Why Companies Should Have Open Business - Assignment Example

ASIA PACIFIC AND BUSINESS ECONOMIES: A FEASIBILITY STUDY Student’s name Course &Code Professor’s name University City Date Question 1 Relevance of a Pioneer or a Follower Strategy by Highlighting Suitable Strategic Market Programs for the UNE Life Suitable strategic marketing programs for UNE Life are defined through the mission that is purposed to equip students with the quality of information and skills. As such, the students are well trained based on their personal experience, commitments, and research on different innovations and inclusivity. The culture adopted by UNE Life through its academic pursuance, the research conducted and delivery of services is normally set to suit the interest of the community. In achieving its mission, the institution has adopted the principle of pioneer and follower strategy that has a lot of relevance on its strategic marketing program (Mullins, 2010). The strategic marketing program is purposed to serve the following roles (Glen Innes Severn Learning Centre, 2014): i. Give a clear definition of the potential users alongside their needs, ii. Come up with services that target to address the needs of the community iii. Market UNE Life learning centers services alongside its stakeholders to prospective users ensuring maximum usage, the community worth and sustainability of the learning institution iv. Create strategies that are sustainable and would source funds in the future, improve technology, levels of staffing and qualifications. In pursuing the roles as asset out in the strategic marketing program, UNE Life as a Pioneer opted for the mass-marketing penetration as its strategic marketing program (Mullins, 2010). UNE Life through the pioneer and follower strategies focused on streamlining its marketing strategies program to ensure that they had an absolute and sustainable commanding share of the market for the intended market for the community (Kaličanin, 2010). Additionally the strategic marketing program through the pioneer and follower strategy would be a success as the institution has unique competencies alongside resources required to meet the need of the society based on the mission of the program (Mullins, 2010). The pioneer and follower strategy is, therefore, relevant for the strategic marketing program as it allows UNE Life to pursue first moves in technology, service and product or marketing innovation hence benefits from first mover advantages (Kaličanin, 2010). The first mover advantage that is relevant to the strategic marketing program and the purpose for which it is intended to the UNE Life is upholding the positive image and reputation as a pioneer in meeting the needs of the community through relevant approaches (Kaličanin, 2010). This is made possible by the fact that applying the pioneer-follower strategy allows the party involved to have a competitive advantage within the new field which is a process that may take a long time (Mullins, 2010). In the case of UNE Life, the period would be reduced as the institution already has the resources that are required in meeting the needs of the community. One of the resources that institution has in respect to addressing the needs of the community through an approach that suits the needs of the community is the UNE Life and TAFE Study Centre equipped with wireless computers, video conferencing units and printers. The students have full access to the facility at all time thus ensures unlimited flexibility (Mullins, 2010). The students, therefore, have personal experience, commitment, research and innovation that are inclusive of matters that address the needs of the community. Also, the pioneer and follower strategy allows the UNE Life to control a larger market hence address the needs of a large population of the community even after other institutions or followers shall have joined the market. This is based on the mass-market penetration strategic marketing program that allows the program to have a wide grass root contact with the community before the emergence of the inhibitors (Kaličanin, 2010). The outcome of the project in reaching out to the community through the pioneer and follower strategy can be sustained through proper management of the available resources (Mullins, 2010). Further, the pioneer and follower strategy is relevant to the strategic marketing program as it optimizes the number of the population reached within the community and enlightened as soon as possible in addressing challenges within the community. Question 2 Relevance of the Growth-Market Strategies for Market Leaders and Share-Growth Strategies for Followers for UNE Life's Business The UNE life has distinguished its roles based on the intellect of the experience its students demonstrate in matters relating to the community as compared other universities. The institution has adopted innovative educational technologies that enhance the students learning is amongst its strategies (Annual Report 2013).This constitutes its SMART objectives that are further facilitated through the growth marketing strategies for its leaders and share growth strategy for followers (Annual Report 2013). The University targets to acquire international distinctions in a number of fields' research, an aspect that can further be influenced by the growth-market strategies for its leaders. The growth-market strategies are relevant