing activities. Effective marketing management includes the following precepts: (1) acceptance of change as a constant; (2) recognition of the centrality of consumer wants and needs; (3) adoption of a systems approach to marketing issues; (4) recognition and application of meaningful concepts from other disciplines, and the acceptance of theoretical constructs and findings as helpful in managing marketing effort; and (5) recognition of the relationship between marketing and other aspects of management.   Strategic Marketing Planning VS Competitors             Competitor’s analysis is very important when a company will be considered as a new entrant within the market place.  It is essential so that the company will be able to know their competitors and the possible strategy that they may use to level up such competitors and know the needs of the target market.  There ha been other companies in terms of providing quality water in India.  These companies have spent years to increase their levels. However, some of these companies do not offer water filtration and purification equipments the way the Indian customers want it. Hence, it is important that Blair Company should understand its competitors and their strategies. Competitors are always a threat on the company, particularly if the company is considered as a new entrant in the industry. It is in this area where the products of every company are considered on the level of differentiation and diversity. Moreover, the presence of a secondary market is also examined in this part of the planning process. The competition in this industry is powerful, not only for the consumers of the arts and crafts sector, but also with regards to the loyalty of suppliers and artists in the market. Competitors can drive down industry profitability by cutting prices or offering more product features for the same price. When rivalry is most intense, competitors often compete head-to-head on price. When competition is disciplined and constrained by industry norms, rivalry is weak. In order to understand the competitors different marketing tools are used. In this paper, the  generic strategy will be utilized. A company positions itself by leveraging its strengths.  (1980) has argued that a company’s strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus (1997). In this study the competitors of Blair Company uses Cost leadership. Cost leadership strategy is based upon a business organizing and managing its value-adding activities so as to be the lowest cost producer of a product within an industry (2002).   Own Strategy VS Competitors Strategy             As mentioned, competitor’s analysis is an important aspect of strategic marketing planning.  Herein, the company is given the chance to recognize which competitors are strong or weak.  Through this also, Blair Company may be able to determine the most suitable strategy to be used to outgrow its rivals in the Indian market.  If the competitors of Blair Company use Cost-leadership, Blair Company uses other strategy which is focus strategy. Focus strategy is aimed at a segment of the market fro a product rather than at the whole market or many markets (2002). The successful way using focus strategy is to tailor a broad of product development strengths to a relatively narrow market segment that they know very well. Since Blair is a new entrant in the Indian market, Blair must see to it that they provide quality service to their focus market segment. The main product of Blair Company Inc. is Delight Purifier is a product that used an integration of innovated technologies with a purpose of removing four kinds of water contaminants that can be founding potable water.  These include sediments, organic and inorganic chemicals, microbial or cysts and objectionable odors and tastes. The product will be provided to the Indian customers to meet their needs having equipments that will enhance the quality of their water for their everyday consumption. In the case of Blair Company, market segmentation includes those Indian customers who are willing to try the Delight Purifier to meet their needs of water filtration and purification equipment that will provide them quality water that they can use for every purpose they want. In addition, market segmentation includes household, corporate, and political market segments.   Conclusion             Companies are facing different complexities and challenges. Hence, each management should be able to identify, develop and exploit their core competencies in order to have a long-lasting and successful business and this can be done through strategic planning. Successful strategy requires the firm to choose the markets in which its distinctive capabilities yield competitive advantage. But the adaptive, incremental nature of strategy means that the starting-point is where the firm is now.  Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet needs of the markets and fulfil stakeholder expectations.Analysis shows that strategic marketing planning is essential in making the business have a better performance in the marketplace.  Through strategic planning, organizations will be able to meet is goals and objectives.  Aside from this, the evaluation and understanding the competitors and their strategy is also important to determine the most suitable strategy that can be used against the rivals.               Analysis shows that Blair Company Inc has a great opportunity to enter the Indian Market. This is because the products that the company is offering, can be considered as a solution for the Indian customers in having an equipment that they can use at home and that can provide them quality water for their everyday consumption.  However, before the company must enter the Indian market, the company must be able to take into consideration all different aspects of marketing including models and theories so as to ensure success in operating to an international market.                    Credit:ivythesis.typepad.com

Strategic Planning

Marketing Planning Introduction If an organization wanted to conquer the market, it is important that they consider strategic marketi...

