Table of Contents PART 1-1. INTRODUCTION.........................................................................................................3 2. MARKETING ANALYSIS.........................................................................................................3 2.1. Competitors.....................................................................................................................3 2.2 Geography and Technology.............................................................................................3 2.3 Buyers preferences and Market Segmentation.................................................................4 2.4 Sub Strategies groups in mobile industry.........................................................................4 2.5 Market Share....................................................................................................................6 2.6 Porter five forces model...................................................................................................7 2.7 Pestle analysis...................................................................................................................8 2.8 Competitive Advantage....................................................................................................1 3. Critical analysis of Marketing expenditure..................................................................................7 3.1. MARKETING EXPENSES............................................................................................9 3.2. PERCENTAGE SHARE OF MARKETING EXPENDITURE ON YEARLY BASIS10 3.3. REVENUE AMOUNT..................................................................................................11 3.4. PERCENTAGE OF REVENUE DESCRIPTION ON YEARLY BASIS....................12 4. Recommendations......................................................................................................................13 PART 2- Stakeholder Report.........................................................................................................15
PART 1-1. INTRODUCTION The Navy company is a company based on United States of America. The company is telecommunication company. Navy is successfully operating their business activities for more than 8 years. The organisation has faced ups and downs in their performance in the competitive market of United States. This is report is based on the marketing and the business strategies of the company Navy. This file will highlight about the market analysis. Along with this, the report will also focus on the competitive advantages. The report will also discuss the outsourcing manufacturing. Lastly the report will make recommendation for better performance for future. 2. MARKETING ANALYSIS Following approaches are used to do proper marketing analysis. 2.1. Competitors Competitors are those organisations which practice their business in the same sector and target the customers with same specification(Daft and Marcic, 2016). These business affects the business activities of the Navy. The Competitor of Navy are - The Innovator's Red Blue Leaders Grey Ochre Pink Yellow 2.2 Geography and Technology The Mobile for company target these countries geographically are- United States of America Asia Europe The demand in the international market has variation. The demand of techniques differ from time to time in different countries. Due to increase in demand in the international market and the regular innovating in the technology it is clear that the market of these countries are not stable, which means the market of these country are still at growing stage(fig. 1). The demand in
different countries are inclining and declining at different time moreover the demand in tech 1 in also incline and decline at different time, which clearly indicates that the consumers will be more attracted towards better technology in the future. (Figure. 1 Total Global Demand by Region and Tech) 2.3 Buyers preferences and Market Segmentation The analysis of consumer demands helps the company to identify potential of products feature and specification and the customers will to pay for different featured product along with this the competitive position in the market. Consumerbehaviorwas differentin every country.Thisisthemain reason behind the Segmentation strategy of company. In Europe and United States of America people are more attracted toward the advance and better technology however in people in Asia are more sensitivity towards the price of the products. Therefore, company sells their products in low price there. 2.4 Sub Strategies groups in mobile industry It is the aspect in which positioning of the products are done by the company in the market. Positioning is a strategy, in which company develop a reputation of their brand and products in front of the customers and attract the customers to purchase their products by using their brand image(Christopher, 2016). Navy is a company which spends lot of money in research and development. It helps to company to position their products as advance technique products. R1R2R3R4R5R6R7R8 0 1000 2000 3000 4000 5000 6000 7000 Tech 1 Tech 2 Tech 3 Tech 4 Total R1R2R3R4R5R6R7R8 0 1000 2000 3000 4000 5000 6000 7000 USA Asia Europe Total
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Figure 2 Resource and Developing of companies in different years THE INNOVATOR'SRedBlueLeadersGreyOchrePinkNavyYellow Year 1295,250230,00025,0000215,0000000 Year 2614,22300282,85800048,5980 Year 3254,35600000051,0000 Year 4827,339403,500195,000000049,0000 Year 5226,1227,4002,330,000000000 Year 6300,000145,000351,0001,279,17901,230,00001,255,8120 Year 7149,593701,82124,000846,700775,000354,000051,7850 Year 894,593150,0000133,000334,000347,160927,30052,7000 Total2,761,4761,637,7212,925,0002,541,7371,324,0001,931,160927,3001,508,8950 Table 1. The research and developing of Firm across the years. The rival companies of Navy also spends huge amount of money on research and development. From the above table it has been clear that almost every company spends lot of money of R&D activities every year whereas the Navy company is spending required amount on research and development. This proper management of financial resource in R&D activities helps the company to gain competitive advantages.