to the acquisition of the University SMART objectives as it entails aspects of the dynamics of a growth market that make maintaining an early lead in relative market share difficult (Mullins, 2010). Additionally, it can maintain the current share position in a growth market only if the outcome continues to grow at a rate that is similar to that of the overall market thus allowing the firm to stay even in absolute market share (Mullins, 2010). Also, the growth market strategies for market leaders comprise objectives of marketing that remains relevant for the UNE Life and University shareholders. The first objective involves retaining of the potential customers that have attracted through engagement in sporting activities within communities (Mullins, 2010). Through this approach, the University would also retain potential donors and stakeholders that would be working closely with the students in reaching out to the community through other approaches designed by the UNE Life (Varadarajan, 2010). Another objective that is relevant to an aspect of the growth market strategies for market leaders is the stimulation of selective demand among the societies and learners that my latter adopt the concepts rolled out in a manner that it covers a vast of the continued growth within the society (Mullins, 2010). Stimulation of the primary demand is another objective that is relevant as a growth market strategy as it enhances the rate at which the overall market or demand rises (Varadarajan, 2010). Further, expansion of the total demand of centers based on online networks to serve students across different locations when approaching the end of the growth stage and early in the mature onset stage (Mullins, 2010). UNE Life University has therefore considered a number of growth market strategies for market leaders that address their interest in different dimensions. To begin with is the Flanker strategy. The flanking approach allows the university to overtake any other institution that could be serving a similar interest. Through this approach, UNE Life targets the use of online networks to serve its students from different geographical areas and achieve innovative ideas that benefit the society. Also, the flanking strategy would allow the UNE Life to capitalize on the marketing shares of the program rolled out while at the same time upholding its reputation. Further, this approach is significant to the university in the attraction of more customers and students that comprise those disappointed by programs rolled out by other institutions based on unique techniques that have not been applied before. The approach, however, has a limitation as the competitor could deliberately overtake the fortress of a leader there hence venturing into an area that the University has not established strong programs (Mullins, 2010). Share-growth strategies for followers are also relevant to the UNE Life business based on the objectives and the approach chosen for the strategic marketing program. This is based on the marketing objectives for the followers. The first objective for followers normally seeks a small unit of a profitable business within a specialized segment of other vast markets that earlier entrants have bypassed. It would be relevant to UNE Life as it would influence the approach taken by the university to identify the available gaps that could have been applied by other institutions but not exhausted. Another objective that is relevant to the UNE Life business is that it provides the opportunity for the followers to outsmart the leader there hence emerging as the most outstanding competitor within the total market (Mullins, 2010). Question 3 Competitive Advantage Strategies McGrawth (2013) point out that competitive advantage, for any business, is never permanent. Businesses go through various stages, mostly controlled by their market performance (Yjiloki, 2013). These periods have impacts on their operational outcomes hence demanding strategy in order to effectively compete with their peers. Competitive advantage is imperative in optimizing profits against the production costs (Shaw., et al., 2012). As such, regardless of the market development stage, whether shakeout, mature or declining, there is a need for planning and implementation of appropriate competitive advantage strategies (Choudhury & McIntosh, 2013). This section examines UNE Life’s competitive advantage strategic choices for each of these market development levels. i. Shakeout Level Market or industrial upheavals characterize this development stage as a result of intense competition (Gamble & Thompson Jr, 2014). The effect of this very high competition is the elimination of weaker entities leaving behind the few large and dominating entities (Hewitt-Dundas, 2013). For sustainable competitive advantage, strategic choices are required at this stage in order to effectively compete and avoid being thrown out of the market for competing weekly (Raubenheimer & Stammen-Hegener, 2013). UNE Life business is in a class of its own when it comes to offering university life’s convenience. University life is crowded with high learners expectations, not only in relation to the academia but also in various social spheres. As such, most students are more likely to support and use business facilities that support both their academic and social skills. While various business entities may venture into particular