Design entrepreneurship: Business Innovation Assignments

BUSINESS POSITIONING STRATEGY In order to sustain the growth of the Laundromat, the owner builds its business on four (4) main business positioning strategies. <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The first is building a strong local operating platform, and then testing it over time to determine if profitable growth would be possible through the selection of the right brands and creation of the structures for distribution to supply a local national market. </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The second is broadening the portfolio. Global perspectives are also gathered to help optimize both the local and global brands. By broadening the portfolio, Laundromat is able to meet the consumer’s needs and minimize the costs of local infrastructures.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The third business positioning strategy involves a balanced portfolio of countries among established and developing markets. In this instance, the established markets such as those in North America will provide the funds to invest in developing markets like those in Korea and Russia that have lower GDPs but possess a tremendous potential for growth and development.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The last business positioning strategy involves market consolidation which would help in the securing of positions and the creation of shareholder values. Laundromat strives to be in the top position on each market.</li> </ul>     SUPPLY CHAIN ANALYSIS Supply Chain analysis in this business involves working across multiple enterprises in an effort to limit the supply chain time of washing clothes of the consumers.  The uncertainty of demands in supply chains within this business is easily solved through the implementation of faster response times. Laundromat’s supply chain has the luxury of longer lead times in terms of batch washing of clothes in order to meet the demands. Most supply chains, including Laundromat’s, are moving in a position to support faster changes of demand by the consumers. Because of the agile supply chain of Laundromat, it is able to enjoy so many advantages. As mentioned above, the supply chain analysis tends to shorten the supply chain itself. Also, this will significantly reduce company inventories. Forecasting, scheduling and planning, on the other hand, will significantly improve. INTERVIEW SUMMARY             The owner basically bought the Laundromat from the previous owner for about $ 50,000, where the rent is about $ 1,000 and the monthly revenue is about $ 15,000. The Laundromat has very few personnel, but because of the machineries the workload becomes easier. It normally takes about 30 minutes for every washing task to be accomplished. This is not very long, and customers can even afford to bring their reading materials while waiting for their clothes to become washed up. The owner wanted to establish an Internet service area perhaps for the waiting customers to enjoy, but backed out because of the abundance of Internet shops in their area. SWOT ANALYSIS Strengths: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> has services that boast of a very powerful retail. This includes a reputation for value of money, convenience and a wide variety of products </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> has grown significantly over the years</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Laundromat’s main competence lies on the use of modern washing facilities to fully support its international logistics system.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> is able to deliver good customer care, as the limited amount of work would mean plenty of time to devote to customers.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Laundromat’s lead consultants have established a strong reputation within the market.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> can afford to change direction quickly if its management finds that the company’s marketing strategy is not effective.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> has little deficits and overheads. Therefore the company can offer good value to customers on a consistent basis.</li> </ul>     Weaknesses: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Laundromat is one of US’s main washing facilities but has a weak control of its empire, despite its technological advantages. This could lead to a decrease in productivity in some areas where they have the least control of.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Since Laundromat has many branches across many sectors, the company may lack the flexibility that some of its more focused competitors possess.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Laundromat operates within the US, but its presence is located in only relatively few states.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Some of Laundromat’s weaker branches lack market presence or reputation </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Some of the company’s personnel still lack the essential skills base in many areas.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The company is still vulnerable to the temporary losses of its vital staff (e.g. being sick, leaving).</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The company’s cash flow is unreliable especially in the early stages of a new branch / site development.</li> </ul> Opportunities: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Taking over, merging, or forming strategic alliances with other laundry companies while focusing on strong markets like Europe or the Greater China Region. </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The branches of Laundromat operate only in a relatively small number of states all over America. Thus, this would open the opportunities for future Laundromat businesses in expanding various consumer markets, such as those in China and India. </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The opening of new locations and branches offer Laundromat the opportunities to exploit market development. This could lead to the diversification of the company’s branches from large laundry centers to local-based sites. </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Opportunities exist for Laundromat to continue with its current strategy of establishing large branches within the US.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Laundromat is continuously expanding, with plenty of future opportunities to exploit for success.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The local councils of Laundromat are in the process of encouraging local businesses with work whenever possible.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The competitors of Laundromat may be slow to adapt to new technologies especially the ones that it releases.</li> </ul> Threats: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Being number one means that Laundromat is the target of competition, the company to beat. </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Being a national business means that Laundromat might be exposed to political problems in the US states where the company has operations.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The production costs of most consumer products have the tendency to fall because of lower manufacturing costs. Manufacturing costs fall because of outsourcing to low-cost regions around the globe. This phenomenon could lead to competition in prices, which in turn would result in the deflation of prices in various ranges. Intense price competition must definitely be considered a threat. </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> The latest developments in information technology which could possibly change the markets might challenge the company’s ability to adapt to these changes </li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> A slight shift in focus of a large competitor might wipe out any market position that Laundromat has achieved over the years. This could force the company to specialize in rapid response but good value services to local businesses. This would put so much pressure on the company’s consultancy staff to keep informed with the latest changes in technology where possible.</li> </ul>     Credit:ivythesis.typepad.com

Design entrepreneurship: Business Innovation Assignments

BUSINESS POSITIONING STRATEGY In order to sustain the growth of the Laundromat, the owner builds its business on four (4) main business ...