Arctic S.A. Strategic Management Report

This report provides a comprehensive analysis of Arctic S.A.'s strategic management, including PESTEL analysis to identify external environmental factors affecting the company. It also explores market entry options for the company, as well as market segmentation to better understand target customers. Additionally, Porter's generic strategy and cost leadership and focus strategies are discussed in detail, providing insights into how Arctic S.A. can enhance its overall performance.

Strategic Marketing

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Executive Summary
Strategic marketing means the firm making the marketing plan for the encouraging of the
promotional activities of the firm. In this firm is making various plans for increasing the sales of
the firm. This report covers the study about the PESTLE Analysis of the UK. Further it study
about the market entry options which helps the firm in entering in new market. There are various
ways by which entry can be done: partnership, joint ventures, Merger and acquisitions, licensing,
franchise and many more. It will discuss about the market segmentation of the firm on the basis
of the demographic, psycho graphic, behaviour, and personality and geographic. It will discuss
about the Porter generic model which includes the cost leadership strategy, differentiation
strategy and many more. This is more study about the market share of entity which is help in
gaining of the market share.
INTRODUCTION
Strategic Marketing is used for creating a plan for reaching the customers. It will increase
the customer base of the entity. This marketing satisfies the needs of the customer by making the
various strategies for the firm. These strategies make the firm to move ahead from the
competitors. In this scenario Arctic S.A of Romania. This company was founded in the 1968.
This report will study about PESTLE Analysis of the Arctic S.A company. It will study about the
Market entry options of the company. It will discuss about the market segmentation of the entity.
It will study about the Porter Generic strategy. UK is taken because this country has strict rules
regarding the regulation which help in regulating the firms in disciplined way. It is helping the
entity to work in smooth way. In this, Asanti limited company is launching the clothing business
which is making the diversified company. It is making the entity to expand its business. This
entity is selling the product in diverse market. It is one of the way by which entity is using to
increase the profits.
Defining the PESTLE Analysis
In this macro factors is analysed which are affecting the business. These factors are
affecting the regular operations of the entity. PESTLE is done by the company for the
determining the loopholes in the company. There are some factors which are affecting the Arctic
S.A of Romania. Factors are discussed below:
Political Factor- in this factor rules and policies which are affecting the UK. Rules are
very strict in the country. This includes changes in the rules which are made by the government.
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Political stability of the country is major strengths of the country. Due to the Brexit situation of
uncertainty and political debates were prevailing in the UK. In the UK after the Brexit some
people believe that this has brought the growth opportunists for the business but others believe
that this has created the circumstances of the confusion. Other factors include under this
employment and labour law, environment regulations, trade restrictions, tariffs and political
stability of the business. If country is politically stable in that case business which are running
are also stable (David and David, 2017). This factor tell us about the rules and regulation of
country which are affecting the firms like some of them taxes, tariffs and many more. After the
Brexit rules of entity become different from the perspective of people.
Economical Factor: UK there is fifth largest economy in the world. In this factor is
directly influencing the business of Arctic S.A. this includes the economic growth of the
company which helps the company to grow the entity for reaching the new heights, interest rates,
inflation rate also affect the business. These factors helps in decision making of the business.
Like if market situation is recession in that case company has to decrease the prices of the
commodities so that most of the people has lost the buying capacity. It is harmful for the entity.
In this market situation unemployment increase and people has no money in their hands. If lot of
economic fluctuations are there in the country in that case no business can flourish there
(Milichovsky and Simberova, 2015). In this all the factors entity has to deal with the economic
conditions which are affecting the Artic SA. Some of them are interest rate, saving rate and many
more. If recession is prevailing in market in which affects the decision making of entity.
Social Factor- In these factors, the demographic and cultural needs of the UK. It contains
career attitudes, the age distribution, and emphasis on the safety, population growth rate and
many more. Company has to identify the cultural preference, habits of the people which help in
establishing the business well in the country. Most of the people in the UK prefer to eat the fast
foods and others like to be health conscious. People who likes to live in the healthy lifestyle for
these persons market segment is different and for fast food lovers their segment is separate.
Mostly market is segmented on the basis of the demographics, psycho graphics and many more
which is facilitating the country to bifurcate the segments so that more concentration on
particular market segment is there (Chernev, 2018). From this it is included that after analysing
the social factors which are helpful in operating the business. It is one of the way by which
company can get support from the society and make good image in front of market.
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Technological Factor- UK is the country which is considered the most advanced in the
usage of the technology. This is helping the many companies which are helpful in making their
working very smoothly. This factor affects the cost and quality of the products of the business.
With the use of the advanced use of technology the target is set for doing the production on the
particular day. This factor includes the automation, technology incentives used by the business
which is helping the entity to run smoothly, research and development of the activity, rate of the
tech logical change. By using the latest technology in the business will make the work easy for
employee as well as entity (Liebl, 2015). In this factor use of latest technology which is helping
in taking the decisions of quickly and save time. It is one of the way by which company move
ahead from the competitors.
