This website uses cookies to ensure you have the best experience. Learn more

Marketing Strategy Essay

2873 words - 12 pages

THE EXTERNAL ENVIRONMENT: OPPORTUNITIES, THREATS, INDUSTRY COMPETITION AND COMPETITOR ANALYSIS.
“It is not the strongest species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin  Today, two types of strategies exist: proactive/reactive. Anticipation, change, adaptability is necessary nowadays so the proactive strategy (ex: Coca Cola). External environment conditions create both threats and opportunities for firms that have major implications for their strategic actions. Regardless of the industry, the external environment is critical to a firm’s survival success. The firm’s understanding of the external environment is matched with knowledge ...view middle of the document...

Firms cannot directly control the general environment’s segments and elements. Firms were challenged to understand the effects of the major general environment events on their current and future strategies. The industry environment is the set of factors that directly influences a firm and its competitive actions and competitive response: - the threat of new entrants, - the power of suppliers, - the power of buyers, - the threat of product substitutes, - and the intensity of rivalry.  Focused on factors and conditions influencing a firm’s profitability within an industry. The interactions among these five factors determine an industry’s attractiveness and profit potential (cf. Competitor analysis). The competitors firms operating in the same market, offering similar products and targeting similar customers.  Focused on predicting the dynamics of competitors’ actions, responses and intentions.

15

 In combination, the result of the three analyses of the general environment, the firm uses to understand its external environment influence its strategic intent, strategic mission and strategic actions.

II. External environmental analysis.
An important objective of studying the general environment is identifying opportunities and threats. An opportunity is a condition in the general environment that, if exploited, helps a company achieve strategic competitiveness. (=opportunité) A threat is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness. (= menace)

A) Scanning.
Through scanning, firms identify early signals of environment changes and trends. (=déchiffrer) When scanning, the firm often deals with ambiguous, incomplete or unconnected data information. Environment scanning is critically important for firms competing in highly volatile environment. Example: Many websites and advertisers on the Internet use “cookies” to obtain information from those who visit their sites.

B) Monitoring.

When monitoring, analysts detect meaning through ongoing observations of environmental changes and trends. (=surveillance) Critical to successful monitoring is the firm’s ability to detect meaning in different environmental events ad trends. By monitoring, firms can be prepared to introduce new good and services at the appropriate time to take advantage of the opportunities identified trends provide. Like scanning, monitoring is particularly important when a firm competes in an industry with high technological uncertainty. Also, scanning and monitoring not only can provide the firm with information, they also serve as a means of importing new knowledge about markets and about how to successfully commercialise new technologies that the firms has developed. Example: The number of immigrants from Asia continues to grow in Australia, which represents an opportunity as a new consumer market.

C) Forecasting.
16

When forecasting, analysts develop projections of anticipated outcomes based...

Other assignments on Marketing Strategy

Marketing Strategy Essay

1178 words - 5 pages firm? Customer retention refers to keeping client’s business rather than have the client use competitors’ services or products. Businesses want to reduce customer defections to their competitors because a reduction in their market share and profits could result. Customer service retention is a popular marketing strategy as it involves focusing on meeting or exceeding client’s expectations in order to maintain their loyalty. When people feel

Intel's Marketing Strategy Essay

2958 words - 12 pages Name: Alexander Tsakirides Assessment: Marketing Strategy Analysis Topic: Intel Corporation Introduction Intel Corp. is an American multinational company that specializes in the development of chipsets and processors such as motherboard chipsets, NIC (Network Interface Controllers), integrated circuits, flash memories, graphic chips, embedded processors and generally computer and communication based devices. However, they are mostly known

Tesco's Marketing Strategy

2282 words - 10 pages trying to enhance the loyalty of card members. In other words, Tesco wants to ensure that every time they go shopping, they come to Tesco. This club helped Tesco increase its market share from 16% in 1995 to 27% in 2003 and in the mean time become the largest retailing chain in the UK. Pricing Strategy-Big Price Drop Low price has always been a main marketing strategy of Tesco. Generally, Tesco doesn’t have purchase centres in many

Marketing Strategy

1055 words - 5 pages share of key customers’ business while finding lower cost but effective ways of serving less valuable customers * Databases created for CRM purposes capture: * Transactions * Instances of customer contact * Customer demographics * Customer responses * Implementing a CRM requires four steps: * Gaining broad- based organizational support for creating and adopting a CRM strategy * Forming a cross- functional

