Strategic Marketing: External Factors, Company Analysis and Competitive Positioning

This report discusses the impact of external factors on critical areas in marketing, critical company analysis and evaluation, and competitive advantages and positioning in strategic marketing for Vestas Wind System A/s. It covers topics such as technology and key competitors, resources capabilities, and Porter's generic model.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Discuss the one or two external factors which impact on critical areas as per marketing
context....................................................................................................................................1
Part 2................................................................................................................................................5
Examine the critical company analysis and evaluation..........................................................5
Critically evaluate about the resources which are capable and assets to other business areas. . 5
Evaluate the competitive advantages and competitiveness positioning.................................7
CONCLUSION................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Strategy Marketing is refers about business based overall goals and objectives which
reaching to prospective within consumer and customised into customer of their product and
services (Bran-Piedrahita., Valencia-Arias. and Palacios-Moya., 2020). A effective process of
marketing strategy is to make innovative plans regarding to analyse market along with product
and services where organisation get to attain better competitive advantages. It also contains the
company towards company's value's proposition, key branding messaging, data on target
customer demographic and high level elements.
In this report, the organisation is selected Vestas Wind System A/s is Danish
manufacturer, seller, installer and was founded in 1945. The company operates manufacturing
plants in Denmark, according their product portfolio offers wide range of product which
Turbines technologies, operations and maintenance and Option solution. As per topics which are
cover in this concerned report on external factor analysation by focus on specific sector and
market and identify one or two salient factors. In Second part, it explain key external factor point
which critical marketing context analysis (D’Souza, Taghian and Brouwer, 2021). The last third
part it is major require about determine the appropriate manner of strategic marketing options
which company should focus in order to successful for navigate faces challenges that faced
immediate future rising.
MAIN BODY.
Discuss the one or two external factors which impact on critical areas as per marketing context.
Macro environment of an organisation is related to the external factors that influence the
working or decision making of a company. Furthermore, these elements have a viable impact on
the strategies which the firm either takes, or is willing to take. The challenges and opportunity in
business or market is the chances of growth given by the the changing factors of organisation and
market (Distanont and Khongmalai., 2020). If the organisation internal factors is having potential
for growth and development then that is the opportunity for organisation and if any market
factors related to the business is showing potential of growth and development than that is
considered as a growth opportunity.
External Factors: This is refers about those factor which would influences,
circumstances or situation that a business cannot control that affects where business decision that
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the business where owner and stakeholder make. Some of factors which comes under external
factor which counted economy, politics, competitors, customers along with climatic condition
are not better controllable. These factors can surely impact on organisation performance in
negative and positive aspects. At the situation of company long term stability and profitability
which are interdependent on its ability for quickly identify that respond on changes in external
environment. In perspective of Vestas Company, they are prominent manufactured venture like
Windmill turbines to sell across globally effectively. Vestas company consider two major
external factors that would essential and it will create more impact during business. There are
two factors which would impacting on manufacturing sectors that are Technology and Main key
competitors of company are:
External Factors Importance and impact on Vestas Company
Technology As the technology is upgrading in globally where Artificial
intelligence traits or specification increase the efficiency of
electric product and services. Similarly, for Vestas company
the technologies would have positive as well negative impact.
It easy to use and implement in Turbines base product that will
increase the product efficiency as well as better growth
effectively (Folayan, Babalola and Abati., 2020). Negative
impact might address that many technologies are not
environment friendly which can create more challenges and
conflicts to trade in competitive business environment. The
importance of Artificial Intelligence technology would makes
Vestas Market more efficient and easier for analysts through
which market participants need to understand about the
process from which electrical power grid to climatic changes
appears (David. G. Victor, 2019,
https://www.brookings.edu/research/how-artificial-
intelligence-will-affect-the-future-of-energy-and-climate/)
Key competitors There are main key competitors of Vestas company such as
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Orsted, Titan Wind Energy, Envision etc. All these companies
are one of leading business venture which would have
influence that enhance to generate more competition in
competitive market. Vestas and its competitors are generally
target similar market. The importance of having major key
competitors is because it raise the competitions and tries to
improve market as well as provide better structure of business
performance competitive marketplace
(https://craft.co/vestas/competitors?competitors=vestas
%2Corsted%2Ctitan-wind-energy%2Cenvision-group
%2Ckoncar%2Csuzlon%2Cnordex).
