- Recommend a products or services & country and also provide the external analysis(PESTLE) and also explain the possible opportunists and threats faced by the company with possible solutions.
- Critically analyse the modes of market entry and recommend one with justification.
- Apply the concept of market segmentation, targeting in order to analyse the potential target market.
- Apply the porter's generic strategic and explain how the business can have the competitive benefit by choosing one of the generic strategy.
The current assessment of the marketing operations is very important and thus requires to be taken in consideration by an organisation that will help the business enterprise to carry out the business activities in much suitable way. The placing of the high-quality marketing or promotional activities will help the firm to enhance the quality of products and services and thus will improve the quality of business activities and operations in much effective way. For the current report, Jones Bootmaker is chosen. It is a UK based footwear firm.
The report will cover the importance of marketing environment with the proper Pestle analysis. Also, the market entry and segmentation process are been evaluated that will impact the operations and action plans of market penetration is been carried out in much effective and much effective and significant manner. Apart from this, the porter generic is taken in the consideration by the selected footwear enterprise.
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Conducting PESTLE Analysis of Australia as a country to expand Jones Bootmaker
Australia would be the suitable country for Jones Bootmaker to invest and expand its business because of the following reasons:
1. Corruption levels of Australia are least as compared to other countries including UK, US, Canada and other regional countries because of its perfect system of checks and balances, prominent judicial and law enforcement system.
2. The skilled and well-educated workforce, a stable political and business environment is most suitable for the Jones Bootmaker company which will provide it a sophisticated market and the strong environment that will drive innovation and technology to lead and expand its operations effectively (Islam, Al Mamun and Amanullah, 2017).
3. The company will also benefit from Australia’s transparent and effective government system to grow progressively. The government is highly responsive and vigilant in responding to the economic challenges and policy direction.
The company will benefit from the Australia’s capital growth in a far better way as the investment opportunity here multiplies over the period. The company will receive many excellent returns on the invested property or land. The company can purchase the property with minimum money-down payment and selling it prior to completion will generate good profits.
The firm can benefit from Australia’s currency exchange as rates against euros, dollars and sterling are very appreciative which can earn vast amounts of money in the exchange transactions against the Australian dollar.
The cost of living and quality of life is very suitable in cities of Australia like Melbourne, Adelaide, Brisbane and Perth which will benefit the firm in turn (Edmunds, Donovan and Reynolds, 2018).
Australia has a high level of economic stability and the company will benefit from its low inflation rate, rising employment level, strong GDP growth, consistent interest rates, favorable exchanges rates, etc.
The organization can avail repayment mortgages to purchase property in Australia for a period of between 5 and 30 years. Interest only mortgages are also on an offer for 5 or 10 year periods.
The changes in social trends have a great impact on the demand for a company’s product or service. There are many factors and symbols that judge the people from different class and castes.
1. Class and Castes: The upper class can be acknowledged by expensive clothes, luxurious motor vehicles and exclusive homes (Fisher, 2018). Middle class people may hide their identity by fashion, choice or participation in certain events of culture. Few other factors to judge their class are their type of speech, consumption patterns, dressing styles, participation in certain sports, etc.
2. Higher Education: People here are more interested in providing their children higher education. Tertiary education is more prevalent and is undertaken in two forms i.e universities and institutions of technical and further education (TAFE).
Hence, the company can accordingly target the people of different class and castes and with specific educated people to sell their products and services that will suit those best which will eventually be the strongest points for the market growth.
- Australia has an infrastructure that is powerful and ready for business that will benefit the firm on a larger scale.
- Nearly 93 percent of the businesses in Australia have access to the internet which is a strong point for the organization.
- The National Broadband Network (NBL) project in Australia is one of the largest broadband networks in the world.
- The leading technology of Australia will increase the opportunities for innovation and design; improve the already existing establishments of the firm, which will effectively increase the quality of goods and services.
- Australia will be a leading market for the organization in terms of importing and exporting goods because of its excellence in the field of technology growth.
- The country also ranks the highest in terms of the research and development field which attracts most of the organizations to invest and excel their market growth rate.
The environmental factors like weather and climate change also play a major role in the benefit of a firm. The industries like farming, tourism and insurance are majorly affected by the changes in temperature (Islam and Mamun, 2017). The major climate change which occurs due to global warming and the ways to be aware of the environmental changes are some of the factors and issues that a firm needs to consider.