sectors to address the student’s needs, UNE Life has diversified its business offering to cater for some students need in different sectors. One major trend of the shakeout stage is the elimination of the weak businesses. Weak businesses are present minimal solutions and convenience hence characterized by insignificant consumer confidence and very low or lacking customer preferences. In most cases, their incomes are insufficient to counter the production costs hence leading to forced closures. As such, the strong market participants, offering higher convenience are left to do business. UNE Life, venturing in a variety of sectors vital in university student’s life, is less likely to be thrown out of business due to increased competition. The strategic choice, in this case, involved the diversification for the target markets convenience. ii. Mature Level Markets are considered mature when in the equilibrium state (Choudhury & McIntosh, 2013). This state is characterized by an insignificant or total lack of growth and innovation including tendencies of supply matching demand hence prices being decided by demand and supply market forces (Bartlett & Ghoshal, 2013). The resultant equilibrium prices most likely prevail for varied periods of time depending on the current market positions and the continuity or consistency of similar market behavior (Johnson., et al., 2012). In this stage, strategic planning and implementation of advantage competitive choices is essential to boosting market performance. Similarly, at this stage UNE Life’s diversification strategic choice is tantamount in sustaining its competitive advantage. Offering a variety of services to their nine core businesses, UNE Life ensures that most, if not all, students needs are catered for by the businesses. In effect, the businesses address the available opportunities in students’ life, making use of their strategic choices in their business operations. Additionally, UNE Life hosts a number of campus events and functions on a busy annual schedule that serves to increase its popularity among students, hence attracting their confidence and preference, which in turn advantages its competitiveness. iii. Declining Level This is the final development stage characterized by either gradual or drastic decline in business revenues as a result of market saturation, market size decrease or introduction of replacement products or technology (Hewitt-Dundas, 2013). During this stage, businesses need to design effective strategies and innovations that are geared towards sustaining their market relevance (Chesbrough, 2012). While UNE Life’s diversification strategy would still be effective in this stage due to the generation of income from each of the nine businesses, other strategies are also evident. The use of modern technological innovations that are frequently updated ensure that their services are always up to date, hence fewer fears of replacement by innovations. Additionally, the strategic target market of university campus students ensures that the business faces fewer fears of market sizes decline. McGrawth (2013), argues that businesses within institutions, providing solutions to various members needs are less likely to flop, since the institutions will always have numbers and most likely similar needs trends. Question 4 Strategies to Serve New Economy Markets Humans have diversified and frequently evolving needs that present variety of opportunities for business. Various developmental changes alter these needs and change their levels of complexities hence demanding various business changes (Postiglione, 2015). Technological changes, for instance, have contributed to massive changes in business operational procedures with the aim of increasing business speed compared to competitors (Civi, 2013). E-business has grown into a popularized trend casting doubt on the effectiveness and reliability of traditional operational techniques in addressing the changes in consumer needs and expectations (Gamble & Thompson Jr, 2014). These changes in market needs, demands, and expectations result to new economy markets, a conceptual term believed to date back to 1990 (Bartlett & Ghoshal, 2013). While traditional methods work in some entities, a combining traditional and new techniques or totally revamping may be necessary to others (Hewitt-Dundas, 2012). In essence, businesses require strategies in order to serve new economy markets and compete favorably with their peers. The various evolving student needs a result to the birth of a new economy in university life (Civi, 2013). Going back to the first traditional intentions of university education, academic concerns were priority while students’ social needs were neglected (Gamble & Thompson Jr, 2014). With technological developments and increased self-awareness, students slowly developed demands for their social needs to be addressed. As such most universities slowly started integrating facilities and developments that catered for these needs that range from entertainment, health and accommodation among other needs. Changes in money economy situations forced changes in the operations of facilities, moving from the traditional free services to later developments into profitable business channels for the universities (Postiglione, 2015). Currently, with a world increasingly growing technologically savvy, most students require high speed technology