Market Strategy Analysis
MARKET STRATEGY ANALYSIS
This is a written report about the exploration of management principles of the fresh vegetable market. It executes how it can use strategies to access international markets. The market might be having other international markets. The report will split into several subtopics. Where it will analyze the intercultural interaction to know how the Indian has culturally improved to work with other international markets without any barrier. Under cultural interrelation, this report will use Hofstede Cultural Framework. The need for Hofstede’s framework is to analyze the effectiveness of the negotiation process without any barrier due to cultural differences.
One of the strategies that are employed from Hofstede is individualism and collectiveness. Cultures act as a determinant in the level of interaction in any given business unit, be it global or local level. Individualism and collectiveness are key cultural factors in development (Mennen, 2016). They play a significant role in the vegetable market, country, and individual personal performance. Therefore, it is good to consider the individualism and collectiveness level in India concerning the business part of it. Both may have a negative or positive impact on the vegetable market. The implications of individualism and collectiveness depend on how their application in a specific company. It is, therefore, reasonable to compare the effects of collectiveness versus individualism under the country level of business.
The other strategy is Long term orientation versus short terms normative orientations. Long-term orientation focuses on the future by delaying short term interest that can limit future results or social success. Short term orientation is controlled mainly by traditions and norms which are still in existence after being passed over too many generations (Infantino, 2017). Short term orientation is more concerned with the present and past rather than focusing on future goals. They also focus their behaviors on matters that will not solve future wellbeing.
The other framework is that it will use the used power distance index and how it affects the vegetable market. India has a power index of 77. It analyses the power distribution and how they have been accepted in society. Under low power index, the society is not contented with the method of which the power is shared, and therefore they need justification. The high power index shows an evident satisfaction of power distribution in society. The other framework is indulgence versus restraint, which refers to the freedom level, and which is permitted by society norms to the citizens.
Under indulge the society allows all types of gratification of all-natural and innate desires, which relates to life enjoyment and living a life which is having fun. India has an indulge of 26%. On the other hand, the counterpart, society, mostly controls the actions going on in society. The other framework is masculinity versus femininity. It is believed that masculinity is preferred by society for the achievement of Heroism, material rewards, while feminism is believed to represent modesty, cooperation caring, weak, and quality life. Masculinity in India is
This report analyzed the market strategies that can be used to access the global markets, including the Marketing Intelligence report (MIR). The report analyzed the level at which the vegetable market is well adapted to interact with other markets; it gives the information that is relevant to the company market trends, consumer monitoring, gathered information considered in decision making, and other information. The other strategy that will be used in this report is the business environment analysis report (BEAR). It analyzes the internal and external factors that might be affecting the company and its workability in reaching outside markets. It uses the SWOT analysis technique where it considers the strengths, weaknesses, opportunities, and threats.
The other market strategy that was used in this report is the Report on Opportunity Market Entry (ROME). Here the report will give the statistics on average inputs and of fresh vegetable markets. The exports and imports of the market will be a clear indicator to determine if the organization can reach the international market. Market Entry Strategy Analysis (MESA). It will analyze the chances on which the business can shift its headquarters or open another branch in other parts of the country. Amazon has how the chance of opening other branches, but it will be hard to have another headquarter of the physical store in another country apart from the united states.
Finally, the report will analyze all the market strategies to give a clear justification of whether the strategies are worth in the negotiation with other companies and access to other international markets.
This report has been developed to analyze the probability of developing a fresh vegetable market and the demand for its products in India. It will be based on the interrelation analysis of cultures and global market interaction. It has been developed in a way that it will consider the cultural interaction using Hofstede’s strategy. Hofstede framework uses the following strategies: individualism and collectiveness, femininity and masculinity, short-term and long term orientation, power distance, uncertainty, and avoidance, restrain versus indulgence. This will analyses how India is capable of negotiating business with other nations internationally.
It will finally become aniline the market strategies that can be used to improve in international relations. This report analyzed the market strategies that can be used to access the global markets, including the Marketing Intelligence report. The report analyzed the level at which India is well adapted to interact with other markets. It gives the information that is relevant to the company market trends, consumer monitoring, gathered information considered in decision making, and other information. The other strategy that will be used in this report is the business environment analysis report (BEAR). It analyzes the internal and external factors that might be affecting the company and its workability in reaching outside markets. It uses the SWOT analysis technique where it considers the strengths, weaknesses, opportunities, and threats.
