Global business environment - Term Paper Example

Part 2 Executive Summary Global business environment has become highly competitive as several leading organizations around the globe are trying to capitalize on the potential business operation opportunities that have been developed due to globalization and technological advancement. Slate tablet is a newly developed organization going to compete in the global consumer tablet industry. The organization is trying to adopt and implement cost leadership business level strategy in business operation process in order to support the affected purchasing power of the consumers. The organization should try to focus on the large and emerging consumers markets to gain potential competitive advantages. In addition to this, the organization should also try to develop its own distribution and supply chain network in order to justify its adopted and implemented cost leadership business level strategy. Most importantly, the organization needs to use the promotional mediums and platforms such a way, so that the target customers can understand the market position of the products. Lastly, it is highly important for the management of the organization to focus on both social media and traditional media promotional strategy to create significant brand awareness. Table of Contents Executive Summary 2 Target Market and Positioning of Slate Tablet 5 Market Segmentation of Slate Tablet 5 Geographic Segmentation 5 Demographic Segmentation 6 Psychographic Segmentation 6 Behavioral Segmentation 7 Positioning of Slate Tablet 7 Price 8 Quality 9 Price 9 Cost Leadership strategy 10 Depending variables 11 Distribution 12 Decentralized Distribution 12 Zero Inventory Turnover 13 Promotion Plan 13 Social Media Advertising 14 Print and Digital Media Advertising 14 References 16 Target Market and Positioning of Slate Tablet It is clear from the previous assignment that Slate tablet is going to introduce in global tablet industry. But, initially and certainly the brand will compete in the consumer tablet market. It is clear from Part 1 that global tablet industry has become highly competitive and saturated. Therefore, it is highly important for the management of Slate to develop an effective and significant targeting and positioning strategy for the brand considering the nature of the competitive global market place. However, it is clear from the previous assignment that the management of Slate is trying to focus on consumer tablet market. Market Segmentation of Slate Tablet Market segmentation can be considered as an important strategic marketing tool that helps an organization to offer products to the target customers based on the attributes of the products and demand of the target customers. It is highly important for the organization to understand the significant of market segmentation in order to position its products in global market places quite significantly. Market segmentation can be divided into four different parts, such as geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. Each of these aspects has been discussed below. Geographic Segmentation Geographic segmentation can be considered as one of the important segmentation tool. This geographic segmentation used to separate the global market place into several geographical boundaries, which can impact price, promotion, marketing distribution and product mix. Geographic segmentation used to depend upon the customer’s purchasing power and nature of target market. Slate Tablet is going to compete in consumer tablet segment. Therefore, it is important for the management of the organization to focus on large consumer markets in this world. India and China can be considered as the large consumers markets of consumer tablets. These two countries are developing countries and the demand for consumer tablet is significantly increasing among the consumers due to the particular economic conditions (Duiker, 2010). Therefore, the management of Slate will try to focus on Indian and Chinese markets in order to gain customer preference for the tablets. Demographic Segmentation Demographic segmentation generally separates the entire global market place by several important demographic indicators, such as income level, age and gender. There is no doubt that demand for consumer tablets is significantly increasing among the global consumers. In terms of gender, both women and men are the major target audiences of this Slate Tablet. In terms of income level, people of lower middle class and middle class income group are the major target customers. Before segmenting products according to the age group of the people, it is important for the management of Slate tablet to conduct a market research regarding the demand of products among the particular aged people (Fernando, 2009). However, it will be effective for the organization to target people aged between 15 and 55. Psychographic Segmentation Psychographic segmentation generally separates particular consumer market places by values, beliefs, motivation and life style. It is true that consumers prefer tablets of particular brand according to the precipitation about the brand. For example, people generally purchase high-end tablets as they perceive that premium priced products are superior in quality. On the other hand, there are other customers too who purchase economic priced products as they perceive that those products will help them to support their purchasing power. However, it is true that global tablet market is becoming highly competitive as well as saturated. Therefore, it is highly important for the organizations to segment the products in such a way so that the consumers can think that it is a product of high quality but available at economic competitive price (Hodgetts, 2005). It will help the organization to support the purchasing power of the people during post-recession era. Behavioral Segmentation Behavioral segmentation generally separates a particular market place considering the buying behavior and purchasing power of people. It is true that demand for products used t vary from a consumer to another consumer due to several aspects. For example, some consumers try to buy tablets to play video games. On the other hand, some consumers try to buy tablets to access and enjoy high speed internet services. Last but not the least; some consumers try to buy tablets to enhance executive and official works (Keillor, 2007). Looking into these aspects, it can be stated that the management of Slate Mobile will try to provide all these attributes and services to gain consumer preference. This business operation process and segmentation will help the organization to increase its brand image in global market place. Positioning of Slate Tablet It is clear from the above discussion that the management of Slate tablet will try to focus on the consumer tablet market in the global market place. Therefore, it is important for the organization to position the products according to the nature