Porter's Five Forces and Marketing Management

The assignment provides a comprehensive overview of Porter's Five Forces model, exploring its relevance in marketing management. It includes a case study of Melita, analyzing its strengths, weaknesses, opportunities, and threats. The assignment also references various studies on marketing management, highlighting the importance of market capabilities, operations capability, diversification strategy, and solution business models.

MARKETING MANAGEMENT

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EXECUTIVE SUMMARY
In the process of marketing management, the organisation tries to increase their position in
the market and develop their brand image as well. This report deals about the various condition
through which the loyalty of the customers can be built and sustained as well. The organisation
with context to which this assignment will be conducted is Melita which is a telecommunication
company and provides services to people such as mobile, television broad band etc. Various
kinds of strategies will also be implemented so as to reduce the cost of goods and services.
Through this, cost of goods and services is also reduced and productivity is increased.
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INTRODUCTION
Marketing can be defined as a process through which goods and services are being sold to
the customers at a particular price. It is considered as a very effective process in every company
because through this they can reach their customers in an effective manner and develop their
sales as well. Therefore, marketing management can be defined as a process in which strategies
being implemented and various kinds of planning is also fine in relation to goods, promotions,
advertisings, sales etc. It is also required to be considered in every company that their focus
should be on managing and controlling all the activities which are being conducted in the
marketing department so that the firm should reach to its customers and try to fulfil their needs
and demands. Through this, they will be able to make a good image of the company ion the
market and do a strong positioning as well (Alvarez, Casielles and Martín, 2010). The company
which will be referred in the current research process is Melita business firm which are doing
their transactions in mobile and cable television, fixed-line telephone and broadband services.
They are also considered as the largest telecommunication firm in MALTA. This report will
discuss about the positioning and USP of Melita and formulation of new marketing mix is also
conducted so as to minimize the gap between the existing strategy of marketing and external
environment of company as well.
MAIN BODY
Marketing is a process in which various kinds of activities are being carried out so as to sell
the goods and services effectively in the market. The activities are like planning, directing,
organising, coordinating and also controlling. Its scope can be very well determined from its size
and the kind of activities they do in the market. Here, various kinds of ideas are also being
exchanged through which they target the customers and try to know their needs so that they can
produce goods and services accordingly (Beverland and Lindgreen, 2010). But if a company
wants to manage their activities in the market so they first need to ensure that the customers are
loyal towards them because then only they will be able to sustain in the market for longer period
of time. There are some basic goals of marketing which each and every company is required to
follow and they are:
 Increase the level of profit
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 Satisfying the needs and demands of customers Developing the productivity and sales of company.1) Background of firm, its market positioning and present unique selling proposition
In the current business environment, there are several types of telecommunication companies
which are operating in the market place (Chan and et. al., 2012). The organisation Melita is
doing their operations i telecommunication sector since 1992. They are also considered as the
first company who is providing high definition in Malta along with the help of its Melita net box.
The company is providing mobile telephone, cable television, broadband services, etc. They are
also operating and controlling an undersea optical fibre cable. They are a big chain of companies
and the companies which are operating under this are Melita Mobile Ltd., Melita Infrastructure
Ltd., Melita Plc, Melita Capital plc etc. It has also been noticed that they are trying on a
continuous basis to provide high quality telecommunication services to its clients so that they can
be connected with each other in an effective manner.
The Melita telecommunication company are doing their operations effectively by keeping
strong focus on telecommunication and media services through its HFC (Hybrid-Fibre-Coax)
network in the corporate houses and the normal households as well. They have also set their aim
to perform their activities in a different manner so that they can stand out of the league and
outwit their competitors in the market. They has achieved many milestones on their career and
one of them was in 2009 when they launched the fastest developing mobile voice and the data
operator in Malta. It is based on the state of art 3G UMTS technology. They are also providing
advanced wireless services and are also gathering attention of tariff framework which are having
their concern through EU. They are having a very effective IT department as well which is
having the responsibility to maintain data, online resources and billing services as well.
The main mission of this company is to do expansion of their business activities in several
other countries as well (Chernev, 2014). But the vision which they have set for themselves is to
become one of the leading company in telecommunication sector in the whole world. Therefore,
to achieve their vision and mission; they are focussing on delivering various kinds of advanced
broadband services on Malta and various other products and services as well so that they can
connect the customers with themselves for longer period of time.
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 The various offices of Melita Company are connected with mobile as well as broadband
services which are basically developed for satisfying the needs and demands of the
customers in a proper manner (Cova and White 2010).
