Debunking Skin Improvement Myth

In L’Oréal skin care advertisement, the advertisement seeks to attract most customers, through showing how effective the product is. The ad shows a lady who works from morning till evening, whereas her skin remains perfect. She is not affected by sweat, due to the effectiveness of the skin care product. In addition, she goes through all the hassle and bustle of the day, but her skin still glows (Vincent, 2015). Then she says the secret to the perfection is science. Moreover, she goes into a club where she dances, but regardless of what she does, her skin remains perfect due to the chemical combination of L’Oréal perfection, which insulates her skin from any forms of imperfections, thus making her to look perfect, as the name of the product suggests.  

According to the ad, it is actually accurate to state that the secret to the perfection is science. This is consequently because L’Oréal skin care product has been manufacture through a scientific process, thus making it to become a complete product (Vincent, 2015). Even though one might not be sure if the product would last from morning to evening without being affected by sweating, it is actually right, that the product which is composed of different components, such as oxyacetylene and mercury, must have been scientifically combined in a laboratory, in order to come up with a product which would be as effective as L’Oréal skin perfection. Furthermore, the ad has not dwelt so much on the things which make the product to be perfect, but on how the product was mixed, in order to come up with such an outstanding product such as L’Oréal skin perfection.

Reference       

     Vincent, R. (2015). L’Oreal Skin Perfection: Karlie Kloss. Retrieved from: https://www.youtube.com/watch?v=PXRBsgDnKuk

 Brand Growth

Question 1

Brand architecture stresses the structure of specific brands contained by an organizational unit, which refers to the approach that is used to connect or even differentiate brands from one another within an institution's portfolio. It is commonly used by large corporations that specialize in different product lines to develop the image of specific products. Brand architecture is used by companies with diverse services or products as an approach of ensuring appropriate inclusion of encompassed brand lines the overall branding system (Balmer et al. 2006)
            IKEA is an international retailer firm that is highly reputed in the global market influenced by the excellence of its brand (Yohn, 2015).  IKEA is a home furniture retailer and provides variety names through its core subsidiary; the IKEA Inter Group to enhance as an approach of enlarging its market. The extension through branches enables IKEA to impose its overall brand image. However, the company involves a very proactive philosophy on the design of its operations, which reflects the uniqueness of its brand architecture.

 Brand Architecture

The philosophy behind the IKEA's brand architecture emphasizes the provision of its products and services to all customers. The company provides different types of products that are branded in regards to aspects such as status, affordability, quality and innovative design. The fundamental principle of its brand architecture strategy is to provide various home furnishing products at justifiable prices (Yohn, 2015).

IKEA’s Future Brand

All products are linked in a monolithic brand name of IKEA (Yohn, 2015).  Significantly, IKEA's food products and restaurant services have common characteristics considering that they remain in line with its regular communication strategy. Thus, IKEA's food is a brand that boosts the reputation of its furniture segment in various areas since they are not in the same location. The architecture ensures partnerships with other company to provide products at reduced prices and also corporations enables to cause the improvement of product designs. Nevertheless, the company holds joint ventures with different groups such as electronic companies to include the demands of known demands in the market (White, 2004).

Building

IKEA’s brands are commonly characterized by a variety of considerations including low price, quality products, sustainability, form, and function.  However, the company considers the low cost as the basis for its product development. In contrast, IKEA's development strategy differs from the approaches that most businesses use to base their product development. For instance, many companies use consumer trends or in some circumstances include different market considerations like competitive advantages other than price to determine their development process.  IKEA instead combines the variables of the function, design, value, and function in regards to the sustainability of provided products in the development process (Davis, 2009). Significantly, the essence of its brand architecture is demonstrated in the entire company, from product designing, sourcing, packing and distribution channels towards its business model. Therefore, the uniqueness of the product development strategy enables IKEA to accomplish its commitment to providing better lives to all people at home.

Measuring

IKEA's depends on consumer insights to measure the effectiveness of its brand architecture strategy since its operations are always oriented to dominate the home furnishing market. As a result, the company usually visits different homes to evaluate the perceptions of its customers about factors including product design and product sustainability (Perrey, 2015). 

Managing Brand Equity

The management of brand equity is aligned with the primary purpose of enhancing marketing through innovation (Perrey, 2015). Marketing techniques in IKEA are developed in line with the approach of relaying information including storytelling on cost and quality of its product

Question 2

Benefits

Brands are made using a similar name (IKEA) which easies the marketing since the products are sold under monolithic furniture stores. Joint ventures spread the company’s products in the market while endorsing product usage (White, 2004). On the other hand, partnerships fasten market penetration considering that they are located in various regions.

Cons

There is a significant risk of experiencing contagion on its reputation if the architecture fails to attain its promise in the market. Also, the company may suffer from brand dilution from its competitors in future hence affecting its brand equity (Dahlén & Lange, 2008). 

Question 3

The roles of brands in the IKEA’s brand portfolio are aligned with the concept of facilitating growth in the existing markets. Brands are primarily enabling consumers to recognize a company's product from those provided by competitors in the market. As a result, organizations make use of labels to distinguish a product from other products about the satisfaction of a known customer need.  There are multifaceted strategies that institutions occasionally use to facilitate growth in both proactive and new markets. Improvement of offering approach through the use of branded differentiators is a key strategy of imposing an increase in various companies including IKEA. Branded energizers are also used by a variety of companies to strengthen their products and marketing base in open markets (Spath & Fähnrich, 2007). Moreover, a group may emphasize on ways of increasing product usage among its customers (Aaker & Joachimsthaler, 2012). Importantly, brands within a brand portfolio acts as brand differentiators and branded energizers in different market orientations

The differences of IKEA's names usually demonstrate functional, balanced and tangible characteristics by product performance of the specific brand. Also, IKEA's products are more symbolic or somewhat emotional concerning the features represented by a brand.

IKEA's branding focuses on product value over logical, cognitive and price outcomes which enable it to outdo products of its competitors. Significantly, the company always incorporates customer and stakeholder perceptions to improve product value thus grabbing it a sustainable competitive advantage (Lowenstein, 2011). 

IKEA depends on marketing communication for measuring and managing its brand performance in the core markets. Marketing communication is an essential strategy of building loyalty and brand entity in the market since it enhances product consumption.

Question 4

IKEA is reputed as a compelling brand in the market considering that is ranked among the most valuable brands in the world (Yohn, 2015). IKEA group is renowned for its dominance as a furniture retailer in the industry. IKEA involves a variety of market segmentations and a vast target market which enables it to sustain its competitive advantage in different markets worldwide. The company incorporates solid positioning strategies that will allow it to enhance its products, services, and product differentiation. Moreover, IKEA employs trained personnel's in its operations which continue to boost its reputation in different parts of the world.   IKEA embraces appropriate measures to increase customer value, in regards to quality and affordability of products which favor its superiority in the market (Lowenstein, 2011).  Also, it adapts right marketing mix which increases the potential to utilize its 4ps'to guide the determination of product strategy to influence the production of unique and space saving designs Pringle & Field, 2008). Place strategy enables the company determines the perfect markets for its products, especially in new markets.  Place strategy is often used within the company to decide promotional sales such as discounts to induce customers in the market for product consumption. Besides, IKEA uses various media channels to facilitate its promotion strategy while creating product awareness in the market. 