of target market and market segmentation. Positioning of a product or a brand can be done through the consideration of price and quality aspect. Following price-quality perceptual positioning mind map will help the management of the Slate tablet to determine appropriate positioning of the brand. Price Pricing of a product can be considered as one of the important aspects in the field of marketing. Pricing of a product significantly depends upon the each and every business operation activity, such as manufacturing, distribution, used resources and marketing. It has been mentioned earlier that global tablet market has become highly competitive as well as saturated. Moreover, recent economic depression affected the disposable income level and purchasing power of people (Kumar, 2011). Therefore, it is highly important for the management of the Slate tablet to offer products at competitive price level so that they can grab a significant market share in global consumer market segment. According to the above price-quality map, it can be stated that the organization should try to maintain its market position as economic priced products. Quality Demand for high quality and differentiated tablets is increasing significantly among the target customers. Therefore, the organization should try to maintain high quality aspects in the tablets. The management should try to develop an effective and strong research and development team in order to enhance the quality control of the products. In addition to this, the organization should try to update its products gradually according to the constant change in the market demand (Miller, 2000). This strategy will help the organization to increase brand image and brand identity in global market place. Therefore, perceived position of the products will be as high quality and differentiated tablets. Price Pricing can be considered as one of the most important aspects of marketing. Effective pricing strategy generally helps an organization to influence the buying behavior of consumers. Pricing also can be considered as an effective marketing mix tool that helps the management and strategy developers of an organization to focus on the common purchasing power of the target customers before developing a pricing strategy. It has been discussed earlier that recent financial crisis and global economic recession have affected the economic environment of the world. Low purchasing power and limited disposable income are the major consequences of this recent economic downfall (O’Guinn, 2014). Therefore, people are trying to gain high quality and differentiated products at economic price level. Looking into these issues and considering the current market demand, the management of the organization should try to adopt and implement cost leadership strategy in business operation process. Cost Leadership strategy Cost leadership strategy can be considered as one of the important business level strategies. Cost leadership strategy generally helps an organization to reduce overall business operation cost. This specific strategy was proposed by Michael Porter. The management of Slate Tablet should consider and apply this strategy as an effective business level strategy to gain potential competitive advantages over competitors. This strategy will help the management of the organization to enhance limited cost of business operation within the industry. The manufacturing unit of the Slate Tablet will succeed to exploit the scale of production using this particular strategy. Moreover, this strategy will help the management of the organization to source high quality business resources, such as raw materials, technological resources, human resources and marketing channel at competitive cost. Several organizations are engaging in price war in order to gain customer preference and develop an effective and potential customer base around the globe (Augen, 2008). However, it is highly important for the organization to maintain cost leadership without compromising the quality of the product, superior customer service and high product quality aspect. The management of the Slate tablet should keep one thing in mind that cost leadership aspect is totally different from the price leadership aspect. An organization may be considered as a lowest cost-manufacturer, but that does not mean that they offer low-cost services or products (Stoian, 2000). Actually, the marketing department of the organization should focus on cost-based pricing strategy considering average profit maximization. This strategy will not hamper the profitability of the organization, but will help to gain huge brand preference within global market places. Depending variables The management of the Slate tablet needs to focus on several variables while developing and implementing pricing strategy for the products. First of all, it is highly important for the organization to gain knowledge about the economic condition of operating country. In developing and developed countries, the organization should try to focus on aggressive cost-based pricing strategy as it will help the management of the organization to gain huge market share in consumer tablet market segment. Next, the management of the organization should try to focus on the attributes of the tablets before deciding pricing of a particular tablet (Cornelissen, 2011). It is true that, operating system, RAM storage capacity and applications used to determine the pricing of the tablets. Therefore, the organization should try to offer quality attributes in minimum price by adopting cost leadership strategy to support the purchasing power of the common people. However, it is clear from the above discussion that the organization should try to maintain competitive and economic pricing strategy considering growing market competition and inadequate economic condition of several global market places. It is highly important for the management of Slate Mobile to focus on the offering of high quality and differentiated tablets at economic price level according to the current market demand and needs of target customers. This strategy will help the organization to gain potential competitive advantages over the competitors. Distribution Distribution strategy can be considered as one of the important business operation strategies for any organization. Effective distribution channel generally helps an organization to source the required business resources effectively and supply end-products to the end-customers quite efficiently. The management of the Slate tablet should try to adopt and implement decentralization in the overall supply chain and distribution process. Decentralized Distribution Decentralized distribution and supply chain will help the organization to bring efficiency in the overall supply chain and distribution process. First of all, it is necessary for the organization to develop own distribution channel in the operating countries. It can help the organizations in several ways. First