 It has been noticed that the cable services of Melita are very fast as compared to their
competitors.
 They are having their attention on television solutions as well along with the
telecommunication services.
 The broadband services provided by Melita are very secure and that is why they are being
used effectively in households and business houses as well. The kind of services are
emails, internet, corporate applications and company intranet.
 They are specifically providing TV services and also NexTV which are having additional
specifications.
 They are having various customer service departments through which they are solving all
the issues of the organisation in an effective manner.
They are working very effectively so that they can provide effective services to their clients and
customers because they know that the customers are the king of the market and if they will be
satisfied then they will avail their services again and again. It also enlarge its business concern in
some other nation as well as target more market to raise sales and the earnings level in an
effectual manner.
It has been known that Melita can be considered as the main source of development of
Matla country as because of them only the economy of this country is being increasing at a
steady rate. For expanding their market, the company is also trying to enter into new markets
from contribution in the market portfolio. Therefore, the government of Melita is also having its
focus on doing more investment in the telecommunication industry so as to contribute in the
development of economy. They also seems to be working as well as providing many other
services to people (Hanna and Rowley, 2011).
The telecommunication company is developing in the market from the plan which they
have made for themselves and through this they are also generating €65m revenue. The services
which they provide to their customers is also very effective. The company regularly tries to
fasten their network and accelerate their services so that they can make a strong position in the
market place. It has also been noticed that the manager of the company is providing training to
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its staff members regarding using their new brand in a line with its specified objectives. They
believe that after training the employees will gain more focus on the goals and objectives of the
company and the efficiency to perform their work will also get intensified (Henneberg, Naudé
and Mouzas, 2010). Melita also wants to stay in the competitive market for longer period of time
and to achieve this it is very necessary for them to focus on their target customers. Since this
company is giving telecommunication services and most of the young people are making use of
these kinds of services so it is required that the target group of Melita should be young ones only.
Unique Selling Proposition of Melita Telecommunication company
 Develop the company into the new rising markets.
 Providing better quality of goods and services to its customers in the television sector in a
proper manner.
 Increase performance level of firm through maximising the consumers values and also
minimization of cost.
 Enhance profit level of business.
The current financial position of Melita telecommunication company shows that they did a
transaction of €80m in relation to support for its rivalry authorities.
2) Marketing audit of Vodafone Malta
In this changing workplace, it is fundamental for the business relationship for conducts a
viable advertising review in setting to assess the present making conditions and furthermore late
patterns of market. The advertising review is a primary piece of procedure of promoting
arranging. It isn't just at beginning of process however its likewise at purpose of arrangement at
execution of plan in a powerful way (Hollensen, 2015). The promoting review can be identified
with interior and in addition outside business in setting to see adequacy of business in a
compelling or appropriate way. It is useful for a business firm to distinguish needs and requests
of purchasers and furthermore accommodating in accomplishing the more upper hand at
commercial center. The showcasing review is produced in setting to inspect all promoting related
exercises or working for think about the advertising circumstance. In setting to in this way, the
showcasing review catch al the inward and additionally outer conditions which are looked
through firm and can take audit with the assistance of making compelling promoting
methodologies, objectives and furthermore forms. Melita business firm directs a review
notwithstanding think about its inner and outer variables which impacts on its business
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execution. Amid directing a review identified with promoting, there are a few phases which are
important to follow in a legitimate way:
Overview of firm – Melita is a telecommunication company and they are providing various kinds
of services to the people of Malta like broadband, television etc. This company is endlessly
running to improve their share in the market and also expanding their business all around the
world. The ultimate goal of the company is to give best and effective services to its clients and
do their business in an effective manner as well.
Marketing goals and objectives – The mission that Malta has set for themselves is to develop
their market into another company and increasing their sales as well (Hutt and Speh, 2012). They
are also having good relationship with some other firms as well. On the other side, the ultimate
vision of the company is to make the company leading in the telecommunication sector by
supplying better quality of goods ad services to its clients and customers.
Target market segmentation -
Demographics Age (10 to 75)
Income level (low, medium and high level)
Areas (Rural, Urban and also Semi- Urban areas)
Targeting strategy of Melita
organisation
They are keeping the targets people from the following segment:
households, children and also youngsters because these are the
people who are making use of mobile phone services, internet
services and also see televisions in a large manner so they will
avail these services in a broad manner.
