1. Introduction
In this report, we will analyse the external and internal environments of China’s abrasives market. This report will further analyse how overlooking legal and socio-cultural forces in its macro environment and misaligning of its core competencies resulted in CUMI’s failure. Lastly, we will discuss why CUMI should have considered a differentiation business strategy instead.
2. External Environmental Analysis of the Abrasives Market in China
2.1 PESTLE Analysis
Over the years, the strengthened political relations between China and India have reflected in the boost in bilateral trade. Nevertheless, there are still strict legal regulations controlling foreign companies’ entry into China’s abrasives market. Hence, foreign companies
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Overall Analysis of CUMI’s Business Strategy into the Market in China
CUMI adopted a cost leadership business strategy during its initial venture into China.
While successfully leveraging on its Chinese partner to achieve cost benefits, it involved too many Indian employees in its operations which contradictorily resulted in high labour costs. The inconsistency along the value chain in procurement and human resource business functions respectively resulted in CUMI’s inability to be fully cost-effective. Coupled with strong competition from cost-effective Chinese manufacturing firms, CUMI’s business strategy failed.
In addition, CUMI failed to manage the external forces in the macro environment. Overlooking the importance in managing socio-cultural differences with its partner was detrimental. CUMI could have better persuaded its partner to focus on long-term profitability for the interests of both parties and their employees instead of focusing to be the biggest international company. The demerger caused CUMI to face many cost disadvantages as a foreign owned subsidiary in China due to legal regulations. In addition, it lost access to its partner’s raw
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Leveraging on its core competency of its partners’ combined resources, it could have used the synthetic diamond grits from Jingri Industrial Diamond company and manufacturing expertise of super abrasive grinding wheels and tools from Wendt India to produce high-end abrasives. As super abrasive is a more specialised product, the involvement of its skilled Indian employees would be more value-adding. Furthermore, CUMI could charge a higher price to offset higher labour cost. The high demand of super abrasives making up about one-third of the global market is highly
SWOT remains the universal language of an organization that stimulates influences over the business’s greatest strengths, weaknesses, opportunities, and threats (UMUC, 2017). For that reason, a company should also evaluate internal influences (e.g., the strengths and weaknesses) that affect the business as well (UMUC, 2017). In addition, a company should evaluate external influences (e.g., opportunities, threats) when assessing SWOT (UMUC, 2009). Additionally, when assessing SWOT of the organization, it becomes imperative to assess internal as well as external factors that reflect positively and negatively on the business environment.
Costco is an international retailer with 474 locations in 10 countries. Costco warehouses present one of the biggest and most high-class product category selections to be found under single roof. Costco takes advantage of online and mobile commerce and it is identified best practices in global e-commerce management. This report indicates Costco’s mission and vision, organizational structure, and their strength and weaknesses of competitive position, and performance evaluation, which is identified financial analysis. Moreover it includes identification of environmental analysis which PEST analysis, SWOT analysis and Porter’s five forces analysis.
The first section of this essay focuses on the possible causes of corporate failures, including dominant CEO, poor strategic decisions and the failure of internal control.
This is like Ethan and Zeena’s marriage, kept so that nobody can touch it, although Mattie eventually does. When Zeena found out about the pickle dish, she did not want Mattie
To put this marketing plan into motion, Caja Rolu needs to utilize the marketing resources available. One of these resources would be the SWOT analysis. Knowing the strengths, weaknesses, opportunities, and threats to the company is important because it allows for growth of the product line. Another important resource that Caja Rolu will utilize is evaluations of the target market and demographics of different areas. The evaluation of the target market is important in implementing the marketing strategy because it allows us to know our audience and cater to them specifically and make sure their needs are met through the use of our product.
Company Background: Campbell’s Soup Company was found in 1869. The company’s headquartered in Camden, New Jersey, United States. Canned soup is Campbell’s primary product. After over 140 years, the company’s portfolio extends beyond soup to foods and beverage items such as Pepperidge Farm cookies and Goldfish crackers; Pace Mexican and Prego pasta sauces; Swanson broths; V8 juices and etc. All of Campbell’s Soup Company’s products are divided into three core categories: Soup & Simple Meals, Snacks and Healthy Beverages and all products are demand for convenient, quick, inexpensive meals.