services and high quality product and services that address their various student needs, which characterize a new campus economy (Gamble & Thompson Jr, 2014). UNE Life offers diversified business services that cater for the new economies. Several business strategies in each of the individual nine businesses serve to address the new economy market needs hence enhancing the entities competitive advantage. In the current generation, most students, for instance, have very busy schedules spending most of their time in class and their free time working in various places to earn incomes. Less time is thus spent on entertainment activities as it were in the past, a trend that contributes to a declining market for UNE life. However, these trends create new opportunities that UNE strategically addresses hence increasing their profitability. Offering quick café services including take away options for example caters for the new economy demands of quick meal service and preference for fast foods. Additionally, early parenthood is more common than in the past days, with most students facing the challenges of raising children while taking their studies. This has changed the need for various students; an opportunity UNE Life has harnessed in providing baby care and kindergarten facilities for student parents. The continuous use of updated technology by SportUNE and provision of Heath training keeps enhances the facilities adaptation to changes in campus economy. Moreso, some of the facilities such as Life Functions and Catering are open for use to the general public. Through these strategies, UNE Life ensures that new market needs are addressed hence remaining profitable even with changes in market needs and expectations. Question 5 Organizational Structures and Marketing Plans Effective organizational structures and marketing plans are essential in increasing organizations a competitive advantage in highly competitive market sectors (Brandt & Bresser, 2012). Arguably, in universities, students have a variety of options that control their selection of the services and products they require (Postiglione, 2015). To win their preference, it is essential to use the tools available and strategies for the aims of gaining their confidence and attracting students’ preference. Superior strategies in marketing, for instance, increased the market voice share for the businesses within the university premises hence increasing the chances of personal referrals or information access that would attract customers to the businesses (Gamble & Thompson Jr, 2014; Raubenheimer & Stammen-Hegener, 2013). On the other hand, organizational structures guide and control the formulation and implementation of market and operational strategies with the aims of increasing competitive advantage (Civi, 2013). This section examines UNE Life’s organizational structure and marketing plans, analyzing their effectiveness in raising the entity’s competitive advantage. Organizational Structure Established in 2014, UNE Life is a business collaboration between SportUNE and Services UNE. This collaboration strategy is effective in ensuring that the combined business benefits from the previous customer bases of each of the individual business entities, hence reducing market competition between the two and increasing profitability. Additionally, by collaborating to form UNE Life, there was significant combination of skills, expertise and ideas which when fused together amounted to great improvements in service and product quality which have been central to raising UNE Life’s competitive advantage. Additionally, UNE Life has diversified into nine business ventures providing a range of services with specialized and expert staffs. These businesses not only serve a variety of students needs but also attend to staffs and communities hence attracting customer preference for a wider market. Each separate business has their individual management and staff personnel trained in the business sectors hence facilitating effective operation of the businesses through effective coordination, strategic planning and quality product and service. Separation of the businesses into individual entities enhances focus on the core values of each of the businesses hence reducing any chances of quality compromises. This enhances the businesses’ performance through operating with specific markets as well as encouraging the individual businesses to come up with their competitive strategies. Marketing Plans UNE Life has used various marketing strategies to increase its competitive advantage and sustain its high profitability margins. Through a single functional websites that is easy to navigate, UNE Life markets all the nine businesses hence increasing the public’s awareness of the services offered, current offers, events and how or where to access the services offered by UNE Life. Additionally, to attract high turnout UNE Life uses high-quality advertisements with high emotional and visual appeals on the websites, through flyers, videos, and graphic images. Since students are the main target market and the largest number of customers for the businesses, the businesses offer substantial discounts at various time intervals and some of which are permanent for the students. The provision of 10% discount across all student menus for Café Life attracts more students to the café. 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