Benefits for Jessops Company's Ability to Escape from the Crisis - Case Study Example

Summary

The paper regards the theoretical background of the solution for the Jessops' company issues. The paper shows that since the 1990s, the majority of companies have begun to apply the marketing activities in business. But, up to now, many marketing companies did not become an important tool in the management of business processes, which focuses on meeting the needs of the consumer at the market and the constant search for and the introduction of various innovations to improve the business. This fact is reflected in the construction of the company's management system, where marketing is often not of a strategic nature (not the function of strategic marketing). All of the above-mentioned facts characterize the low level of market orientation of the companies.

Today the activities of the company in question show that the marketing of technology-specialized companies are often not isolated in a separate unit, and marketing functions are not perceived as being strictly implemented only by marketers. The pressure of the external environment on the one hand, and the goals of the company, on the other hand, determine the level of development of marketing competencies, their degree of demand, and, hence the need to implement the marketing tendencies within the company. The question of who will implement these functions and objectives (marketing service, or other services and staff) is solved individually in different companies. The paper's structure is Introduction, Theoretical Background of the company in question, Conclusion, and Recommendations. The sources which have been used for the paper are the most recent and help understand the key concepts which are necessary for the company's analysis.

Introduction

The market of technologies is an important part of the market of innovative products. This type of market is constantly evolving and acts as a 'locomotive' pushing the market in general. Besides the fact of using photo tools in business and economic activities, a significant number of technologies is implemented in the sphere of economic life. This comes as a result of the scientific and technical design of technologies in general (Lynch & Cranage 2007). It is important because the significant influence exerted by the latest technologies in the field of competition both on the micro level, which between individual enterprises, and, at the macro level, which is between the economies of countries and regions.

This serves as an illustration of the fact that leading competitive advantage in today's world no longer performs extensive factors, such as technological leadership, which is the key to successfully compete. The accumulated scientific and technical potential was one of any country's economic development key factors as part of an effective and competitive world economy. Currently at the top, from a technological point of view, the countries of the world, scientific and technological progress as a source of economic growth provides about 65% of real GDP growth (Beadle-Brown et al. 2014).

Rising complex and dynamic economic sphere of society, the fierce competition, the need for a detailed analysis of all the information available to the company's most profitable right solutions require the continuous improvement of methods of business and management of a company.

In the 21st century, innovations are recognized as the main driving force of the economy. Without the innovative development of the economy, this is impossible to have a progressive functioning of the state. Country will not be able to compete with other countries in the international market of goods and services (Hall 2009). The main engine of the innovation economy is small and medium-sized companies. They are the starting mechanism in the transition state for innovative development track (Braithwaite 2007). Therefore, the purpose of this paper is to investigate the company Jessops and provide it with the necessary recommendations, which are based on the marketing theories.

Organization's Background

Being set up in 1935, the company has had a great experience on market of photo equipment. Being re-sold several times, the Jessops company faced both success and falls. Initially and currently, the essential field of the company's expertise is the photographic area. The year 2007 showed that the company is expected to change their policies and directions in order to overcome the crisis they encountered.

Currently, the financial situation of the company is being improved gradually and slowly. This shows the necessity of working out more and more advanced recommendations for the company to get the former success and become a number one at the market of the technologies. In order to achieve this purpose, there is a constant need in technological innovations' development.

The company's product is oriented to target all the types of people, regardless of their gender, occupation, and age. The product the company produces is oriented to satisfy the creative needs of the clients along with their business basis. The aspect of sales orientation covers the factor of th company's competitive capabilities (which are currently not above the average ones due to the numerous other technology-related companies). The sales orientation is aimed at obtaining the best market place, the highest levels of sales and the biggest range of areas to use the products. By this, it is possible to state that the company applies such marketing concepts as production and product concepts, the concept of selling, and, finally, social marketing concept.

Marketing Theories Applied to the Organization in Question

To evaluate the company and create the necessary successful changes' recommendations, it is important to regard the theoretical basis. Marketing orientation of the company is a process of setting the goal of market operations and marketing techniques. At its core, it is not a strategy, and in fact, it is more objective (Williams 2011). It is rather a characteristic of the style of managers' thinking, corporate culture, the system of norms and values, which are formed on the basis of goals and strategies (Juiz & Toomey 2015). These settings can also focus on the growth of production, technology leadership, the use of the effect of scale, continuous quality improvement, constant product innovation, etc (Jones 2013).

