Question 1-Week 2
Bargain power of customer (medium): Bargaining power of the customer plays a significant role in organizational behaviours and marketing performance. According to the view of Dans et al, (2019), customers get sustainable power for bargaining due to the existence of different online luxury brands. Most of the customers prefer to examine luxury cars based on quality, appearance, additional features and new market trends. The opportunities for selecting from a wide range of luxury brands enhance the bargaining power of customers. On the contrary, the privilege of a well known German brand attracts customer attention and reduces bargaining intention regarding cost and quality of a product.
Bargain power of supplier (low): Luxury car manufacturer and material supplier companies have the highest balance of power for supporting each other in the competitive edge. Integration and dependency on luxury German car manufacturing by suppliers for their market growth is the reason for the low bargaining power of the suppliers. According to the view of Hernández-Perlines et al, (2016), lower bargaining power of luxury brand suppliers helps companies such as BMW and Audi for enhancing their profit maximization.
Threats of substitute (high): German luxury car manufacturing companies are high due to rising market competitions. According to the view of Kilduff, (2019), the luxury brands focus on providing two significant elements; comfortable means of transportation and privilege status. The increasing substitute for German luxury cars such as private jet, business class flight has greatly affected the business environment and marketing opportunity. Contemporary, market competition has provided several alternative and substitution opportunities to the customers. According to the view of Linton and Kask, (2017), the threats of increasing substitutes in the market areas encourage luxury car brands to develop new automation technology and advanced luxury cars based on appearance and performances for getting maximum customer attention.
The threat of new entrant (low): The changes in the rising new entrant in the luxury car market are limited. According to the view of Linton and Kask, (2017), the existence of a monopoly market in structure has developed several barriers for easy entry in the luxury car market and it greatly reduced the threat of new entrants.
Competitive rivalry (high): Competitive rivalry of German luxury cars is high due to the existence of different Global leaders of luxury cars. As for example, Audi, BMW and Mercedes Benz compete among themselves for achieving market leadership for getting maximum customer attention.
Question 2-Week 4
Product differentiation strategy of David Jones focuses on Asian customers because of their high quantity and huge market opportunities. The most potential risk that David Jones has faced with differentiation strategy are balancing with the board of directors, changing organisational layout and management of operating cost. The creativity and innovative idea of David have various financial and investment risks and during his product differentiation strategy, he had to convince the board of directors for getting approval. According to the view of Linton and Kask, (2017), reviving the organisational economics structure by acquiring new customers is one of the major risks associated with the differentiation strategy of David.
Identification of appropriate strategy and architectural design based on buying behaviour of Asian and American customers is a significant challenge and risk arises during the control period of David. According to the view of Chung and Kuo, (2018), management of organisational cash flow by reducing the operating cost of organisational physical and environmental changes is associated with high financial security. DJ marketing strategy is unique and based on customer buying behaviour that has helped to survive in Australian society. As per the view of Chen and Liu, (2019), interference of board members and other people on product and business differentiation strategy of David has been a negative impact on the speciality retailer of Myers.
Question 3-Week 8
Chinese marketing activities are controlled by the Chinese Government and they have strict rules and regulations of retailing in the Chinese Market areas. Walmart entry in Chinese Market areas has multiple risks and it has resulted in failure in surviving on the marketplace. According to the view of Su et al, (2017), the obstacles for Western companies to enter in the Chinese market are economic difficulties of understanding Chinese customers, managing relationships with politicians and revenue systems. The Chinese economy has several barriers and restricted trademarks policy for Western companies along with the Monopoly marketing structure. Getting an easy entry in the Chinese marketplace is one of the most potential risks faced by Walmart in its business expansion in the Chinese market. According to the view of Cho and Lee, (2018), understanding Chinese customers buying behaviour and culture is also a prominent risk for Walmart in the Chinese market. Walmart and other American retailers have struggled to deal with Chinese consumers since 1996.
Fundamental misunderstanding between foreign retailers and Chinese political structure is a common issue and barriers of dealing with Chinese marketing area of 117 cities and 25 different provinces. According to the view of Morais et al, (2017), management of organisational rules and regulations and working environment by incorporating with Chinese culture and communist political framework. Management of investment and business revenue systems in popular Chinese cities including Shanghai, Tianjin and Shenzhen is associated with high financial risk. Maintenance of workforce and organisational structure due to cross-cultural issues and communication barrier is high for Walmart in Chinese Market area. Walmart has to continuously deal with the huge struggle for generating profit in Chinese marketplace however, it has faced the claim of violating Chinese retailing norms and regulations of customer service and paying revenue to the Chinese government.