The need to protect the environment is being diverted to make use of various environmental friendly products and processes that is causing a change in the demand patterns of products and services. The strongest point out of using environmental friendly practices is that it is creating good opportunities for the firm to invest in Australia.
Water is a scarce resource in Australia and is a major concern for the firm to invest also. The water concern is increased due to the salinity in the Murray Valley, caused by diverting water for irrigation and rise in saline water tables because of excessive land clearing for dry-land farming. The other concern is soil erosion which should also be undertaken by the Jones Bootmaker company to avoid future problems before investing.
The recent laws that will affect the firm’s environment are age discrimination, disability discrimination legislation, minimum wage requirement and the need for the firm to recycle. There are no contractual issues in Australia. The company need not have any formal document in writing and signed to be legally bound (Darabpour and et.al., 2018). Few of the requirements for a contract are offer and acceptance, consideration, purpose of legal relations and certainty of terms. A contract can be analyzed via emails or discussed verbally, etc. There are strict regulations for terrorist activities which includes a law that governs criminal offence to hold assets that are owned by terrorist organizations, or make assets available to them and are punishable by up to five years of imprisonment.
Market Entry Option
Market entry option is the long term goal and more challenging performance in order to beat the organization result. It affect the long term growth in order to meet out the business expansion strategies (Cain, Moore and Haran, 2015). Johns Bookmaker needs to adopt one of the market entry strategy in order to develop their market into new country or place to make the best outcome results and new marketing functional activities.
Findings Partners and Agents
New to market business must address issues of sales channels, distribution in order to meet out the goals and new developing target market channel. This is the first market entry option that, affect the new developing goals. Finding partners and agents is the method in which Johns Bookmaker make partner or find agent who can help Johnes Boot maker to easily sell their product or services into the new country. In this kind of strategy, the chosen business can relate their functions and develop more effective advantages at workplace. As a result, it assists to work with different people in the business environment (Zhao, Zuo and Zillante, 2016). Finding partners and agents can be ascertained to focus on the goals and objectives that can be accomplish in positive manner.
It is another function to develop the new managing and new developing growth. Indirect sell is the best option to develop the new marketing performance in order to meet out the best company output results (De Villa and Lawton, 2015). Indirect export for the chosen business will be successfully established to focus on the business development. It assists to focus on maintain creativity which would be successfully establish relationship with several people. Indirect exporting means selling to an intermediary to sell to the product or services directly to the buyers. Apart from that, it develops the long-lasting results and make high opportunity and growth for the new areas of growing business success.
Another less risky entry modes are licensing. Here, the license. is another option to develop the company market into the new country Here the license will grant an organization in the foreign market a license to produce the product which they use the brand name etc. With the help of licensing strategy that can be establish to attain overall goals and objectives in effective manner. With this regard, the chosen business needs to take license to operate in new areas so that they will able to communicate several benefits at workplace easily (Lewis, 2017).
Licensing is more beneficial for the Johns Bookmaker to grow business into another business areas. Overall, company can own rights in a patent, know-how or other IP assets.
Franchising is another option to expand the business into new market with great lead. This is the option where the organization puts together a package of the successful ingredients that made them a success in their home market and then franchise this package to overseas investors (Toro-Jarrín, Ponce-Jaramillo and Güemes-Castorena, 2016). Overall it helps to maintain the company profitability and managing goals.
It is another method to enter into the new market, which is the again very important and necessary to make the best efforts towards the new goals. This become the new developing areas. Contracting is the process to develop market overseas which involves the exchange of idea is contracting. In this process company will contract out the production of the product to another company to produce and services on their behalf. This method helps to protecting or saves the organization exporting to the other market (Zhao, Zuo and Zillante, 2016).
The ultimate decision to sell abroad is the decision to establish a manufacturing unit into another country. This option taking high cost and price to establish the long lasting effects in order to meet out the goals and new managing successful growth (Toro-Jarrín, Ponce-Jaramillo and Güemes-Castorena, 2016).
All these measures that are been taken in the consideration by the firm, will help the proper and effective and growth of the organisation in much effective and significant manner. Besides this it will help in the proper revenue generation by the firm, improving its market performance to a greater level and meeting the customer demand of the organisation.