Question E

 It is logical to state that IKEA’s growth strategy offers the potential for grabbing it a sustainable competitive advantage in the market. For instance, IKEA’s growth strategy determines product segmentation in line with customer requirements in the target market including furnishing standard which promotes its product. Significantly, the growth approach in IKEA emphasizes on various forms of segmentation including geographical, psychographic, demographic and behavioral segmentation that increases its market superiority considering that the segmentation enables the company to balance different market factors (Spath & Fähnrich, 2007). Firstly, geographical segmentation allows the firm to critique the strong markets since the segmentation is used to evaluate the location statistics in regards areas where its customers live.  Subsequently, the philosophy of demographic segmentation is usually developed by customer value under aspects such as customer income, occupation, and racial differences. The details provided by demographic segmentation enhance the process of production, particularly, on product categorization and brand differentiation towards the company's principle of product affordability (Jain, 2016) and provision of its services to all.

Thirdly, the primary theme behind psychographic segmentation within IKEA highlights the incorporation of strategic measures for customer value in both production and distribution channels (Doole & Lowe, 2005). The theme emphasizes the involvement of market traits in all activities to accomplish the company's objective of meeting different market requirements in categories of, for example, customer lifestyles and demands on furnishing products. Finally, IKEA's growth strategy is guided by customer attitudes about its brand and series (Schultz, 2015). Behavioral segmentation has a theme of building customer trust in different markets. For instance, the issue ensures that IKEA's customers have the essential information on its products which favor product usage.

Question F

IKEA has an excellent reputation for the provision of good quality and inexpensive household furniture globally. However, the company's management has the responsibility of ensuring sustainability, unrelenting growth while influencing brand equity in different markets (Kapferer, 2008). Importantly, the current performance of its products and services gathers the company substantial competitive advantage hence the primary challenge is to strategize on ways of making sure the sustainability of its legacy.

Therefore, the company's management should embrace flexible brand planning processes to create a viable working condition that can reciprocate sustainability (Burns, 2014). Prominently, the company should focus on figure out ways to maintain the production environment through its suppliers for efficient production. Through this, the company will be able to provide unique and quality products while maintaining its market position. The management also as the responsibility of engaging customer feedbacks regarding their product experience for appropriate production. This should be put in place through innovation to improve quality.  On the other hand, IKEA's management has to continue situating its subsidiaries in the potential markets for diversity. Creativity and embracement of the innovative product have a variety of benefits in regards to the market growth (Russell, 2007). For instance, customers in the contemporary furnishing industry purchase products based on the value of the brand portfolio. Also, the company should put a wealthy focus on the reduction of raw material consumption while meeting its social responsibility. The decrease in wastages in production will increase its returns thus ensuring the sustainability of its position in the market.

References

            Walmart’s Market Segmentation and Market Sizing in Vietnam

Walmart as the leading global retailer is motivated by market positioning, segmentation and targeting as its integral marketing strategy (Baines, Fill & Page, 2010). Segmentation can best be described as the general division of a given population into different groups based on specific features while targeting involves the selection of specific consumer groups established from segmentation as the products buyers (Baines, Fill & Page, 2010). On the other hand, positioning is the most appropriate market mix for the chosen consumer segment and target (Baines, Fill & Page, 2010). In order for Walmart to perform well in Vietnam as the selected expansion country will be required to analyze its market in the quest of surviving, growing and securing a competitive positioning over all its competitors in the country.

Market Segmentation, Targeting, and Position In Vietnam

Market Segmentation

Marketing segmentation is essential in findings consumers who are suitable for Walmart’s products as well as services in Vietnam. Segmentation approach is essential as it facilitates the general understanding of distinct divisions of consumer and the consistently varying need (Ferrell, Fraedrich & Ferrell, 2013). Vietnam was selected because it is associated with a huge population and less retailing foreign and domestic competitors. The firm’s marketing strategy will mainly be based on ensuring the availability and accessibility of products to the suitable markets. The company will focus on demographic and psychographic segmentation approaches since it will be dealing with electronic products that require high segmentation. The company understands that the consumers are sensitive to both quality and prices and they require cheaper services and products every day (Ferrell, Fraedrich & Ferrell, 2013).

Specifically, the company will be segmenting its target consumers based on Psychographic, lifestyle, and demographics. Psychographic segmentation comprises of the division of the market into distinct segments on the basis of distinct personality features, standards, perceptions, interests, and lifestyle of the buyers (Lamb, 2012). This type of market segmentation is beneficial for Walmart’s expansion since it will permit the form to participate in products marketing that is focused. To start with dealing with electronic products will require the segmentation to be based on interests such as entertainment, quality, and affordability (Lamb, 2012). It was established from research that the market has a few small electronic retailers particularly located in the urban centers. The competing retailers such as Big-C are not focused on products varieties or differentiation particularly of the electronic ones based on the associated expenses. Walmart will not only be providing quality but also highly innovative products that are acquired from different brands to match with the different tastes, preferences, and demands. In this context, the segmentation is for the working organizations or individuals who are mainly triggered by entertainment lifestyle.

The purpose is to ensure that for those that desire to live entertaining and yet affordable lifestyles are considered. It is apparent that electronics particularly the entertainment and kitchen appliances are highly demanded by consumers in the society today but most consumers hold their needs due to the high costs associated with the products (Lamb, 2012). In Vietnam electronic products are expensive because the retailers do not have international or reliable supplies to offer brands variety at good prices that motivates buying. Offering affordable products generally implies that the consumer will be willing to change the items more often to acquire related updates thus making their lives better (Ferrell, Fraedrich & Ferrell, 2013). In general, the perception of the consumers in regard to innovation should be a positive one for this segmentation. Innovators, early adopters, and laggards are the behavioral segments that will be utilized. Innovators refer to the foremost individuals in the adopting fresh products. This group has high potential since the members are willing to take all kinds of risks despite the fact that it might fail. Early adopters create undeniable influence in the market with a representation of about 15 percent. On the other hand, Laggards are those that are not influenced by trend and usually the last to adopt most products after having analyzed the risks.

Market Targeting

The electronic specialty actually has an extensive range of consumers but the target has to be right in order for value to be acquired. In this context, Walmart will mainly be utilizing targeting because the market is large. Walmart in this context will be targeting the low and middle classes individuals across Vietnam. In that, because most of the retailers are situated in the urban location, the company will be offering distribution and online services to increase its access and availability of products to most consumers. Walmart’s emphasis is not only specializing on products variety but quality and affordability are also at its center (Scott & Hawkins, 2011). This means that the company will mainly be targeting those that are sensitive to both qualities as well as prices who are particularly the low and middle-class persons. This group was selected because more close to 50 percent of individuals in Vietnam belongs to the middle socio-economic classes while close to 20 percent is comprised of low-class people (Latova, 2017). This, therefore, implies that the group is categorized with the highest potential.

Actually, these groups are associated with the highest rate of disposable income and this shows that with affordability, quality, variety, and convenience as the central values of the Walmart its target consumers are likely to be easily enticed. In that most individuals from these groups are interested in quality, quantity, and affordability (Lamb, Hair & McDaniel, 2012). In addition, Walmart will be targeting single, family and young and older populace. In that, all these people are likely to purchase the products mainly electronic and kitchen alliances based on technology demand and the need for efficiency and quality living. According to Lamb, Hair & McDaniel, (2012) young buyers are likely to purchase entertaining and high-end products such as television and music systems whereas family individuals will include entertainment and kitchen products.

Market Size

Vietnam middle and low-class buyers comprise of more than just 65 percent of its entire population (Latova, 2017). It is anticipated that these individuals spend at least 6 dollars every day on disposable buying. Back in 2014, the electronic market in Vietnam accounted for approximately 23.4% of the country’s GDP which was categorized as the largest in the Asian market. This was associated with a general sales volume of 21 million items (Latova, 2017). In this context, it is apparent that Walmart has the utmost potential if it expands into the market with more strategic penetration to attract the large consumer base. In addition, the company will acquire competitive positioning especially because it will be providing more extensive services across the nation in addition to a variety which will make the company’s operation more different because it cost leadership approach is not easy to beat.

