Marketing Strategies for Leadcom Corporation in Germany
Verified
Added on  2023/01/13
|17
|3332
|30
AI Summary
This report discusses the marketing strategies that Leadcom Corporation can adopt to expand their business in Germany. It covers the analysis of macro and micro environmental factors, cultural analysis using Hofstede's dimensions, market selection strategy, and mode of entry. The report also includes recommendations and implementation strategies.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Marketing
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Executive Report Report will prepare about changes in an economy that will affect working of leadcom corporation. Strength in economy of Germany help company to achieve their goals and objectives of business easily. Support of UK government make organization work attractive and effective. Cultural analysis make employees more attractive in different dimensions of both Malaysia as well as Germany.
Table of Contents INTRODUCTION...............................................................................................................3 Analysis and Findings.......................................................................................................4 Macro environmental factors........................................................................................4 Micro environmental factors.........................................................................................5 Hofstede's Culture.........................................................................................................6 Market selection strategy..............................................................................................8 Mode of entry................................................................................................................9 Recommendations and implementation..........................................................................10 CONCLUSION................................................................................................................11 REFERENCES...............................................................................................................11
INTRODUCTION Marketing play an important role in promotion of products and services and to makeorganizationgoalsattractiveandachievable.Leadcomcorporationisan Telecommunication company with quality services like Digital loop carriers, rectifiers and multiplex system. Report will discuss about macro environment like economic social and cultural forces that will affect working of organization. Discuss porter five forces to analyzemicroenvironmentalfactors.CulturalanalysiswithHofstedeDimensions, market selection strategy with help of STP analysis. Discuss mode of entry in German market for Leadcom Corporation. Bout Leadcom Corporation leadcom global objective Global objectives of Leadcom are to ï‚·To increase its market share by 10% in global market by end of present financial year. ï‚·To increase global consumer awareness by means of expanding operations. ï‚·To reduce cost of domestic operations by 5%. ANALYSIS AND FINDINGS Deeplist analysis Leadcom corporation SDN BHD company of Malaysia wants to expand their business at global level to improve their presence and increase overall profitability of business. The company can make Germany its host country for expansion of Business because Germany is Developed country and which is why can provide all the required resources for business along with opportunities.(Roberts, Kayande and Stremersch, 2019).DEEPLISTAnalysisincludesanalysisofDemographic,Economic, Environmental,Political,Legal,Informational,SocialandTechnologicalfactorsof business. Through this framework business can identify and understandinfluence of these factors to identify potential opportunities and threats that are there in Micro Environment. Skilled labour and resources available in economy help them to minimize
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
cost of production. Due to development in economy and rapid changes help Leadcom corporation to achieve their goals easily. Leadcom is a telecommunication industry and overall investment of Germany in their research and development projects and focus on areas like energy. IT, security help company to expand easily. Germany is a 4thlargest economy all over the world and high standard of living and social security help businesses to expand easily. Some of the Macro factors that help Leadcom corporation to develop their business in economy are as follows. Demographicï‚·CurrentpopulationofGermanyis 83,705,138whichisprojectedat 83,783,942 at mid year. ï‚·76.3%populationofGermanyis Urban population. ï‚·Germanyhasthelargesttelecom market of the Europe. Economicï‚·Gross demostic product per capita in Germany is $46,564 whihc have increased by 1.2% in 2020. ï‚·In this 68.7% GDP is contributed by service sector. ï‚·Germany is fourth largest country in the world. ï‚·IN 2017 country accounted for 28% of Euro market by IMF. Environmentalï‚·German has been considered as top third country suffering from extreme whether condition by global Climate Risk Index. ï‚·In this factor those who are charging highforpracticeswhichare
environment unfriendly are taxed. Politicalï‚·Germany is 9th least corrupt country in the world. ï‚·Political stability of the Germany is very high. Legalï‚·Thelevelofbusinessfreedomin Germany is 83.3%. ï‚·Telecommunicationbusinessin GermanyisGovernedby Telecommunication Act. Informationï‚·Inglobalconsumerconfidence index of 2018 rank of Germany was 108. socialï‚·Consumer behavior in Germany is very ethical. ï‚·Inpresentenvironmentcustomers trust more on customers rather than businesses. Technologicalï‚·In Germany ministry of technology andScienceorganizeand coordinateanddecidesfor programs of science on the country. Porters five forces Threat of new entrantsIt is largely depends on barriers for to enter in a specific market for new companies. If no barriers are available then it becomes easy for a company to enter into a market.
