Wednesday, May 6, 2020
Critical Analysis of Internal and External Environment Ã¢â¬ Free Samples
Question: Discuss about the Critical Analysis of Internal and External Environment. Answer: Introduction: Market research is the potential resource for analysing the demand, competition, current trends, market conditions, scope of entering the target market, etc. With the help of outcomes originated from market research, further strategies of marketing plan are conducted for the attainment of the goals and the objectives. For instance, Nokia Corporation conducted market research activities in order to analyse the current marketing trends of the mobile industry in order to gain their lost position in the mobile phone industry. As per the market research analysis, organizational marketing team got the results that demand Android and IOS operating systems' users are increasing rapidly whereas, they were using the Symbian operating system in their mobile phones. Impact of market research is huge in the marketing plan as it shows the clear picture to the organization to be followed in order to attain its desired goals and the objectives. In the context of Nokia Corporation, they analysed the results obtained and started manufacturing Android-based smart phones for gaining their lost position in the consumer electronic goods (Pride, et. al., 2006). Market research conducted by the Nokia Corporation helps them to develop their marketing plan in order to launch their smart phones based on Android operating systems. The marketing plan will get the objective and with the help of objectives, vision, and mission, attainment of desired targets would be accomplished easily. With the help of successful marketing research, Nokia Corporation will be able to set up its effective position in the electronic consumer goods as well as it will promote the organization to implement their strategies in order to obtain their marketing objectives. Who are the competition for your favourite product Competition is very crucial in the business environment as this helps the organization to invent new ideas and methods to introduce new and advanced products in the market in order to attain the competitive advantage. In the absence of competition, organization will not be able to move towards the research and the development process, invention for new products as well as not for the improving the quality of the existing products (Tardy, et. al., 2015). For instance, Coca-Cola Company and PepsiCo are two big competitors engaged in the manufacturing of soft drinks and certain fast food items. Both the companies have expanded their business in the overseas markets and due to this; they both are the primary competitors for each other in every market. For attaining the competitive advantage, both the companies have invested a huge amount in their research and development department for ascertaining the opportunities to make their products unique from its competitor. Competition sometimes provides better chances to enhance their revenues or sometimes, it leads to face severe losses. Coca-Cola Company has recently implemented the strategy of providing offers such as cashback. This has increased the customer base as well as the demand for their products in comparison to the PepsiCo's drinks. While PepsiCo has adopted the strategy of introducing the new and improved drink with zero calories for attracting the health-conscious consumers. Due to adaptation of the aggressive competitive strategies by both the companies in the international market, they have led to improving their drink's quality; packaging of the soft drinks has been changed various times by both the companies for making the product attractive and unique from each others brand. This is the reason, their market share has been divided and due to high bargaining power with buyers, they switch on the brand randomly or with the objective of saving a certain amount. PESTL and how this affects the introduction of a new product or service PESTLE analysis is performed to evaluate the impact of the external factors over the organizational performance and it is done in order to extract the opportunities available in the target market. With the help of this analysis, organization will be able to select and implement the strategies in order to spread the information for the business or for the newly launched product (Lamberg, Laukia Ojala, 2014). For instance, Apple Company has announced recently in order to introduce the iPhone 8, 8 plus and iPhone X together in the global market. Thus, before launching those products in the global market, Apple INC.s marketing team has conducted PESTLE analysis for evaluating the factors which could affect the entry of the organization in the particular market. PESTLE Analysis P: Political factors such as tax rate, governmental policies, etc. in relation with the consumer electronic goods need to be followed by the Apple Inc. as per the country in order to launch their phones. E: Economical factors such as economy of the country, the purchasing power of the consumers, national income, etc. needs to be evaluated in order ascertain the factors for introducing the product in the overseas market (Armstrong, et. al., 2014). S: Social factors such as lifestyle, consumer behaviour, etc. and these needs to be fulfilled by the organization in order to meet the requirements of the consumers. This helps the organization to enhance the demand for its products. T: Technological factors also plays crucial role in order to make the product unique and advanced. Apple INC. has improved their phones rapidly in terms of technology and this will create positive impact on the demand for the organizational products (Khan, Alam Alam, 2015). L: Legal factors such as copyrights, patents, the duplicity of the features of other companies, etc. needs to consider while developing the new product. Otherwise, it may create negative impact on the performance of the organization. SWOT analysis and its use in the marketing plan SWOT analysis is the crucial component of marketing plan and it helps to evaluate the strengths, weaknesses, opportunities and the threat for the company with its competitors and through other external factors. In this scenario, SWOT analysis of the McDonalds will be conducted in order to analyse the outcomes which will affect the decision of the organization in terms of the marketing mix and with the other elements of the marketing plan (Sachdeva, 2015). Strengths of the McDonalds