The development of smart phones has flooded the market ever since Apple Corporation has lead the presentation of a new age of cellular phones for the public to appreciate. Ever since this point, the interest of companies concentrated on developing electronic gadgets became focused on creating one-of-a-kind cellular phone that would get the attention of the market. Samsung is one of the companies spearheading the said movement today. Creating several lines of branded cellular phones, Samsung has proven that they are not just an ordinary ‘electronic company’ that produces appliances and other common electronic devices.
Delta Airlines (Delta) has become one of the world’s largest airlines after its acquisition of Northwest Airlines in 2008. The company operates a fleet of over 700 aircrafts through whom it serves about 350 destinations in more than 60 countries. Delta is also a founding member of the SkyTeam Marketing which includes Air France, KLM, and Alitalia (Hoovers, n.d.). The company is one of the leading performers among U.S.-based airlines but its financial analysis reveals that even being a leading player in the airlines industry is not enough as this industry has one of the least favorable economic dynamics among all industries. All the figures used to calculate Delta’s ratios come from the company’s latest 10K report which covers the fiscal year 2012 (Delta Airlines, Inc., 2012).
A $300,000 fund is to be distributed to two specific organizations that exist for a cause. These organizations are to receive 50% each of the said total amount to be distributed. Choosing the right organization to support is a crucial part of this decision. Considerably, it could be noted that the assumption on how the organization deals with the majority of the issues that the society has to contend with is one of the criteria being given attention to in relation to this particular decision. This presentation then hopes to provide information on five of the most promising organizations to be supported by the fund that needs to be distributed accordingly.
AT&T is bringing it all together for consumers, from revolutionary smartphones to next-generation TV services and sophisticated solutions for multi-national businesses. AT&T’s portfolio of services — perhaps the most robust in the marketplace — delivers choice, value and convenience across a range of options. Millions of consumers have chosen our comprehensive service bundles because of our competitive pricing and the convenience of a single bill for wired and wireless voice and data, broadband Internet, TV and messaging services (AT&T, 2013).
The backbone network carries a full range of IP-based services, including wireless data, business video, data and voice services, private line and wavelength traffic, as well as IP-based residential services and Internet access for AT&T’s more than 16.4 million total broadband customers. AT&T’s consistent dominance in the industry is the reason this firm was chosen as the topic (AT&T, 2013).
III. Explanation of methods used to analyze this market structure and its competitiveness (according to the Structure-Conduct-Performance Paradigm discussed in Chapter 7)
Being in the communication industry, AT&T remains at the top position especially in relation to the way it is performing in the market. Nevertheless, this does not mean that AT&T would remain the same position as it is. Competition would always come into account and this includes competition with already large companies and other challengers that are still entering the industry. To be able to know how the company performs in the market, several market analysis methods could be applied. One of which is through the Structure-Conduct-Performance Paradigm. Under this process of managing market measurement and analysis are three particular focus points that include analysis of market size, analysis of market trend and analysis of market growth rate which includes the distinction of market profitability and performance.
Analysis of Market Size
The company shares in the market is measured through noting the number of individuals who appreciate the products that they offer for the consumers or at least the rate that the said number corresponds to. It could be understood that somehow, the market size that appreciates the products they offer are considered as the company’s share of market. Basing from this particular matter, it could be realized the identity of the business and its capacity to remain in the industry for long is measured according to how many members in the market are actually able to accept and appreciate what it has to offer. From this point, it could be analyzed that the people who are able to appreciate the efforts of the business are the ones who are likely to define the reputation and recognition of an organization’s capacity to remain in the industry.
Analysis of Market Trend
The market trend is defined as the process by which the entire industry grows through time. The developments that are incurred by the industry as a whole usually provides a clear sense of direction as to where the business might like to head. Realizing the current trends in the market shall provide the business a sense of urgency on identifying how they are supposed to adjust current operations to be able to make sure that they are able to provide what the market wants at the right timing.
Analysis of Market Growth Rate
Realizing how the industry grows as a whole provides a defining factor on the path that the industry is taking. Considering this rate, the business could attempt to pioneer in certain innovations that they think would have a great impact on the market’s perception in the future. This particular sense of defining the future of the business according to how the whole market grows shall provide the organization a great source of confidence as they define the market in the years to come through the new innovative products that they create for their target consumers.
Knowing what more is expected from the industry is a key source of advantage for business organizations. AT& T best benefits from this particular aspect through seeing what else can be done to improve both their products and services. Foreseeing the market’s perception against the current situation in the society provides businesses like AT&T an edge in defining their way of operating for the market and for their organization as well. This way, the company would be able to establish a remarkable name that others would follow and not simply create a reputation that follows what the others have already done.
In consideration with operating in a highly diversified industry, it could be analyzed that AT&T’s procedures of market analysis would provide it a better edge on how to represent the name it hopes to establish among its clients. People who are ready to accept what the company offers are then given a sense of confidence in recognition of the innovative culture that the business adapts to hence making it easier for the market to decide on choosing them, their services and the products they offer at the same time.
Grether, E. T., 1970. “Industrial Organization: Past History and Future Problems,” American Economic Review, 60(2), pp. 83-89.
Weiss, Leonard W. “The Structure-Conduct-Performance Paradigm and Antitrust.” Apr., 1979 pp. 1104–1140. The University of Pennsylvania Law Review.
Baye, M. Chapter 7: Managerial Economics & Business Strategy / Edition 7.