Threatofnewentrantsingermanyfor leadcomcorporationislowbecausein economy large number of organization are working in different market. Due to high capitalization cost for setting new network, distribution and other services reduce new entrants in market. Large number of rules and regulation for telecommunication and technical industry make it tough for new entrantsanditisquiteexpensiveand require capital for factors like production and manufacturing. Bargaining power of suppliersOverallprofitabilityofcompanylargely dependsontheirsuppliers.Bargaining powerofsuppliersingermanyislow becauselargenumberofsuppliersare available in market and few buyers and industry areavailableinmarket(Gneezy, 2017).IthelpLeadcomcorporationto expandtheirbusinesseasilyincrease profitabilitybygainingacostadvantage from suppliers in market. Bargaining power of BuyersHighqualityofproductsand affordable prices affect customers power. Ingermanyduetofewcompaniesare availableinmarketreducesbargaining powerofbuyersandhelpLeadcomto increase their customer base. Increase in incomeandstandardoflivingof consumersdecreasestheirbargaining power and concentrated customers base in
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
marketmakeiteasyforcompanyto increase their sales. Threat from substitute productsWhenbuyerseasilyabletofinda substitute product with effective priceand betterqualityofproductreduces profitabilityoforganization.Substitute products in telecommunication industry of germany is low because of non traditional productswhicharereasonablefor consumers.Duetonewinnovationof internettelephonesandotherservices makeLeadcomcorporationtoinnovate newservicesforcustomerstogainan competitive advantage in market. Rivalry with existing playersRivalry from other players is now for each and every industry all over the world. Competition form other rivals in germany is intenseforLeadcomcorporationand require more investment in research and developmentactivitiestocompetein market. Company need to know customers expectation and needs and prepare their productaccordingtothoseneedsof customers.
Hofstede's Culture It is one of the most comprehensive studies to know how values in workplace are influencebyculture(WirtzandLovelock,2016).Dimensionshelptodistinguish members of one group from people of other. Model consist of following dimensions to distinguish Malaysia culture from Germany. DimensionMalaysiaGermany Power Distance Index Dimensionexpresses degreetolesspowerful members of society accept andexpectpoweris distributed unequally. It also showsallindividualin society are not equal and havecultureofunequal attitude. In Malaysia power score is veryhighwhichis100 means everybody in society acceptaplaceandhave their own needs, employees areabletotaketheir decisionontheir ownand equal distribution of work. Germanybelongstolow powerdistancecountries with score of 35. Common meetingstyleand participative communication withemployees. Managementand leadership take all decision andprovideguidanceand employees have less power to take decision. Individualism Dimensionmeans individual take care of their ownortheirimmediate families(Goldberg, Fishbein and Middlestadt, 2018).It showsaselfimageof individualisdefinedin termsofIorWe.In collectivismpreferenceof an individual to take care of Malaysiabelongsto collectivismsocietywith scoreof26.Incountry employeeshavestrong relations with their employer wheretheytake responsibilitiesofeach otherandlinkwitheach otherlikeafamily.Show close commitment to family andrelationshipin Germanybelongsto individualismsocietywith scoreof67.Individualis responsibletowards immediatefamilies. Preferenceofpeopleplay animportantroleintheir loyaltyandincrease responsibility(Goldberg, FishbeinandMiddlestadt, 2018).Relationsof