Positioning

Walmart’s positioning plays an essential role in its global success (Scott & Hawkins, 2011). In that, the company positions itself as the leading corporation that offers the least prices (Scott & Hawkins, 2011). In this context, in Vietnam, the company will utilize cost and differentiation leadership. In that, while consumers are highly interested in the general variety that a company provides pricing is also essential. The company will focus on providing products variety by acquiring adequate supply for different brands so that it can provide more options for the consumers. Walmart will at all times uphold quality given that this aspect cannot be affected by low prices because its operative expenses are particularly minimal (Scott & Hawkins, 2011). Walmart’s use of its pricing strategy has been effective in beating competition from major as well as small firms from the global context (Ferrell, Fraedrich & Ferrell, 2013). The integration with differentiation in Vietnam the company will be able to acquire a wider market based on the diverse consumer necessities as well as sustainability for the long run.

Conclusion

Based on the analysis above it is clear that Walmart has great potential of being highly competitive in Vietnam. In that Vietnam provides a huge electronic market that has not been exploited fully and the market players are characterized by relatively higher prices which makes them vulnerable to its expansion. The country is also associated with the utmost educated populace of the middle and lower classes persons which implies that they are highly interested in technology products. The increasing income earning is offering more opportunities for the company due to high disposable income. Differentiation and cost leadership are the most appropriate approaches for the company while focusing on lifestyle, demographic and psychographic market segmentation for the long run growth.

ReferencesTop of FormBottom of Form

Top of Form

Bottom of Form

Baines, P., Fill, C., & Page, K. (2010). Marketing. Oxford: Oxford University Press.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases. Mason, OH: South-Western/Cengage Learning.

Lamb, C. W. (2012). Marketing. Toronto: Nelson Education. Nelson Education.

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.

Latova, E. (2017). Electronics Production in Vietnam: A Guide to Emerging Opportunities. Retrieved from http://www.vietnam-briefing.com/news/electronics-production-vietnam-guide-emerging-opportunties.html/

Scott, B., & Hawkins, J. (2011). Retail is detail: A retailer's playbook for beating Walmart. NewHebron, MS: NewHebron Publ.

Alibaba and Chinese market

 Doing business in Chinese requires different a different approach than in US given that the two markets exist in different cultures. The consumer behavior in the Chinese market is such that a company must serve them different so as to fit in the culture of this market. As such, Alibaba’s strategies for serving the customers are different the strategies used the major U.S technology firms such as the Amazon Inc.   The Chinese market is comprised of mosaic of cultures with no one consumer profile and hence a company has to remain flexible and innovative to fit in (Kermeliotis, 2011).  The market is also highly advanced in technology such as use of non-cash payment even though access to basic amenities is quite limited. The culture shock and limited amenities may present a big challenge for U.S firm’s working with Alibaba.

Alibaba has a great growth history which has seen it surpass other technology giants including Amazon and Google. In fact, the firm has emerged to be among the largest e-commerce company locally and among the most valuable globally.  With ever increasing revenue, the firm has been having a sustained growth and expansion plan buoyed by the past performance. The expansion efforts also include a focus to have its presence in the global market even though it may face some challenges in European and US markets.  In fact, the current online business model that has succeeded in China may fail in other markets if the firm does not diversify enough (DiCristopher, 2015). 

With the e-commerce business having been successful in the Chinese markets, the same can be achieved in other major markets. The increased market growth means over the years makes an investment in the company’s stock a good buy since such growth can be expected in other markets and in future.  When provided with favorable business environment in other markets the firm is bound to continue being a leader in e-commerce.

Reference

Consumer Purchase Decision Making

The business is a grocery store that offers a variety of farm produce and other products used in the kitchen. This is an ideal business since there are no many players in this field, therefore, there is less competition and also the market is pretty wide for the products. According to research, many people visit the grocery stores more than they visit a supermarket in search of farm produce. The target market for the business is anyone above the age of 12 years since at this age, the person can make some easy decisions and one of them is that of purchasing some fruits to eat (Shi & Zhang, 2014). The income capability of the target customer is any level since the products are cheap and affordable at any given time. However, individuals who have a basic salary of above $100 can afford to pick up fruits on a daily basis if not on an hourly basis.

Occupational standards of the person do not matter as long as one has the capacity to either store or consume directly. In many cases, the products are meant for immediate and after meal consumption and 90 percent of the world take meals meaning the occupation does not matter. Educational level of the target market is based on the knowledge the person has with regards to the products in the store. People possess different ideas and variable concerns on groceries (Karimi et al., 2015). One has to have the knowledge and understanding of a particular product so that he or she can be in a position to choose the best combination of the fruits for a better diet. Mostly, living healthy is the best way and it is recommended but the target market for the products is for individuals who feel the need to consume more of the healthy fruits rather than taking in junk products. Activities involve those who spend more of their time in the busy sectors of building the economy. The store has the capability of reaching out to them through deliveries or after sale services (Solomon, 2014). Better living and those who identify the need for a clean and safe society is the interest of the company. The interest of the customers always creates an opportunity for the store to grow similarly through the opinions generated in the process.

The motivating factor for the customers is, for example, the prices of the products. The products are cheap and very essential in the lives of people and therefore a return customer specific. Setting the prices at a favorable price allows the customers to even give referrals to their friends and families.  Inspiring the customers through the products is also a good strategy for success (Armstrong et al., 2015). Certain cultures influence the consumption of certain fruits without limits. For example, people who have been considered big in terms of their body proportions have the highest possibility of purchasing the products with no options. Such cultures can influence others to join in an effort to take the best precautions on their body weight.

There are five decision making processes for a consumer. The first step is the identification of a need for the products which involves noting the need and recognizing the necessarily required remedies for the problem. Search for the necessary remedies follows the needs and then the customer evaluates the information obtained to weigh which is the best alternative (Solomon, 2014). Purchasing the products is the next process where the customer now decides to choose which among the wide range the best. After the purchase, the customer can experience a dissatisfaction feeling which can be influenced by being undecided on one particular product.

                                                                  References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

Karimi, S., Papamichail, K. N., & Holland, C. P. (2015). The effect of prior knowledge and decision-making style on the online purchase decision-making process: A typology of consumer shopping behaviour. Decision Support Systems, 77, 137-147.

Shi, S. W., & Zhang, J. (2014). Usage experience with decision aids and evolution of online purchase behavior. Marketing Science, 33(6), 871-882.

Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.

Retail in the Middle East

Introduction

Global retail has in the recent year's experienced expansive growth. Eventually, the worldwide retailing sector is eventually growing rather rapidly similar to other sectors. While the leading markets in terms of developments continuously attract most of the prime global retailers, a significant number of the unexploited nations are currently acquiring a secondary venture. Africa and the Middle Eastern regions are still considered to be the leading in possessing the untapped markets globally with only a record of about 30 retailing hypermarkets in operation as per today (Jones, 2012). Technology has modified the way that retailers are performing their operations in all their markets and with changes in consumer’s conduct and expectations which are mainly driven by increased information access and favorable economic surroundings retailers have been forced to approach global markets with differentiated strategies (Jones, 2012). This paper will be analyzing the strategic prospects over the next five years in the Middle Eastern region particularly for Carrefour and Lulu supermarkets. Finally, strategic implications and recommendations for Lulu will be offered.