2.5 Market Share Figure 2. Market-share of the companies in different years. It has been clearly indicated that the company Navy has maintained their market share in the competitive market internationally. The market share of the company has incline and decline across years. The market share of the company has decline dramatically in last year. Highest market-share of the company was 12.68 percentage in the first year and the lowest was 5.05 percentage. THE INNOVATOR'SRedBlueLeadersGreyOchrePinkNavyYellow Year 112.6811.4210.1613.8513.2813.2812.6812.680.00 Year 217.509.788.6017.8311.4811.4811.3611.970.00 Year 318.598.569.2217.749.589.589.5410.057.15 Year 416.8817.904.9018.988.268.268.258.837.74 Year 515.9118.293.7617.978.738.738.739.298.60 Year 615.2125.804.7616.557.577.577.297.957.29 Year 711.3729.4812.3611.107.267.156.897.486.89 Year 825.6322.0217.1311.287.150.224.915.056.62 Table 2. Market-share of firms in various years.
2.6 Porter five forces model There are fewer firms in domain position in mobile manufacture industry. The main reason behind this is because these types of industry require huge amount of capital. Opening business in these type of industry is not that hard but surviving in this sector with high level of competition is very difficult unless and until the firm doesn't bring any innovation in the market moreover the company need to bring innovating in regular bases to compete in the market like this(Fayol, 2016). The industry analysis of mobile manufacturing is given below by using porter five forces model. Threats of new entry: Mobile industry are this industry which requires lot of capital as well as the nature of the market is very competitive these decrease the risk of new entrance. The mobile manufacture companies need to invest huge amount of money in research and development activities regularly and the new business doesn't have so much fund to carry out these activities frequently. All this factor decline the threats of new entrance in the market but if the market is having a good growth rate and profitability then multinational company can enter the market(Fleming and Koppelman, 2016). Buyers power: The power of the buyers in these business sector is very high because almost every company in these industry uses competitive pricing with special and extra features, The customers in this situation are in winning corner because the customers can opt for different brand if he/she is nor satisfied from the price of the product. Threats of substitution: The threat of substitution is very high in this business sector because the company interest lots of money in research and development every year. After few months of mobile launch the same phones are available at cheaper price because of regular innovating in the industry. Supplierspower:The power level of the supplier are medium because they have option to supply to various mobile manufactures. This is also the reason behind their high bargaining power. Rivalry : The competition in this business sector is very high because of the profit margin in the business and the regular rate of innovation has increased the competition in the market of mobile manufacturers(von Bonsdorff and et.al., 2018).