Competitors analysis – In the telecommunication segment of Malta, the no. of competitors are
more than 15 in the market area. They are like T-Mobile, Orange and GO capture 75% market
share. Another list of competitors of Melita are :
Vodafone 18.6%
Go 23.58%
T-Mobile 15.4%
Orange 7.505
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Melita 8.06%
Prepare Communication plan- Communication is playing a very effective role in conducting tye
functions of the organisation in an effective manner. Through this, the management can share its
ideas and thoughts with the staff members. Therefore, before implementing the marketing audit,
the organisation needs to implement the marketing plan inside their management in an effective
manner (Kumar and Meenakshi, 2011). Therefore, to achieve this Melita company is required to
implement various kinds of strategies and plans through which they will analyse their internal
and external factors. There are different marketing methods given below as above:
 PESTLE Analysis
 SWOT Analysis
 Porter's 5 forces
The SWOT analysis of MELITA is being described below:
STRENGTHS
 They are having skilled as well as
competent workforce who are now
becoming efficient as well.
 They are providing several kinds of
innovative and creative services to their
customers available in Malta.
 This organisation is providing
television services in various types and
along with this broadband services is
also included.
 They are having more of their presence
in domestic market.
 They are getting high level of
profitability in the market because of
their services.
WEAKNESSES
 It is being known that in these areas,
loan rate is very high.
 Since they have to do research and
development process for developing
new kinds of products and services so
they will need more amount of
investment.
 The rate of tax is high here.
 One of the major weakness of this
company is that they have started their
business in Malta.
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OPPORTUNITIES
 Since they are enjoying the top most
position so they are can take advantage
of various kinds of goods and services
being available at the marketplace.
 It helps the country in developing their
business at the international market
which is a very profitable for them.
 This company can enhance its services
as per the demand in the market.
THREATS
 They are having main threat from the
rules and regulations made by
government and compulsory to be
followed by Melita.
 Technology is also one of the most
important threat which the company
faces while doing their operations.
PESTLE analysis of Melita company in Malta:
Pestle analysis can be defined as a very effective tool through which the company can
identify their internal and external factors of environment in an effective manner so that they can
understand the various issues which the company is currently facing or which might face in the
later period of time (Lancaster and Massingham, 2010). They are providing a proper structure
and frameworks to notice the political, economical, social, environmental and legal threat
related to the company. Melita is a varied and advanced quadruple- play cable function
providing converge telecommunication service provider. It furnishes IP based digital cable ,TV
intern rate broadband, fixed line telephony and mobile voice and data services. These factors can
be described in the following manner:
Political factor – This factor examines the effect of government rules and regulations on
the operations that are being done by the company. It can also be said that there are various
issues which can be arise here like labour law, taxation policy, trade restriction issued by Malta
government. The government is imposing various kinds of rules and regulations which are
framed by state member of EU for having a healthy competitive market. Malta group has also
innovated their cost of cables and have decreased their roaming rates as well and all this
happened after EU applied their new roaming rate.
Economic factor - This is an effective factor because through this only it can be
described that how Melita is contributing in the growth of economy. It has also been ascertained
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that Malta is taking part in the development of the GDP as well (Leonidou and Leonidou, 2011).
The company is giving their full efforts for improving the services which they are providing to
their customers so that the customers does not go anywhere else and gets stick to the company
for longer period of time. Whenever a financial crises happens in a global manner then the value
of money gets decreased and the revenue of the country gets decrease as well (Ling-Yee, 2011).
But since Melita is a very big company so it means that they must be having funds arranged with
them which they can use to provide effective services during the time of recession as well. But at
this time, the data plans and talking plans gets increased and thus the sales might get decreased
but the situation of Melita is little different because they are providing the rates as per the
situation so that the customers does not shift to another brand as well.
Social factor- Here, the social factors associated with the company will be taken into
consideration. One of the crucial factor which is required to be taken into consideration by Malta
is their development in rural areas. They need to make sure that they grab more and more
customers in these areas because then only they will be able to grab more market share in the
company. It has also been ascertained that with the increase in population growth, more no. of
customers will be made and through which more growth and development will be achieved by
the company. They are also providing goods and services at a very low rate in rural areas which
is helping them in attracting large no. of customers and increase the profit level as well. Malta
directs on that area where intern rate facilities are not accessible it started to explore the intern
ate and voice service.