Question 4-Week 9
General electric International cooperative strategies have the potential to bring a wide range of advantages for electrical and consumer good business. Technological infrastructure development and energy development strategies of the company have enhanced utilisation of natural renewable resources for sustainable development and corporate social responsibility.
Economy and job creation: The success of General Electric strategy has made an impressive history in America and President Obama’s advisory group has emphasized the development of economy and job creation by the company. According to the view of Morais et al, (2017), the development of a wide range of jobs for IT professionals and industry workers has the advantage of contributing to the national income and gross domestic product of America to a huge extent.
Development of research and development centres: Development of R&D centres in different places can be considered as an important advantage of General Electric business strategy because it has encouraged several investors of emerging economies to invest and sponsor research and development centres for the development of advanced technology. According to the view of Rashidirad et al, (2017), the wide and diversified business process of General Electric has achieved success in several fields and positively contributes to economic development.
Criticize: GE restriction for covering NBC reporters regarding business experiences and job creation process has been the result of criticism by the people. According to the view of Rashidirad et al, (2017), the company has been criticized by public power for controlling over media owned by General Electric. Restriction for reporting different activities of the company has negatively affected organisational transparency in the international market place and put a negative impact on buying behaviour of customers.
Question 5 -Week 5
Starbucks has already a wide range of organisational capabilities that have been developed by adding organisational value and effort towards business since its established year. As per the view of Cotterill, (2019), the existing organisational capabilities of Starbucks are global presence, customer loyalty, supply chain, premium coffee quality and CSR. From the case study, the organisational capabilities of accountability and collaboration can be identified that is possible for Starbucks to develop based on their experiences. The global presence and advanced organisational structure of Starbucks are capable of developing accountability for enhancing the performances of the employees. As per the view of Cotterill, (2019), performance accountability helps in achieving organisational goals in advance by providing opportunities to the employees for contributing to the decision making process and brainstorming procedure. Starbucks has an organisational capability of collaborating with regional companies in order to provide better services to the customer by understanding their local preferences. Geographical segmentation is applicable for collaboration with regional companies in order to survive in foreign countries.
Advanced training: Providing training on personality development and communication skills to the employees of Starbucks can greatly help the company to increase accountability of the employees and improve marketing performance respectively. As per the view of Cotterill, (2019), this strategy is appropriate for availing maximum opportunities of competitive advantage area and dominant coffee chain of the world. Providing system training to the employees of Starbucks can help to increase accountability and Customer Management process and ensure organisational growth and development respectively. This process can help to convert organisational capabilities into the core competency for improving marketing performances and business management process for strategic development.
Development of legal collaboration strategy: The organisational capabilities of collaboration with regional companies can be translated to core competency by sharing organisational mission vision statements, clear communication and promoting community working. As per the view of Palma-Ruiz et al, (2020), collaboration with local companies of different countries can help to get easy entry in new markets and help to understand the buying behaviour of foreign consumers and help to generate maximum profit.
Question 6-Week 11
The mission of Alibaba is “the gateway to China” and ambitions are to establish an international brand in the global marketplace for making it easier to appeal for Chinese customers and vice versa. Jack Yun Ma shaped the strategic direction of Alibaba Group by incorporating modern technology and Chinese traditional strategy direction. According to the view of Subramaniam, (2020), consideration of the Chinese method of strategic planning has greatly helped Jack Yun Ma in gaining trust and integrity of Chinese people. In addition, utilisation of social media and digital platforms with advanced technology has helped him to attract maximum millennial customers across China and international market places.
Marketing strategy of Alibaba
According to the view of Subramaniam, (2020), approximately 80% of Chinese e-commerce companies have collaborated with Alibaba and it has achieved 57 million resistor customers globally. It uses a customer base of English language network users, thereby, providing flexibility in online shopping experiences for non-Chinese customers has helped Alibaba to survive in the international marketing area and get attention from other companies as well. The utilisation of creativity of representing Chinese E-Commerce companies in the global market by adding language flexibility has helped Jack Yun Ma in shaping the strategic direction of the company.
Through the consideration of a competitive pricing environment as an important marketing strategy element, Jack Yun has shaped the strategic direction of Alibaba by maintaining balance with competitors and attracting maximum customers in the competitive area. According to the view of Palma-Ruiz et al, (2020), Strategy towards developing a competitive Chinese Market and exporting local products in the international area also has a great contribution in shaping the strategic direction of Alibaba group.
Chen, J. and Liu, L., 2019. Profiting from green innovation: The moderating effect of competitive strategy. Sustainability, 11(1), p.15.
Cho, J. and Lee, J., 2018. Internationalization and performance of Korean SMEs: the moderating role of competitive strategy. Asian Business & Management, 17(2), pp.140-166.