The marketing orientation of the Jessops company is most often seen in the light of evidence about its performance within the enterprise management system (Dyer 2015). As a consequence, the marketing orientation means, first of all, a willingness to work in market conditions, implied consent to the fact that the company has limited control over foreign environment and competitors have the right to market the entire range of control methods (Lee 2010); secondly, the priority account of the requirements and opportunities of the market, which implies a good knowledge and a person's ability to predict.

The social marketing concept in Jessops manifests in the fact that the customer satisfaction is largely dependent on the fulfillment of their expectations. Often, the customer does not better estimates those companies that are objectively better to do the work, provide greater efficiency, and the ones that best meet their promises (Litterick 2008). The unfulfilled promise is a strong irritant to the consumer, it can negate all the benefits of enterprise marketing.

Awaiting a positive impact on the marketing orientation of the enterprise success is largely based on the continuous supply and correct use of information on the needs of the target group of consumers and competition opportunities (Braithwaite 2007). In addition to this, customer and competitor orientation allows for timely and adequately responding to changes in customer requests and competitor strategies. This approach is used obvious when it comes to discussion of the Jessops company. Initially, they paid more attention not only to the quality of the product but also to the degree their customer is satisfied. Currently, when the company had been sold, there obtained a need in a more profound approach to the customer-oriented work. As a result of the formation of the marketing activities of the system is at a higher level: the production chain, market, distribution channel, and the like, and the company becomes the object of marketing activity of other market entities (Bennis 2015).

An important aspect of the modern market-oriented field is the growing importance of changes in the activity of the enterprise, including its system of values. Due to the reduction of the cycle of competitive advantage (barriers to entry in the markets are lower, scale effects, the differentiation product, and other factors play a smaller role), there is a necessity to build and protect a sustainable competitive advantage increasingly difficult. Therefore enterprise must constantly look for new solutions.

The underlying principle in the Jessops company is carried out with help of other principles: dominance of the orientation for the future, preference predicting and shaping demand, complexity, multivariate, non-linear nature of the solutions, the emphasis on the decentralization of decisions and contingency management, as well as a number of the principles of open systems: basing on the elements that are common to all exchange of participants, sharing the profitability for all participants and the public relations, anticipatory internalization of external effects (externalities), the addition of competitive coexistence and cooperation.

Leading modern marketing trends are multiple and diverse. Without a doubt, it is influenced by the globalization of contemporary social and economic life, its numerous factors and manifestations. However, in every ethnic group, each social group accounts for their unique marketing, on the one hand, and the identity, on the other hand (White 2010).

Another approach which is important when concerning the Jessops company is the so-called management myopia. In accordance with a famous article by Theodore Levitt, “Marketing Myopia,” printed 1960, the attention of top managers was drawn to the fact that overreliance on cost reduction and sales leads to the rupture of relations with customers and to achieve short-term success.

Thus, a series of action should reveal a closer acquaintance with the situation. These actions are as follows,

• Provision of marketing services in any enterprise is fragile and is subject to change.
• Respect for the activities of marketing services from other services and departments are usually small.
• The level of staff turnover in the marketing departments of one of the highest in enterprises. Often at the same time, there is a complete replacement of the marketing staff, including deputy and a director of Marketing (Wilson 2007).
• The confidence of the employees of marketing services in the utility's own work is virtually nonexistent.

The conclusion of an explicit conceptual shift, which was originally laid in the domestic system of economic education in the field of marketing, is in the interpretation of its role in the control system of modern domestic production.

Conclusion

Summarizing the foregoing, we note that the ability to escape from the crisis is miraculous. It occurs only because of the conscious, diligent use of the possibilities that are always available. Thus, for the Jessops company it is important to be able to see them, looking intently into reality, and not to miss even the smallest have the chance. If, however, there is no capacity or chance, they have to build and introduce the innovations. Thus, a radical solution to the crisis (similar to that one which was in 2007 in Jessops) starts with changing values ​​and ways of thinking. Each social crisis generated is namely inherent to the conditions and contradictions. Their understanding and comprehension, creative solution, which is specific to the current situation of management dilemmas are a key prerequisite for the transformation of companies seeking to 'fit' into a new reality.

In addition to this, based on the above-mentioned information, it can be concluded that the marketing orientation in Jessops means and presupposes a constantly work to maintain the competitiveness of the offers, and in the long run – the entire enterprise. Focusing on the enterprise market is characterized by the fact that their activities tend to bring more benefits to the consumer compared with competitive offerings, thereby maximizing their own success. Thus, the market orientation encompasses not only consumers and competitors.