relativesinaparticular groupinexchangeof loyalty. exchange of loyalty.employee and employer are morebasedoncontract rather than trust and mutual agreement. Masculinity Masculinityshowsa preference of an individual in society like achievement, assertiveness,rewardfor successthatshowsthem uniqueordifferentfrom crowd.Feminineculture shows that people care for each other and to improve qualityofliferatherthan standingdifferentfrom crowd. Malaysia with score of 50 unable to identify preference of people in this dimension. Germanybelongsto Masculinesocietywith scoreof66peoplevalue performancetheyshow statusonbasisofcars, watches,technology. Employerproviderewards andbenefitsonbasisof performance and efforts of employees. Achievement of goalsispriorityof businesses and employees in economy. Uncertainty Avoidance Dimension shows the limit ofmembersinsocietyto whichtheyfeel uncomfortablewith uncertaintyandambiguity. Issues is that how society manage the fact that future is never known. InMalaysiahaslowUAI with score of 36 as compare toGermany.Societyhas relaxedattitudetowards uncertaintyorchangesin thefuture(Goldberg, FishbeinandMiddlestadt, 2018). People are not afraid ofinnovation,employees areflexibleatworkand have a set schedule. People believerulesarenot GermanybelongstoHigh UAI countries with score of 65properplanningand systematicoverviewtobe given in order to proceed. In Germanyemployeesare readywiththeirplansin caseofchangesand acceptancetochangeis also low in Germany.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
necessaryittheyare ambiguous. Long term orientation Dimensionshowssociety needtomanagelinkwith pasttodealwithfuture challenges.Societieswith lowscoremaintaintime honoredtraditionsin viewingsocietalchanges. Societywithhighscore havepragmaticapproach with efforts in education to prepareforfuture(Payne and Frow, 2017). Malaysiaindicates normativeculturewithlow scoreof41.Peopleput moreemphasisongetting quickresultsandhave respectfortraditionand concentration to save future is also less. In Germany people belong to Pragmatic approach with high score of 83 people are abletoadapttraditions easilyandworkaccording tochangingsituation (PayneandFrow,2017). Moreemphasizetosave and invest and to achieve positive results. Indulgence Dimensions means human drivesrelatedtoenjoying lifeandhavingfunalso showsextenttowhich peopletrytocontroltheir desires and impulses. In Malaysia with high score of57indicatesthatthe culture is indulged. People putmoreemphasison enjoying their life and fulfill their desires and have fun. They put more efforts and time in leisure activities and spend money to enjoy. German belongs to restrain culture with low score of 40 people have less time to get indulged in leisure activities andmoreemphasizeto work. Market selection strategy Strategy help to enter in a new market more smoothly and effectively and require to achieve overall goals easily. Help companies to get best market that help them to develop and achieve their goals easily. STP
It is an digital marketing tool at a more tactical communication level. It help Leadcom corporation to target market easily and sell their products and services more effectively. Segmentation Leadcom corporation define their market where they are going to develop their business. Company need to segment market of Germany using variety of different segmentation which help them to create a group of consumers(Chaffey and Smith, 2017). Allocate consumers in market on basis of their needs, behavior and other characteristics. Company need to prepare profile for each and every customers on basis of their preference, demographics, styles. Company need to select a segment where their telecommunication technology and products fits effectively according to requirement of customers. Targeting After segmentation of market on basis of preference of an individual. Leadcom needs to select most appropriate to be selected as their target market. Company need toknowtheirfirmsstrategyinGermanyandcompetitionavailableinmarket, attractivenessofcustomerstowardsproductandknowtheirownabilitiesinnew economy to compete with competitors to achieve their goals. Positioning Leadcom need to know how to compete in target market (Chaffey and Smith, 2017). Company need to prepare strategy to develop a position for their product and brand in target market. Providing unique and superior product help company to develop an image in market for their products and services and require to maintain effectiveness to achieve goals and objectives. Company need to know the value that their product provide to customers to achieve their goals more easily. Mode of entry Attractive policies and effectiveness of German market attract companies to enterinmarket.Duetotheirgoodrankingallovertheworldfortheirbusiness effectiveness help to attract customers easily(Kingsnorth, 2019). Some of the modes those make it easy for leadcom corporation to enter into German market are as follows.