Lulu supermarkets are among the largest retail hypermarkets both in the Middle East and Asia owning about 103 retailing outlets (Lulu, 2016). On the other hand, Carrefour which means Crossroads is a multinational retailer corporation from France. It is one of the biggest and efficient hypermarkets globally being the second biggest globally in reference to revenue and third position in reference to profit generation headed by Wal-Mart and Tesco. Primarily, Carrefour operations in the Middle East are currently based in UAE and Saudi Arabia. Given that Lulu is based in the Middle East where it was founded it has a much better market share in the region. In addition, it has the advantage of acquiring cheaper workforce from India which ensures that its operating expenses are low. The retailer is well accepted by the region’s populace which has been essential in the development of strong bonds in acquiring a competitive advantage (Jones, 2012). Being a locally made company has helped the corporation in leading the market based on the sensation it has created on the larger populace.

On the other hand, Carrefour is authoritative given that it is a well-recognized and positively reputed organization. The corporation unlike, Lulu caters for a broader and diverse populace by focusing on retailing supermarkets staffs as well as a grocery. However, when equated to Lulu there stock ranges is rather low given that Lulu operates based on the consumer’s needs and preferences (Jones, 2012). Lulu is primarily focused on groceries and food which is driven by the idea that most of the retailing consumers are family individuals a segment that values both food and family simultaneously. The retailing business has in the recently acquired significant changes ranging from the rapid expansion of competition, technology progression and globalization evolution. These changes have in turn offered many entrepreneurship opportunities the retailing firms which have driven their urge in participating in globalization (Pradhan & Pradhan, 2009).

Carrefour expanded initially the Middle Eastern boundaries the moment that it got in Saudi Arabia. In the initial stages, the corporation experienced stiff competition from the local operators who are well established in the region. Among all Lulu, is categorized as the most popular and authoritative retail amongst the local populace which has led to its desirable expansion (Pride & Ferrell, 2017). Currently, the Middle Eastern economy is performing well and this provides more retailing opportunities. However, based on the significant forces that drive business in the region there is a need of being strategic. Both Lulu and Carrefour strives to be the leading providers of unique and differentiated consumer experiences with quality that cannot be matched in regard to their services and good while consistently exploring fresh markets opportunities and creating maximum value (Jones, 2012). However, based on the changing consumer demand and expectations it is apparent that achieving strategic success necessitates more than standard operation.

The major forces that affect retailing effectiveness in the Middle East both for Lulu and Carrefour are political, economic, social and cultural. In that, the cultural influence in reference to economic progress in the region is relatively high. Individuals tend to accept and uphold corporations that are locally founded such as Lulu with the idea that foreign corporations tend to take the acquired revenue to their headquarters (Pride & Ferrell, 2017). This is, therefore, an advantage for Lulu while it is a challenge for Carrefour. The economic forces are rather favorable in the context that consumers are characterized by more disposable revenue to utilize in retailing consumption. In addition, the market in the region is not highly exploited which provides more opportunities for attracting a wider consumer segment than before. Socio-economically, it is right to state that the status is favorable and therefore Lulu should take advantage and seek to sustain its domination through embracing diversity, differentiation and cost leading approaches (Pride & Ferrell, 2017). Operating as an affordable, quality and dependable option is one of the strategic approaches that can be utilized in domination.

Carrefour has acquired a competitive advantage by strategically positioning itself by the aspect of quality. However, its major weakness is grounded on the fact that despite the diversity and superiority of products its stock range is outweighed by that of Lulu which is crucial in affecting consumer’s satisfaction (Lulu, 2016). On the other hand, Lulu has the prime strength based on consumer’s brand loyalty, significant share in the market, extensive and large variety. However, despite the strengths that provide the corporation with opportunities for growth the corporation lacks qualified staffs with poor consumer relation given that it does not pay attention to the responses of the consumers. This is contrary to Carrefour which has ventured in the region using unique services and differentiated products in creating an appealing sensation (Lulu, 2016).

Due to the extensive and rapid changes, it is apparent that in the next five years Lulu will face even stiffer competition from Carrefour which is acquiring a favorable position in the Middle Eastern region based on its strategic positioning (Lulu, 2016). The possibility of these retailers growth will be driven by differentiation and being oriented on consumer’s needs. Carrefour currently owns about 24 percent of the market in the region while Lulu owns 32 percent which shows that the margin is even likely to grow smaller with time (Lulu, 2016). Strategic positioning that is more objected on diversity and the needs of the consumers will help Lulu in acquiring a sustainable positioning in the region. It is rather apparent that Lulu and Carrefour will be the dominating hypermarkets in the Middle Eastern regions in the next five years. This is because they have acquired a significant segment of the market by positioning themselves as the quality and unique options (Lulu, 2016).

It is right to state that the economic world is currently, changing in a dynamic and rapid mode resulting in the growth of globalization. In this context, consumers mainly expect to purchase from an extensive variety of services and goods where they can make their selection. Lulu Hypermarket should, therefore, adopt a diversity of both its services and products to accommodate the changes and demands (Jones, 2012). In that competition, in the Middle Eastern retailing region is rapidly intensifying with the domination and established of popular and well-reputed corporations such as Carrefour which is mainly influences by the consistent changes in economic, social as well as technological developments. In that Lulu, should focus on expanding its options and services to more nations to learn how to accommodate diversity within the region and beyond. In addition, given that consumer relation accounts as one of an essential aspect of conducting business staff training should be given a priority in developing authoritative consumer relations (Jones, 2012). This is because consumer loyalty is not an adequate competition option because the competitors like Carrefour are well positioned due to their extensive resources and the global reputation.

Conclusion

Carrefour and Lulu hypermarkets are similar but different in regard to their strategic approaches and positioning. However, it is clear that both retailers hold the highest potential of dominating the Middle Eastern region in the next five years. Therefore, due to the rapid changes that are consistently occurring in the Middle Eastern region, it is apparent that Lulu should be positioned strategically in sustaining its competitive edge. It is, therefore, suggested that Lulu should utilize its strengths in increasing its possibilities in general. In this context, it is apparent that the most strategic positioning that the retailer should take is to embrace diversity, differentiation and be oriented to the general needs of its consumers. In addition, the retailer should lower the turnover rate and generally improve consumer relation.

References

Pradhan, S., & Pradhan, S. (2009). Retailing management: Text and cases. New Delhi, India: Tata Mcgraw-Hill Education Pvt. Ltd.

Jones, R. (2012). Game on as Géant and Carrefour battle for supremacy. Retrieved from https://www.thenational.ae/business/game-on-as-g%C3%A9ant-and-carrefour-battle-for-supremacy-1.386790

Jones, R. (2012). Rich Pickings in Land of the Hypermarket Giants. Retrieved from https://www.thenational.ae/business/rich-pickings-in-land-of-the-hypermarket-giants-1.437649

Lulu. (2016). Hypermarkets tighten grip in Gulf. Retrieved from http://www.lulugroupinternational.com/recent-news-detail.html?id=31

Pride, W. M., & Ferrell, O. C. (2017). Foundations of marketing. Stamford, Conn: Cengage learning.

Assignment 2: Marketing plan

Section 1: Marketing Plan & Sales Strategy

Company’s introduction

            Always Fresh (AF) is a non-alcoholic company that will focus on the provision of fresh natural drinks made from local as well as foreign ingredients in the quest of achieving the highest consumer satisfaction. The company’s mission is to generate the most suitable brand of the highest quality, satisfying and fresh at all times. Due to lifestyle modification, there is a growing demand for quality and healthy drinks and this is one of the prime reason for the establishment of the company to fetch and grow the opportunity. While quality is of essence it is apparent that affordability will also be incorporated to attract a wider range of consumers.