Recommendations

Having regarded the situation in the Jessops company, it is necessary to note that for this company's management is especially important to rely on its strengths, because they are the cornerstones of the strategy and they should build competitive advantage. In all of this, an effective strategy can not be conceived without the intervention of the weaknesses. Much attention should be paid to the identification of distinctive advantages of the company. This is necessary to create strategies, which would include,

• unique capabilities, which would provide the company with a chance to win on the favorable market conditions;
• distinctive advantages to help the company become more competitive.

The analysis also shows that some of the features of the Jessops company, probably will not be able to take advantage. These features are to complete by the

• Reducing the level of fees and taxes;
• The disappearance from the market of communication services substitutes.
• Hence, based on the chosen strategy, a company should,
• Apply a differentiated marketing, ie develop multiple market segments with specially designed products and specific marketing policy;
• Constantly monitor their position in the market, assess competitors and conduct market research;
• Increase the dealer network abroad, and gradually enter the international market;
• To deal with competitors by developing the know-how to offer the original service packages addressed to all segments of the customer's;
• Pay a special attention to innovation in the field of Internet – offer the best among the other operators in content applications and advanced services;
• Increase the number of single-brand mobile shops and quality of service in them.

The main source of growth in these conditions consists in creating new demand. To do this, companies need to go on improving product delivered to customers to solve problems that are connected with it during its use, storage, maintenance, and disposal. The potential market volume of the sphere, called the internal value chain of customers, according to the authors, in 10 – 20 times higher than the volume of the market of the product manufactured by the company which has the implicit customer needs. Their satisfaction requires activation of the hidden assets of the company, and often the formation of new competencies. Among them should be allocated intangible assets (intellectual property, database, brands, etc.), As well, and those among the latter are usually not included (the position in the supply chain, the level of interaction with customers, the community of users of the product, etc.).

Helping to optimize the costs will lead to a reduction of waste production, supplier company thereby achieves profitable growth and equity. Possible uses of the latent and obvious assets of the company, as well as the needs of clients, should always be monitored and taken into account since they form a growth strategy for the crisis markets. Every company has not only hidden assets but also the hidden liabilities, consistent identification and elimination of which helps it grow, providing a profit.

Reference List

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Bennis W 2015 'Managing the Dream: Leadership in the 21st Century', Antioch Review, 73, 2, pp. 364-370, Academic Search Premier, EBSCOhost.

Blackaby A 2008 Jessops warns of 'significantly worse' losses as focus changes. Birmingham Post Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/324302056?accountid=27372

Braithwaite T 2007 Jessops hits rock bottom in market squeeze GENERAL RETAILERS. Financial Times Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/249996395?accountid=27372

Dyer J 2015 'The Façade of Management Commitment And Why It's So Destructive', Industry Week/IW, vol. 264, no. 7, pp. 18-22, Academic Search Premier, EBSCOhost.

Hall J 2009 'Masochist' puts his imprint on Jessops David Adams executive chairman Jessops the man behind the lens at the struggling camera chain believes he has the vision to make it click, writes James Hall. The Daily Telegraph Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/321694923?accountid=27372

Juiz C & Toomey M 2015 'To Govern IT, or Not to Govern IT?', Communications Of The ACM, vol. 58, no. 2, pp. 58-64, Academic Search Premier, EBSCOhost.

Jones J 2013 Lessons from jessops and HMV. Professional Pensions, , vol. 9. Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/1285104002?accountid=27372

Kinney J 2016 'Developing Ready Leaders for the Front Line', TD: Talent Development, vol. 70, no. 5, p. 80, Academic Search Premier, EBSCOhost.

Lee J 2010 Jessops. Marketing, vol. 19. Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/214960593?accountid=27372

Litterick D 2008 Jessops 3.64p +1.08p questor says sell. The Daily Telegraph Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/321627282?accountid=27372

Lynch R & Cranage J 2007 Jessops to bring shutter down on midland stores ; RETAIL. Birmingham Post Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/324250556?accountid=27372

White G 2010 Latest jessops development should act as a warning. The Daily Telegraph. Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/321746199?accountid=27372

Williams H 2011 Jessops back in focus as recovery plan rolls on with leap in like-for-like sales over christmas. The Yorkshire Post Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/845291490?accountid=27372

Wilson A 2007 Finance chief leaving jessops after loan deal SHAKERS MARKETPLACE by bloomberg. International Herald Tribune Retrieved from http://libwin2k.glendale.edu/login?url=http://search.proquest.com/docview/318861298?accountid=27372