Project Team Meeting

You enter your project team meeting with Mike and Tiffany to hear them discussing the tools that they found to conduct an analysis of the industry and competitors. “Mike, there are so many more tools than I even realized to give us some good data,” Tiffany states.

“I know,” Mike says. “That’s why I wanted to take some time to look at our options and figure out what information we really need to support the board’s decision.”

Mike and Tiffany both found some great tools from their research on the subject. Complete the following:

• Based on your classmates’ discussion posts for Week 2, do you still believe the tools that you selected will work best for a global strategy? Why or why not?
• What evidence do you have to support your decision?
• How would you refute the people who chose an additional tool rather than one of the tools that you selected?
• Based on the tools that you selected, provide a brief analysis of your market, using those tools.

1000 Words 2 References min.

 

 

 

 

 

 

 

GLOBAL MARKETING PLAN

Institution:

Student’s name:

Date:

 

 

When done right, global marketing plan has enormous benefits to a company as it is able to give the company a strong competitive advantage as well as improve the effectiveness of its products or services. To do it right, there are necessary tools that are needed. These tools are significant to coordinate an analysis of the industry and competitors in order to know the competitive effectual of an industry. There are numerous tools that best fit this purpose. They include Competitive Forces Model (Porter’s 5 Forces), Broad Factors Analysis (PEST Analysis) and SWOT Analysis.

Competitive Forces Model also known as Porter’s 5 Forces is an important tool which gives an accurate hunch about the industry as well as making the analysis easier. This tool deals with threat of potential entrants, intensity of the industry rivalry, bargaining power of suppliers, threat of substitute goods or services, and bargaining power of buyers. The other tool of Broad Factors Analysis also known as PEST Analysis is significant when analyzing the external environment of the industry. Majorly, it deals with four components which include Economic. Political, technological and social component. SWOT Analysis entails of Strengths, Weaknesses, Opportunities and Threats of a company which are significant in assessing the company’s environment be it internal or external.

Competitive Forces Model is an important tool to analyze the market because of its key components (Baburaj &Narayanan, 2016). For example, it is necessary to know who the other participants in a given market are in order to know the level of competition the industry will face. If a certain goods are not differentiated, competition intensity will always be high. It is also significant for a company to know the ease of entering the market. Difficult entry gives the company enjoying the competitive advantage more benefits for longer periods compared to an easy entry. Small number of suppliers gives the suppliers a higher bargaining power than the firms in production. It is necessary to find out the supplier producer equation before entering a market. Additionally it is also important to know the bargaining powers of buyers. Fewer customers in the market means they have more power in the market and they can negotiate lower prices which might end up being a threat to the company’s revenue.

Broad Factors Analysis is also the best tool to analyze the market as it offers a different framework in its analysis. Internal and external variables such as political, economic, technological and social variables are important in analyzing industry and competitors. For example it is crucial to know the regulatory environment of a certain industry before a company enters that market. What are the barriers of trade surrounding that industry? How often do changes in government regulations occur? How are the tax policies and employment laws be like? These are significant political questions that a firm must analyze before entering the global market (Corporate Finance Institute, 2020). On the other hand it is also crucial to know the inflation rates, interest rates, GDP growth rates, foreign exchange rates, education level, population growth, age cohort changes, scientific advances, emerging technologies, research development investment, and diffusion of technologies in order to analyze economic factors, social-demographic factors and technological changes respectively.

To use these tools, the company will identify the position it is before indulging in the market at hand. Identifying its key strength will help identify the best way it will compete with other participants in the market. The company needs to differentiate its products and services before entering the market in order to have a competitive advantage with other similar products and services in the market. It would be better for the company to go for market with difficult entries. For instance, after its entry, with differentiated products at hand, the company would gain a niche in the market thus elevating its competitive advantage for longer periods before another competitor enters and acquire a niche in the market. The company can as well acquire a hold on the operations of the industry by shaping its supply and production operations. The company can have its own supplier therefore attaining a higher bargaining power on supply therefore cutting its production costs enabling it to field lower prices to its buyers. On the other hand, it is necessary for the company to keep in mind that industry analysis is somewhat subjective since the outcome is not always a success. Political changes, economic changes and technological changes should be at the core in decision making as they are subject to fluctuations as illustrated by Broad Factors Analysis tool (Wibowo, 2019).