1. Define Your Company’s Target Market
2. Consumer’s Types Analysis

            Non-alcoholic drinks are not only popular in the society today but they contribute highly to health wellness. In this context, it is apparent that the company has to seek the attention of these consumers. The target consumers of the fresh fruit juice are consumers of ages between 15 and 45 years. This group was selected based on its general capability to spend more on these beverages and in particular, this group is conscious regarding health. In particular, the company targets the middle and low-income individuals given that the company’s prices are affordable to accommodate their financial needs. The middle and lower classes are comprised of more individuals which make it a suitable choice (Abrams, 2003). The target is those that have acquired a high school up to university education and understands the associated benefits with the consumption of these drinks.

1. Demographic Information

            On the ground of the provided content, it is apparent that the general populace of the area holds rather an admirable capability to purchasing Always Fresh beverage ranges on a regular foundation. This can be concluded from the fact that the minimum household's income presented is steady and adequate for disposable spending with our products costing less than 3 dollars. In addition, health consciousness works beyond education status but the drink might attract younger individuals given that there are ranges of flavors to select from (Olson & López, 2009).

2. Company’s Market Competition
3. Factors listed

            Currently, the major competitors of Always Fresh beverages are those that offer fresh drinks such as smoothies and fruit juice. In addition, those that provide processed but healthy drinks are also part of the competition. However, for these businesses most of them mainly offer retail services and sit in are not well accommodated. The company will, therefore, take advantage by creating a desirable setting where the consumers can sit and enjoy the fresh drinks at convenience and comfort. In addition, contrary to other companies that fail to focus on consumer relation AF will create some kinds of direct interactions with the consumers where their needs and preferences can be assessed at ease.

1. Strategy To Successfully Compete Against Market Leaders

            AF is a company that is so different from all others not only on the ground of marketing but in regard to sales, products, and services provided. The company seeks to compete against the leading beverage companies such as Pepsi. What makes the corporation differentiated from all the others is on the ground that it is more focused on health and consumer’s needs. The drinks are not just fresh but they are also convenient given that consumers can enjoy them at any given period at lower prices. Young individuals today are more attracted to products that create a desirable image an aspect that the company will be exploring (Michaluk, 2007). Given that the products can be purchased using credit cards this will add to the convenience.

1. Plan Defense To Differentiate From The Competition

            The non-alcoholic beverage industry is one that is particularly grounded, with the leading coffee retailers on the lead such as Starbucks this makes it hard to attract consumers. In differentiating the company from the competitors the company will be offering affordable and uniquely flavored drinks. Focusing on the cost differentiation strategy is not enough but products differentiation on the basis of creative flavors will make the difference (Michaluk, 2007). This will create fresh platforms for the consumers.

3. Clarify Your Company’s Message Using the Information

            For the company’s target which is more focused on the young generation, the two aspects that describe this most is based on functions, expression, and satisfaction. AF is characterized by several functions which entail the desirable sensation that it creates on its consumers and positive relations. The products are available based on differentiated sizes, flavors and offered based on individual’s preferences. The products are health conscious and they assist in keeping track of weight and maintaining the most suitable bodies. The functions and feelings associated with these services and products are desirable given that they seek to create wellness in general (Lee & Carter, 2012). The products will seek to refresh and create a healthy feel a function that is to generate positivity in general. The message to be associated with the brand is ‘’ a refreshing start, full of health and satisfaction.’’ The message will not only assert on the health benefits but also inform in regard to the objective of the corporation which is to generate high satisfaction.

4. Identify the Marketing Vehicles You Plan To Use To Build Your Company’s Brand

            The best way through which individuals get to learn about services or differentiated products is via marketing (Gbadamosi, 2013). In this context, marketing is essential in creating brand awareness, a thing that is significant for a company that is just starting. Consumers need to know about the existence of the corporation and everything that it offers in general. Marketing has transformed in the recent years and being of essence the company will focus on the cheaper marketing strategies which will be on online platforms. Media advertising will also be utilized based on its capability to reach more individuals but the use will be limited based on the associated high costs. Social media being the primary marketing tool is deemed as effective given that the highest populace of the target consumers is enrolled there. This will create awareness as well as familiarity with the company’s services and items an approach that will attract and convince more individual’s while reducing cost of operation for the company. In addition, promotions will be utilized where discounted sales will be designed for certain days which will operate within the first few months until adequate awareness has been generated. These are the selected strategies because they are effective given that they are linked to low expenses and the highest capability to deliver messages immediately (Gbadamosi, 2013).

References

Abrams, R. M. (2003). The successful business plan: Secrets & strategies. Palo Alto, Calif:

Gbadamosi, A. (2013). Principles of Marketing. Palgrave Macmillan. Palgrave Macmillan

            Governance. Chichester, England: John Wiley & Sons.

Lee, K., & Carter, S. (2012). Global marketing management: Changes, new challenges, and strategies. Oxford: Oxford University Press.

Michaluk, G. (2007). The marketing director's role in business planning and corporate

Olson, J. S., & López, C. (2009). Build your beverage empire: Develop, market and sell your beverages. Place of publication not identified: Cube17, Inc.

            The Planning Shop.

Estee Lauder Lipstick

Part 1

Estee Lauder is one of the dominant lipsticks currently in the market. The lipsticks are available in retail shops, online shopping websites and retail stores. This type of lipstick dominates in both Amazon and Ebay websites. The lipstick ranks high on search engines, due to the use of key words, and attractive brand name (Estee Lauder, n.d). Estee Lauder is one of the dominating brands, and is very well known in different parts of the world. However, the name of the lipstick makes it stand out, because of the description given to the lipstick. The brand is name is followed the name ‘long lasting lipstick’, which allows website analytics to easily rank the product high, on the search engines of both Ebay and Amazon.

Part 2

Estee Lauder uses the phrases long-lasting lipstick, in order to easily attract the buyers’ attention to the product (Estee Lauder, n.d). On the other hand, Coty lipstick and L’Oréal Paris’, Matte lipstick, consequently use the term Coty, which means contract of the year, as a means of attracting the attention of the buyers, and making them think twice about the name before buying the lipstick (Coty Lipstick, n.d). On the other hand, Matte lipstick, uses the phrase matte, to attract the attention of the buyers, as the word matte means a colour which is used for finishing (L’oréal Paris, n.d). This consequently makes matte to stand out, as it allows ladies to look great after applying it on their lips.        

In order for Estee Lauder to rank higher in google and other website search engines, it may need to use words such as, high quality lipsticks, or glowing women lipsticks (Estee Lauder, n.d). This is basically because women mostly search for high quality and glowing products on google and other websites search engines, hence doing this will allow the product to rank higher on the search engines. 

References

Estee Lauder (n.d). Retrieved from: http://www.esteelauder.com/makeup/lipstick

L’oréal Paris, (n.d). Retrieved from: http://www.loreal-paris.co.uk/products/make-up/lip/lipstick.

Coty Lipstick, (n.d): Ebay. Retrieved from: http://www.ebay.com/itm/Coty-Lipstick-Various-Shades-/172796622485

Project Management Lifecycle

At the commencement of each and every project, the planning and the kind of work to be done in many cases presents challenges and which seem to be so overwhelming. There are numerous tasks that need to be accomplished at the end of the project and which must be in line with the time and sequence of performance. Breaking down the project into different phases allows the project managers to be in a better position to reduce the work load and assign according to plan and minimize the cost. Project initiation is the first phase for the commencement of the project. The value and the feasibility study are done to determine whether the project is valuable to pursue. Looking at the project which is LG (Life’s Good) electronics, there are numerous potential benefits of taking the project. LG is an international and multinational company from South Korea, there is many benefits of commencing a project on this company. 

LG electronics is one of the largest and most known companies in the world for the production and manufacture of Smartphone’s, TVs, home appliances and many other devices (Kerzner, 27). LG has gained a lot of market and demand for its products especially the television sets since it has been manufacturing the best quality types of televisions. The goal of the project is to ensure that the project is completed within the scheduled time limit and also according to the budget allocated. Quality projects are very important since they determine the final results of the project.