Technological factor- Because of various technological advancements, Melita is able to
provide various kinds of services in most effective manner and in both rural as well as urban
areas. They have implemented various kinds of latest technologies to conduct their activities and
operations in the most effective manner s through their quality of products as well as services
will get enhanced. It ca also be noticed that they are into telecommunication business in which
technology plays a major role so it is required that Melita should focus on these kinds of changes
in the economy.
Legal factor- Every company is having some kind of legal rules and regulations which
they implement on their employees so that all the employees can do their work according to that
only (Marshall, and LaMotte, 2011). Basically these laws are not made by the company itself but
the government of MALTA is making these laws and regulations for all the companies that are
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operating in the economy. Some of them are customer law, discrimination law, health and safety
law,employment law, fraud law.
Environmental factor – It is being regarded that Malta is having a very dynamic and
upgraded working environment where the workers are working in an effective manner.
Environment is updated with the latest technology through which the employees feel that they
are working in most effective working environment. It is one of the most important factor which
is having their contribution in the development of the company (Mentzer and Gundlach, 2010).
Porter's 5 forces of Melita
It is considered as one of the most effective tool which can be used by the companies so
as to analyse the factors present in the external environment. Here, all those forces are included
which help the company in achieving competitive advantage in the market. These forces can be
described as follows:
Bargaining power of buyers- In this, the intensity of the buyers are being tested through
which it is known that whether the customers will buy their product or not. Buyers are the
primary factors through which the company can achieve high position in the market. It is being
known that if Melita will improve its products and services then they will be able to bring
positive effect on the customers and businesses.
Illustration 1: Porters five force model
Threats of new entrants – In these, all those factors are included through which
competition is increased in the market (Merrilees, Rundle-Thiele and Lye, 2011). It relation to
Malta country, It is required to be known that the telecommunication sector is regulated through
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barriers so the operator is required to pay more attention on high cost of products . There are
some barriers which can be arise in new entry:
 Economies of scale
 Switching cost.
 Capital needs
 Legal and governmental barriers
Bargaining power of suppliers- It is being known that the suppliers of Melita company
are present in Malta country itself since Melita is not present outside Malta. So, it is very
necessary for the firm that they should increase their business globally and also innovate mobiles
to increase a competitive advantage (Miquel-Romero, Caplliure-Giner and Adame-Sánchez,
2014).
Threats of Substitutes - Substitutes refers to the administrations and merchandise which
offer a similar favourable position to the results of an industry however with different process. It
will be exist that there are numerous elective products and enterprises at least cost at commercial
center.
Rivalry- The media transmission market of Malta nation is more immersed and
furthermore controlled. Under this the opposition level is high. The fundamental and most
grounded contenders of Melita are Vodafone, GO, T-portable and so forth in the media
transmission segment.
3) Marketing Mix of Melita telecommunication firm:
Marketing mix is a fundamental and vital part of the marketing and it is a strategic piece
of marketing plan. In relation to achieving more competitive advantage and laps decrease gap
among the external environment and procedures of showcasing of an association, at that point it
is important to the business firm to direct the marketing mix.
Product- Melita is providing various kinds of goods and services to the customers which
includes television, broad band services, mobile telephone and also fixed line telephone services
etc. but their ultimate goal is to satisfying the needs and demands of the customers. They are also
providing effective and high speed broad band services to people and in this country, they are
having high no. of followers as well (Nath, Nachiappan and Ramanathan, 2010).
Price - In Malta, Melita is a very famous company who are having large no. of
followers. It is because they are providing better quality of goods and services to their customers
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like a mobile phone with all the latest features. The cited company has adopted competitive
strategy of pricing through which the competition level is more among the cost of its substitutes.
Place- The marketing strategies of Melita business firm is required to be buyers arranged
and furthermore lead through promising the successful media transmission association. The
referred company routinely update its innovation in context to expand the adequacy of business
in a powerful way (Peter and Donnelly, 2011).
Promotion- Promotion is helpful in aware people about the new services and goods of
firm. This business organisation uses the various policies and strategies to the business.
CONCLUSION
From the above report, it can be summarised that marketing is a very effective process in
every company because through this they can reach their customers in an effective manner and
develop their sales as well. Here, various kinds of ideas are also being exchanged through which
they target the customers and try to know their needs so that they can produce goods and services
accordingly. This report discusses about an organisation who wants to retain their customers with
them so as to achieve competitive advantage in the market and for this they are trying to manage
all the activities which are happening in the company as well. They are working very effectively
so that they can provide effective services to their clients and customers. Here, a complete
marketing audit was conducted through which they analysed its strengths and weaknesses in the
marketplace as well.
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