Kingspan International Strategy Analysis Report: BUS 123, Semester 1

This report provides a comprehensive analysis of Kingspan's international marketing strategy. It begins with a company profile and then applies several key marketing and management models, including Hambrick and Fredrickson's Five Major Elements of Strategy, a macro-environmental analysis using PESTLE, Porter's Five Forces, VRIO analysis, and Ghemawat's CAGE framework. The report also considers De Wit and Meyer's profitability-responsibility tension. The analysis evaluates Kingspan's strategic coherence, the fit between its strategy elements, its ability to differentiate from competitors, and the principal opportunities and threats it faces in the broader macro-environment and industry. The report uses these models to assess Kingspan's performance and provides a summative analysis of the company's international strategy.

Running head: MANAGEMENT
International strategy of Kingspan
Name of the student:
Name of the university:
Author note:

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Table of contents
Contents
Introduction................................................................................................................................2
Company profile.........................................................................................................................2
Multi-model analysis..................................................................................................................3
Hambrick and Fredrickson’s Five Major Elements of Strategy Content...............................3
Macro-environmental analysis...............................................................................................5
Porter’s Five Forces Framework............................................................................................7
VRIO analysis of resources and capabilities..........................................................................8
Ghemawat’s CAGE Framework............................................................................................9
De Wit and Meyer’s profitability-responsibility tension.....................................................10
Summative analysis..................................................................................................................11
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
Marketing and management are the terms, which can be placed side by side.
Managing the marketing activities is assistance for the sellers in terms of assessing the ways
in which the buyers can be attracted towards the products and services. Tactical approach of
the marketers is beneficial in terms of luring the purchasing power and decision of the clients
and customers. Using the marketing and management models seems to be a productive option
for estimating the outcomes in a strategic manner (Rothaermel 2017). These models helps the
brand personnel in mapping the feasibility of the strategies and plans in the current business
scenario of the brands. This assignment attempts to shed light on the international marketing
strategies of Kingspan with focus on the marketing models for scanning the effectiveness of
the internal environment for penetrating into the external environment.
Company profile
With the foundation in 1965, Kingspan has achieved accolades and glory as one of the
reputed companies of Ireland dealing in building materials. The operations of the company
are centrally operated from the headquarters of Kingscourt, Ireland. It is traded as ISEQ:
KRX. The outlets of the company are spread in more than 70 countries with 100 factories,
which caters to the employment needs of 13500 people (Kingspan.com 2019). The business
of the company is divided into 5 segments. As a matter of specification, the company deals in
the building materials in the sections of insulated panels, insulation, light, air, water, energy,
access floors among others. Along with this, the company also provides ventilation solutions,
proactive packaging, repairing, maintenance and management solutions to the customers,
which reflects the product diversification. The main focus of the company to achieve
sustainable development through the provision of innovative services to the clients and the
customers. The scope and arena of the company business extends towards community
development, which strengthens the triple bottom line approach (Kingspan.com 2019).

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As per the annual reports of 2018, the revenue generated was estimated to be 4372.5
million euros. The operating income was 423 million euros and net income was 335.8 million
euros. The major drive behind this is the hard efforts of 13,469 employees. The vision of the
company is to emerge as a market leader in energy efficient buildings.
Multi-model analysis
Hambrick and Fredrickson’s Five Major Elements of Strategy Content
Fig: Hambrick and Fredrickson’s Five Major Elements of Strategy Content
(Source: Ansoff et al., 2018)
According to Hambrick and Frederickson, there are five elements, which governs the
strategies of marketing and management. These are arenas, vehicles, differentiators, staging
and economic logic.Arenas reflects the areas of collaboration, innovation and teamwork,
which reflects the good practices of Kingspan. The product and service specifications of
ventilation, insulation, repairing, maintenance and others, which are served to the brands
dealing in the construction works and projects. Proactivity lies in the use of the continuous

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improvement strategies, where innovation is implemented for improving the standards and
quality of the products and services.
According to David and David (2019), Vehicles relates to the areas of operations,
which is diversified in case of Kingspan. Internal development, joint ventures and product
differentiation and diversification are the means through which Kingspan enhances the brand
image. The third element of the strategy is the differentiator, which relates to the generation
of unique value proposition for luring the clients and the customers. The main dimensions on
which Kingspan aims to differentiate itself from the competitors are product quality, price,
services, brand loyalty, customization and others. Mention can be made of wastewater
management, which caters to the preservation of the ecological biodiversity. Cutting edge
technologies are assistance for embracing innovation into the products and services.
Staging is the aspect, which relates to the listing of the major events to cover for
enhancing the brand image and loyalty (Lasserre 2017). The major events, which Kingspan
aims to conduct are achieving sustainable development through the creation of energy
efficient buildings for the communities. From the inauguration of the company in 1965,
continuous improvement strategies and innovation have maintained the balance in the
business operations of Kingspan.
In terms of the economic logic, the basic essence is detecting the ways in which profit
can be generated. Collaboration with the community members helps in invention of lucrative
ways to provide the services to the clients, which is assistance in terms of expanding the
scope and arena of the business. Risk assessment and management exercises are productive in
terms of assessing the potential obstacles in the process of implementing the changes. In this
context, Noe et al. (2017) is of the view that impact assessment is beneficial in terms of
seeking an insight into the avenues, which can be adopted for achieving long term profits.

