Case Study on "Business Studies Marketing"

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Business Studies: Case Study - Marketing

Business BASIC PHONE COMPANY

Business REPORT

REF: This report is written for Business Basic Phone Company to provide them with a description of the external environment in which they operate, to describe and analyze any internal or external problems they may be facing and to address them with recommended solutions.

As an important retailer on the market, Business Basic Phone Company has been challenged lately with increased competition in the mobile phone market, as several new competitors entered the game. Additionally, the global economy, the new requirements from the targeted customers and a certain need to adapt its former retailing methodologies have resulted in decreasing sales in the past period of time, complemented by a decreasing market share.

This report will aim, first of all, to perform a keen analysis of the current situation. This will include an internal environment analysis, with a SWOT diagram and a description of the marketing strategies used, as well as an external environment analysis, including technological factors, demographical, market segmentation, competition, etc.

Following this analysis, the aim is to be in a position to identify the most relevant problems that the company is currently facing, including their direct causes. This will lead to final recommendations on the matter.

Internal Analysis

The internal analysis of a company is used to identify any relevant weaknesses that need to be addressed or strengths that can be exploited, but is also aimed at identifying the c

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ompany's marketing strategies and drawing the relevant conclusions here from.

SWOT Diagram and Analysis

STRENGTHS

WEAKNESSES

Well-defined segment of consumers

Tailored P's strategies to address the targeted segment

Not adapted to the new marketing and retail requirements; virtually all sales are performed through old-fashioned bricks-and-mortar shops.

Casual staff employed: low commitment on their part

Unsuited hours for the targeted customers (9 am to 5 pm)

OPPORTUNITIES

THREATS

The market is constantly growing - there are numerous niche opportunities

The presence of and opportunity brought about by the Internet

Increasing competition in the mobile phone market

Concern with possible health risks and environmental damage

Changing n the types of customers that buy mobile phones

The SWOT analysis will be used here in order to address the strengths and weaknesses of the company, which will help describe the internal environment for Business Basic Phone Company.

In terms of strengths, the most important one that should be mentioned is the fact that the company has a well-defined segment of consumers, aged 25 or over and business-oriented. This means that the company has been using a marketing strategy of diversification, choosing to diversify and adjust its product to the exact needs of its consumers (see below for the analysis of Porter's 4Ps).

The fact that the company has been using diversification as the key to its marketing strategy is also proven by the tailoring of price, product and promotion according to the particularities of the consumer segment.

The most important weakness seems to be the fact that the company has not yet entered the new technological trends and has been still using traditional shops in order to sell its products. It has not considered that the targeted consumer segment is less inclined to leave the office during office hours in order to come to the mall and buy a mobile phone. Further more, the retail human resource seems in part inexperienced and with low commitment figures after the 9 to 5 usual schedule.

Summarizing this section of the report, one could say that, while having a well-defined targeted segment of customers, which it addresses through a strategy of diversification, adapting its promotion and product to the consumers' needs, the company's weakest points are the low quality of part of the human resource used, as well as the lack of new technology and new marketing methods, needed in the global world of the 21st century.

Porter's 4Ps diagram and an analysis related to the current company will help give a more encompassing overview of the current internal situation.

Porter's 4P's Diagram and Analysis

The report will analyze each of the four elements in Porter's model, price, product, promotion and place.

The company is commercializing its product at target prices, prices which are tailored for the consumer. As previously presented in the report, the company's target client is aged 25 or more and belongs to a business environment. For this type of consumers, price is not the main issue. He can and will afford to pay a premium if needed in order to ensure that the product has all the technical and technological requirements that are needed in his line of activity.

As such, the main element in the 4P's analysis is the product. Addressing the needs of the consumer, the product has to have a series of technological characteristics in order to increase demand. These would include:

Mobile Internet and Email;

Financial information at dial-touch;

User customizable memory allocation;

Enhanced Messaging Service;

Good battery.

Business Basic Phone Company needs to commercialize phones that have most or all of these technical requirements. Phones with design innovation will probably not fit the consumers' demands.

