Starting a Business and Fundamentals of Marketing

This assignment discusses the concept of starting a business and the fundamentals of marketing. It focuses on the use of robotics in logistics and the target market analysis. It also explores the competition and competitive advantage in the market.

Starting a Business and Fundamentals
of Marketing

Table of Contents
Introduction......................................................................................................................................1
Proposed business idea................................................................................................................1
Evaluate external environment....................................................................................................2
Illustrate the competition along with competitive advantage......................................................4
Proposed target market................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
The idea that can be utilised for having financial gains which is centred on specific
service or product refers business ides. It is formulated in such a way that it addresses the
problems which prevails within market, drives in the profit, unique and must be innovative
(Baines and et. al, 2017). Entrepreneur tends to start a new business with innovations in their
products as this will lead them to generate higher profits. This assignment is based on Eddie
Stobart Company which is bringing in innovation within their logistics for being a stronger
player within the market and formulates their strong image. They have opted for usage of
robotics through which they can have accuracy within their services. This report comprises of
business idea, external factors, competition and their target market.
Proposed business idea
Eddie Stobart Company is a British firm which provides supply chain transport, logistics
solutions for electronic-commerce, retail and manufacturing sectors. It is a public firm which
renders their services through distinct ways. They are looking forward to bring an innovative
service through which they can captivate large market and build their strong image within the
market. The firm is about to deliver their services in logistics but as already there are strong
players within the market, it is important to render their services in such a way they are unique as
well as innovative (Belew and Elad, 2017). For this, they opted for making use of latest
technologies as they are evolving quickly and also provide huge benefits to firms. With respect
to Eddie Stobart Company, they are looking forward to make use of robotics within their
working activities. It is the branch of science and engineering which involves designing,
operations, construction as well as use of robots and computer systems for controlling,
information processing and attaining sensory feedbacks. Robots will be liable for moving as well
as reacting according to input which is being given to them through the usage of computer
systems.
Logistics robots will automate the process associated with storage as well as moving of
goods as they can make their own way for supply chain. The firm is opting to use them within
warehouse as well as deliver storage facilities with respect to storage. This will enable Eddie
Stobart Company to uptime manual labour which will lead to enhancement within productivity
gains along with profitability. AGVs (Automated guided vehicle) can be used by them their
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warehouse as well as render storage facilities for transporting goods (Cadotte, 2016). These will
operate within predefined pathways and will move products for shipping as well as storing. This
will lead firm to reduce the cost associated with streamlining of supply chain. Apart from this,
they are also making use of robotics for self-driving vehicles within logistics. Through this Eddie
Stobart Company can improvise safety by adapting to alterations within the conditions of roads
or obstacles in an diligent as well as précised way which will lead to eliminate the mistakes
which are made by human drivers. This will aid organisation to eliminate the losses that are
being caused by road accidents. Higher efficiency can be attained as vehicle to vehicle
interaction will be optimised by convoying as well as allowing higher speeds which will
minimise cost along with carbon footprint. In addition to this, driver dual tasking will be
rendered as when robot will drive then the same time can be utilised for carrying out other
activities.
Evaluate external environment
The environ which comprises of all outside factors that creates an impact operations as well as
activities of business is referred to as external environment. For this, it is necessary for them to
react or act to it so that flow of their operations is not affected and they are able to deliver their
services as per formulated strategies (Hong and Son, 2017). Firms do not possess control over
macro environment but they can take appropriate actions through which the impact can be
minimised. For analysing these factors Eddie Stobart Company can make use of PEST analysis.
This will enable them to identify the probable impact which will be created on services which are
being delivered by organisation. It is shown below:
PEST Analysis: The management method in which firm can access the major external
factors which are liable for affecting their operations so that they can be competitive within the
marketplace is referred to as pest analysis. It involves political, technological, economical and
social factors which are responsible for creating an impact on operations of organisation
(Melovic and et. al, 2017). This is a planning approach that can be utilised by Eddie Stobart
Company for ensuring that they can attain high profits by delivering appropriate services within
the market of UK. These factors have been provided below:
Political factors: They plays critical role within identification of factors which creates an
influence on Eddie Stobart Company in terms of ways in which operations are carried out and
their profitability (Melovic and et. al, 2017). As they are offering their services in different
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countries, they will expose themselves within distinct political systems. For this, they need to
diversify their systematic risks and analyse certain factors before entering within the market. As
the firm is looking forward to make use of self-drive vehicles means robots will drive then it is
mandatory to ensure or have appropriate permissions. They need to analyse the political stability
along with risks associate with military invasion, intellectual property protection, trading
partners, pricing regulations, interference of government and industrial safety regulation. By
ensuring these factors only they must enter within the market otherwise there might be
possibility that government may intervene there way of furnishing services which may lead them
to loss (Mitchell, Madill and Chreim, 2016).
Economical factors: They involve elements like interest rate, savings, foreign exchange,
inflation along with economic cycle for determination of aggregate demand as well as
investment within the economy. Along with this, competition also creates an impact on the
competitive edge that usage of robotics while carrying out their operations (Hong and Son,
2017). Though it’s the technology but there is usage of high energy. Eddie Stobart Company
needs analyse the factors like industrial goods and service industry growth rate, spending of
