This sample will let you know about:
- What is International marketing?
- Explain about SWOT analysis.
- Discuss about the Porter's five forces.
International marketing can be defined as an economic activity and action that relates with increasing market size and its operations at global level. Globalised or international marketing also refers to satisfies needs and wants of customers across national borderlines. The UK market has been performing from the day when it starts to recover from the effect of Brexit. The economic rate is improving day by day which is directly helping the investors. As company like CEC is willing to expand their business to new level and UK market is very helpful in it as importing and exporting is quite easy task.
The file is being prepared in the context of CEC company which is one of Chines business organisation that deals in electric vehicles since longer period of time. This report will simply explain about the international market and their behaviour and impact on daily basis on an organisation. Environmental and analytical factors will be used which will explain that how any of the organisation is required to take their daily basis decision for accomplishing the goals. At last, proper recommendation will be given which will be totally based upon the analysis obtained.
CEC is one of the leading organisation in the sector of electric market within the premisses of China. Although, they have been performing well in the market but still they are unable to distribute their product and services at a international level. For the purpose of overcoming this respective issues company is willing to expand their business to UK market which can allow to take competitive advantage as auto-mobile sector is performing really well within the area of UK. From perspective of CEC company is introducing their product into new market of UK so it is mandatory for management to understand market and customer’s needs. This results it is easy for organisation to increase their sale of products which enhances market size and operational productivity because all operations are performed as per customer needs. PESTLE is implemented by CEC to understand macro environment which is mention as follow:
Political Factors- Automotive industry is increasing with rapid speed as people are expanding their income to lead a comfortable life. All government rules, regulations and policies which are developed by ruling government for ensuring industry rights in a market. In context of UK government situation is stable due to which all task are performed in effective manner. Electric vehicles come in market with new innovative business idea that work with motive of reducing emission of harmful gases from environment (Eteokleous, Leonidou and Katsikeas, 2016). It also refers that there are various task will be performed by management to complete work with motive of increasing their business size by attracting customers with new features. There are various benefits being provided by the government of UK to those auto-mobile sector which has taken initiatives for electric vehicles. In simple words, the government is trying to introduce the concept where they want safe environment for the people. It is one of the best way for CEC to expand their business in UK. In addition, the government has passed the law for 2020 where user will not have to pay tax when they will use electric vehicles (Electric car users to pay no company car tax, 2020).
Economic Factors- Monetary related aspect such as fiscal and monetary policy, market economic conditions are considered in economic factor.The state for electronic cars is raised among global economy it governs that there are various task are performed by management that leads CEC to earn high amount of profits. In context of UK, the current economic conditions is not effective because of Brexit it refers that there are various challenges will be faced by all companies (Hoppner and Griffith, 2015). The inflation and interest rates including fluctuation in currency rate is changing day by day which will incur additional charges to manufacture any of the additional unit of car..
From the recent years sales of electronic cars is increased with rapid speed as it enhance with rate of 15% for increase in each year (Zhou and et. al., 2015). Moreover, manager of CEC can sell the electric parts of car at a reasonable price for enhancing the overall profit of a company. This both are most essential part for organisation which demonstrate performance of electric vehicles.
Social Factors- People and residents of a country are undertaken among the PESTLE aspect that is used for satisfying needs of customers within appropriate manner. In context of electric vehicles it work as positive aspect for government and individuals. Further, demand of electronic vehicles also demonstrate that individual are focused towards idea of electric cars due to their user-friendliness with environment. Example- electric vehicles run with battery so it save consumption of natural resources such as petrol and diesel. CEC is manufacturing their cars with sustainable features that provides power and luxury among electronic vehicles. Moreover, it also work positive aspect for organisation because it helps to gain competitive edge in market by offering environment friendly products to customers (Jensen and et. al., 2017).
Technological factors- UK is one of the developed country among the world so they are more flexible towards adoption of technological factors. It aids the organisation to level up the competition prevailing in the market. It permits CEC to work as a company which is economical and functions to sustain in a long run with high profits and efficiency. AS CEC anticipated new technologies for their manufactured vehicles i.e. electronic cars they are fully concerned about adopting new technologies so that their vehicles do not get discarded by the users. CEC believes in continuous evolution in technologies and even market of UK likes the advancement which can have a positive impact on overall performance of an organisation. (Kihm and Trommer, 2014).