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2.7 Pestle analysis Political Factors: The political factors can impact the firm in both positive and negative impact on the business activities of the company. If the government of the home country has good relation with other countries then it opens more growth opportunities for the business like Navy company. If the trade and business policies of the country are favorable for the companies then it will increase the chance of growth and development. Economic Factors: Economical factor have a big influence in on the companies like mobile manufactures because if the economic is unstable and the inflation is high that will surely increase the prices of raw material and price of other service and products company purchase form others and the company like Navy can't increase their price of product after introducing the first batch in the market(Bower, 2018). Social Factors: Social factor include the income group of the customers, age, gender and many more. These factor have a direct impact on the demand of the product. If the education level and the income of the customers are high then the customer are more willing to purchase the premium products of the company. Navy introduce their products with every price range so every customer can afford the product of their brand. TechnologicalFactors:Thetechnologyfactorhaveahugeimpactthemobile manufacturing industries because the mobile industries are totally dependent on the better quality and advance technology. The Navy investlot of money in Research and development to cop-up in the competitive market. Legal Factors: With the change in government, the new government introduce new rules in the country and the company need to change their business structure according to the new rules. If the company violent any rules and regulation then the company need to pay huge money as penalty and fines, Environment factors: The factor came to spot light in recent year because of lack of raw materials and increase in pollution. The company need to contribute towards the social culture factor which helps company to gain good reputation in front of customers. The Navy company have a strict waste-management policy in their company moreover the company uses their resources in very effective manner(Holling, 2017).
2.8 Competitive Advantage Competitive advantage refers to the position where company is earning more profit as compared to their rivals. It is considered to be the unique ability of the company which make its value proposition higher than competitors (Amarakoon, Weerawardena and Verreynne, 2018). Competitive advantage helps company to sustain its business in competitive business world. There are various frameworks through which Navy Company will analysis its source of competitive advantage. These frameworks are as follows - VRIO ANALYSIS VRIO analysis is the analytical framework used by the company. This analysis helps company to evaluate its various resources which will lead company to get to know about its competitive position which is related to the competitive advantage (VRIO Analysis,2018). There are 4 dimensions through which company is able to understand its effectiveness regarding the resources. These 4 dimensions in the context of Navy Company are as follows - (Illustration1: 4 Dimensions of VRIO analysis Source:VRIO Analysis, 2018)
Value— Navy's financial, non-material and human resources are unique which create value for the customers. This make company to gain financial and competitive benefits. This make organization at the competitive advantage position. Rareness— For the competitive advantage, Company's resources should be rare and uncommon. Navy's human and financial resources are rare for another companies. This make it more competitive strong as compared to another businesses. Imitability— Here, imitability means the resources, (company has) are very difficult and expensive for the another companies to imitate. It leads company to gain competitive advantage over its competitors. In case of Navy Company, it is very difficult for its competitors to try to copy their resources which lead Navy to gain competitive advantage. Organization— Navy company is properly organized its management system, structure, culture, employees, objectives and activities (Miller, 2019). This lead to properly utilization of human resources, financial resources and non material resources of the company. Due to this proper organization, company is able to gain competitive advantage. From the above analysis, it can be demonstrated that company's various resources are well utilized which lead company to successfully able to reduce it's some costs as compared to another companies. Overall, it makes company's position competitive. VALUE CHAIN ANALYSIS Value chain analysis refers to the process of analysing various business activities in order to get to know about the contribution towards the value creation of the company (What is value chain analysis ?,2019). These business activities are highly divided into 2 types of activities – Primary Activity and Support Activity.
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(Illustration2: Activities involved in Value Chain Analysis Source:What is value chain analysis ?, 2019)
Value chain analysis of the Navy Company - For the analysis, Company have to look upon its primary and support activities which are as follows - Primary Activities - Inbound Logistics— It refers to the activities which include the receiving, storing and supplying of raw materials from the warehouses to the production department in order to manufacture the mobile phones. Operations —It refers to the activities which is related to the conversion of raw material into finished goods. It is also known as production process. Outbound Logistics— It is just opposite of inbound logistic. In outbound logistics, finished goods such as mobile phones and its related activities are being distributed to the customers. It includes various direct and indirect channel distribution. Marketing and Sales— It involves all those activities through which Navy company is creating awareness about their products in order to enhance the selling of the mobile phones. Services —It can be defined as the activities through which company is maintaining or improving the products' performance in order to create more and more value of the products for the customers. Support Activities - Procurement— It refers to the process through which company is able to purchase the required resources and raw materials for the purpose of producing mobile phones. Technology Development— This support activity is related to the research and development process of the organization in order to do improvement or up-gradation in the products. Human Resource Management— It refers to the activity which is related to the human resource capital of the Navy Company. Without this activity, no organization will be able to conduct primary and support activities both. Firm Infrastructure— Firm infrastructure is the management structure and system through which the whole organization is able to do another business activities such as planning, financing, budgeting, controlling and complying with rules & regulations etc. (Jones, Demirkaya and Bethmann, 2019).
THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow year 1year 2year 3year 4year 5year 6year 7year 8 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Illustration3: Variable Production Cost year 1year 2year 3year 4year 5year 6year 7year 8 0 100,000 200,000 300,000 400,000 500,000 600,000 Illustration4: Contract Manufacturing Cost THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow
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From the above graphs, it can be analysis that Navy Company's value chain's all the cost is high as compared to some another companies. If talk about variable production cost, Navy company is trying to reduce it but another companies' production cost is lower than compared to the firm. Thus, this make value chain poor. If analysis of contract manufacturing cost, Navy's cost is lower than other companies such as Innovators, Red, Blue, Leaders and Grey. This make value chain of the company strong. Navy's transportation cost and tarrifs are low as compared to the another companies which make its value chain stronger. Thus, it can be said that Navy's value chain is helping company to gain competitive advantage. year 1year 2year 3year 4year 5year 6year 7year 8 0 50000 100000 150000 200000 250000 300000 350000 400000 THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow Illustration5: Transportation and Tarrifs
STRENGTHSANDWEAKNESSESOFRESOURCES,CAPABILITIESAND COMPETENCIES SourcesStrengths of the resources of Navy Company Weaknesses of the resources of Navy Company ResourcesDuetohighresearchand developmentinvestment, Company is able to utilize its resourcesoptimumwhichis benefit for the firm. Company's material resources are not rare and uncommon. This lead company's finished goods to be somehow common withanothercompanies' finished goods. Thus, this lead customersswitchratetobe high for the Navy. CapabilitiesCompany's management team isveryactive,doalotof market research in the context of strategies. Overall it leads company'scapabilitiesto improve. Therearevarioussources which help another companies to get to know about Navy's plans and strategies which is consideredtobethe weaknesses of the capabilities of the company. CompetenciesCompany'shumanresources areunique.Thisisbecause companyisfocusingonthe traininganddevelopment strategies. Due to high specialized team, company has to retain them for thebettermentofthe organization.Thislead companytodoalotof expenditureonthem (Amarakoon,Weerawardena, and Verreynne, 2018).
3. Critical analysis of Marketing expenditure. Marketing has been defined as those business activities which helps company in gaining competitive advantage with the help of advertising, promotional functions. Marketing is one of the techniques with the use of which business has been able to provide awareness to public at large regarding to its own business products and services. It also helps company in acquiring competitive edge in comparison of its competitors. The aim of marketing activities is assess all the market segments as well as customer base which will help company in yielding high profit returns. Marketing activities as undertaken by company is required to incur huge cost expenditure which is known as Marketing expenditure (Tsui and Balli, 2017). All the expenses in form of payment, investment made in relation to marketing and promotional business functions accounts for marketing expenditure. Advantages of marketing - Provides better quality products as compared to competitor. Establishing relationship with customers Helps in building brand value, trust, awareness among the customer Disadvantages of marketing - Requires innovative as well as creative business ideas for attracting new segment of customers in the market. One of the costly business process which is not supported by small business firms.
