As we discussed in first section, Jeff Immelt had a long term strategic vision for GE which based on GE’s core competencies of technology/innovation, customer focus and strong presence in global markets to reach the objectives of expanding organic growth and strongly compete in emerging markets. This vision required a changes in organizational structure, management development, appraisal system, marketing, technology functions and offshoring by basically moving manufacturing closer to customers (Denning, 2013). Also, GE has restructured their business segmentations as they sold the insurance and plastic segments to focus on capital finance and infrastructure segments. Lastly, Immelt took advantage of GE diversity to create value by providing innovative and integrated customised solutions through bounding products and services from various fractions of the portfolio (Bucifal, 2009). Consequently, it is a widely held view that that from identifying the company’s strategic position which could be summarized in a SWOT analysis, we would be able to generate options.
has the necessary strengths to remain successful in the business in the years to come. However, as identified in this SWOT analysis, there are various defects that the company needs to address to stay competitive and improve its profitability. Tesla needs to focus on its international presence. For example, new facilities and sales operations in high-potential developing countries can enhance business growth, satisfying Tesla’s mission and vision. Similarly, the company must continue its investments in research and development (R&D) to maintain its technological edge.
Pampers - innovation and customer understanding Pampers is P&G’s biggest global brand, used by 25 million babies in about 100 different countries. In 2012, Pampers was the first of P&G’s brands to generate annual revenue of 10 billion dollar. But the road to success of Pampers since the launching in 1950’s has been challenging. A chemical engineer, Victor Mills,
Subsequently, one major question then is how can company’s improve brand awareness. An interesting consideration within this field is the different strategies that companies have engaged in within in different countries to reach consumers and promote company’s brand. Bridson, Evans, Mavondo, and Minkiewicz (2013) examined Ikea in relation to the way that this company approached different consumer markets across different countries. Even as a weakness of this study to the present discussion is that it did not specifically examine brand awareness, the study is relevant in that it considered the different approaches the company took in different countries in promoting the Ikea brand and selling its products. In a significant amount of instances, company’s different approaches to the products around the world were the same in different countries; however, research found that in China the company was forced to change many of its supply chain elements.
the campaign of the Ghanaian government on “buy made in Ghana goods” was a step in the right direction. This development was also made possible by International Finance Corporation support for private-sector small-medium scale enterprises (SMEs) in Ghana and built on earlier entrepreneurial development support from EMPRETEC Ghana Foundation (www.gipcghana.com). In summary, increasing international economic integration was a timely intervention for KCL because it was facing keen competition from local and external alcoholic beverage
Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. A strategy of product development is particularly suitable for a business where the product needs to be differentiated in order to remain competitive. A successful product development strategy places the marketing emphasis on: • Research & development and innovation • Detailed insights into customer needs (and how they
One company that has adapted to local markets is Heineken. Undoubtedly, it still has its global brand that is standardised however they have come up with a strategy that allows the company to adapt its products to the local market. Additionally, it has customised promotion for some of its markets like USA and UK. By adapting its characteristics to the market’s expected benefits, Heineken has been able to gain momentum in said markets and maintain a strong global presence. Hence, international marketing strategy, whether standardized or adapted, will lead to superior performance only to the extent that it properly matches the unique set of circumstances that the ﬁrm is confronted by within a particular overseas market.
A U.S. marketing manager can take many lessons from IKEA’s experiences entering emerging and developed markets. The primary lesson being that IKEA should have done more background research on the different countries it was entering and applied that knowledge to its marketing strategy in order to better meet the needs of their new consumers. One way to gather information on the entry level criteria is to perform an International Marketing Environmental Audit (IMEA), which would allow for IKEA to research deeply into the differences within the new market and provide them with guidance on how their brand might be perceived by consumers. The audit helps management to review many different aspects, strengths, and weaknesses of the country it is entering, from its people, environment, domestic, and international issues they may encounter on entry. Had IKEA performed an IMEA before entry to the Chinese market, they might have identified the counterfeiting issue due to relaxed Chinese laws and re-thought their advertising strategy (not used the catalogs since it makes products easy to replicate) or they could have appealed to the Chinese government to help enforce or create stricter counterfeit laws.
Ansoff Matrix Strategic decisions are often based on by the company can use its existing competitive advantages in the process of promoting the value and capital growth (Lynch, 2009). However, sustained competitive advantage on how to perform these operations largely depends on the company. (Porter, 2008) The need for business development and expansion has been known to promote the product and marketing innovation, which in turn prompted them to take the basis of the different organisational strategies, it based on products and target markets (Ansoff, 1984). In 1957, Igor Ansoff, Ansoff matrix developed to highlight four strategic options(Figure 1), through the organisation of possible new or existing products to adapt into a new or existing
IKEA facing competition from UK-based B&Q. The leading home improvement retailer in Europe, B&Q oversees a multinational chain of hardware stores and garden centres based in the United Kingdom. B&Q dominates the home improvement market in the UK with over 350 stores throughout the country. The British company also operates more than 60 international locations in China and Ireland to rank as the third-largest home improvement retail chain in the world. In total, B&Q stores employ about 20,000 workers and serve over 3 million customers each week.