The other market strategy that was used in this report is the Report on Opportunity Market Entry (ROME). Here, the report will give the statistics on average inputs and outputs of Indian vegetable markets. The exports and imports of the market will be a clear indicator to determine if the organization can reach the international market. Market Entry Strategy Analysis (MESA). It will analyze the chances on which the business can shift its headquarters or open another branch in other parts of the country. India the chances of opening other branches, but it will be hard to have another headquarter of the physical store in another country apart from India.
Finally, the report will analyze all the market strategies to give a clear justification of whether the strategies are worth in the negotiation with other companies and access to other international markets.
Importance of cultural understanding
To work effectively in a particular country, it is good to understand their cultures. Business is one of the sectors that involve many types of interaction, both online and offline. Most of the interactions are altered by the culture of particular communities, agreeing to have a barrier. Therefore, it is very crucial to consider the reason we need to have an enjoyable interaction Modernization in workplaces plays a critical role in improving relationships in businesses. Companies are now emphasizing on improving intercultural skills in their workplaces. During the previous years, companies were emphasizing technical skills while forgetting intercultural skills (Figueroa, 2017). Today, they are emphasizing on cultural skills, including the ability of workers to speak multiple languages. Other skills that are given priority by other companies are respect among each other employees and the ability to adopt different cultural differences in each working environment.
India is one of the countries that have emphasized on equipping its employees with intercultural skills to make them qualify more businesses with international companies (Rangan, 2006). To develop enough cultural skills for its workers, it has provided a comprehensive level of training to their workers continuously to ensure they develop and improve their intercultural competences. It is considered and can be evident from India that a company will succeed in equipping its workers with intercultural skills only if they work together. His is because working together ensures continuous sharing and exchange of ideas within a company or between companies.
Therefore, these skills are considered necessary for companies for many reasons. These skills give the employees a better understanding of their workplace. They are trusted for helping employees adapt to the new working environment, preventing culture shock and the emergence of new work behaviors, which can lead to depression and boredom. I consider some of the dimensions provided in the Hofstede framework critical to the success of negation between my company and potential distributors who are from the US. I used them to evaluate the level of intercultural skills in Peru and within the company
Indian culture analysis using Hofstede’s framework
Power distance index (PDI):
The other framework is that it will use the used power distance index. It analyses the power distribution and how they have been accepted in society. Under low power index, the society is not contented with the method of which the power is shared, and therefore, they need justification. The high power index shows an apparent satisfaction of power distribution in society. In the US, the power, the power distance index is 77 percent. In use, power distribution is proper since feminine has an equal chance of owning power as compared to masculine. The hierarchy in India is established, and their society does not doubt it. Despite the high index of power distance, there are few doubts concerning the hierarchy, and the power of the vegetable markets has utilized power, and it uses it to improve its marketing relations locally and globally.
Individualism versus collectivism (IDV)
One of the strategies that are employed from Hofstede is individualism and collectiveness. The US has a low level of individualism. Collectiveness in India arises only when there is a need for unity in business. Therefore, it requires under the supervision of workers, and marketing strategies are very confidential. Cultures act as a determinant in the level of interaction in any given business unit, be it global or local level. Individualism and collectiveness are key cultural factors in development. They play a significant role in the company, country, and individual personal performance. Therefore, it is good to consider the individualism and collectiveness level in the united states concerning the business part of it. Both may have a positive or negative impact on the company. The implications of individualism and collectiveness depend on how their application in a specific company. It is, therefore, reasonable to compare the effects of collectiveness versus individualism under the country level of business.
Uncertainty avoidance (UAI):
In India, every culture has the freedom to practice any form of ambiguity. There are low stiff codes concerning the behavior, laws, and generally, the extent at which the society relies on the absolute truth is shallow. This shows that every culture is well accepted in India. Due to this strategy, several cultures are existing in India, making business interaction to be very high.