In terms of promotion, the company should be advertising in magazines, newspapers, etc. that are most likely to be seen or read by the targeted consumers. First of all, advertising in business magazines or newspapers should get attention. On the other hand, advertising on the radio would ensure partly coverage, considering the period of time during the day that a possible customer is likely to spend in traffic. Promotion is not necessarily only advertising. Word of mouth is more and more effective nowadays and could prove useful in addressing the business community.

The most vulnerable P. seems to be the place. First of all, major shopping centers are not the most likely place one would expect to find a businessman. Second of all, a 9 to 5 schedule seems least adapted to the needs of the targeted consumer category: too late in the day for a potential consumer to drop by the store and too early in the day to close. The way the company has decided to address the place/distribution element is a problematic element to be discussed further below.

The SWOT diagram and analysis and the discussion around Porter's 4Ps have created the premises for listing several internal problems the company is facing. These would be:

Unsustainable place policy, not adapted to the needs of the targeted consumer segment and the requirements of the 21st century;

The need to readjust the company's delivery system to include new technologies (related to previous issue).

External Environment Analysis

The external environment analysis will include a description of the most important factors that affect the company's presence and performance on the mobile phone industrial segment. The most important issues that will be covered reflect demographical, technological, economical and legal issues.

In terms of demographical factors, several analysts have noticed changes in the type of consumers that are inclined to purchase mobile phones. Further more, there has been a tendency of further segmentation among the already existing categories.

In terms of technological factors, the technology used to produce mobile phones, as well as the finite products thus resulting are changing at incredible speed. The period taken before a mobile phone becomes obsolete has been reducing dramatically over the last two years, decreasing at less than six months.

Further more, there have been consistent changes in the general approach to business and, in particular, retailing. The end of the 90s saw an explosion of virtual stores, opened at practically no incipient cost and operating at much lower overall costs than the traditional brick-and-mortar stores. Advertising and promotion has been digitalized as well. In the next couple of years, technological advances and improvements are likely to remain at the same pace as in the last years, which means that the technological challenges that lay ahead are ever more complicated.

Economical issues include a constant growth in the economy and, most notably, the private sector in the last couple of years. This is likely to encourage the use of mobile through, mainly due to:

an increase in the overall income per capita indicator; an increase in the overall number of businesspersons; an increase in company revenues.

Competition is an extremely relevant issue for the company. There are two types of competition it is facing. The first type refers to cheaper products from Asian markets. The problem with these products is that they may offer the same technological facilities at lower prices, obtained due to lower workforce costs.

The second type refers to highly technological products from Japan, to which the company may not have access and that may be commercialized directly through the Internet.

The legal issues are related to the environmental concerns over the possible health risks associated with frequent use of mobile phones and environmental damage caused by the increasing number of discarded mobile phones. It may be the case that, at some time in the future, increased regulatory measures will be taken in… READ MORE

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Quoted Instructions for "Business Studies Marketing" Assignment:

“

BUSINESS REPORT

THIS IS A VERY IMPORTANT ASSIGNMENT. I AM CURRENTLY IN YEAR 12 STUDYING BUSINESS STUDIES HSC. THIS IS WHY I NEED SOMEONE WHO KNOWS EVERYTHING ABOUT THE TOPICS THAT ARE STUDIED IN THE BUSINESS STUDIES HSC COURSE. IF YOU NEED MORE INFORMATION FOR THIS ASSIGNMENT PLEASE EMAIL ME sadestar183@hotmail.com

THIS REPORT MUST BE SET OUT VERY FORMAL. USE HEADINGS TO DRAW ATTENTION TO MAIN POINTS AND ALSO USE HEADINGS BECAUSE I HAVE TO INCLUDE A CONTENTS PAGE

Research Task: Case Study – Marketing

Prepare a business report from your course work and the information provided below.