Planning of the project is very important since it creates a chance for the project to be handled according to the budget and reduce the risks of losses and lack of quality. The project on LG electronics will be done on a standard budget for a period of not more than 5 months. Over the five months, the project will have been completed on the allocated budget without incurring any extra cost. LG has been in the market for more than 50 years and this makes it a company that has invested in its products and has the capability of overcoming the market challenges (Kerzner, 26). The company has given employment opportunities to more than 80 000 personnel’s and has opened close to over 100 business units all across the world through subsidiaries. LG has grown in terms of its productivity. Since the company was founded, there has been a development from just manufacturing domestic appliances to manufacturing products to be exported to other nations which import such devices. The company has been making profits of more than $50 billion in one year. In the financial year 2014, the company got a profit of more than $55 billion which was ranked the third in the world.

Executing the projects is very important since it ensures that the cost allocated to covering the project does not exceed the budget. The resources to be used in the project include the materials to be used in formulating questionnaires to be filled out by various members (Verzuh, 65). Interviews will also be very important to give more information on the content of the project. LG is an international company and therefore most people ought to have known about the company and therefore conducting an interview about the products will be an easy task for the team to complete in time.

Monitoring the project is very important to ensure that everything goes according to plan. The aim of having a reduction in the cost after completion of the project is very important. Progress is measured according to how well the project is completed. LG electronics project will be successful since the methodology used to conduct the research is conclusive and simple.  With LG's many affiliations in the market, controlling the outcome of very simple especially due to the fact that there is a reliable source of information with regards to the performance of the company. Smooth planning, execution, and control assist in making sure that there are minimal and or no errors. 

On the close of the project, the final outcome is presented and which indicates how well the project was successful including formulating the challenges of the project. Completing a project is important since it allows for a chance to discuss the challenges and the success factors influencing the project.  Looking at the five strategies for the formulation of an effective project which is the life cycle of a project, it is important to consider the possibility of development of new skills which can be useful in handling another project in the future (Kerzner, 25). Completing a project is important since it allows the management of the resources and a distinguishing factor on the best strategies for a more effective future project.

Success factors for the completion of the project involve the fact that there was adequate and good planning over the project execution. Projects which in many cases lack a plan always end up being a failure since the budget allocated at times is less than the actual amount used in the projects. Being organized and working on deadlines allows the completion of the project. Quality planning all through the project assisted in keeping the team very focused and determined to work on their duties. Reliability and realistic time allocation of the resources ensured that the project was smooth and a success from the start to the end. Having a successful and open communication contributed to the completion of a quality project. Communication is very important to ensure that there are no errors which might contribute to the project being a failure (Verzuh, 45). The delivery of the recommended schedules was highly enhanced by being communicative and always optimistic of the best. The interviewees of LG electronics proved to be very communicative and ready to share in every case they were requested. Due to the planning of how to have a successful project, success was assured as there was a ready strategy to deal with any risks that might have arisen during the project execution.

During the execution of the project, a number of challenges affected the project mostly from the field work. Lack of adequate skills is one of the major challenges that affected the project. Some of the team members had inadequate skills to deal with the general public and any person who might have been productive to the project. The language barrier is another challenge that influenced the decisions of some of the members. Due to the difference in the language, many opted to use translators or interview fewer people. For a project to be successful one must apply the best strategies and reduce the unnecessary spending which can cause the budget of a project to rise (Kerzner, 34). Projects are very important since they assist in knowing the value versus the risk of undertaking such a project. In every project, objectives are very important to prevent lack of a motive to performing certain tasks.

Works cited

de Guzman, Abraham R., and Won Jae Kim. "Potential Financial Effects of the 2015 Corporate Tax Reform of Japan to Electronics Companies with Comparison to South Korea." Academy of Accounting and Financial Studies Journal 19.3 (2015): 27.

Kerzner, Harold. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons, 2013.

Stark, John. "Product lifecycle management." Product Lifecycle Management (Volume 1). Springer International Publishing, 2015. 1-29.

Verzuh, Eric. The fast forward MBA in project management. John Wiley & Sons, 2015.

War and Business

Introduction

War has both positive and negative impacts on business, depending on which side of the war a business stands. A war might benefit one type of business, while at the same time negatively affecting a different business. It is consequently a matter of understanding which position a business is supposed to take in case of a war. A war might be as a result of a business, a move which might be aimed at impacting an economy either positively or negatively thus leading the growth of a business in a given region. In a bid to understand the effects of war on business, this paper will discuss the effects of war on business, how business profit from wars, the impact of war to the market and the effect of war to the economy.

How Does War Affect a Business?   

War and business can never get along, because war leads to insecurity, a move which results in poor economic growth (Stone, 2017). Most warring countries have ended up having the worst economic growth, due to the effect of insecurity and instability which leads to little or no production of services. War therefore leads to the closure of businesses, since companies cannot be able to operate in a region where there is no security. Security is the key to any business growth, and it is therefore necessary for a region to have security for businesses to grow (Smith, Mollan & Tennent, 2017).

War leads to the loss of manpower, skills and labour, a move which affects productivity in a business (Madura, 2014). In case of a war outbreak, most people tend to run for their lives, a move which either makes them to move to other peaceful regions or countries which are not experiencing any form of war. Due to running for security, the region loses manpower, a key component in the production of a company. In addition, companies lack the provision of labour, a move which affects the total performance of the company (Smith, Mollan & Tennent, 2017).

Issuance of curfews by the military because of a war tends to affect the working hours, hence negatively affecting a company’s production. In warring countries, the army dictates the working hours, and the hours which people are not supposed to walk freely, through a curfew (Madura, 2014). This consequently makes it hard for a company to be able to operate freely, a move which might affect its working hours, hence leading to the loss of time and customers due to unmet customer demands (Stone, 2017). Moreover, companies may also be forced to pay extra charges for the security provided by the military, a move which further affects the productivity of a company.

Insecurity leads to low or less demand for the manufactured products or even services. A company cannot operate in an area where there is no peace, due to the effect of war (Smith, Mollan & Tennent, 2017). People run from war tone areas, making such areas to lack viable market for goods and services. Most businesses may therefore be forced out of the market, because of the lack of a proper market. Furthermore, in such a case, a business may not be able to sustain itself, due to the lack of market which leads to no profits. Companies tend to seek funding in different ways, and it may therefore be very hard for them to pay the debts with the issues of war and the lack of a proper market for their products (Martin, 2013).      

          How do Companies make Profits from War?

Companies can make profits from war in dissimilar ways, based on the types of businesses involved, and the types of companies involved in the war. In addition, companies may also use war as a strategy to win markets for their products. The following are the ways through which companies can make profits from war.

Dominant companies tend to use the divide and rule system, thus dominating in a given market. In a company where such a company is not enjoying a huge market share, the company may fund rebels, or political mercenaries, in order to cause instability in such countries. After creating instability in such a country, most companies tend to move to other regions and countries, a move which creates a vacuum in the region (Stone, 2017). The dominant company then comes in with the name of offering financial aid to the country, and sets its businesses in the region. This allows the company to win over the hearts of the citizens of such a country, hence creating an automatic market for it to products, a move which allows the company to gain a huge market share in the region (Madura, 2014).       

Arms companies use wars as a means of boosting their sales, hence increasing their productivity. Arms companies are tasked with the mandate of coming up with highly sophisticated arms, which cannot be matched by any given forces (Madura, 2014). The issue of uniqueness kicks in whereby any power using such arms, can have an advantage over its enemies. Most arms companies have therefore improved their technology, thus coming up with highly sophisticated and unique arms. These companies manufacture arms with the aim of helping warring countries to maintain peace. However, peace is not a good thing for arms companies, since they cannot make profits when there is peace. War means productivity, since warring nations would consequently run to the arms company with the most sophisticated arms (Smith, Mollan & Tennent, 2017).

