Regulatory and Economic Environment - Essay Example

? Regulatory & Economic Environment XXXXXXXXX XXXXXXXXX XXXXXXXXX XXXXXXXXX XXXXXXXXXX Question Part a Brought Kitchens is an already established company in the market and thus it is not very difficult for the company to engage in a new market and have the suppliers have them as their favorites. However, there is the posing challenge of competition. Like in any industry, competition is one of the factors that exist in business and the manner through which the various players decide to handle this matters a lot. For any new market to have the interest of Brought Kitchens in mind, one major factor to put to put into consideration is the aggressiveness of the company in the market. This is also the same for the company to do in an effort to eliminate the competition threat by creating a rather precise marketing plan. The best way to do this is by carrying out a SWOT analysis of the competitors alongside the PEST analysis for a target market. Focusing on the Strengths of the competitor, one recognizes that the company has an already established base in the Asian market and that the deals they are offered are rather superior and worthy seeing as they are already acquainted with the suppliers in the region. A weakness that one can identify in terms of the manner through which business is run is acknowledging the fact that the competitor’s brand has not fully settled in the retailers market. The main reason as to why Brought Kitchens identified the company was the high amounts of sales that it had started making and this was due to a shift in the customers who go for cheaper products. However, accommodating this is one of the most effective strategies to carry out. Opportunity comes in from the fact that the suppliers, unlike customers do not have a specific product of preference or rather do not have favorite retailers. This gives the company an opportunity of identifying itself with the Asian market. The threats however are in terms of the licensing and revoking of their earlier deal with their former European counterparts in case of anything. Part b Going through the political stature of the Asian market and target markets is important in understanding whether the country is trustworthy for investment and reliance in terms of business. Economic state is also vital in that one gets to understand and have prospects of the prices of the commodities. On the other hand, social factors come into play when attempting to understand the nature of people in the area and their attitude towards foreigners. Technology is also important to comprehend whether the people in the area accept changes in terms of technology which basically happens in close intervals. Putting all these factors into consideration assures the company of prosperity in its ventures. Question 2 Part a Dj Sports as stated has had its name in the market for a very long time and the fact that its policy, “Our name sells itself” is a rather confident one that it shows that there is no need of carrying out advertisements and signing labels just to get their products to the market. However, seeing as there are other companies that have come up in the contemporary environment, a challenge has been posed and the company must act in an effort to keep its product running, a market assessment has to be carried out. Engaging in the SWOT analysis of the company comes in as a key strategy. The fact that the company has been in the market for long in itself is a very large strength seeing as they have earned the reputation and trust of the customers. A weakness however is the fact that the company has decided to lay back and not take on any key advertisements as opposed to competitors. Advertisements ensure that the product reaches a wide range of customers and if they do not see the DJ line in advertisements, it is hard for them to choose a product that they know little or nothing about. An opportunity presents itself from the fact that customers believe that the company has large amounts of cash and thus an assurance that the quality of products from this line will always remain high. The company should use this opportunity to offer even more assurance to the consumers which subsequently sets a basis for customer loyalty. A threat to the company is the fact that the rival companies have not been in the industry for long. This thus means that the companies are young and the customers might want to test out their abilities. Moreover, the fact that the companies have already showed a keen interest in media advertising means that they are innovative and might come up with even more strategic marketing means. Part b In an effort for the company to rebuild its name, a set strategy has to get incorporated. One manner through which the company can do this is by using the large amount of cash it has in its reserves to hire young employees. This is from the fact that the education system has changed over time and the incorporation of young minds equipped with the necessary skills and technology expertise would give it a much better opportunity of conquering the market. Moreover widespread advertisement and holding of events in which they show case some of their best products from the contemporary times and even earlier days ensures that the customers acknowledge the quality of products that the company has offered them over time and thus regain customer loyalty. Question 3 Part a The porter five forces analysis is a setting through which one has the ability of understand a certain market in terms of the competitive stature and forces that are involved. In the analysis, there are five major factors just as stated in its title and going though each one shows its importance in the market. Demand conditions One of the factors is the bargaining power of customers where one understands that the customers have a choice in terms of how they bargain for a product and if that is not appealing to them, they can go to the competing company. There is the bargaining power for suppliers where there can exists a supplier who is a monopoly and the retailers do not have a choice but to purchase the raw materials from them regardless of the price Relating and Supporting Industries There is also the threat of new entrants. This is where a company may gain competition from other companies wishing to engage in the market having witnessed a high yield in returns for the initial company in the market. Favorable Factors There is also the threat of a substitute product which can come in when a rival company launches a product that serves the same purpose as the initial one in the market. Firm strategy, Structure and Rivalry After this there is the competitive rivalry. This part of the model involves the understanding of the other key market players and the manner through which they ran their businesses. This is to recognize the competition stature in terms of advertising and other related aspects. Part b One of the cost drivers that porter identified in his work that is related to the value chain is the economies of scale. This where the company has the ability or reducing the amount of money it dispends when ordering supplies by purchasing it in bulk. There is also the degree of vertical integration in which there must be respect among the key players in the value chain to ensure a smooth follow of activities. There is the timing of market entry where an institution ought to recognize the most appropriate time to enter the market with regard to the market prices. Understanding other factors such as regulation in an effort to remain in good terms with the authorities comes in as a key factor. Geographic location of the company is important to understand the depreciation or appreciation of the market product. Question 4 Part a In an effort to capture the attention of the automobile manufacturer, it is important that the company incorporates the PEST model. The company should ensure that it convinces the overseas company of the stability of the government which is a known political factor observed by potential investors. There is also the economic stature of the country where the company should offer the automobile manufacturer the financial and market rates of various business industries in the country. It should have the ability to convince them that the country is welcoming socially and also that the people of the country are adaptive to changes in technology. Part b To prove that the quality of the products manufactured by the company is going to be legitimate, the company should offer the overseas company with a plan of the systems they plan on using. The company should introduce a high end system that incorporates major technological tools that are vital to the cars produced. These are in line to ensure that the customers get maximum comfort while using the car while at the same time easy to operate. This company should major in the interior system of the car as it is the most important for customer satisfaction. Read More