Environmental factors- Sustainable aspect is one of the most crucial factor for organisation that leads workforce and management to gain top position in market. UK is one of the area where they mainly work by considering the environmental factor and due to which everyday the use of electric vehicle is increasing day by day. The reason behind the use of electric vehicle is to reduce emission in upcoming time period. In context of electric vehicles, it is related with increase in environmental safety such as to reduce activities related with harmful gases. UK is an environment prosperous country and it is also develops heritage buildings so it is also mandatory to ensure that this buildings are not impacted due to pollution (Björk, 2017). Therefore, CEC perform all of its operations and functions as per ethical and environmental rules to perform their work effectively in UK market.
Legal factors- In context of UK, all rules and regulations are formulated and organised by government to offer better quality of products through performing task in effective manner. Part IV of environmental act 2002, represent that local authorities of UK ensure and review that companies are not impacting on air quality of environment by performing work as per decided benchmark. Also, health and safety law should be considered by the organisation while manufacturing any of the product. Along with this government and its division also supports business houses through offering various flexible policies and subsidies to international and local organisation. This measures help companies to perform their work in organised manner. CEC is concerned about performing their work with follow and implement of local rules and regulations due to which all task are performed in effectively (Namdeo, Tiwary and Dziurla, 2014).
With the above PESTLE analysis it is analysed that there are various task and operations will be performed by management to complete their work in effective manner. Therefore, all essential points such as Political, economic and many more are considered by an organisation to perform their work in effective manner. CEC conducted PESTLE analysis for performing all task and operations to formulate right strategy for all operations and functions. So manager and leader are able to perform their work within effective manner that leads to gain sustainable advantage in market. Ask for Assignment help UK from our experts!
Another tool is SWOT which also work as an effective tool for management to understand environment analysis refers to manage task and operations as per strength and weakness of company (Pezzutto and et. al., 2018). Along with this SWOT also leads companies to understand opportunities and threats of market. SWOT in context of CEC is mention as follow:
With SWOT analysis it is predicted that with strength of automotive industry it is easy for organisation to deal with major problems by utilising right information and tools. Moreover, weakness faced by CEC and other organisation is that it is complex to understand market environment. UK market and its consumers are open to adopt new products so it leads CEC to enter into untapped area (Samiee, Chabowski and Hult, 2015). Along with this SWOT also helps to overcome from threats that are impacting on sales of products through managing strategy that fill the gap of weakness of an organisation.
Porter's five forces- The main role of Porter five forces is to understand competitive analysis in market by analysing and identifying competitive units and aspect of market. Along with this Porter five force is based on industry. Thus, with this aspect it is easy for CEC to perform their work as per strength and weakness of management. Forces which are included in Porter's model are mention as follow:
- Competition in industry- More number of competitors, along with equal number of products and services represent that there is high force of power. In context of electric vehicles it is identified that there are various task and operations will be managed but due to less number of supplier the power of competitive force is moderates (Schmid, Grosche and Mayrhofer, 2016). So, it work as positive factor for CEC to perform their work in effective manner. The major competition for CEC will be from TESLA, BMW, Jaguar and many more company which has been performing well in the market of UK since longer period of time.
- Potential of new entrants in an industry- Company power is impacted due to involvement and entrance of new organisation in market. This refers if market area of an organisation understand and analyse coming of new companies than it is easy for management to develop strategy as per market area. In context of electronic vehicles, it is essential for company to invest huge amount of money and time in their operations so that they can give tough competition to the rivalries firm to enter in the similar market. Also, huge capital is required in it for research and development division (Tassabehji and Isherwood, 2014). So power of new entrants is low in electronic vehicle segment.