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3.1. MARKETING EXPENSES THE INNO VATO R'S (in $) RedBlueLeader sGreyOchrePinkNavyYellow Year 130,60062,00023,60029,18029,18029,18029,18029,1800 Year 21,07,00 062,00023,60028,80029,18029,18029,18029,1800 Year 31,10,11 362,00025,10028,80029,18029,18029,18029,18029,180 Year 41,05,00 075,00028,10029,50029,18029,18029,18029,60029,180 Year 51,12,00 075,0001,12,49 929,50029,18029,18029,18029,60029,180 Year 61,11,50 054,5001,14,99 930,40029,18029,18029,18029,60029,180 Year 71,25,00 061,6962,10,59 932,70029,17029,18029,18029,60029,180 Year 81,64,00 061,69615,30032,70029,60029,18029,18030,50029,180 Total marketin g expendit ure 7,01,21 3452196538497208880204250204260204260205940145900
Interpretation –From the above table it can be interpreted that as compared to other competitive business firms, Navy is having constant marketing expenditure for last 8 years. It depicts that Navy company is already established in market with good market as well as customer share and is not required to incurred huge business expenses on marketing activities as done by its competitive business firms. 3.2. PERCENTAGE SHARE OF MARKETING EXPENDITURE ON YEARLY BASIS THE INNO VATO R'S RedBlueLeader sGreyOchrePinkNavyYellow Year 14%14%4%14%14%14%14%14%0% Year 215%14%4%14%14%14%14%14%0% Year 316%14%5%14%14%14%14%14%20% Year 415%17%5%14%14%14%14%14%20% Year 516%17%21%14%14%14%14%14.00%20% Year 616%12%21%15%14%14%14%14%20% Year 718%14%39%16%14%14%14%14%20% Year 823%14%3%16%14%14%14%15%20% Total marketing expenditur e 100%100%100%100%100%100%100%100%100% Interpretation –It can be assessed that half of the competitors business firms such as Red, Blue, Yellow are having very low marketing expenditure at the initial time period which increases later on from large number i.e. ranging from 4% to approximately 23%. It means that all these companies are not having enough capability and quality products which can retain its
customerandisthusrequiredtoincurhugeexpenditureonitsmarketingactivities.In comparison of which Navy is having stable level in respect of its marketing expenditure which is good as it is not has to engage in promotional activities on large scale. 3.3. REVENUE AMOUNT THE INNOV ATOR' S (in $) RedBlueLeadersGreyOchrePinkNavyYellow Year 113,23,38 9 13,21,11 69,98,64714,00,62 2 13,67,2 20 13,67,2 20 13,14,1 24 13,14,1 240 THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow 0 50000 100000 150000 200000 250000 Marketing expenditure Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8
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Year 221,26,42 3 11,95,07 78,99,09819,50,07 9 12,52,9 56 12,52,9 56 12,42,1 76 12,86,6 470 Year 322,92,97 0 10,35,18 49,53,03819,26,15 4 10,27,4 54 10,27,4 54 10,24,7 00 10,68,1 08 7,68,60 7 Year 425,16,36 6 26,53,31 26,62,41224,46,59 4 9,39,83 3 9,39,83 3 9,38,93 8 9,88,79 3 8,82,13 7 Year 524,80,57 9 31,59,34 46,14,34026,63,43 9 11,33,1 08 11,33,1 08 11,32,8 79 11,93,7 19 11,16,8 09 Year 632,28,82 8 54,38,08 49,93,89434,18,89 1 13,03,6 10 13,03,6 10 12,58,3 14 13,54,5 69 12,58,1 82 Year 721,96,93 5 59,15,81 722,51,21232,44,93 6 11,76,8 09 11,58,0 61 11,15,6 30 11,98,4 41 11,15,6 73 Year 865,23,01 6 57,32,71 648,61,91543,59,29 5 14,33,5 9343,8139,75,45 6 11,25,6 28 13,43,2 42 Total2,26,88, 506 2,64,50,6 50 1,22,34,55 6 2,14,10, 010 96,34,5 83 82,26,0 55 90,02,2 17 95,30,0 29 64,84,6 50 Interpretation –In case of revenue amount, Navy is earning $ 95,30,029 within a period of 8 years by incurring marketing expenditure of $ 205940 which is considered as one of the best management business function. The company is performing in much better manner as compared to its competitors which are required to incur huge expenses on their marketing activities. 3.4. PERCENTAGE OF REVENUE DESCRIPTION ON YEARLY BASIS THE INNOV ATOR' S RedBlueLeadersGreyOchrePinkNavyYellow Year 16%5%8%7%14%17%15%14%0%
Year 29%5%7%9%13%15%14%14%0% Year 310%4%8%9%11%12%11%11%12% Year 411%10%5%11%10%11%10%10%14% Year 511%12%5%12%12%14%13%13%17% Year 614%21%8%16%14%16%14%14%19% Year 710%22%18%15%12%14%12%13%17% Year 829%22%40%20%15%1%11%12%21% Total100%100%100%100%100%100%100%100%100% Interpretation –From perspective of percentage of revenue earned on yearly basis, it can be concluded that Navy is earning at same rate which can be some where considered as a positive factor but on the flip side being operating in the same business line it is required to have increase in its growth level which is missing as compared to its competitors.