By consider Competitive Context:
Climate and Cluster:
In these two factor climate and cluster which helps to influence on decision as to type of
industries and business which needed to be carried as on region. It is happen because the people
of specific geographical region will have similar tastes, preferences and requirement (Galati and
et. al, 2020). The situation which arises in geographical where the physical feature and the
climatic, rainfall and humidity etc. This is decide the type of living within particular region.
Similarly in Vestas company usually they manufacture turbines which might get effected by
climatic and cluster impact. Because Vestas company mainly considered that their turbines
product are climate or environment friendly effectively.
Key Competitors: As above discussed about Vestas company key rivals organisation are
Orsted, Titan Wind Energy, Envision etc. These are the main key competitors who generally
seeking for more competitive advantages in manufacturing business of turbines energy areas.
Through Vestas company main focus on turbines and operation product and services efficient as
compare to their competitors (Gnizy, 2020). But if in competitive market there is high demand of
substitute competitor's products can raise competition in energy and turbines marketplace, and it
would create high impact on Vestas company.
Strategies:
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Some of marketing base strategies which Vestas company need to consider at the time of
generate more expansion of business in competitive market effectively:
 Marketing penetration strategy: According to this particular strategy where firm uses
to focuses in current product and service deals to selling in existing market. The
marketing activities which will dominate in this type of marketing plan are those that
emphasise that increase loyalty for existing customer which is not vulnerable which
generate loss to competitors, attracting competitors customer etc. Through increasing of
awareness through which marketing communication and make generate to better
increasing availability through which it expanded distribution that address as common
marketing activities. In perspective of Vestas company this strategy would help to
generate more business and also retain their existing clients by provide them better
turbines product and services.
 Market development strategy: This would create effort which expand sales by selling
current product within new market that referred as to market development strategy. Such
Efforts which may involve where it generates entering about new geographic market,
such as international market (Harbar and et. al., 2020). According to this concept of
marketing strategy implement in Vestas company is to influence to manufacture existing
product of turbines in new market. This practise helps to provide new marketing trends
such as customer, process and other types of competitive advantages accomplishment.
STP of Vestas Company:
STP Vestas Wind System company
Segmentation The company is approach both segmentation factor such as
demographic and geographic because Vestas use to deal with Power
energy related product and services. They determine project planning
, procurement, construction, optimisation where wind power plan
renewable Energy.
Targeting As the target market is to maintain generation which is distributing
companies and also having public entities which use to produce
energy and different countries.
Positioning It is world most leading manufacturing of turbines where it would
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provide power solutions.
Part 2.
Examine the critical company analysis and evaluation.
The marketing resources which would considered towards board values propositions that
affects the stakeholder within any business and firm which generally activate these resources
which also help to gain more competitive advantages. As resources can be counted in form of
tangible and intangible or having better competitive advantages. In situation of Vestas company
the main resources are counted for their workplace is Human resources, Equipments, manpower,
financial process, manufacturing capacity and practises . These of the resources can plays an
important role to generate which gain more better potential competitive advantages. There are
some of resources which can be evaluate on resources capabilities are: Brand Image: For Vestas Company this resources is must important where Vestas
company's brand image is more influence in competitive marketplace. Human resource Management: According to this resources is help to manage Vestas
company working environment as well as manpower abilities that gain to better raise
more productivity. Manufacturing capabilities: This practise is more prominent for Vestas company as
where it allows productive manpower and enhance better resources through which Vestas
company can generate more efficient base product of turbines effectively.
 Manpower: These are one of more prominent resource for Vestas company, where their
human resource or management team hire productive and effective manpower which gain
more productive goal attainment (Huang and Rust, 2021). At the time of hiring and
training and development can generate more potential and productivity effectively.
Critically evaluate about the resources which are capable and assets to other business areas.
On the basis of Vestas company they are make sure that overall business practise must
concerned towards better business perspective. The company is majorly works on wind system
which manufacture parts of wind system. To analyse their internal and external resources
capabilities, applying VRIO analysis which initiates towards more resources attainable
effectively.