Long-term orientation versus short-term orientation (LTO)
Despite India having an average level of long-term orientation, some of the businesses like Amazon has concentrated very much on long term strategies that will allow them to access international markets in the future. The other strategy is Long term orientation versus short terms normative orientations. Long-term orientation focuses on the future by delaying short term interest that can limit future results or social success. Short term orientation is controlled mainly by traditions and norms which are still in existence after being passed over too many generations. Short term orientation is more concerned with the present and past rather than focusing on future goals. They also focus their behaviors on matters that will not solve future wellbeing.
Indulgence versus restraint (IND)
This dimension refers to the degree of freedom that societal norms give to citizens in fulfilling their human desires. Indulgence is defined as “a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun.” Its counterpart is defined as “a society that controls gratification of needs and regulates it employing strict social norms. In India, there is a very high level of indulging, where an extensive range of age is involved in marketing.
Comparison between India and Canada Hofstede framework
Market Intelligence Report (MIR)
Market intelligence is described as the data or information which is obtained by an organization from the market which it wants to operate in, to aid in determining segmentation of the market, market opportunity, market penetration, and existing metrics of market. Market intelligence is a crucial component to understand the market state, as well as aiding in the collection of the competitor intelligence, which in return helps towards growing to become profitable.
Our business uses market intelligence reports to understand which are the customers targeted for the provision of healthy and fresh vegetables. The profile survey can aid the business in shortlisting the target audience based on which type of vegetables to be delivered and provided to them. For instance, when the vegetable is described to be for the aged and able to cure some of the diseases which relate to the age, such that the market is in a manner that the vegetable is available for the aged. Participants were shortlisted by the survey carried out, showing those who prefer the vegetable fall within a certain specific range of income or are in the age group, which are older. Such information based on the statistics will help the business in focusing the efforts on the right people, which enables the company to save the efforts and the cost.
Market intelligence can be given the descriptions basing on the simple three parts as follows.
Competitor intelligence- It is the collection of data about the competitor basing on the ethical methods, which includes the public records and database of the government. The business will be able to capture the Canadian business market of selling the Cauliflower and eggplant and even dominating them using competitor analysis. The understanding of the needs of producing high-quality nutrition and healthy vegetables has led to the business strategizing and penetrating the Japanese market successfully.
Product intelligence- This is the gathering of data and information which relates to the competitors’ products or the products which are similar in the market—for instance, monitoring the prices of competitive vegetables which are in the same segment by our business. The price drop in the products of the competitor can show that the business is bringing new models in the market. Such an understanding of information can help enable the business to strategically launching models at the right price and time.
Market understanding- This is the ability to know the market share of the vegetable business, the size of the market, trends in the market, and the target market. Understanding the market demand and customer needs might help in the company tremendously increasing the market share and market revenues.
Methodologies to collect market intelligence.
Surveys- It involves the set of questions that are put together in a manner that is concise to gathering data from the targeted market and analyzing the data to create valuable market intelligence. There exist various methods which include the online surveys and the mail surveys, which we carried out, which depended on what data is needed to be collected.
Online surveys are one and best of the most economical methods of obtaining data most quickly. These surveys have been associated with unreliable data, but with newer tools that are entering into the market, the method has become reliable and very popular. The vegetable business, for example, uses to know the position of the competitor in the market to launch the vegetable products which are in the same segment.
Mail surveys are considered one of the cheapest ways of conducting the surveys, especially to the more extensive surveys. Since the technology has advanced, nowadays, individuals have stopped the reading of paper mails, and hence the rate of response for such methods only ranges between 4-15%. However, there exist areas in which technology is not accessible.
Observation- Sometimes, the gathered data through the other types will not show reliable data or give real insights considering the buying behavior or customer attitudes. The vegetable business, through cameras that will be fitted and installed inside the stores, which are viewed and recorded continuously, will later be used to understand consumer behavior. Using the method of observation, the business can gain information into the unconscious behavior of buying or attitudes of the targeted market.
Personal interviews- This is generally the affair which is most expensive but providing reliable and valuable information. Such a method is typically used to understand them in depth concerning a particular vegetable product or a topic. They are the open-ended questionnaires that are unstructured and lasts typically to even to an hour, which usually are carried out on individuals. The company uses the method to understand the current trends in technology in the market. The interviews with the subject matter being the technological solution can give the company information, which is valuable as to what is expected and trending soon in the market.