Legal Factor- this factor influence of the demand of the product, cost and daily
operations of the goods. Under this factor changes in law which are and by the government. This
helps the company to follow the all laws which are related to the industry. It contains
employment act and discrimination act, health and safety law, antitrust law, consumer act. In UK
laws related to the health and safety hygiene are very strict which is very necessary for the Arctic
S.A. this will maintain the cleanliness of the company (David and David, 2017). From this it is
concluded that changes in law which are affecting the business and with the help of change in the
factor helps in running the business ethically.
Environmental Factor- in this factor includes the climatic change in the environment.
Company has to follow the CSR activities while doing the business. This will fulfil l the duties
towards the society. Most of the companies are doing the business with paying attention towards
the society. For example plantation, placing of the dustbins in whole area of the entity. Minimum
wastage of the raw material so that no it will be conserve for the future (Liebl, 2015.). This factor
includes that while doing the business fulfil the responsibilities towards the society. It is helping
in taking care of environment.
Various entry options of marketing
Market entry options of the entity refers to the new entry modes where business has not
entered till now. For the expansion of the business this mode is significant. In this Arctic SA is
planning to enter in the new segment which is different from the household appliances. If this
company will try to enter the clothing section (Chernev, 2018). It will be helpful in doing the
further sales of the business. There are many options for entry and these are:
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Direct Exporting - in this market entry options firm is selling directly to the market. For
selling purpose the company is selling the product directly via to the agents, distributors which
are related to the business. This is in hands of the company whom to choose as agent and
distributor. Person who sell to the door to door become face of the company (DeTienne and
DeTienne, 2017). For the entry options of like export which is help in selling the products to
market which makes the many channels of selling of product and popularity of business will also
grow.
Licensing - in this firm has sold the rights of the product to the other company. It is one
of the strategy which is useful for the business because by transferring the rights to the other firm
is helpful in gaining the market share of the firm. This is helpful in making the entity to become
popular in the market. This will be very helpful in entering in the market which the firm wants.
In this all rights of company is sold to other companies which is helping in the obtaining the
market share of entity.
Franchising - franchise means the opening of the new branch of the company and staff
and material is provided by the entity as well. For entering in the market it can be the one of the
options for the business. This will be helpful in making the entity to become recognised by the
people (Foxall, 2014). It can be concluded that branches of entity has is opened here and it is
regulated by main office which takes care of the employee as well as the entity.
Joint Ventures- this a type of the partnership under which company is two companies
are agreed to work together and make the third company which is the face of the market. In this
company is risks and profits is divided by the company in equal way. Example of the joint
venture is Sony phones (Banerjee , 2017). In this both of companies has affirm to work with each
other in agreed terms. This helps in gaining the market share of entity.
Merger and Acquisition- in company is acquired by the company by the other company.
Mostly mergers happen because firm is bearing the loss. It can be one of the market entry options
because the acquired company has lot of the market share which is helping the entity to enter the
new market. This can be helpful in increasing the sales of the company. In merger and
acquisition of the entity has help by other company which is helpful in gaining popularity and
market share.
Partnering - when the company wants to enter the foreign market or in some parts of the
world. It means the firm wants to open in the business in the place which is new in that case
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collaboration with the existing firm is beneficial because it will give the idea about the needs of
the people and help in developing its firm in the market. This will help in making in recognition
of the firm. This will be helpful in understanding of the local people and the place.
For the Arctic SA most suitable market entry options is partnering. It is helpful in
understanding of the local people and their needs which will help in making the own identity of
the firm. From this firm can gain the support of local people which is necessary for the business
(Abratt and Bendixen, 2018). This helps in doing the work with collaboration of work in agreed
terms which is helping in making the strong position of entity.
Describing the Market Segmentation
Market segmentation means the making the group of the buyers which has the common
interest or needs. This helps the companies to focus the diverse customers which has different
needs and for fulfilling the demands of the customer it is very necessary to segment the market.
Before doping the market segment, it is very necessary for the firm to do the market research.
This helps in reducing of eh risks which is facilitating the firm to enter in the new market
(Aghazadeh, 2015). It can be divided on the basis of the demographic, geographic, personality
and behaviour of the customer. The main objective of the firm is bifurcated the market according
to the common needs. This is helpful in making of the firm to concentrate on the particular
segment of the business. This will increase the overall efficiency of the firm and focus on the
limited resources which can produce the best rout of that. This helps in determining the product
life which will survive in the marker and which will not (Aghazadeh, 2015).
Targeting means aiming the customer for the product which is made by the firm. Before
making the product customers are decided by the company. It is helpful for the company to sell
the products. Like Cadbury has targeted the kids for the chocolates. It can be very useful for the
entities because focus of the companies in that segment only. According to the segmentation of
the product targeting of the product is done. Like segmentation of the market according to the
health conscious people and under this company has provided the products which came under
this. It is moving in the series firstly there is segmentation of the market is done and after that
targeting of the customers then at last there is positioning in minds of the people (Banerjee,
2017).
