Strategic Marketing for Rio Tinto in South Africa

MG624 STRATEGIC
MARKETING
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EXECUTIVE SUMMARY
The present report is based in marketing of a new product in a new country in order to develop
the business and grow in the international market. Thus, for this Rio Tinto has been used and this
company is planning to expand in South Africa with its new product of gold. Therefore, for this
the PESTLE analysis of country was carried on in order to outline the opportunities and threat
which are been present in the market of South Africa. With help of PESTLE analysis, the
different opportunities and threat of entering into South Africa was highlighted. Also, after
assessing the success of product in new country different methods of expanding oversees was
discussed and was outlined that merger and acquisition was better as against of other methods
like joint venture or foreign direct investment. In the end the strategy of cost leadership was
selected as the optimal strategy for gaining competitive advantage in new country.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
PESTLE analysis of Rio Tinto...............................................................................................4
Market entry mode.................................................................................................................8
Market segmentation............................................................................................................10
Porter generic strategy..........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Strategic marketing is defined as the process through which a company plans for the
development and planning of the new product or any promotion of the products and services of
company (Chernev, 2018). The current report is based on company Rio Tinto which is an Anglo-
Australian mining and metal company. The company was founded in the year 1873 and is
headquartered in London. For the development of company, it is planning to expand its operation
with new product of gold in South Africa. The major reason for choosing Rio Tinto is that this is
a growing company and they want to expand in new country as well. Thus, the present report
will start with PESTEL of South Africa that whether it is advantageous to go or not. Next it will
outline the different modes through which company can enter into new market. Also, the market
segment and target will be decided by the company. In the end with help of Porter generic
strategy the competitive advantage of company will be decided.
PESTLE analysis of Rio Tinto
Company is proposing to expand its business in South Africa for mining of gold. To
analyse the factors that may affect the business or expansion and for evaluating the opportunities
and threats influencing the business PESTLE analysis has been conducted.
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