Business Environment Analysis Report(BEAR)
The method was used to examine all the internal or external components, which influences the vegetable company. The internal components indicates the weakness and strengths of the entity of the business, whereas external components representing opportunities and threats outside the company. The method made sure that their existed relevant information that is required in finding out the course of action, which is considered to be the best. The method also assesses the set up organizational goals and operating environment. The report gave an analysis of whether the defined goals of the company are achievable or not compared to the strategies which are present in a different market. If the strategies were not possible with the strategies which existed in the different market which deals with the vegetable provision to customers, then the new strategies should be devised or modify the existing ones of the business accordingly. The popularity of the company should be widespread and well known around the globe. The company should bag many eye shopping profits, achievements, and successful launches.
The SWOT Analysis
The technique which was used during the business analysis report was SWOT analysis. Which included the Strengths, weaknesses, opportunities, and threats.
Business type- The business will specialize in vegetable and fruit, where we are more professional in handling the business due to the offering of the unique services whereby we have many types of products comparing to the other vegetable shopping centers.
Ability to offer online product selling- This is unique compared to other markets that offer fruit and vegetable selling through their physical stores.
It has a limited risk of a startup- The capital to set up the business is minimal because there exist few constraints which will cost less for the business.
Limited competition- Few markets can offer the services of vegetables to customers using the website where the company offers the online booking of products.
The competitors can offer products that are similar quickly. The vegetable products which are produced in farms in a variety of types can be supplied directly by the producers who supply them directly from their farms.
The limited price flexibility- The price of the vegetable products in the market is not normally subject to change due to different products that exist in the market.
Limitable easy business model- The businesses which are retailing online have become quite common in the world we currently live in. So other business models will limit the vegetable business, including rival firms like amazon. Who offers the same services of online delivery of vegetable products.
Expanding physical stores- By expansion of the stores in different physical locations, it helps in improving the competitiveness of the company against the retailer’s big-box and engaging in customers with a new brand.
Acquisition of different rounds of capital- This is through the different acquired capital from the initial investment of the business through savings.
Improving the organizational policies and technological measures – This reduces the sales of counterfeit services to the customers who depend on the vegetable company for the daily deliveries of their orders.
Government regulations- will threaten the vegetable business proceedings in some of the important regions of the country Canada through the acquisition of different business permits to operate.
The aggressive competition- The competitors will get more information through the website by acquiring information about how the business operates, which they can implement, which they can, in turn, edge out the business.
Increasing cybercrime- This can affect the systems in which the company will provide services to the customers through online platforms where they will be distributing the products and services to customers.
Limitations- This is through the new entrance, which is developing up in the market, which usually has the same model of the business model of vegetable business we are going to implement.
1. Price- Price is one of a big factor on which a business runs. So we tried to keep our price as low as possible in the beginning. It will increase the number of customers and will help to make the company well known to all.
2. Place- As our business is related to vegetables, so we will open our stores near to our farms which will help in less transportation cost and save time for us to pack in bags and send to deliver as fast as we can.
3. Promotions- Promotion plays a huge role in making the company successful. We decided to advertise more on newspapers and magazines compared to social media. Because mainly we see a lot of promoting advertisements on social media and the thing is that we don’t always pay attention. But on the other hand, we read newspapers with full attention so it will help to make public relations.
Market entry strategy Assignment (MESA)
This is the strategy that the company uses as the method which is intended to make deliveries of services and products to the other intended market, which require the same product or service which is being provided and distributed by our vegetable business company. The company will use multiplicities of a manner of ways in which to counter the foreign markets in foreign parts of countries in the world. There exists no one strategy of market entry that can move all parts for all existing international markets. The method of direct exporting of vegetable products is the main suitable in one market, while the other one the company has set up is the joint ventures. In other parts, it will license its productivity procedures from the farms. There exist some factors which manipulated the selection of the strategy, which includes the rates of tariffs, adjustment degree of goods, transportation, and marketing costs, which will be provided by our vegetable company to its customers.
The following are the leading market entry strategies that will be used by the vegetable business.