of all, it can reduce overall business operation cost as hiring external distribution agency or channel may increase overall business operation cost. Secondly, this specific strategy will help the organization to monitor and control each and every process and it will help to justify business operation sustainability. Decentralization will help to integrate both top-down and bottom-up approaches. According to this strategy, the organization will try to engage its valuable stakeholders in decision making process to develop better business operation strategy. As a whole, it can enhance clear communication approach between top level management and low level executives. Therefore, the efficiency of the supply chain will be enhanced through this approach. Effective decentralization will help to allow the management of the organization to develop own supply chain and distribution channel (Chopra, 2004). In addition to this, it will help to develop more number of warehouses and manufacturing units to reduce the overall supply chain lead time. It is known to all that, supply chain lead time can be considered as the entire time-frame required from the resource allocation process to distribution process. This process is generally a time consuming and cost consuming process. If the management of the organization decides to adopt and implement decentralization in the supply chain and distribution process, then it will help the management of the organization to reduce the business operation time and cost. Most importantly, this reduction of internal business operation cost will help the organization to justify its adopted and implemented cost leadership business level strategy in business operation process. Zero Inventory Turnover It is another important aspect that needs to be considered by the management of Slate Tablet. The organization needs to reduce its overall supply chain cycle. The management of the organization should distribute its products twice in a month. In addition to this, the organization should also reduce the number of total inventories in every distribution cycle. This strategy will help the management of the organization to reduce overall business operation cost. In addition to this, this specific strategy will help the organization to create a positive perception in the minds of the target customers. Last but not the least; the management of the organization should try to integrate advanced and automotive technological applications in supply chain and distribution process in order to enhance efficiency of the overall logistics and supply chain management process (Lee, 2004). Promotion Plan Promotional strategy can be considered as important strategic marketing tool that helps an organization to create significant brand awareness among the target customers. The management of Slate tablet should try to use contemporary as well as traditional advertisement mediums to create significant brand awareness. Social Media Advertising Social media advertising can be considered as one of the effective promotional strategies that may impact the business performance of Slate Tablet in the emerging markets. It is also known as the contemporary promotional strategy. It is clear from the geographic segmentation that the management of the organization should focus on large consumers markets, such as India and China for the products. Demand for social media advertising has increased significantly in these business markets. In addition to this, number of social media users in these two countries is significantly increasing. The consumers of these countries have accepted and habituated with the social media promotional process (Collins and Shemko, 2009). This process should influence the management of the organization to adopt and implement online social media promotional strategy. Facebook, Twitter, Hi5 and You Tube should be used as the major social media networking platforms to promote the Slate Tablets. However, You Tube is restricted in China. But, the management of Slate Mobile can consider the hype of Facebook and Twitter in Chinese market. It will help the organization to create significant brand awareness among the target customers in these emerging global market places. Print and Digital Media Advertising Print and Digital media advertising can be considered as effective traditional advertising platforms that help organization to create significant brand awareness among the target customers. Digital media platforms include television and radio. The management of Slate Mobile should try to enhance mass marketing through these two mediums as these platforms will help entire country to know about the products, prices and features of the products. In addition to this, the organization should also use a message of value or vision of the brand through the advertisement (Kotler and Armstrong, 2011). In this message, the pricing, customer value and brand image should be effectively portrayed by the organization. The management of Slate tablet should use poster boards, story boards, news papers and magazines as the print media advertising platforms. The organization should try to use these mediums in semi-urban, town and rural areas, where the myth of online social media platform is lacking. It has been mentioned earlier that the organization is going to offer high quality and differentiated aspects at economic price by adopting and implementing cost leadership strategy. The organization should use a message like “Buy tablets without EMI” or “Nothing like Anything”. These two messages will help to attract the common consumers to think about the purchasing about the products (Adin, 2004). If the organization able to convince the customers that they are provides tablets of good quality, the Slate Mobile can create its own market segment in the operating countries. However, it is clear that pricing should depend upon nature of target market, market segmentation and brand position. Therefore, the management should try to ensure high quality and economic price aspect of the products in its promotions. References Adin, A. (2004). “Differentiation in competitive business environment”. Harvard business review, 8(1), 38. Augen, J. (2008). The Volatility Edge in Options Trading. New Jersey: John Wiley & Sons. Chopra, A. (2004). “Supply Chain Break Down”. MIT Sloan management review, 12(1), 3. Collins, K., and Shemko, J. (2009). Exploring Business. New York: McGraw-Hill. Cornelissen, J. (2011). Corporate communication. London: Sage. Duiker, W. (2010). The essential world history. Stamford: Cengage Learning. Fernando, C. A. (2009). Business ethics. New Jersey, NJ: Pearson. Hodgetts, L. (2005). International management: Culture. New York, NY: McGraw-Hill. Keillor, B. D. (2007). Marketing in the 21st Century. London: Greenwood Publishing. Kotler, P., and Armstrong, G. (2011). Principles of Marketing. New Jersey: Pearson. Kumar, R. (2011). Merger and Acquisition. 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