4. Recommendations As per the analysis done it can be recommended to the company that its should has its focus on implementation of better improved techniques for the betterment of growth of company. It is very much important for every business organisation to capture market opportunities so as to make high profit margin. By making use of suitable business plans and strategies, competitive edge can be gained from the market place. Thus, for company following are recommendations which can help in capturing of large market and customer share: Focus should be made on extending of business operations in new product market i.e. by coming up with new product and services it can remain competitive. Also, it is required to make improvement in its technologies and business operations as used by its competitors for acquisition of large customer base which will help in yielding high revenue to the company. One of the most effective manner in which company can makes high profit is by adopting best marketing method, which is of cost effective nature. PART 2- Stakeholder Report Stakeholders are the key members of the organization which are directly or indirectly attached to the company and that influenced the actions, objectives and policies. Stakeholder includes employees, creditors, directors, governance, owners, community, suppliers etc.(Ansoff and et.al., 2018). In order to achieve success in the market, Cesim company used to identify there stakeholder and prioritize the needs accordingly so that they engage with the company. THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow 0 10000000 Revenue year 1year 2year 3year 4year 5year 6year 7year 8
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Toidentifythestakeholdersneedsandexpectations,Cesimcompanyhasused Mendelow's power model which is based on power and the ability to influence the strategies and project of the organization. This model or mapping also helps in communicating the right stakeholders at right time by using the best communication strategies. Level of Interest Power LowHigh LowMinimal Efforts Community Industry body Society Keep Informed Employees Unions Competitor HighKeep Satisfied Customers Government Media Key Players Management and BODs Investors Owners Cesim Company will make an action plan that depicts the position of stakeholders: High Power, High Interests People (Manager Closely):The people with high power and high interest are the Owners of the company, shareholder, management and Board of directors. These shareholders are top-level management and investors of the Navy. All of these have high power and high interest in the Navy because of their lawful right in decision-making process and high position in the company. The company should use verbal communication strategy for these stakeholders.
High Power, less Interested people (Keep Satisfied):The Stakeholder which are has high power but less interest in the company are the Government of the company, media and the consumers. The reason behind their high power are the company need to follow their guidelines to practice their business activities, or they are the main source of income for Navy. The communication strategies Navy should use for these stakeholders are visual and verbal, it completely depends on the situations. Low Power, Less Interested people (Minimal effects):The people with minimum interest as well as minimum power in the organization are the community, society and industry body. The reason behind their low power and low interest in the company is because they have no relation with the business operation of Navy. If there is a need of communicate for these stakeholders, the company should use verbal communicate strategy. High Power, less Interested People (Keep Informed):The Stakeholders which has low power but high interest in the organization are the employees of the company, unions along with the competitors of the company. These are those stakeholders of the Navy which either work for the company or compete against it. The communication strategy that should be used for these stakeholders is verbal communicate strategy however in case of employees and non-verbal communicate strategy can also work.
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