In order to create war, arms companies tend to fund rebels, and terrorists, through providing them with arms (Stone, 2017). The arms provided to either the rebels or the terrorists may either be sophisticated or not, depending with the aim of the arms company. In order to deal with these groups, a country or even the international community should understand the types of arms used by the rebels or the terrorists, thus coming up with weapons which might counter such weapons (Martin, 2013). In order to get the best advice on how to restore peace, countries consequently hire representatives of arms companies, who will be responsible for providing military advice on how to counter the militants. In this case, the arms company will be allowed to sell weapons which might enable the war tone country to restore peace (Madura, 2014).

Arms companies are meant to maintain war, in order to increase productivity (Madura, 2014). If a country hires a military representative from an arms company to aid in the provision of arms advice, these representatives are meant to switch the weapons used by the rebels, as a means of making the country to change their weapons, thus leading to productivity. In addition, the representatives tend to elongate the time which a war should last, thus being able to receive more market for their arms (Martin, 2013). This is a strategy which is usually used by arms companies, with the aim of increasing their profits, thus staying on business. The aim of such companies is usually to maintain the war, thus creating a ready market for their products (Smith, Mollan & Tennent, 2017). 

What does War do to the Markets? 

War has both positive and negative impacts on the market, depending on the type of market at hand. Wars affect the general market of products and services negatively, but it affects the stock market positively. In this part, the paper will discuss how war affects the market of goods and services negatively, while affecting the stock market positively.

Impact of War on the Common Market  

War negatively affects the common market, due to the migration of people who provide a stable market for goods and services (Stone, 2017). In addition, the provision of labour becomes a challenge, making it hard for a business to be able to carry out its activities at ease. Due to this reason, most companies are forced to run out of business, since they cannot be able to carry out their daily activities at ease. In addition, the businesses may not be able to pay the debts a move which leads to bankruptcy (Madura, 2014). On the other hand, since war is relative, some businesses may benefit from the war, a move which allows them to dominate and grow exponentially. For instance, during a war, as explained earlier in the previous section, arms companies may benefit positively, since they will have a chance to sell their products while confusing the minds of the warring country. However, war in general tends to affect the common market negatively, since people cannot carry out their daily activities at ease, a move which makes it hard for them to purchase goods or otherwise to seek services provided by most businesses (Martin, 2013).

Impact of War on the Stock Market       

The stock market is an enemy of uncertainty, and wars are a good thing which help in dealing with uncertainty. For instance, during the 911 attacks in the US, the company’s stocks exchange drastically dropped, due to the tension which had been caused by the war. Three days later, the stock exchange was up 12%, from a loss of 3% (Madura, 2014). This consequently explains how the marketing trends in the US changed during this period, a move which led to the gaining of the stock exchange in a period of three good days. In simple terms, in case of a war or an attack, most people tend to buy assets relating to the failure of the currency in the affected country. During this period, the currency of the affected country tends to go down, a move which leads to losses in the foreign exchange. However, a few days after the incident, things change after a very huge investment in the field of stocks market, a move which leads to the realization of huge profits immediately after the incident (Smith, Mollan & Tennent, 2017).

During the times of war, stock volatile changes within the shortest time possible. This leads to either the huge sales which may either lead to productivity or losses. In an oil producing country, wars are responsible for changing the oil prices in the market, a move which also affects the volatility of the stock exchange (Madura, 2014). Due to the falling prices of oil in the market, most people would buy gold or even silver over oil in the stock exchange market, a move which is only meant to last within a few days or hours. Due to the continuous trend of falling oil prices, more people would purchase more stocks, and when the trend changes, then the stock exchange market tends to profit by a very huge margin, thus recovering the losses it had earlier on made (Stone, 2017).

How does War Affect the Economy?                        

    War affects the economy in different ways, but most of it all, war negatively affects the economy of a given country. This paper will discuss the impacts of war on the general economy of a company.

Negative Impacts of War on the Economy 

War comes with a lot of consequences, since peace is not easily gained, at it requires a lot of time, money and strategies (Madura, 2014). In order for a country to be able to conduct a war, it needs to have a stable funding, thus making it to sustain the military in the course of the war (Rockoff, 2012). War is however very expensive, as it is required of the government to use all the resource which it has in order to restore peace and stability. This makes most countries to seek huge debts, which may be paid in decades. In addition, the country may also have to cut on its expenses in order to finance the military operations, a move which makes it hard for it to develop, a move which affects economic growth (Stone, 2017).

Inflation  

Huge borrowing comes with a lot of challenges, and this includes inflations. The prices of products go high, while the purchasing power of the currency drastically drops, a move which may lead to economic collapse if care is not taken (Rockoff, 2012). The living standards of people in the country also drops, making it hard for the country’s economy to be able to grow. In addition, for the country to be capable of paying for the war, it would need to raise its taxes, hence affecting the lives of its citizens, since the will not be having enough money to save. The country will focus its attention on the war, and not on the growth of the economy hence impacting its economy negatively.  Furthermore, this will lead to a rise in poverty levels, a move which will lead to economic downfall in the country (Smith, Mollan & Tennent, 2017).

Investment Decrease

Investors only invest in countries which are at peace, because war might lead to the loss of their investments (Rockoff, 2012). War tone countries become out of bounds for investors, as they only seek countries which are at peace, where they are sure of gaining a market for their products. On the other hand, due to investment decrease, the levels of unemployment will be on the rise, thus affecting the total economic growth, since the citizens cannot be able to cater for their own needs. War should therefore be avoided at all costs, to make sure the economy grows at ease (Madura, 2014).

Conclusion

This paper has discussed the effects war on businesses, how companies make profits from war, what wars do to the market, and how war affects the economy. The paper has therefore provided the reasons as to why war and business can never get a long, due to poor markets and provision of labour. In addition, the paper has also looked at the negative impacts of war on the economy, where it was evident that war leads to inflation and investment decrease which translates economic decline.

Reference

Stone, L. B. (2017). War and the Market Economy. New Delhi: Vij Books India Private Limited.

Rockoff, H. (2012). America's economic way of war: War and the US economy from the Spanish-American War to the first Gulf War. Cambridge: Cambridge University Press.

Global economic crisis: Impact on small business. (2010). Mason, Ohio: South-Western Cengage learning.

In Smith, A., In Mollan, S., & In Tennent, K. D. (2017). The impact of the First World War on international business.

Madura, J. (2014). Financial markets and institutions.

Martin, C. (2013). Theatre of the real.

In Sharoni, S., In Welland, J., In Steiner, L., & In Pedersen, J. (2016). Handbook on gender and war.

Bailey, M. J., & Danziger, S. (2013). Legacies of the War on Poverty.

Morgan, M. J., & Palgrave Connect (Online service). (2009). The impact of 9/11 on politics and war: The day that changed everything?. New York: Palgrave MacMillan.

Marketing

A value proposition is basically a service, a feature and or an innovation that has the sole intention of making the products of a certain company very attractive to the intended consumers. The value proposition of Caterpillar earth movers is the assurance of having high standards than the normal competition. Caterpillar Company uses the latest technology in terms of the solutions they have which in return have a positive impact on the objects used in earth movement solutions in every corner of the world (Armstrong et al., 2015).  The machinery used for drilling applies the latest technology also and which are computerized to ensure that they have good and quality results. Apple iPod device is a device that delivers flexibility and quality when it comes to entertainment. Compared to other devices, Apple iPod has the best in terms of workability and the technology behind the manufacturing part of it is attractive.

