Rolls Royce Market Analysis and SWOT

The assignment is based on a case study of Rolls-Royce Motor Cars, analyzing its market position, competitors, suppliers, customers, and employees. It uses Porter's Five Forces model to assess the industry's competitiveness and identifies key strengths and weaknesses. The report also discusses the company's supply chain management capabilities and customer loyalty. References are provided from books, journals, and online sources.

Essay: Industry car,
Company Rolls Royce
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
RECOMMENDATIONS.................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
With the introduction of technology and excessive increase in the demand the competition in
market has raised to a great extent. There is tough and close rivalry in distinct sections which
increase pressure on manufactures to supply best at the first time. Car industry is one of the
biggest industry in the world and has continuous increasing demand in the market (Dodourova
and Bevis, 2014). Wide range of companies are involved in it and are providing innovative
design products by using effective marketing and selling strategies which are capable of
providing long term benefits to the same. Rolls – Royce motor car limited is a luxury automobile
brand which was established in 1904. It was established as a wholly owned subsidiary of BMW.
In the following report it will be discussed that how this organization is placing itself in the
market and achieving the competitive advantage. For same models that helps in understanding
the industry will be elaborated like porter five force model through which all the relevant
information about the company’s market can understood in detail.
TASK
Background of Rolls - Royce
Rolls – Royce limited was founded by Charles Stewart Rolls and Frederick Henry Royce
in 1904. It is a well-known brand which got famous in a very short period of time and acquired a
great market. In a very less duration this brand got good position in the best supplier of quality
engine and also for making standard cars which were better than the already available cars in the
market. Later in 1940 it started developing jet engine too which further add more competitive
advantage to the brand (ROLLS-ROYCE MOTORS LTD. - Company Profile, Information,
Business Description, History, Background Information on ROLLS-ROYCE MOTORS LTD.,
2018). Usage of advanced applications and innovative techniques is the heart of Rolls – Royce. It
believes in increasing sales through suppling quality output instead of cutting cost by
compromising with the standards. Excessive of funds are spent by the referred organization in
research and development department so that what is best is being supplied to the customers. In
order to achieve the competitive advantage, the referred organization give focus on its strategies
(Smith, 2013). There are various competitors of this brand among which Boing Co united
technology Crop are the major ones. Due to the excessive high quality services and products
offered by Rolls Royce it does not find it a challenging job to give a tough rivalry to other
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brands. It is known for supplying luxury, customised and equipped products which are unique
and are of a kind in itself. In order to better understand how Rolls – Royce is establishing itself
as a leader in the market there are various strategies which can provide the information regarding
same.
Strategic positioning of easy jet
Given below is the porters five force model through which various facts can be identified as how
it is managing its position in the market.
Threats of new entrants – It is a major issue that is faced by different automobile
companies. Due to excessive market opportunities and scope in this sector more and more
companies are joining this sector with an aim of earning higher profits. There are enough barriers
which are there for new organisations that are taking entry in this business. Since a huge
investment is required in order to start business in an auto mobile industry the degree of risk due
to fresh entry is less. Apart from this the product in the auto mobile industry is of type that need
to have a good brand value as only than it can establish demand in the market (5 Forces of
Porters Rolls Royce, 2016). When a different company comes forward with a new concept it
finds it difficult to attract customers due to the old players in the same field who has already
developed strong connections with the customers. This way it becomes difficult for the new
supplier to build connections with the customers.
Threats of substitute - Rolls Royce does not face much of the threat of a substitute as it has
got good brand image in the market (Do Quang, 2017). Due to its quality of services and use of
advanced technology makes it different from the other and this way it becomes first choice of
customers. the only threat which the referred organisation face in context of substitute is due to
its expensive services. Only high class section people can afford to take advantage of its services
and rest find a close substitute of the same.
Bargaining power of buyers – Wide range of products are offered by the organisation to
the market which increases the negotiating power of the customers. According to the budget or
preference of the customer person can make choice of what it require at what rate. This brings
pressure on the organisation to maintain its cost of production so that profit margins are
maintained (Philo, 2014).
Bargaining power of suppliers – The supply chain management of the referred
organisation is effective and connections with the various suppliers is strong enough which helps
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the enterprise in earning profits in the long run (Heimeshoff and Klein, 2014). Due to high
dependency of the producers on suppliers for raw material the barging power of suppliers is high.
by changing the price tags of products cost of production for organisation may vary to a great
extent.
The above analysis shows that the suppliers play a major role in the manufacturing of
products as without raw material no company can continue with the work. There are various
other strategies which help the referred organisation in establishing itself as a strong brand in the
market. Administration of the organisation ensures that it adopts certain code of conduct which
are helpful in acquiring more and more market. There are different pricing strategies which are
adopted by the management of the referred organisation and through same they are able to
maximise their profit margins. Before selecting a particular strategy proper analysis of the
organisation objective is done so that accordingly the code of conduct can be planned. For same
evaluation of the organisation internal and external environment is done so that best decisions are
taken. Few commonly used pricing strategies of the organisation are discussed below:
Premium pricing strategy – In market there are distinct variety of customers and
therefore it is required that accordingly pricing strategy is formulated so that the best results are
received. It has to be ensured that the set price is neither too high nor too low as this will lead to
loss of potential sales (Nagle, Hogan, and Zale, 2016). the referred strategy is useful for this
segment as through this product differentiation can be done which is made possible by setting
comparatively higher price than in comparison to other in the same segment. Customers are
willing to pay the increased rates due to the reason that they receive quality services which add
satisfaction to their purchase. In other words, the same strategy is also known as skim the cream
of the top market. It is helpful in those sections of the society where customers are willingly
ready to pay high price for the product.
