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Individual Report on Schofield watch

   

Added on  2020-02-03

13 Pages4599 Words162 Views
INDIVIDUALREPORT

TABLE OF CONTENTSINTRODUCTION......................................................................................................................3EXTERNAL ENVIRONMENT................................................................................................3Porter diamond.......................................................................................................................3Porter five forces....................................................................................................................4Competence model.................................................................................................................4Industry structure and nature..................................................................................................4Key factors to success in the industry....................................................................................5Red vs. blue ocean strategy....................................................................................................6Socio-Cultural environment...................................................................................................6Technological environment....................................................................................................7Economic environment..........................................................................................................7Political-legal environment....................................................................................................7PART TWO...............................................................................................................................8Product service segmentation.....................................................................................................8CONCLUSION........................................................................................................................11RECOMMENDATIONS.........................................................................................................11REFERENCES.........................................................................................................................12

INTRODUCTIONIn the present scenario, the customers have become brand freak and they are focusingon wearing branded stuff. The fashion industry is changing drastically because of the changein the perspective of the customers. The report will focus on the Schofield watch which is theBritish manufacturer of watches. The organization is known for its high class products whichit renders to its customers. Besides this, the organization makes the watches for its elite classcustomers and focuses on the niche market segment. Its vision is to become a leader in thewatch manufacturing industry by providing best quality of watches in variety of ranges and atvaried prices. It owns a larger market share in the industry as it serves majority of thepopulation in the London. Currently, the firm is planning to expand its market in US whichhas strong purchasing power and scope for the development of the company. Due to thisreason, several external environment strategies such as competence model, Pestle, porterdiamond model are adopted by the organization to analyze the market of US. Further,marketing strategy has been drafted to plan their expansion in the US market. The report willalso make market competitor analysis, trends and EXTERNAL ENVIRONMENTPorter diamondThis assumes that business competitiveness is in the context of what our competitorsperform. Coming on to the Factor conditions the human resources and the parts which arerequired to produce a single watch is very huge. Around 4,000 man-hours are required toproduce one watch (Morschett, Schramm-Klein and Swoboda, 2010). Besides the resources,the related and supporting activities includes the suppliers which are there are around 35. Butthese are company's suppliers hence there exists no bargaining power. Talking about thehome demand conditions, the market which is there is very limited and mostly restricted tothe high profile people who can spend a pretty well amount on a watch. The market strategyis producing a limited edition watches and giving their customers the best kind of servicethey long for (Kim Kinoshita and Shin,2010). Next factor is the government; here there is nogovernment interference involved. Here the chance events are targeting even the lower leversegment and expanding its sales.

Porter five forcesRivalry among the firms- In the watch making industry the competition exists amongthe domestic firms as well as the foreign brands tries to take that position. Only on the basisof some unique features and functions they can differentiate from the competitors. Threat of substitutes- As there are many substitutes for the watch making industryhence the threat of the substitutes are moderate. But these days some rich people use watchesas some kind of fashion accessory (Aziz and Yassin, 2010).Threat of new entrants- the possibility of new entrants is high as there are very lessrestrictions in entering the industry. People consider Schofield not just a watch but as acomplete brand.Bargaining power of suppliers- As the production facilities are there within hence itdoes not have to outsource their work. Supplier's bargaining power was very low (Harvey andet.al.,2010).Bargaining power of buyers- As this company works in niche market. Hence thebargaining power of the buyers is low as mainly the watches which are manufactured arecompletely customized.Competence model-This model defines the skills set and the knowledge which is required for the job. Aswe know the employees working in Schofiel are highly skilled. The entire work of making awatch is done by the laborers and nothing is done over the machines. So as the entire work isexecuted manually (Gibbs, 2012). For that the skill set which is needed is very high. Theemployees which are working in the manufacturing units are taking care of every minutedetail. When the thought of expanding in the US market, it will be of great advantage as theemployees there are also very qualified, and possess the unique skill set which is required forthe production of these watches (Goldthau and Sitter, 2014). The idea of expanding to the USmarket will turn out to be the best.Industry structure and natureIn the present era, a wristwatch is considered not only a device to tell us time but alsoa status symbol. Previously wrist watches were considered as a necessity as there was noother source to see the time. But currently, because of the rise in the standard of living of thepeople they are very particular for the things they buy (Wang and Ellinger, 2011). Now

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