International Marketing Strategy - Report Example

International Marketing Strategy Report By submitted International Marketing Strategy Report Introduction All businesses require strategies for their smooth operations in a particular business setting to become successful. These strategies rely on a number of issues such making sure that the organization can accrue some profits at all levels. Every firm looks at the possibility of making profits and new entrants in the market should focus on ensuring that their competitors feel that an organization has ventured into their sector Moxy will have to employ a business strategy that will guarantee success while keeping their clients close to them via the online platforms. To develop its strategies that will be successful on the international platform, Moxy Budget Hotel Chain must carry out an analysis of the external and internal environment. These must entail considering the political and legal factors. The company must focus on technology, socio-cultural, demographic, environmental, and economic factors. These factors usually act as indicators of opportunities that the hospitality industry must embrace to accrue profits and compete healthy in the global market. This essay seeks to address a number of issues such as the summary situation analysis, recommendation with a particular strategic marketing option, and associated market selection and entry strategy for Moxy. Summary of Situation Analysis In the UK, the hotel industry is growing at a fast pace because in 2013, there were only 160.2 million guesthouses nights. This was an increase of roughly 14.4% by the beginning of 2008 and it is likely to grow by 11.7% in 2018. Budget hotels account for approximately 14% of the market because number of hotels will likely increase enormously. During 2012, the UK hotel industry supply increased since many hotels in the UK use IKEA furniture. However, there are other factors such as flat market, which has negatively affected the sales of furniture in the United Kingdom for several years. This has put many companies intending to open new store in a quagmire because most firms are usually at a static level of sales (Birkinshaw, Morrison, &Hulland 1995, 642). Most importantly, the furniture in visitors’ rooms will unlike originate from Ikea, however, they will reflect the most expensive that makes the client enjoy his/her stay. However the inns will be manufactured using an emerging methodology, including pre-manufactured rooms complete with level pack fittings, fabricated in Italy and conveyed crosswise over Europe. The washroom comforts are accounted for to be “upscale” and the shade tones made in a manner that will be desirable for the lodging to have or offer brilliant colours which are connected with some Ikea furniture. Moxy must aim at looking at the ways established brands have begun to pull their trust by extending into new categories. However, brands in profoundly regulated markets will also have to extend into new territories and new sectors to guarantee their survival, whilst others are using extensions as a way of implementing self-promotion. And for Moxy, it will be essential to understand that any visitor from outside the UK; there is possibility for the brand to capitalise on the familiarity of individuals with the brand since it will set the prospects of hotel standards. As a competitive industry, Moxy must strive to help its visitors to have the capacity to control lighting and room temperature utilizing a cellular telephone application. They will likewise have the capacity to pre-order breakfast and change the TV station and this is an essential strategy to attract and maintain its clients(Birkinshaw, Morrison, &Hulland 1995, 638). As per managers, room rates will be dependent upon 30% less expensive than the existing Premier Inn restaurants. Looking at the projected expenditure, it is clear that the hospitality industry is likely to increase as it aims at improving its services to a variety many visitors. This approach is vivacious since it promises attainable in the long run and it further ensures that the services offered to the visitors are effective and worthwhile. Below table shows the prospective spending over the years: World 2012 2013 2014 2015 2016 2017 2018 2019 2020 % change 2012-20 Leisure travel spending 3,222.1 3,324.1 3,479.7 3,652.7 3,823.2 3,999.8 4,184.6 4,375.2 4,570.5 +41.8 Business travel spending 1,017.4 1,048.9 1,103.5 1,161.1 1,214.2 1,266.2 1,318.0 1,369.7 1,418.8 +39.4 Total 4,177.8 4,309.9 4,518.0 4,746.3 4,967.8 5,193.9 5,427.8 5,667.4 5,909.1 +41.3 FIGURE 1: Anticipatedoutlay on vacation&corporatetourism, 2012-20(in 2011 US$m)= Evaluation of strategic options for Moxy’s International Strategic Growth As a marketing consultant for new Moxy budget hotel chain, I must admit that in the contemporary complex and culturally diverse local and global market, competition is a factor that distinguishes failing businesses from successful ones (Buckley & Ghauri 2004, 85). Both local and international business environment consists of almost similar factors that result in the current intricate business competition. Strategic management is essential in necessitating business both short term and long-term development and expansion. However, business professionals have asserted that the formulation and implementation of a working business strategy are an extremely complex process that requires an all-inclusive mechanism. Moreover, consistent evaluation of the company’s strengths, weaknesses, threats and opportunities have as well proved to be very productive and