Economy pricing – This is another pricing strategy which is different from the above
discussed strategy. Under this various strategy are followed so that those customers who are
price conscious can also be attracted and hence sales can be increase.
Brand value – The founder of the referred organisation wanted to set a different example
for the customers so that it can cover maximum market share. Efforts are taken towards making
the cars of this bran the most effective one in context of speed and quality. It gives detail
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attention to each and every aspect of the product which they are producing so that customer
satisfaction level is raised to the highest level (Li and Kambele, 2012).
Marketing- It is the process of management which maintain relation between sellers and
buyers within the large market area. This activity is used for satisfy, creating and making
maximum profitability and productivity to the company (Hair, J.F. and et.al., 2012). Marketing
will be creating and increasing awareness towards firm goods and services in effective way. In
Rolls Royce, marketing team maintain and manage all external market situations. They are
produce variety of products which attracting large number of customers. Also they engaged with
sale experts for providing information about specific products to their final users. It assists in
attracting and gaining attention of huge customers for buying various products and services and
also build good image of products in front of customers at the large market place. The company
will have made their marketing strategy according to the demand and requirement of customers.
Recently Rolls Royce revealed in the Los Angeles for targeting desired buyers and also segment
target market as well as customers in proper manner ( Jobber and Ellis-Chadwick, 2012). They
mainly focus on brand consistency by which they maintain their new products reliability and
feasibility. There is various source which are used by cited firm for marketing products such as
advertisement, promotional activities, personal selling, social media marketing etc.
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Figure 1 Rolls-Royce accelerates digital transformation with Tata Consultancy Services
partnership, 2.16
Human resource management - It is important part of every firm because manager help
in maintaining and controlling all business operations effectively. They motivate and encourage
all employees for achieving potential goals and objectives for the company. In Roils Royce,
manager can manage all functions and smooth run whole business of the management. The
manager can make and design different plans and policies which assist workers for
accomplishing set target and goals (Hendry, 2012). HR manager also perform all roles and
responsibilities for maintaining all major issues or problems which occurs from outside the
company. They also deal with tough rivals who also make similar type of products and services
and serve to its customers. Rolls Royce also try to expand their business in the whole market
place and analyse all major plans and policies for setting goals. HR manager main duty and
responsibility is to analyse employees detail record regarding their work. They design and
prepare new policies which are demanded by employees for their betterment within an
organisation. Manager have to implement and create effective strategies which assist in gaining
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maximum profitability. It is necessary for firm is to make and develop new features of cars
which attract large number of buyers (Brewster and Hegewisch, 2017).
Apart from the above strategies there is another technique Bowman Strategic Clock
which helps in analysing the competitive position of the organisation.
through this model Royal Royce can determine how effective it is in
comparison to other organisations in the same filed. It provides an
opportunity to the firm to choose a better option to place its products in the
market.
Figure 2: Bowman Strategy Clock, 2011
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RECOMMENDATIONS
After going through the above discussion this is recommended to the management of Rolls
Royce that more improvement should be done on implementing effective strategies which can
help in achieving competitive advantage. Though it is successful in earning higher profits by
using different models like Bowman Strategic Clock it can implement better working and can
take effective utilisation of its resources.
CONCLUSION
From the above report this has been summarised that Rolls Royce is one of the leading
company in car industry and is using effective strategies which is helping it in acquiring more
market share. With the help of porters five force model it is found that this industry is effected by
the distinct suppliers and the negotiating power of the customers has great influence on the
business. Later the supply chain management is also discussed of the same organisation that
shows that it is capable of maintaining continue supply of product in the market. The report
shows that the brand name of Rolls Royce is higher in comparison to other organisations and
also the customer loyalty is high due to the quality maintained by the administration.
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REFERENCES
Books and Journals
Dodourova, M. and Bevis, K., 2014. Networking innovation in the European car industry: Does
the Open Innovation model fit?. Transportation Research Part A: Policy and
Practice.69. pp.252-271.
Hendry, C., 2012. Human resource management. Routledge.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Hair, J.F. and et.al., 2012. An assessment of the use of partial least squares structural equation
modeling in marketing research. Journal of the academy of marketing science.40(3).
pp.414-433.
Li, G., Li, G. and Kambele, Z., 2012. Luxury fashion brand consumers in China: Perceived
value, fashion lifestyle, and willingness to pay. Journal of Business Research. 65(10).
pp.1516-1522.
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International
Edition. Routledge.
Heimeshoff, U. and Klein, G., 2014. Bargaining Power and Local Heroes.
Do Quang, H., 2017. Marketing SWOT Analysis of Rolls-Royce Motor Cars (Doctoral
dissertation, Empire State College).
Smith, D.J., 2013. Power-by-the-hour: the role of technology in reshaping business strategy at
Rolls-Royce. Technology analysis & strategic management.25(8). pp.987-1007.
ONLINE
ROLLS-ROYCE MOTORS LTD. - Company Profile, Information, Business Description, History,
Background Information on ROLLS-ROYCE MOTORS LTD. 2018 [Online] Available
through <http://www.referenceforbusiness.com/history2/64/ROLLS-ROYCE-
MOTORS-LTD.html>.
5 Forces of Porters Rolls Royce. 2016. [Online] Available through
<https://newyorkessays.com/essay-5-forces-of-porter-rolls-royce/>.
Rolls-Royce accelerates digital transformation with Tata Consultancy Services partnership.
2016. [Online]. Available through <http://www.indiastrategic.in/2017/11/15/rolls-
royce-accelerates-digital-transformation-with-tata-consultancy-services-partnership/.>
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