customers, etc. so that they can forecast the trajectory growth. They need to identify the stability
of UK as well as exchange rates, quality of infrastructure, education levels of individuals so that
they can have adequate workforce, their skill levels along with comparative edge of host country
with respect to logistics sector (Nelson and Tyson, 2019).
Social factors: The culture of society as well as ways in which operations are carried out
creates an impact of working of organisation. Attitude as well as shared beliefs of population
have important role within understanding customers of Eddie Stobart Company. This will enable
them to deign their products accordingly. For this it is important to analyse skill levels,
hierarchy, class and power structure of society, nature of society, interests and culture which
prevails within. It will assist them to have insight into the ways in which they furnish their
services.
Technological factors: Technology is fastest disrupting industry around the world and
logistic is an appropriate instance of this. As Eddie Stobart Company are making use of robotics
they can have a strong edge within the market (Rowles, 2017). But for this they need understand
the impact which will be created while delivering their services in UK. Here, firm have to take
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into consideration, cost structure, influence of value chain, rate of technological diffusion and
impact on offerings of their products.
By analysing these factors, it will become clear to Eddie Stobart Company that by
delivering services in which country will lead them to have high profit margin as well as be
strong player within logistic industry.
Illustrate the competition along with competitive advantage
As market is evolving continuously with the enhancement in technology, it is important to
identify the major competitors within the market. This will enable them to acknowledge their
services with respect to what is being offered in the market and what will drive them to success
(Skripak, 2016). In context of Eddie Stobart Company, as they are planning to deliver their
services in logistics through usage of robotics they need to identify their competitors along with
their positioning within the market. This will lead them to formulate their strategies accordingly
and have a success by beating the strong players but for this there has to high accuracy,
quickness and preciseness within their services. The table is shown below with respect to Eddie
Stobart Company and their major competitors present within the market.
Feature/ Company Eddie Stobart
Company
YODEL TRANSCOR
Strengths Robotics will used to
deliver their services as
well manage their
warehouse (Baines and
et. al, 2017). This
enables their workforce
to invest time within
other activities to have
affirmative impact. This
will lead to eliminate the
mishappenings which
occur while human
labour carries out
They furnish their
international delivery
solution for
organisation and
customer who make
use of online services.
They are delivering
their services in
around 200 countries
and territories. Makes
use of social media
for having an edge.
It is regional 3PL
which furnishes
distribution,
warehousing, freight
brokerage and
warehousing at
nationwide level by
rendering their
customers to deal with
critical supply chain
problems. Emphasis is
laid on security as
well as accurate
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operations like
accidents.
delivery of services.
Weaknesses Use of social media is
limited.
Hardly interacts with
customers, its just
picking the parcel
from warehouse and
deliver it.
Language is formal
but this is not user-
friendly.
Social Media They make use of
instagram and twitter
along with blogging the
posts
Blog posts are used by
them.
They are active on
each platform to make
their customers aware
about services which
are delivered by them.
Proposed target market
STP model can be utilised by Eddie Stobart Company which is broad framework and is
liable for summarising and rendering a simplification for processes associated with segmentation
of market (Belew and Elad, 2017). Segmentation implies identification of market on the basis of
different segments like demographics, psychographics, and geography along with other aspects.
Targeting denotes determination of most attracting segments which have been identified.
Positioning is the last stage which is business oriented in which firms like Eddie Stobart
Company can access their competitive edge and positions them within the market.
Eddie Stobart Company has opted for demographics in which young entrepreneurs are
taken into consideration. The reason behind this is that they are more innovative and look
forward for the options through which services can be enhanced. Their target is young
entrepreneurs as Eddie Stobart Company is making use of robotics which will enable them to
deliver services quickly and accurately. Young entrepreneurs often look for such kind of delivery
options through which their sales can be enhanced and there could be minimum returns. Along
with this, self driven vehicles are used then possibilities of miss-happenings are also equivalent
to negligible (Cadotte, 2016). This will lead Eddie Stobart Company to position them within the
market strongly.
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Conclusion
From above it can be concluded that, innovation is an important factor which leads
organisation to bring something new within the market and stand out from existing competition.
But for this, it is necessary to ensure that the idea behind business is unique and renders various
benefits to organisation as well as individual. This will lead them to enhance their customer base.
By making use of robotics precise as well as timely services can be delivered to the users.
Furthermore, it is mandatory to analyse the environment in which they are furnishing their
services so that factors can be analysed along with impact they will create on delivery of their
services. The target market should be kept in mind so that it is clear for whom services are being
proposed.
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References
Books & Journals
Baines, P. and et. al, 2017. Fundamentals of marketing. Oxford University Press.
Belew, S. and Elad, J., 2017. Starting an online business all-in-one for dummies. John Wiley &
Sons.
Cadotte, E.R., 2016. Creating value in marketing and business simulations: An author’s
viewpoint. Journal of Marketing Education, 38(2), pp.119-129.
Hong, D.U. and Son, J.S., 2017. A Study on the Effects of Support Service of Gyeonggi-do
Cultural Contents Area Business Incubating Center on Corporate Performance: Focusing
on the Business Validity of Business Start-Up Items. Asia-Pacific Journal of Business
Venturing and Entrepreneurship, 12(4), pp.47-60.
Melovic, B. and et. al, 2017, April. Green (ecological) marketing in terms of sustainable
development and building a healthy environment. In Energy Management of Municipal
Transportation Facilities and Transport (pp. 1265-1281). Springer, Cham.
Mitchell, A., Madill, J. and Chreim, S., 2016. Social enterprise dualities: implications for social
marketing. Journal of Social Marketing, 6(2), pp.169-192.
Nelson, B. and Tyson, E., 2019. Starting a Business All-in-one for Dummies. For Dummies.
Rowles, D., 2017. Mobile marketing: how mobile technology is revolutionizing marketing,
communications and advertising. Kogan Page Publishers.
Skripak, S.J., 2016. Fundamentals of business. Virginia Tech.
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