instrumental in the entire process of formulating a workable strategic management plan (Buckley & Ghauri 2004, 88). Moxy Budget Hotel Chain Is a chain of cafe and restaurants in the United Kingdom. The company’s strategy should be one that will allow it to sell other products including cold sandwiches, muffins, bagels, soups and salads among others. Moreover, restaurant businesses in modern markets have proved to be very complicated and competitive (Solberg 2000, 86). There are many companies entering the industry and competition is bound to be stiff. Additionally, competition in the international market is usually more complex and stiffer than in the local context; thus, Moxy will have to utilize a number of strategies essential in the global market. Over the years, the hotel or hospitality industry has encountered a consistent flow of new entrants that result in an increased struggle for any company to accrue proceeds (Porte 2007, 45). Therefore, MoxyCompany must be prepared for a consistent competition at all levels, including Specialty foods as well as fast casual dining. As a result, to sustain its profitability, Moxy ought to frequently revisit and amend its menu to attract and sustain new and regular customers. It will also seek to fulfil the ever-changing customer demands and preferences, have an advantage over their competitors such as the renowned McDonald that hardly alters their menu, forcing customers to loss interests in their products and services (Porter 2001, 74). The most important strategy must always address the needs or demands of the customers by ensuring that they serve the clients in the best manner as compared to their competitors. However, many organizations’ failures are usually attributed to poor customer relationships. Customers form the basis of the organizations’ success because they directly foster business to either success or failure (Porter & Kramer 2006, 83). To advance the competence of its employees, the company’s management will employ the ideology of having or convening consistent strategic meetings with their employees and loyal customers. However, to counter the emerging alternatives such as working from home, the company will be compelled to offer an accommodating atmosphere to its employees in order to facilitate effective and uninterrupted working environment (Duro, 2006; 126). Moreover, the limited barriers to new entry in restaurant markets have significantly increased in the past years and Moxy will have to strive towards doing better than its competitors. It is sometimes very complicated to maintain customers in the business due to the existence of considerable number new entrants offering similar services, which are open daily. To counter the ever-increasing competition in the market, the company will be compelled to alter its services and ensure that all the services they offer are in line with their customers’ seasonal wants and diet demands. For Moxy to flourish in modern intricate market, it has to also introduce very strong and effective marketing campaigns. In their business strategy, the company’s outlets will have to focus and contribute towards the company’s international marketing campaigns. It is essential that Moxy uses the numerous online platforms as a means of reaching numerous clients that basically acquire information from such platforms (Hall 2000, 77). It is clear that many young people communicate basically via the online networking sites and posting on such online platforms since it has helped many other big firms such as the Coca Cola Company. In addition, with the company’s authentically appealing atmosphere, it will have to employ a practical and effective strategy to provide services to customers who demand quick services. Despite being less experienced in fast-casual restaurant industry, Moxy will have to use strategies that will help it overtake its competitors in providing high quality and providing fast casual services to its customers. This will ensure that the company successfully penetrates in areas that are highly populated (Porter 2009, 21). As a result, its plans to venture into highly populated areas will have considerably helped the company reduce the expenses and loss of investing in less populated areas. However, for the company to maintain its anticipated growth and expansion, it will have to come up with an effective policy of preventing new market entrants from dominating its market area. Moreover, to fit in the modern complicated market, its management will spend most of its income towards carrying studies to help understand the dynamics of the international market. This will be instrumental in fulfilling the demands of their clienteles. In its overseas operations, its chains will have to ensure that its international strategies are instrumental in ensuring that it competes favourably with its competitors. The initial strategies that will be used by the company to achieve its growth will be instrumental in determining the future of the firm. Moreover, such approaches must be channeled towards guaranteeing relenting success and eventually beat some of the oldest companies in the same industry. This will elaborately indicate that the company welcomes and implements new ideas, which are essential for any organization. There are numerous strategic options available to Moxy to develop its international presence. One of them is understood by carrying out a macro-environmental analysis (Hammermesh, & Silk 2009, 99). Such an analysis s essential at the beginning of this process since it is a strategic analysis and many tourism industries must