Marketing Strategy

1612 words - 7 pages Types of audits Once a tax return is determined an eligible candidate for auditing, the IRS will send you a letter making the announcement of an audit. The type of audit you’ll be required to do typically falls into one of three types: Correspondence audit: The most common of audits, this typically entails mailing specifically requested documentation to the IRS. Field audit: For individuals or businesses who’ve earned more than $100,000 in income

Marketing Notes

844 words - 4 pages DEFINING THE MARKETING FOR THE 21ST CENTURY 1 C H A P T E R _________________________________________________________________________ INTRODUCTION Change is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be different from today. Continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to heed three certainties: ➤ Global forces

Business

7113 words - 29 pages geographical areas, such as by city, county, state, region (such as West Coast), country, or international region (such as Asia). You can also divide the market into rural, suburban, and urban market segments. Y Types of promotional activities 9 Online marketing 10 Market segmentation 11 Types of market research 12 Types of marketing 12 Marketing planning 14 Marketing strategy 14 Positioning 15 Buying behavior 15 B2C buying behavior 15 B2B

Marketing Management

383 words - 2 pages 1: What are the pros. Cons and risk associated with Nike`s core marketing strategy? Answer: Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. PROS OF NIKE'S CORE MARKETING STRATEGY: Nike put heavily proportion in their marketing strategies and products deign. In

Marketing

1046 words - 5 pages which are making attempt to create value for and satisfy needs of customers. In marketing process the situation is analysed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are taken, plan is implemented, and results are monitored. Steps in Marketing Process Following are the steps involved in the Marketing Process :- * Situation Analysis * Marketing Strategy * Marketing Mix Decision

Marketing

1759 words - 8 pages to customers. Marketing might sometimes be interpreted as the art of selling products, but selling is only a small fraction of marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy and function of promoting a product or service to the customer. From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and

Marketing Mix

277 words - 2 pages SUMMARY AVIVAH RAHMANINGTYAS. 105040100111070. 7p Marketing Mix of Banyuwangi Traditional Food Bagiak Ardial’s Merk. Dibawah bimbingan Ir. Heru Santoso, SU sebagai Pembimbing Utama Basically, one of the goals set up agro-industries are to benefit. Profits earned if the company can attract consumers to buy its products. Thus, the marketing strategy became a thing to think about. Currently, the marketing mix is one of the marketing

Similar Documents

Marketing Strategy Essay 1605 Words

1605 words - 7 pages Marketing Strategy Chaunte Rhone MKT/421 March 23, 2011 Instructor Rebecca Robbins   Marketing is a process that encompasses every aspect of an organization’s ability to provide products or services to customers, suppliers, and communities. An organization’s marketing mix is crucial to producing successful results that will increase consumer patronage, sales, and profits. The four elements of the marketing mix, which includes product

Marketing Strategy Essay 1557 Words

1557 words - 7 pages MARKETING STRATEGY TEMPLATE START-UP ORGANISATION, PRODUCT OR SERVICE ACEVO/IG/Marketing Strategy/V3-DN 1 Executive Summary – rundown of what’s in the document (often completed last) Purpose Use this template to capture the key information that you need to develop a thorough marketing strategy. Then use the information that you collect, along with other *development tools, to build your marketing strategy. This template is

Marketing Strategy Essay 3873 Words

3873 words - 16 pages traditional baked clay bricks manufacturers. Although currently our company has not been formally put into operation, but hopefully with the marketing strategy outlined below, we can assert our position and capture a larger market share. 1. Market description SUPERBLOCK’s market consists of consumers and business users who prefer a new material which is lighter and more durable for constructing projects. Table below describes how SUPERBLOCK

Marketing Strategy Essay 6550 Words

6550 words - 27 pages ” ------------------------------------------------- “Only Yvonne knows how to do my hair” Please see Interview conducted with the owner: Annexure 1 – Interview with Owner Current Marketing Strategy Going Hair’s marketing strategy is a simple one: satisfied clients are their best marketing tool. When a client leaves their business with a new look, he or she is broadcasting their name and quality to the public. Most of their clients will be referrals from existing clients. The business