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VRIO Analysis: It is an analytical framework which use in form of technique for mapping
company resources and the better competitive advantages. It consist Valuable, Resources,
Imitable and organised. For Vestas company, the reason of conduct VIRO analysis is to
investigate how much resources can inbuilt within proper business execution.
Resources Valuable Rare Imitable Organised
Human
resources
management
Yes Yes Yes Yes
Financial
resources
Yes Yes No Yes
Technological
resources
Yes Yes No No
Manpower Yes Yes No No
Market position Yes Yes No No
 Human resource management: This factor is handling recruiting, selecting, training and
development to provide employees. In perspective of Vestas company, human resource
management is sustainability competitive as it is valuable, rare, imitable and organised.
 Financial Resources: These resources play an important role in organisation where they
handle organisation financial activities and operations to mitigate further risk and allocate
liquidity of funds. It help the organisation to easily illustrate the description of their
financial and marketing management strategy use to manage product and services offer in
the market for goals and objective accomplishment (Lim, 2021). In this perspective of
Vestas company their financial temporary competitive advantages which ensure to
arrange funds and maintain company profit and loss statement along with record of other
financial activities. It is valuable rare and organisation but not imitable by other
company.
 Technological Resources: On the basis of these resources that comprise to make
employees and practices of technology utilisation improve better efficiency effectively.
This would improve the efficiency of each and individual manpower where they can
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contribute for more productivity. The resources which comprise in technological
resources are valuable and rare. It is not imitable and organised because every
organisation having different optimisation of technology.
 Manpower: Employees are main assets of company in which it helps to generate
business. On the perspective of Vestas company manpower are valuable and rare but not
consider as imitable and organised because individual employees generate its own
strategies to accomplish their task. Further every employees has its own way to approach
work effectively different manner.
 Market position: This is the main objective where every business having aim to attain
proper competitive position which generate more good will opportunities to better sustain
in market effectively. Further in this factor, they creates more vulnerability and motivates
the company to attain goals. The resources which are important in Vesta company are
valuable and rare. This could be imitable and organised as it fluctuates in competitive
advantages.
Evaluate the competitive advantages and competitiveness positioning.
Competitive advantages refers about those factors allows a company to produce better
goods and services produce better services which better generate more cheaply that it rivals. For
Vestas company to evaluate the competitive advantages and positioning by implies Porter
Generic model are elaborate on the basis of above analysation of Vestas company are:
 Cost leadership: In this leadership factor where a firm sets out to become where the low
cost producer within its industry. The better sources of cost advantages where it relies on
structure of industry. A low cost of producer which must find and exploit where all
sources within better cost advantages. If a firm can accomplish and sustain overall cost
leadership where it will perform as average perform..
 Differentiation According to this strategy where a firm seeks to be unique where industry
along within same dimensions which is widely valued through buyers. It helps to selects
that one or more attributes which consume more buyers which perceive as important.
 Focus: This is generic strategy where it focus on choice about to having narrow
competitive scope within an industry. It determine about segments where group of
segments within industry that only focus on price or product quality.
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Evaluation:
On the above Porter generic model in perspective of Vestas company which summarise
that to gain more competitive advantage company need to follows strategy of Differentiation
because Vestas need to make their products and service or opting new buyers in different way.
According to this strategy Vestas company would generate more competitive advantages.
Part 3
Evaluate the strategic marketing option for future success within response to the evaluation from
first two parts of report.
From above first two part of this report, where first part is support to evaluate about one
external part of Vestas company. In that Technological factor would play an important role to
gain more competitive advantages. As the company need more advanced resources to implement
in wind mill manufacture. After that evaluate key competitors and STP of Vestas that make more
influence in business (Schlegelmilch and Winer., 2020). In second part of report to identification
about VRIO analysis and porter generic model that would helps to gain more competitive
advantages effectively. There are some strategies on which Vestas company market would get
success:
Approach digital marketing platform: As per the trend changing in which company
needs to measure about its value. Every business need to change their business style with motive
of attain more competitive goals effective manner. For Vestas company can easily and flexible
operate their business within different e-commerce to attain better competitive advantages.
There are many platform on which Vestas company can interact with clients while promoting
their product and services which helps to gain more sustainable productive.
Assess Vestas Directional and competitive positioning.