 

 

References

Baburaj, Y., & Narayanan, V. K. (2016). Five forces framework. The Palgrave Encyclopedia of Strategic Management, 1-7. https://doi.org/10.1057/978-1-349-94848-2_632-1

Corporate Finance Institute. (2020, July 9). Industry analysis – Top 3 methods to assess and analyze an industry. https://corporatefinanceinstitute.com/resources/knowledge/strategy/industry-analysis-methods/

Wibowo, Y. G. (2019). Bahan ajar (SWOT analysis). https://doi.org/10.31227/osf.io/ckgpr

 

Feedback from peers

 

“Thanks so much for your response. Very well done!

I like the competitive forces model and the broad factor analysis which are models that other students have not really discussed.

All of these models can add value. The important thing if the company has the resources in an ideal world is perhaps use both models or multiple models.

If you know anything about research if you do different types of research focused on the same topic and come up with the same answers then you know you’ve done a good job!”

 

__________________________

 

“Great post, I enjoyed reading about the competitive forces model and the broad factors analysis. I agree with you that this is a great tool to use to include the internal and external factors. Politics should certainly be understood before entering into a foreign country and setting up camp. Learning about the macro-environmental factors would indeed need to be known to understand the impact of the environmental surroundings of where you would intend to expand globally (Corporate Finance Institute, 2021).

The competitive forces model is also extremely pertinent as you mention. Knowing the competition and the current market is crucial to the success of the organization. I appreciate that you talk about how difficult entry gives you a competitive advantage. I don’t know if I understood that before, but you make a very good point in that regard. So with the difficult entry the contract agreement, is longer and there are better benefits offered? “

 

__________________________

PEER Discussion post

After reviewing the response of Deborah, I also collaborate with her opinion that there are still more positive ideas that can lead to improvements in the global market planning strategies. The adoption of technology can lead to various promotions in conjunction with the local production at the international business. Different decisions made by the stakeholders are mostly triggered by the level of competition that exists on the organization’s premises. Moreover, the present-day global competition entails some aspects which evaluate the market share. On most occasions, several organization strategies, including the multinational rivals, do not differ looking at the approaches, productivity, and experience.

Following the previous meeting with Deborah, I learned various aspects which as a team, we should all bear in mind, and these aspects entail the most suitable approaches concerning the movement in connection with more formal analysis (Harrison,  Freitas,  Drinnan,  Campos, Masci, di Maria & Whitaker, 2019). With the traditional analysis approaches, one can better understand because the visual elements pictorial are always running in one’s mind. Although the formal analysis aspect takes much or longer time to express certain information, it provides evaluations and definitions which don’t require clerical explanations (Turkmen,  den Hartog, Ranise, & Zannone, 2017).

Following the Tiffany and mike suggestion and responses, the aspect of outlining is making the residents of the surroundings discover the great potential that exists within the locality. Just like the teachers do while teaching, one has to take a life assessment and, on most occasions, try to bridge the gap between the producer and the consumer while approaching a new business idea. Also, select the most appropriate tools that shall work towards the global strategy. While doing so, it’s always recommended to differentiate between worldwide enterprise and international competition.

As the discussion proceeded, mike intervened by encouraging the congregation to consider the evaluation methodologies that will occur while analyzing because this aspect impacts the result. Following my objectives, I think that is a great point that mike highlighted because there also reasons for selecting the necessary tools. There are various types of business analysis tools that can generally help a business apprehend the global economic environment under the basis of the requirements. For instance, like in our case, there is a necessity to make effective utilization of the PESTLE analysis and Porter’s Five forces, giving a business the best opportunities to succeed in the market (Silinevicha & Kalinina, 2017). According to my point of view, these are the best ways to analyze the market because, at the present-day reputation of the global economy, the thrust for globalization in various regions may contain the potential to generate higher revenue rates based on business investments. For effective application of the PESTLE and Porter’s Five Forces, the major aspects of concern shall be covered and evaluated following the PESTLE and PEST approaches. They can be most applicable during the implementation or launching of a new product service that may have a high demand on the market.