The paper serves to develop an Integrative Strategic Plan for Zara, which is a Spanish based international fashion manufacturer and retailer operating in 74 countries through 4607 stores by 2010, so that it can maintain its competitive edge among rivals like H &M and Gap Inc. going further into the 21st Century.
A typical strategic planning process according to Fogg (1994), examines an organization current environment and capabilities, considerations about how it can grow and evolve, and its leaders aspirations and intentions to move forward.
The parameters that must be incorporated for Zara; which is a major subsidiary of Inditex, to develop its business internationally will include its annual net sales, international sales, global reach, internationalization status, current business models, production format, involvement in electronic commerce, and advertising, according to Lopez & Fan, (2009).
Zara’s internationalization going forward has to be done on the basis of the impact of the provisions of the World Trading Organizations 2005 on trading in its operational environment, as well as in Canadian and American markets.
Serious challenges will emerge in the process of developing and implementing an effective integrative strategic plan for Zara, as it has well entrenched vertical integration concepts, unique internal design and production processes for its clothing and apparel products, just in time inventory management, flexible structures, quick response policies using automated technology, among other factors according to Lopez and Fan (2009).
1.1 Vision and Mission Statements
Central to Zara objectives are Inditex corporate vision and mission statement. The parent company vision statement indicated that it places high priority on customers and combined this with high degrees of vertical integration across all fashion production process starting with design, manufacturing, logistics and eventually in sales, while its mission according to Casanova et al. (2010), is to respond with agility to the demands of the market at all times.
The corporate objectives of Inditex, working through Zara from an internationalization perspective, are to achieve the same perception achieved in Spain in 2009, where its brand mission strategy enabled it to be seen as a low cost and fashionable brand that is capable of fast stock changes to meet current demands by its consumers, according to Casanova et al. (2010).
Additionally, according to Casanova (2010), the leadership of the organization hopes through its Zara concept, to deliver unique customer experience to all visitors to its stores globally, as well as for the company to be perceived by its social actions, regardless of the culture, operating environment or the nature of the competition.
- Situation Analysis
A look at Inditex Xara’s present strength, shows that it has the capability to design, manufacture and deliver medium quality products at reasonable prices to its customers, using Just in Time strategy, strong financial systems, national and international brand reputation, a segmented supply system which entail 8 separate concepts, as well as group homogeneity within its operations.
However, in the face of increasing competence, demanding customers and threats from its competitors in the area of online purchasing and comprehensive growth strategies, Zara has to look at its opportunities, which according to Casanova et al. (2010), include the ability to create outlets in attractive locations, increasing interest being generated in its personal image, technological developments and size unification law, to develop an integrative strategic plan that will be easily replicated by its competitors in the market place.
Presently Zara market entry strategies are via own subsidiaries, joint ventures and franchising according to Flavin & Polo (2000), and Camunas, (2003), but if its international retailing, which according to Brown & Burt (1992) is the transfer of a retail brand with its associated image across national borders- is going to play an important role in the organization’s new internationalization strategy, these strategies must be revisited along with examinations of the current trends that are restructuring and characterizing the textile and clothing global market.
The emerging trends that Zara has to forge strategic success against are, fragmented production of textile and clothing by a large number of medium and small size companies in Germany, Italy, Great Britain and Spain in particular, according to Nordes (2004), reportedly high concentrated distribution channels in the European markets (Stengg, 2004), increasing internationalization and competition in the textile and apparel sector , as well as mergers and strategic alliances, sub-contracting or de-localization of textile clothing production to entities providing low wage, low transportation costs and reduced lead times among others, according to Berkely & Steur (2000).
Zara’s future success will also have to take in to consideration the present growth strategies of its major competitors, namely H & M and Gap, Inc. H&M targets men women, teenagers and children with fashion and quality at best prices by outsourcing to 700 suppliers, locating its stores in areas with low input raw materials, as well as employing and promoting the use of celebrity designer, according to Lopez & Fan (2009)
Marketing of clothing by H&M is also done through catalogues and electronic commerce wit cosmetics and accessories added to the product package and made available in 1193 retail stores in 22 countries. This formidable competitor strategies growth through its own subsidiaries and by franchising which it hope to replicate in Dubai, where Zara presently has no stores.
Gap Inc. on the other hand operate out of only five countries, but is the largest specialist clothing suppliers in the world due to its 3053 retail stores, 1,100 suppliers and its market strategy of targeting men, women, and children with clothing, accessories, and personal care products promoted through three well establish brands.
Growth strategies for Gap Inc. has been through international expansion, diversification into accessories and personal care products, creation of new brands, and the development of other channels of sales through electronic commerce .
- Environmental Analysis
The Company’s Name, Location, and a Brief History
Siemens PLM Company, also called Siemens PLM Software, had its name coined on 24th January 2007 after Siemens AG acquired UGS PLM Corporation (Van Dijk, & Oosthuizen, 2017). The company’s headquarters are at Plano, TX. The history of Siemens PLM Company dates back to 1963 when the company was established in Tolerance, California. The business started operating as United Computing and expanded its operations through acquisitions; Unigraphics first acquired it in 1975, which was later taken over by EDS in 1997 (Fu et al., 2018). The firm changed its name in 2001 to UGS Corporation after acquiring Applicon. In early 2007, UGS was acquired by Siemens AG, forming Siemens PLM Company (Grabowik et al., 2015).