Customers are pulled towards the products due to its affordability and the idea of the product being of high quality. Facebook has the best when it comes to connecting to billions of people around the world today. The site can be used as a business platform to reach millions of customers all around the world and it is all free. McDonald’s hamburgers are products that are consistent when it comes to satisfying customers making it easier and attractive to have the products anytime. Customers are attracted to the essence of having the best from the best company (Armstrong et al., 2015). FedEx overnight service delivery is convenient to its customers through being fast and very precise when it comes to delivering urgent requests. The company spends less time on delivery therefore convenient for its customers.

Samsung is one of the greatest companies in the world that offer quick and reliable solutions when it comes to mobile devices and the home appliances. Samsung as a company has invested a fortune in understanding the elements of value chain making it a reliable company that serves millions of people around the globe (Michell, 2010). Understanding customer requirements is essential for a business. Research and development have enabled the company to grow significantly. Getting to understand what customers want from a simple device is very important for success. The design of the products manufactured by Samsung is very attractive and market oriented. The products developed must be of high quality whereby they are tested, well defined and sent out into the manufacturing plants for production. Finally, Samsung has invested in making sure that the products sent out into the market are of quality standards and desirable to the users (Michell, 2010). Marketing of the products is done to specifically assure the customers that the products are user-friendly and this makes the products demand rise. Marketing at Samsung is done aggressively making it known to many compared to its closest competitors who do not do an aggressive marketing of their products.    

Managers should engage both the big and small m in their marketing plan. Both of these elements assist in making sure that one is equipped with the needed elements in the market. In every business, the small and big markets matter most since the small markets will soon rise and grow into big markets which will create a pull of resources for the current managers to succeed in the marketing plan. The strategies used should not harm the level and the capability earning of the company (Armstrong et al., 2015). Use of the best tactics such as entry into the market through the small markets is a successful tactic that will enable the growth into a bigger market. Strategies tend to push the cost of production to higher levels if not well planned. Also, it is expensive not to use the best tactics to enter the market. Delayed and low returns will be the outcome of investing in tactics.

A firm that is a prospector in the market today is, for example, the 3M Company. 3M uses the Prospector strategy to its benefit by being the most innovators in the world of major corporations. Creativity is highly encouraged in order for the company to remain among the first companies in the world. BIC Company is a good example of a company that uses the defender strategy. Protecting the innovations the company made in the past decades has been the main concern for the company. The biro pens developed by this great company have been used over the years and the company is working on improving the customer satisfaction on a daily basis. IBM has been operating for many years and has heavily invested in analyzing its products. The already developed computers are always improved in terms of quality and the customers are provided with ways of improving from the old systems to new systems (Shoham and Lev, 2015). A reactor strategy kind of market strategy is the one used by International Harvester company which never invests in research and development but shifts according to the demand making it a poor strategy. International Harvester applied this strategy but never anticipated for the demand of its products making it lose out in the market.   

The introduction of many other theme parks in Orlando will greatly affect the company economically since it will create competition and therefore the more the choices for the customers the lower the demand for specific parks. Political instability is an example of a step that is most likely to impact the entertainment levels at the park. Instability always calls for lack of peace and freedom, therefore, impacts negatively on the parks (Lillestol et al., 2015). Social factors, for example, the growth of the demand for improved services will affect the company. Society in the near future will be full of new and motivated individuals who want nothing but innovations.   The current technology at the theme parks will need to be improved in the future to accommodate more people and similarly make it more interesting for the customers. The legal framework is also very likely to affect the park. For example, as the park grows the taxation rate will also increase significantly.

References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

Lillestol, T., Timothy, D. J., & Goodman, R. (2015). Competitive strategies in the US theme park industry: a popular media perspective. International Journal of Culture, Tourism and Hospitality Research, 9(3), 225-240.

Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics industry. Singapore: Wiley.

Shoham, A., & Lev, S. (2015). The Miles and Snow Strategic Typology and its Performance Implications. In Global Perspectives in Marketing for the 21st Century (pp. 214-220). Springer, Cham.

HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES

 The article examines the internal implication of smart connected products and it mainly touches on their impact in the manufacturing firm. Note that in the manufacturing firm there are different roles such as products development, sales among other emerging functions which are related with data management (Porter & Heppelmann, 2015). All these functions create the manufcaturiung structure which are impacted and influenced by smart connected products. The latter has the capability to bring changes in companies through its physical, smart and connectivity components. In other words, the smart connected products have technology infrastructure which plays a fundamental role in data exchange, data storage, data flow and analytics. The main purpose of the technology infrastructure is to provide the smart connected products with the capability to monitor the environment and report unavailable insights to enhance performance, helps the user to customize the functions through remote-access options and optimize products (Porter & Heppelmann, 2015). The smart connected products acts as a source of data to the manufacturing firms. Data is important in modern business and the smart connected products are providing real-time readings and the data is combined with other data to increase the value (Porter & Heppelmann, 2015). The new data analytic (DA) is bringing valuable business functions and the company is able to derive a rich data by using a new tool known as ‘digital twin’. The tool helps the user to gain an insight of the status of the physical product and how the product can be develop through new designs and operation and services (Porter & Heppelmann, 2015).

 The rich data generated to companies by the smart connected products and the capabilities play an important role in transforming the value chain (Porter & Heppelmann, 2015). For example, in the product development, the smart connected products have a rethinking design which is capable to shift the product development from mechanical engineering to software engineering. In addition, the smart connected products have a new design which is making variability an easy process hence increasing effectiveness in meeting the demand of the customer and localization of products in different geographical areas (Porter & Heppelmann, 2015). The smart connected products have an evergreen design and companies are able to use remote software updates and fine-tune the products in order to meet the desired performance. Other new design which has been brought is user interface for remote operation and monitoring. Augmented reality is a new interface which is used by users and the app is connected to smart phones   for operation mobility (Porter & Heppelmann, 2015). The generated data and user interface which helps in monitoring the product improve management in corporations. The quality management foresees new business models such as services models. Other point is that the smart connected products are bringing benefits to corporation as now they can develop system interoperability which leads to design optimization of products (Porter & Heppelmann, 2015).

 In areas of manufacturing, companies are meeting new opportunities. For example, manufacturing operations are improved by automated networked machines which play a fundamental role in product optimization. The shift of mechanical to software is effective in eliminating the physical complexity and increasing the sensor and softwares. The smart connected products have the capability to generate standardized platforms in the manufacturing process and assist the firms in increasing the economies of scale (Porter & Heppelmann, 2015). Furthermore, smart connected products are generating marketing and sale opportunities which connect product track and customer relations. Profit and revenue are mostly generated from after-sales serve and the smart connected products bring a fundamental shift and allow the companies to deal with preventive and proactive services (Porter & Heppelmann, 2015).

 Lessons learned

 The information in this article has expanded my knowledge on marketing. The most important point I won’t forget is that smart connected products has the capability to increase economic value. I have also learned that the value is improved through manufacturing.  Effectiveness is achieved since the smart connected firms reshape the manufacturing functions and business is able to make great progress (Porter & Heppelmann, 2015). The new technology is providing the manufacturing firms with new strategies which they are applying in new operations and industrial structure. Other interesting thing is that the customer interaction is changing and it is being influenced by rich data and smart connected products capabilities. In addition, the capabilities are able to bring new processes in all functions in the manufacturing process are reshaped (Porter & Heppelmann, 2015). In general, I have learned that in the digital world, the emerging technology is transforming everything and businesses need to get ready for the inevitable change in order to bring a profound difference in the economic arena.

Reference

Porter E. Michael & Heppelmann E. James. (2015).  How Smart Connected Products  Are Transforming

Companies.  Harvard Business Review