In your answer you will be assessed on how well you:

• Use your knowledge and the information provided

• Communicate using relevant business terminology and concepts

• Present a logical, well-structured answer to the question in the form of a business report

Here is the case study

Business Basic Phone Company is a retailer of mobile phones. Most of its products have been sold to customers 25 years of age and over, mainly for business purposes. Its product range, promotion and pricing strategies are tailored to appeal to business organizations.

Business Basic Phone Company has retail outlets in major shopping centres. Customers need to come to the shop to purchase products and pay accounts. Its employees are mainly permanent, working 9.00am to 5.00pm, with some casual staff employed on weekends and for late-night trading on Thursdays.

In recent years there has been:

• Increasing competition in the mobile phone market;

• Changes in the type of consumers buying mobile phones;

• Changing expectations for mobile phone products and services;

• Changing retailing methods, such as web-based marketing of mobile phones;

• Growing concern over the possible health risks associated with frequent use of mobile phones and environmental damage caused by the increasing number of discarded mobile phones

These changes have forced Business Basic Phone Company to seek the advice of a consultant about the directions the business needs to take if it is to remain competitive.

You have been engaged as a consultant by the managing director of Business Basic Phone Company to prepare a report for the Board.

In your report: propose a marketing strategy that would enable the business to expand its market share. Incorporate some recommendations as to how Business Basic Phone Company can meet its ethical responsibilities to the community.

A report is allowed to contain diagrams, tables, flow charts and ideas written in point form. An introduction and conclusion are needed. It is important that you have some explanation for your diagrams.

Step 1: Identify that it is a report. Example “this report is written for Business Basic Phone Company to advise them of the causes of their current business problems and strategies they can adopt to help them overcome these problems.” By starting this way you have already identified that you understand report writing.

Step 2: Identify the reasons that Business Basic Phone Company is having problems. This is best done with a situation analysis where you identify the market, competitors, staff, structure, use of technology, suppliers, market share and financial position. Any information that is not given you are allowed to assume using your business studies knowledge. Remembering that the markers are looking for use of knowledge.

Step 3: Carry out a strategic audit of the business using a SWOT analysis. The information from the situational analysis is used here to highlight Strengths, Weaknesses, Opportunities and Threats. Don’t forget that you cannot just launch in to the SWOT analysis. Explain why you are using this tool. For example “a strategic audit of Business Basic Phone Company will highlight the current issues facing the business. A SWOT analysis is the best way to go about this as it will not only show the strengths and weaknesses of Business Basic Phone Company but also the opportunities and threats presented by the external environment. These can be seen in the following grid (or table).

Step 4: Use the SWOT analysis as a guide in suggesting strategies and action plans.

Step 5: In the last stages of your report include advice on how to manage these changes. This means; How will management be able to check that these changes are taking place and are beneficial to the business? Explain why the evaluation tools that you recommend are the most effective.

Step 6: Finish summing up your report. For example; “it is recommended that Business Basic Phone Company carry out the following changes (briefly list). Regular evaluations are needed to ensure that change is being successfully carried out.”

In summary, a business report should include;

• An introduction (executive summary)

• Business terminology relevant to the question

• Business studies concepts such as SWOT, decision trees, etc either in word or diagrammatic form

• Headings to draw attention to main points, and underlining and highlighting of key points

• Creative, relevant and realistic solutions and strategies to achieve them. Suggestions on how the business can evaluate the success of the changes

• A strong conclusion with recommendations for action

MARKETING STRATEGIES

market segmentation; product/service differentiation; the marketing mix; the 4 p's product and service strategies, price, promotion, place/distribution; environmental effects on distribution

PLEASE MAKE THIS REPORT VERY FORMAL. USE HEADINGS AND USE DIAGRAMS, TABLES, ETC.

How to Reference "Business Studies Marketing" Case Study in a Bibliography

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1. Business Studies Marketing [Internet]. A1-TermPaper.com. 2005 [cited 29 June 2024]. Available from: https://www.a1-termpaper.com/topics/essay/business-studies-case-study/51649

1. Business Studies Marketing. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/business-studies-case-study/51649. Published 2005. Accessed June 29, 2024.