Licensing- This is the complicated comparative agreement where Amazon company has transferred the privileges of usage of other services and product to another company or firm, which they share the same functionality to serve the customers. It has been a principally the most helpful approach where the individual of a company buying the license has a moderate big share market in the market to which the Amazon company want to enter. Amazon uses the form of production and marketing as a form of licensing.
Franchising- This model will work well in the company because it will have different models of business, which will be repeatable examples being the electronic outlet of the company, which can easily be transferred into other existing markets. The company will use two caveats when considering using the model of franchise. The first is that the company will have unique or the vegetable brands which are stable in recognition, which can be utilized internationally, and the second is the creation of potential competition in the franchisee by the company.
Direct exporting- The company will directly export where we will sell openly into the market we have selected using the first instance occurrence of the company through delivering products to the other regions or countries. The company, once the sales program has been established, the company turns to the distributors or agents to make representation to them in that market more further.
Partnering- The company will partner with other companies that offer the services of delivering vegetable products, which will enable the company to enter the foreign markets in some parts of the world, including Africa. The company will take many forms of diversity, which originates from the straightforward arrangement of co-marketing to the sophisticated alliance of manufacturing. It will be a helpful strategy for the company because the culture, both social and business, has been substantively different than the local partners, which bring restrictions to the market knowledge (Roy, 2018).
Joint ventures- The business company will form the other companies which will be managed independently. This is where the two companies will agree to work together in a particular existing market, which will be brought together by vegetable product sales. The profits and risks are typically shared equally between the companies.
Greenfield investments- The vegetable company will buy land in Toronto Canada and built another company and operate the business in a foreign market where other companies exist to offer the services which are nearly similar to those of the vegetable company. It will, however, be the costliest and risk involving because of the transportation costs, government regulation, and the aptitude to expert labor or admittance knowledge.
Report on Opportunities for Market Entry (ROME)
Our market will have many opportunities in the existing market where they can take the opportunities. The e-commerce giant owns the majority of market share online. He is continuously expanding and innovating into new markets like home grocery and Whole vegetable delivery with fresh market vegetables. With their hyper-focus and prime shipping on customer personalization, it is evidence that it is the company is the leader of e-commerce.
The following are what makes fresh market vegetables be the most dominant in the market.
Supply chain logistics and home delivery- The company offers transport services to its customers who are taking orders through the online platform where they offer delivery of services and products at an accurate cost, which favors the individual. They have used this opportunity to win more customers. They have exerted pressure on the supply chain of the other competitors who give them the external pressure in the market they operate by setting the delivery of products to be within the 48 hours. They have taken advantage of technology applications into their online stores by building and developing websites where one can take orders regardless of the difference in location.
Healthcare- Our fresh vegetable market appeared poised in entering the healthcare sector by boldly moving into the offering of pharmacy services. With the inflation of healthcare being unchecked, the company through the party appears to be the field where they could disrupt and influence quickly. Our vegetable market will join forces with distributors and cardinal health who exist in different sectors to extending medical services to healthcare facilities and others.
Geographic expansion- The company has used the ability where they acquire new firms. This is because the company is the biggest dream come true for most of the companies to work with our future giant company. This has made the company grow into emerging markets in the Middle East and Asia. The company has seriously dramatically raised the activity of acquisition. As the platform is expanding, the company will bolt-on the new businesses which can act to leverage the backend.
Artificial intelligence- our market will have an opportunity where they will use robotics, which is created from the knowledge of artificial intelligence. The robots have acted to provide services which are not fit for human interaction through carrying of stocks around expansive warehouse floors and group all the items of an individual which are needed for the specific order. This will help in reducing the interaction number of humans with the products.
Advertising- our company will use the opportunity of providing the buyers the chance to get additional visibility, which helps in boosting their product sales and business. This will enable the company to gain the chance to increase the company’s brand and awareness. Many individuals like the attempt to try new products, so the promotion of the products will aid in the company getting the brand in Infront of the audience, which is new to which they are in search of the new purchase of something the company is selling. The company, therefore, has used three options for the campaign. This is the sponsored brand advertisement, sponsored product advertisement, and product display advertisements.
The online community- No one can compete with online grocery companies with the number of buyers who are using the platform in making different orders. With the faster rate of growth of many members, the online community our company has grown and helped the company’s efforts in developing the transparent and trustworthy marketplace with the faster shipping and the prices below mortar and brick stores. The platform has helped the customer in finding the products which are quality having detailed photos, reviews, and ratings.