are its unique products, coffees, Angus burgers and its expanding range of burgers. Organization has made their strong product offering in the overseas market and this has enhanced their income in the recession periods also. Weaknesses of the organization are finding centralised locations for setting up their new stores in the overseas market. In the fast food industry, various companies have been introduced and with this effect, McDonalds products demand is decreasing continuously. Opportunities for McDonalds is to increase their number of stores in the international market as well as to enhance the opportunities for the organization, McDonalds needs to adopt certain strategies in order compete with its competitors. Competitors such as Burger King, Pizza Hut, etc. have impacted the performance of the McDonalds and to overcome from this situation, they are required to adopt unique and advanced strategies in order to beat its competitors techniques as well as to increase their customer market segment. Threats for the McDonald are the entry of new companies in the fast food industry, range of menu offered by them, and the prices offered by them in their initial period. Regulations imposed by the government on the fast food industry as well as the regular testing of the fast food products could generate negative results for the organization in future periods. Above SWOT analysis could create major impacts on the performance of the organization and on its strategies included in the marketing plan such as marketing mix. Marketing mix is the strategy which is used to promote the new products and the new business in the target market. This will be affected if the number of competitors will be increased in the fast food industry. Segmentation, targeting and positioning in marketing (STP): Current trends in the industry of your choice STP strategies (segmentation, targeting, and positioning) are used for launching the new product or business in the target market in order expands the business opportunities for the organization. These are crucial elements of the marketing plan and this helps the organization to attain its desired goals and the objectives with the introduction of the new product and the business in the particular market. It has been noticed that current trend is changing rapidly and customers are diverting towards the consumption of branded apparels. Various branded apparel manufacturing companies have adopted the strategies such as market research, marketing mix, PESTLE, etc. in order to expand their businesses on offline platforms as well as on online platforms. For instance, H M is a Swedish multinational clothing manufacturing companies famous for producing fast-fashion clothes for all age group people for both men and women. Reviewing the current trends of the market, H Ms marketing team has adopted various unique and advanced strategies in order to promote their products in the overseas market with the help of print and the electronic mediums. With this, organizational will be able to spread the information in the audience in relevance with the launching of their products in the target market. And as H M is engaged in manufacturing for all age group audience, thus, it is necessary to perform the STP strategy in an effective manner in order attain its goals and the objectives. In segmentation strategy, all age group of people will be targeted on the basis of demographics as well as behavioural type of segmentation process. After segmenting the markets, H M could make the strategies such as promotional campaigns, attractive board hoardings, e-mail marketing, etc. to target the selected audience group in order to launch their products and to enhance the demand of those products. Further, positioning strategies will be implemented by the marketing team of the H M for building the effective image of the organization in the target market and this will also decline its competitors market share (Zeriti, et. al., 2014). New product/services launches or brand management: A success and failure Samsung is a mobile manufacturing company and it distributes its products in the global market. With the distribution of their products, they have also managed to provide adequate after sale services to its consumers in order to manage the brand image of the organization. For instance, Samsung launched Note 7 mobile in the market which is a successful series of Samsung on 19th August 2016 but there were various issues involved in this product. Due to this, organization failed to maintain its reputation and huge losses were faced by the organization. Customers were injured due to the mistakes involved in the product. The phones battery was involving a mistake and due to this Note 7 was blasting. Thus, company needs to recall its product from the market after getting so many complaints from customers from the overseas market (Jung, 2014). Samsung launched its new product S7 on 11th March 2016 which was proved as the most successful factor for the organization. It was marked as the most demanded product in their history. Through which organization was able to enhance its goodwill and the positive image in the global market. Above discussed information analyses the performance of the organization in negative as well as in positive manner. With the help of one product, Samsung was able to enhance its products demand in the overseas market whereas their goodwill was declined through launching of one product. References Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. Jung, S.C., 2014. The analysis of strategic management of samsung electronics company through the generic value chain model.International Journal of Software Engineering and Its Applications,8(12), pp.133-142. Khan, U.A., Alam, M.N. and Alam, S., 2015. A Critical Analysis of Internal and External Environment of Apple Inc.International Journal of Economics, Commerce and Management,3(6), pp.955-961. Lamberg, J.A., Laukia, A. and Ojala, J., 2014. The anatomy and causal structure of a corporate myth: Nokia by the book.Management Organizational History,9(3), pp.235-255. Pride, W., Elliott, G., Rundle-Thiele, S., Waller, D., Paladino, A. and Ferrell, O.C., 2006. Marketing: core concepts and applications. Sachdeva, A., 2015. Evaluation and selection of differentiation as a strategy for McDonalds. Zeriti, A., Robson, M.J., Spyropoulou, S. and Leonidou, C.N., 2014. Sustainable export marketing strategy fit and performance.Journal of International Marketing,22(4), pp.44-66.