Directional Strategy of Vestas Company:
 Mission: On the basis of having capabilities that creates more expand where leading
wind portfolio for expand service value cost of leadership.
 Vision: The Vision statement is comprise where Global leader in sustainable energy
solutions for make more productive wind mill product and service manufacture.
 Objectives: The major focus of Vestas company where the global leader in the wind
power for create plan solution where market and global leader in wind power service.
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Competitive positioning: According to this concept its all about to make better differentiate
which is make offering to better create value about market value. Similarly, The Vestas company
is having bigger market size to calculate on the basis of revenue around €12.147 billion within
number of employees are 25000 more in more in overall Vestas company existence.
Determine and justify the relevant strategic marketing approaches and options
in regard to TWO chosen topics from the module.
By considering two approaches on the given module for Vestas company which is
determined Innovation strategies and Relationship Innovation.
Innovation strategy: It is most common innovation which create proper plan of mission with
aims for create new value on which customer are willing pay. It include set of policies or
behaviour which geared towards future organisation growth in perspective of Vestas company. Provide proper clarity of priorties and goals: It is an innovation strategy where it make
outline of goals towards organisation where it creates innovative activities. Foster Alignment: On the basis of plan which it diverse group within an organisation will
all working concept where it better approach common goals rather than presumes own
individual priorties. Keep a business from resting on laurels: Even business that presumes which start as
innovators which continue towards make innovative strategies way.
 Helps to accomplish in long term success: With making ongoing innovation a company
is unlikely to gain more competitive advantages which keep to better customer
engagement over long term.
Relationship Strategy: It is form of strategy which is maintain through organisation and maintain
through ongoing level of engagement of audience. According to this management which it
occurs between business and it is having customer. As there are four relationship strategy in
perspective of Vestas company:
 Train to promote effective sales support: In this practise it depicts that manpower need
to train and effectively to support sales which helps to increase the manpower efficiency
of Vestas company.
 Keep the lines communication open: It is very important for Vestas company that
making long term relationship with clients they need to open network to constant
business maintained.
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 Invest right software: The business need to invest right software for maintain their
employees as well as customer for longer period of time. ERP and CRM are digital
marketing tool which would helps to Vestas company for keeping record of customer
information and important data to use and provide relevant services for customer
benefits.
Demonstrate the challenges which is face by company.
On the basis of above analysis in two parts of Vestas company perspective as they are
facing challenges towards political and economical factor. In part 1, by analyse of Pestle these
two factors create implication towards Vestas company as because of changing in policies and
uncertain factor determined such as recession and rate of inflation increases. The recent issue is
COVID-19 make more implication where Vestas would not find any suitable solution to generate
more competitive areas to generate business. As per the second part, there are two challenges on
which Vestas company is determined that is high competition in competitive market and due to
that Vestas company need to make their pricing strategy change on which they create challenges
into sustain in competitive market place.
Explain how he company must approach and optimise these strategies.
The company can make use Innovation and Relationship strategy in different manner
such as:
Importance of Innovation Strategy:
 According to this strategy Vestas company need to implies because this would not only
help to create plan but also provide to make clarity within employees that help to attain
competitive advantages.
 To make assure for provide better training and development to employees on which they
can contribute project of Vestas company that build up more competitive advantages.
 For example: Vestas company use to deal manufacturing Windmills, as they are
determine on wind turbines are properly checked and tested through which result get
verified independent organisation.
Importance of Relationship Strategy:
 By using of this strategy would help to make relation with employees, manager and with
customers for longer period time.
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 To constant practise of making better relationship would help to generate more business
leads that would improve Vestas company.
 Implementing of ERP and CRM software that can evaluate more better record of client
and business information effectively.
CONCLUSION
From the above report it has been concluded that, strategic marketing is important for
every business organisation in order to achieve goals and objectives. It is necessary for a
company to use advanced level of technologies in order to enhance their customer base. There
are several other factors also which create an impact like in the form of political, social and many
more. Besides this, companies use the way of vrio analysis in order to evaluate about different
resources. There are three main strategies which are used in terms of attaining competitive
advantage and these are focus, cost leadership and differentiation. For every business
organisation it is necessary to position their brand through targeting and segmenting specific
group of people.
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