understand the bearings of their businesses. The environment of doing business must also be favourable to ensure that they serve the best interest of their consumers. Understanding various factors such as socio-cultural is essential since it helps understand the demographical challenges probable in the operations of the company (Ries & Trout 2002, 61). Firstly and foremost, the lifestyle of people have changed, and they now demand more sophisticated rooms or accommodation. By ensuring that their accommodations are well-equipped to meet the needs of most tourists to allow them become entertained remains essential (Keegan 1989, 32). They will have to continue offering superior services to enable the clients to enjoy their stay in their premises. This company takes such issues into consideration. Within the tourism sector, the people who are travelling most are between 20 and 55 years old. This is because many people have embraced technology and enjoy the use of the Internet since it is a source of information for many people who are capable of using sophisticated items (Jaffee 2003, 178). Culbert and McDonough (2005, 76), affirm that the economic trends play significant roles in ensuring the success of a new entrant into the market (Nord, et al. 2006, 51). However, there are other factors that must be put into consideration to guarantee success of an organization. One of them is the political environment where the company operates. The political and legal factors within this business also impact the operations of the firms within this particular industry. Moxy will have to operate within an environment in which there is political stability; however, it will require effective strategies to address the situation. Additionally, the incorporation of the European Union is perilous in the operations of the company since it has contributed to the process of synchronization of the vocation regulations and exchange rates; it also simplifies the free movement of good. The amalgamation of the European Union also comes with the management of the taxes, which makes operations easier for most tour companies. Presently, due to the issues associated with technology, more and more firms dealing with offer hospitality services as Moxyconduct their business through the internet with the use of the e-commerce tools available (Nord, et al. 2006, 48). For instance, currently, most people would like to go to hotels with free Internet services since it enables them to go through their businesses without getting out of where they stay. Industry players should be successful in ensuring that they are technologically up-to-date by keeping abreast to provide. They should equip their rooms with computers, and other essential electronic strategies (Walsh, & Arthur 2007, 28). In the industry within which Moxy will operate, there are countless regulations associated with the hospitality industry (Basadur 2005, 40). The fate of cell phones as inn booking devices is generally improved by Hotel Tonight, who has created a simple to-utilize applicable for inn bookings in nearly 200 urban areas around the world. Indeed, for example the New York-based Loews Hotels & Resorts has turned into the first chain store to offer booking potential on Twitter. This is a decent step towards guaranteeing that the lodging business enhances year by year. Some customary inn administrations, for example, group work areas, room administration and minibars are falling by the wayside, because of social and innovative advancement (Kepner & Tregoe 2009, 59). Inns are utilizing the technological advanced both to minimize expenses and improve the visitor experience. Many challenges are bound to occur due to innovativeness and numerous issues must be addressed to continue operating smoothly. This is because there are several issues associated with strategies such as e-commerce. This has helped many companies record successes in the past few years (William 1997, 190). Conclusion and Recommendation I would recommend that the company addresses the issue such as of technological challenges. Some of the probable threats and challenges must be addressed to ensure that it creates new opportunities. The above analysis clearly indicates that Moxy will likely develop a competitive advantage against other competitors and new entrants. Moxy should rely on using the strategy of using e-commerce to attract customers. It will be able to create or design on-line portals to help customers improve their services. In fact, presently most consumers would like to book via online platform. Additionally, with the introduction of e-commerce, the firm will likely boost its sales and overtake its competitors. As Olsen, West &Tse (2014) indicate that in order for most companies to be more competitive in the future, they ought to implement future strategies as well as long term objectives that include making alliances with other like-minded companies. It should produce products that are free from faults unlike initially where its services are not as per with other companies. The company should hire its employees from around the globe to ensure that it has employees who understand its clients very well. Additionally, as much as it is absolutely correct that the Internet or technological advancement may not make firms obsolete; nonetheless, many firms may have to alter their business models to remain competitive in the intricate market. Changing business model is required because many changes are required for firms to integrate technological advancement in their businesses. 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