In Arctic SA is dealing with the household appliances mainly refrigerators (Abratt and
Bendixen , 2018). In this target consumers are family persons, hospitals, hotels. Refrigerators
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are used by the family persons. In hotels it can be used for storing the food and food items which
need to be preserved in particular temperature. In the hospitals it can be used in storing of the
blood in the blood bank and many more things which need to be preserved by the hospitals. In
this hospital units there is requirement of the big refrigerators which is need to be designed by
the firm for fulfilling the need of the customer. Usage is to storing of the dead bodies and many
more uses by the firm. In the hotels of there is need of the big size refrigerators which is needed
in preserving of the food and drinks. By targeting of the market helps in deciding whom tom sell
the product and this also decided in positioning process. This is helping in promotion and
marketing strategies and save money from promotions.
Analysis of Porter's Generic Competitive Strategic Model
This model is very useful for the organization to increase the effectiveness of the industry
in which it operates and helps to maintain their position in the business. Effectively use any of
these strategies which need total commitment and supporting organizational position (D. Banker,
(Mashruwala and Tripathy, 2014). These strategies are approaches to execute rival in the
business enterprise. There are basically four different factors which is considered in this strategy,
which is explained below,
 Cost Leadership Strategy: In this strategy, organization focuses on increasing their
profit rate by reducing costs of their products, while charging industry-average prices.
This can be a very useful strategy for the company to implement in their system to earn a
good revenue. For maximising market share through pleading lower prices, while making
a sensible profits on each sale because you've decreased costs. This scheme can help
organization to compete with their competitors who are present in the industry and giving
them a tough competition. This scheme usually targets a wide industry. This strategy can
be gained by providing broad mass of standardized good, offering basic essential frills
products and limiting customized and personalized work.
It will also help them to get better control on their value chain management which can
include different factors like,, marketing, stock, information technology supply ,finance etc. to
insure reduce costs (Ouma and Oloko, 2015). It is beneficial for large company only. It can also
impact negatively as lowering the pricing of their products can affect the thinking of their
customers about the quality of their products. This has to be implemented very carefully by
Arctic S.A. to get the full advantage of this scheme. Achieving a low cost position need an
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advanced relative marketplace share or other benefit, such as favourable accession to raw
material. The low-cost position provides high amount which can be invested with new
instrumentation and modern amenities in order to maintain cost leadership. Such spend may well
be a requirement to sustaining a low-cost perspective.
 Differentiation Strategy: In this type of policies, it basically used differentiate their
products and services in such a way which is easier for them to compete with their
competitors. By the implementation of this strategy into their management system, it
becomes easy for their customer to identify their products. This will help them in
increasing their productivity and overall performance of the Arctic S.A. This strategy can
be effective for Arctic S.A. if their customer are not price sensitive. In today's world
customers have a unique choice in purchasing any product from the market so it becomes
very difficult for them to provide the best products and services according to their needs
and preferences of customers.
To successfully achieve this differentiation strategy, company has to get a good
command on their market research analysis. Should have extremely expert and inventive good
improvement team and strong sales team as well which can help them in communicating with
their customers to understand their preferences (Porter’s Generic Competitive Strategies, 2015).
It is very crucial for Arctic S.A. to have a good corporate reputation related to the quality and
innovation of their products. The risks which is related to this strategy can include fake by rival
and changes in client tastes. Additionally, various firms following focus scheme may be able to
accomplish even greater distinction in their market section.
 Focus Strategy: Final generic scheme is focusing in particular buyer group, part of the
goods line. This strategy is made-up for helping a particular people. This strategy is also
divided into two different parts depending upon the factor. Like cost and differentiation
of their products and service in the market. If company implement this strategy it will
help them in to increase the degree of customer loyalty for them.
 Cost Focus Strategy: In this strategy, Arctic S.A. focuses on the cost factor of their
products. It should be according to their customer’s preferences and needs. In this
process, business concern desire a lower-cost benefit in just one or a few market
segments.
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 Differentiation Focus Strategy: In this type of strategy, a business targets to separate
within just one target market area (Salavou, 2015). This will help the organization to
provide entirely different products to their customers which will help them attract more
consumers. Differentiation focus is the classic place marketing scheme. The essential
issue for any business choose this strategy is to ensure that customers really do have
different needs and making ensure that existing contender products are not gathering
these requirements.
From all the above three strategies of porter generic, Arctic S.A. chooses two strategy
which is cost leadership and focus strategy as both these will be very helpful for the organization
to increase their customers and their production rate as well. It will help them to attract more
customers by giving them products at very low cost as compared to their competitors. From
focus strategy, it will help Arctic S.A. to have effective strategy which can enhance their overall
strategy (Lotayif, 2015). Differentiation focus strategy is very useful for them focus on their
customers preferences for the products which can help them to earn a good revenue from
business.
CONCLUSION
From the present report it can be sum up that it is very necessary for any business to have
an effective strategic management which can help the firm tp increase their sales and earn a good
revenue. This report explained about PESTEL analysis which helped Arctic S.A. to analyse their
external environmental factors which can affect them. It also explained about the options
available for them for the market entry. Apart from this, various other topics are also explained
in this report, such as, market segmentation for better understanding of their target customers and
porter generic strategy to enhance the overall performance of Arctic S.A.
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REFERENCES
Books and Journals
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