Justification on whether MES-sim should develop the fresh vegetable market
Market strategies apply so much in market development. Many market strengths have been developed using market strategies. The applied market strategies include the marketing intelligence, opportunity for market-entry, market entry strategy, and market entry strategy assignment.
Market intelligence is very crucial in the developing market. When any company like ours, which is planning to team up with one of the companies, it will acquire the business data of the other company using market intelligence. Once it has acquired the market information, it will analyze, to see the need for partnership work that company. It will allow the company to predict future segmentation in case the company case agrees for partnership. Through market intelligence, the company will be able to analyze and see the opportunity within a short time. The time will be limited since the company will use the acquired information without taking much of its time interacting with the company.
Market intelligence is a crucial component in understanding the market state and the available competition. Through competitor intelligence, the company can identify the competitive market. After identifying the market, it will use its strength to improve its market. It will also use competitor intelligence in improving their competitive trends by making them unique. For example, Amazon has both physical and online stores. These strategies have allowed amazon to maintain its brand name internationally.
Product intelligence allows the company to make a clear choice on the goods to stock highly as compared to those with low demand. This is the gathering of data and information which relates to competitors’ products or products that are similar in the market. The price drop in the products of the competitor can show that the company is bringing new models in the market. Such an understanding of information can help enable the company to strategically launching models at the right price and time. Market understanding is an essential tool in making the decision (Quoniam, 2016). Therefore, many markets are using the market to consider the size, trends, and effectiveness of shifting products. This is the ability to know the market share of a company, the size of the market, trends in the market, and the target market. Understanding the market demand and customer needs might help in the company tremendously increasing the market share and market revenues.
MESA is one of the strategies that has vast applications in the market. Licensing is one of the strategies that require this strategy to make decisions comparing the ability of an insured company to paying insurance capital without pressure. It has been a principally the most helpful approach where the individual of a company buying the license has a moderate big share market in the market to which our vegetable company wants to enter. Grocery markets use this form of production and marketing as a form of licensing.
The company that needs to identify the source of imports uses the same strategy to choose by considering the distance and the price of goods that need to be imported. Using MESA, the company will explore the shipping fee charged by other companies without visiting their companies to have the experience. Making exports also require the knowledge of MESA to identify the products that have high demand. After identifying the products, it will analyze the location where it has more customers for the need to change export to a physical location.
Another application of MES-sim is in the market SWOT analysis (Drabner, 2017). The company can improve on identify its strengths and how they can improve them to suite future technological trends to make their market more competitive. It can also analyze the strength of their competitive market and use their strength to understand where they can improve to compete with them. The weakness of the company can be identified then to avoid future losses realized from their weaknesses. They can use the weaknesses of their competing market before they realize the same weakness in their market. Online opportunity identification is one of the ways that can be used to make the company reach global customers.
Threats can be managed before they affect the business. This is possible in two ways that are used through SWOT analysis. Once the threats have been predicted, the necessary steps are implemented to avoid future impacts on the market. Threats from competing markets can be identified. The same approach that they used to fall into the threat can be avoided by using other channels that are better from them. It will make the market to be more competitive by having insignificant threats. From the above strategies, it is very clear that MES-sim strategies are essential in controlling market entries, especially to other global nations.
Intercultural frameworks are very vital in market relations and adaptation of one market to another. Hofstede’s frameworks are among the best frameworks to study full cultural practices. It can be used in identifying available cultures that are present in specific countries. Through this strategy, a marketer will make a better decision that will allow his or her business to stand out from many threats and weaknesses. Market strategies are one of the essential frameworks that are used in deciding on the location of the business, need for expansion, handling threats, and making a competitive market.
These strategies are also applied in choosing the product to deal with, especially when opening a new branch on a different location. I consider some of the dimensions provided in the Hofstede framework critical to the success of negation between my company and potential distributors who are from Peru. I used them to evaluate the level of intercultural skills in India and within the company. Proper use of these market strategies and a combination of intercultural strategies will allow many markets to make tremendous progress, especially to those companies operating in global markets that employ shipping.
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