The effective market segmentation process is been carried out within the organisation that will help in improve the quality of products and services and thus will support a good increase in the overall productivity of the organisation (De Mooij, 2018). The meeting of the target operations and placing of the proper strategically operations within the firm will help in enhancing the performance of the organisation in much suitable way. In order to have a good market segmentation or partition, the STP approach is been followed that will assist the selected enterprise to improve their performance within a market. The STP approach can be further classified as follows:
- Market Segmentation: segmentation process will involve the effective classification of the business enterprise marketing operations on the basis of the environmental conditions that are been taken in the consideration by an organisation and thus will improve the quality of products and services that are been chosen the firm. Also, it will help the selected business entity to develop the marketing or promotional strategies according to the market segment and develop high quality products to cater their buyer’s needs and demands in much suitable and precise way.
- Market Targeting: A proper and effective targeting of the market will support the proper engagement of the business activities and improving the core compatibility of the marketing of promotional department of the organisation in much suitable way. The proper targeting approach for selecting the appropriate customer base by the organisation will enhance and evolve its market share and thus will aid in proper management of business operations of selected firm (Sargeant and MACQUILLIN, 2016). The selection of targeted customer base will assist the enterprise to draft a proper strategy and thus will improve the quality of goods and products manufactured by the business entity. The target for company will be men and women who prefer wearing boots between ages 20-35 years.
For the present market expansion approach, the selected entity has selected young females and kids are been selected that will help the firm to improve their overall performance and thus will also increase the quality of business operations which are taken in consideration by the selected footwear firm to meet the operational requirements of the business entity. As this potential customer base which is been selected is the largest buyer of the footwear's, this will help the organisation to enhance the quality of their product portfolio and develop a good and effective market promotional and entry strategy (Cain, Moore and Haran, 2015).
Porter generic strategy
In this kind of strategy, competitive results can be successfully analysed that assists to accomplish desired level of results at workplace. With this consideration, it can be stated that Jones Boot Maker competing with several businesses that consider in retail, boots, body-care, etc. In this consideration, it can be stated that in the large supermarket there are several activities has been successfully developed to considered health and beauty retailer (Mathooko and Ogutu, 2015). Therefore, following elements can be included in porter five forces strategy that assists to accomplish more desired level of results:
- Cost leadership: According to this strategy, Jones Boot Maker needs to consider broad target market on the basis of large demand and offer the lowest possible price. There are generally 2 options exists which helps to keep costs as low as possible. Furthermore, it is ensured that larger market share with average price keep the company's cost very low. The chosen organisation applies this strategy successful which is useful for substantial investment in the enterprise (Toro-Jarrín, Ponce-Jaramillo and Güemes-Castorena, 2016).
- Differentiation: When target market is broad and demand is very high, products and services consider unique features. In this kind of strategy, product must be made as exclusive as possible to make it more attractive than the comparable products offered in competition. Effective marketing is important to understand benefits of unique products (Indiatsy, Mwangi and George, 2014).
- Cost focus: With respect to target niche market, it has been seen that there is little competition, focused market which offer to the lowest possible price. In this strategy, Jones Boot Maker can deal with clear niche market and understand dynamics of the market to ensure that costs remain low (Yunna and Yisheng, 2014).
- Differentiation focus: In the target niche market, little competition, focused market and products or services of Jones Boot Maker contain unique features. This strategy often and includes strong brand loyalty among several consumers. As a result, it is important to ensure that product of the enterprise must remain unique to stay ahead with possible competition (Zhao, Zuo and Zillante, 2016).
From the above report, it can be concluded that strategic management consider important role in success of every business because it includes several advantages and effectiveness to develop more creativity at workplace. With this regard, more functioning also successfully develop that need to be perform with market analysis. The industry is also looking to take more market share from each other. Therefore, it can be noted that unwanted actions need to compete with different businesses. Furthermore, it summarized about Marketing PESTLE analysis that consider impact of different elements that can be consider to focus on maintaining effective information at workplace. With the help of PESTLE analysis, impact of different factors can be successfully applied that assists to increase market share and profitability. At last, Porter generic strategy has been explained which assists to show competitive advantages at workplace in appropriate manner. Therefore, it can be lead to focus on innovative functions that can establish relationship to perform functions.
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