Franchising It is one of the effective and way to enter into a new market by providing brand name, concepts, expertise that are needed to operate business in overseas market. Leadcom corporation is able to attract establish company in Germany who have loyal customer base able to increase profitability for their business. Company is able to reduce cost of entry in Germany with franchising. Franchising partner in Germany have a proper knowledge of German market which help Leadcom to earn advantage of attracting local customers. Reduces overall risk for company as local business entity is involved(Kingsnorth,2019).FranchisinghelpLeadcomCorporationtoexpandin multiple regions in germany with minimum investment. Franchising reduces control of Leadcom corporation on their distribution channel and products as they are largely depends on their partner in Germany to distribute their product and services. Company is unable to maintain privacy and keep trade secrets from partners. Franchising also increases risk for company because a partner may become a future competitor for business and affect overall working of organization at a large scale(Summers, 2019). Selection of wrong franchisee with bad image in market of Germany ruin Leadcom name and goodwill. Recommendations and implementation Marketing play an important role in overall success of organization to improve effectiveness of products and services and to achieve goals and objectives of business. Marketing help to develop a presence for a business and improve efforts for overall success at a large scale. 4P's of Marketing Strategy Product Product is both tangible and intangible that help organization to achieve goals andobjectivesofbusiness.IncontextofLeadcomcommunicationtheyprovide telecommunication services to their customers which help them to attract customers
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
effectively towards their business and makethem effective in market in front of their competitors to achieve goals and objectives of business. Price Companies minimum price for their products help them to attract customers easily. Price effectiveness help to increase profit margin. Price of their products make them attractive and unique in market. Promotion Company use advertising and other technologies to promote their products and services. Promotion help company to attract customers, social media marketing help company to promote product in germany. Place Germany is one of the effective and attractive place that help them to achieve goals and objectives of business. Place make them attractive in market, right place help company to achieve goals easily and effectively. CONCLUSION Report will prepare about different environmental factors that will affect working of Leadcom corporation in German. Strong economic conditions of economy help them to develop business at a large scale and innovate their products and services. Different dimension show different perspectives of both Malaysia as well as Germany shows impact on changes easily. Franchising is an effective way to enter into a German market.In attempt to expand its operation there are various potential pitfalls that Leadcom corporation can face such as noncooperation of Germany and laws for other country firms. Another pitfall can be acceptance of the people of Germany, of people and customers of Germany do not accept the company then it will become meaningless to carry out all the operations. To prevent Leadcom from this pitfalls company need to ensure that people of Germany are able to project a positive image of the company. This will enable Leadcom to get support and acceptance of customers of Germany.
REFERENCES Books and Journal Chaffey, D. and Smith, P.R., 2017.Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis. Dahl, S., 2018.Social media marketing: Theories and applications. Sage. Gneezy, A., 2017. Field experimentation in marketing research.Journal of Marketing Research.54(1). pp.140-143. Goldberg, M.E., Fishbein, M. and Middlestadt, S.E., 2018.Social marketing: Theoretical and practical perspectives. Psychology Press. Kingsnorth, S., 2019.Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers. Martin, K.D. and Murphy, P.E., 2017. The role of data privacy in marketing.Journal of the Academy of Marketing Science.45(2), pp.135-155. McDonald, M. and Wilson, H., 2016.Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons. Ottman, J., 2017.The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge. Payne, A. and Frow, P., 2017. Relationship marketing: looking backwards towards the future.Journal of Services Marketing. Favaretto, R. M and et.al., 2016, September. Using group behaviors to detect hofstede culturaldimensions.In2016IEEEInternationalConferenceonImage Processing (ICIP). (pp. 2936-2940). IEEE. Blas, N., 2018. Industry Research Using Porter’s 5 Forces. Schyns, P.F.M., 2016.The technological future of the wealth management industry for portfolio management investment services.(Bachelor's thesis, University of Twente).
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Roberts, J.H., Kayande, U. and Stremersch, S., 2019. From academic research to marketing practice: Exploring the marketing science value chain. InHow to Get Published in the Best Marketing Journals. Edward Elgar Publishing. Summers, J.O., 2019. Guidelines for conducting research and publishing in marketing: From conceptualization through the review process. InHow to Get Published in the Best Marketing Journals. Edward Elgar Publishing. Wirtz,J.andLovelock,C.,2016.Servicesmarketing:People,technology.World Scientific Publishing Company.