Cutco corporation is the largest manufacturer and marketer of kitchen cutlery and accessories in the United States and Canada (instructors manual, Pg. 22). This company utilizes a direct marketing channel to distribute their high quality goods to customers allowing for most direct route from manufacturer to client. One of the incredible attractions for customers is the “forever guarantee,” that is offered with the purchase of any Cutco Product. The corporate objective is simple, to design and manufacture the highest quality product available. The foundation of this manufacturers product is incredibly high in quality and it has the backing of the forever guarantee ensuring that their support extends long after the purchase date,
Is Acai Berry A Scam? Weight loss is big business and where acai berry first gained prominence. It is because of these claims that scams proliferated involving the indigenous fruit from the Amazon region that spans Central and South America.
There have been a few restraints such as implementing electronic commerce. The board and the CEO, Carlos Fernandez will need to be educated on how important e-commerce is on the future of their organization and how it can sustain competitive advantage. Since there is no official e-commerce initiative, Catatech is at a disadvantage in our current business market. Also, the little disagreements between Marisa and Carlos can also slow down any chances of implementing the strategy; Carlos just wanted the Board to make
Protect their key markets - which is China and their mature "Think" business with their company accounts. Attack their emerging, transnational markets and build a presence within the home or small business (SMB) segments across that house. This two-pronged business strategy, established in early 2009 by their chief operating officer, Yuanqing yang, additionally needed alignment of the availability chain to the customers in every market. To enable them to do so, they targeted on trade their supply chain operations to customer wants, closely managing supplier risk caused by volatile market conditions last
Therefore, if Lenovo is able to prevent high turnover in IBM’s employee after the acquisition, it will be helpful to Lenovo in stabilizing the market as well as smoothing its operation in the first stage after merger. In order to avert this problem, Lenovo had designed several strategies before the acquisition being completed. Firstly, before the acquisition, Lenovo conducted an internal survey within the organization as well as IBM’s PC department to find out the staff’s opinions toward the M&A. According to the result which Lenovo gathered from both teams, it shows that both teams have display similar thoughts towards the integration. The staffs from Lenovo were really positive about the M&A as they believed that the integration would advance the company to an international level.
The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. As mentioned, marketers cannot control the factors of the external environment. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011).
Table of Contents 1.0 EXECUTIVE SUMMARY 3 2.0 THE CHALLENGE 3 3.0 Vision 4 4.0 Mission 4 5.0 Core Values 4 6.0 USP’s 5 7.0 SWOT ANALYSIS 6 8.0 SITUATIONAL ANALYSIS 8 8.1.0 POTER’S FIVE FORCES 8 8.1.2 PEST ANALYSIS 10 9.0 Competitor Analysis 11 Noritake 11 Dankotuwa 12 Chinese imports 13 10.0 CUSTOMER ANALYSIS 14 11.0 MARKETING STRATEGY 15 11.1 MARKET SEGMENTATION 15 11.2 POSITIONING STRATEGY 16 11.3 Ansoff Matrix 17 11.4 MARKETING MIX 18 12.0 ACTION PLAN 21 13.0 BUDGETS 21 1.0 EXECUTIVE SUMMARY Royal Fernwood Porcelain, Browns latest acquisition, presently markets a range of porcelain products for local and foreign markets. Royal Frenwood has a local market share of 13% and a strong dealer distribution
This allows cheaper goods production through laborious industries such as textiles, and this allows multinational companies to take advantage of the lack of legislation that doesn't cover workers in India but is imposed in the UK. Gradually, transnational corporations form connections with other countries as they invest in them. The UK, for example, has set up stores in China with the DIY chain B&Q. This could be to take advantage of cheap materials and workers, accessibility to markets and easier geographical transport, more convenient legislation, or to establish themselves as a new market leader (2).
1.1 Background of the case The chosen company is Lenovo Group Limited which is a multinational technology company that is headquartered in Beijing, China. Established in 1988, Lenovo is the largest information technology enterprise in China, engaged primarily in the sale and manufacturing of personal computers, mobile telephone handsets, computer servers and printers, in China. It has been the market leader for seven consecutive years, commanding a 27 per cent share of the domestic PC market in 2003. It is also the market leader in the Asia Pacific region (excluding Japan), with a market share of 12.6 per cent in 2003.