- Power of supplier- Supplier are most essential part of an organisation as they provide raw-materials, resources and tools to complete operations of CEC. Power of supplier is next force of Porter model that leads countries to complete their work in effective manner. This also refers suppliers also impact on price of products. Fewer the number of supplier in an industry dependence of company depend more on suppliers. But in context of electric vehicles supplier, moderate number of business person refers that there is low force in market due to limited supply of raw materials (Skarmeas, Zeriti and Baltas, 2016). It can become one of the reason for CEC to buy raw material at a higer price.
- Power of customers- The ability and skill of customers that represent power of buyer to deal with prices issue refers to power of buyers. This power impacts on organisation through analysing actual number of customers and their needs. In context of CEC management influence customers through battery and automotive tools to account customers that products and overall its parts are sustainable for market environment due to which better results are gained by management for performing their work effectively (Pezzutto and et. al., 2018).
- Threat of substitutes- This is the last force of Porter five force which refers to those goods and services that are used by organisation to place replace company products. In context of electric vehicles there is less substitute of products and services as of now which are offered by organisation. So it is a positive point for CEC as switching cost for products is low because electric vehicles are also offered by organisation at affordable prices so it work as positive point for company. As due to low competition management is also able to generate positive results for organisation. Need Assignment Samples?Talk to our Experts!
According to modern era, majority of the industries are performing their work at global level with the help of technological tools. Along with this environment conditions also work as an essential tool for organisation that leads management to gain top position in market. From point view of CEC all task are concerned towards generating positive results because company is offering positive tool for organisation to complete their task with in effective manner as it also helps to attract more number of customers within effective manner (Sun, Paswan and Tieslau, 2016). CEC is also performing their work as per high cost brand development. This also helps to increase economic conditions of market by completing all task in appropriate manner.
According to present market conditions it is monitored that most of the existing organisation are performing their work to earn good amount of profits. So the major concern for management and its task is to manage and organise task as well as project within a sequential manner. This results overall productivity of organisation is increased that leads teams and management of CEC to gain top position in market (Tassabehji and Isherwood, 2014). Electric vehicles are recently launched it refers that all task must be managed as per objectives of organisation which is to enter in UK market. Some recommendation to enter in UK market are as follow:
- Adoption of electric vehicles- UK is a developed country which represent that income and purchasing power of individuals is high. Along with this better qualification also help residents to understand critical environment conditions due to which it is easy for CEC to influence customers to purchase electric vehicles. There are various task will also be performed to determine EV also work as per infrastructure of a country. So in context of CEC infrastructure of UK is developed with motive of completing their work for performing their task as per charging infrastructure.
- Energy- All project aim to analyse, implement, initiate and develop policies to perform their work as per energy that generates sustainability of products in market. Along with this electric vehicles interact with development of generating those vehicles that generates positive factor by developing initiatives and solutions that generates supportive factors for electric vehicles. It governs with increase in number of public charging station it is easy to fulfil electric vehicles. Along with this user friendly infrastructure also helps to enhance sale through grid solutions.
- Government support- UK government is performing their work with motive of offering and implementing more benefits to a country. Like, employment generation and EV adoption of vehicles is used to perform work as per monetary incentives. Charging station must be develop by ruling government of country with motive of manufacturing vehicles as per EV scheme that is used to replace diesel vehicles. Government of country is also motivated to utilise those skills that enhances work performance to generate infrastructure for support of government as well as to build better charging stations. Get marketing assignment help Now!!
As there are number of organisation within the premisses of UK which has been involved themselves in the market of UK and even they have been performing really well. For the purpose of giving competition to well established organisation, it will be necessary for CEC to find out the ways to reduce unnecessary expenses so that more market can be covered. Also, manager of CEC will be required to give constant focus upon the decision taken by political factor because decision of business will be based on political decision.
From the above summarised report it is concluded that globalisation and international business is one of the most positive aspect for organisation which is increasing market area for each company. Moreover, with the implement of different tools such as PESTLE and SWOT it is easy for organisation to analyse environment conditions. Along with this to understand competitive market conditions Porter five forces is also included in this report that helps in understanding power of stakeholders of an organisation. In the last, with some recommendation about electric market and its conditions company is also able to achieve huge success in market. It will be necessary for the any of the organisation to analyse each and every factor before entering into any of the international market because single mistake can create lots of issues in future period of time.