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Macro-environmental analysis
Justification
Political  Political stability and importance of the material sector
 Military invasion risks
 Corruption
Economic  Governmental interventions in the free market
 Exchange rates and stability
 Labour costs and productivity
Social  Demographics and skill level
 Class structure, hierarchy and power structure
 Entrepreneurial spirit
Technological  Technological impact on the product offerings
 Impact of the cost structure on the industry capabilities
 Value chain structure
 Technological diffusion
Legal  Anti-trust law
 Discrimination law
 Health and safety law
Environment  Waste management
 Recycling
 Greener and ecological products
Table: PESTLE analysis of Kingspan
(source: Morschett, Schramm-Kleinand Zentes 2015)
Political stability helps Kingspan to conduct the import and export activities without
any hassles and interventions. However, the risks of military invasion and corruption acts as

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an obstacle in terms of improving the stability in the relationship with the associate partners
and agencies. Governmental interventions in the free markets is assistance for the brand in
terms of sponsoring productive events for the community people. High exchange rates,
fluctuation in the prices of the raw materials aggravate the complexities in deciding the prices
of the products and services. Labour prices are considered with the other dimensions in terms
of calculating the budgets (Trigeorgis and Reuer 2017).
Demographics and skill level of the staffs affects the human resource management
strategies and practices of Kingspan. Class structure, hierarchy and power structure is
considered for preparing the customer portfolios. Entrepreneurial spirit of the brand personnel
is that of strategic, which results in the achievement of the outcomes according to the
expectations. Cutting edge technologies are used for improving the standards and quality of
the products and services. Impact assessment is done for measuring the impact of the
technological usage for conducting the operations. Technological diffusion rates are also
calculated for measuring the disruptions, which can be obstruct the process of outsourcing the
operations to the external environment.
As per the arguments of Frynas and Mellahi (2015), anti-trust law, discrimination
laws and health and safety laws are the components of corporate governance exercised by
Kingspan. Discrimination laws are an important segment of the Equality Act (2010).
Governmental units and external agents are hired for conducting the inspection, audits and
evaluation of the exposed performance. Adherence to the standards and protocols of the
health and safety laws proves beneficial in terms of ensuring the wellbeing of the clients and
the customers. Along with this, mention can be made of the Data Protection Act (1998),
which enhances the safety, privacy and security of the personal information shared by the
clients and customers. Waste management, recycling and greener marketing strategies

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enhances the brand image of Kingspan. Certo, Busenbark, Woo and Semadeni (2016) states
that these activities are the agents, which provides higher competitive advantage.
Porter’s Five Forces Framework
Threat of new entrants
New entrants of the brands dealing in construction materials with low price aggravate
the complexities of Kingspan. These brands intend to provide new value propositions to the
customers, which acts as an obstacle for Kingspan to retain the prospective customers.
Concentrating on eco-friendly packaging services for the hot water cylinders is an effective
option in terms of dominating the market.
Bargaining power of the suppliers
The suppliers from where the raw materials are purchased use effective means of
negotiation for luring the brands dealing with the construction materials. The impact in this
context is low, which provides power and authority to Kingspan to enjoy higher competitive
advantage (Aguinis, Edwards and Bradley 2017). Adding cutting edge technologies for
expanding the scope and arena of the supply chain network is beneficial in terms of
influencing the purchasing power and decisions of the suppliers. Third party manufacturers
act as an agent in completing the business cycle.
Bargaining power of the buyers
The customers demand best quality solutions and building materials at minimum
price, which pressurizes Kingspan in terms of enhancing the productivity and profitability on
a long term basis. Adopting social media marketing is assistance in terms of strengthening the
customer base. Discounts and offers on the purchase is one of the means through which the
buyers are attracted (Zhao, Fisher, Lounsburyand Miller 2017).
Threat of substitutes

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Substitute hot water cylinders, oil tanks, repairing and maintenance services from the
emerging brands aggravate the complexities of Kingspan in terms of achieving trust, loyalty
and dependence from the clients and the customers (Baumgartner and Rauter 2017).
Competitive rivalry
Competition between Kingspan and brands like CENTRIA, McElroy Metal, AMARK
Metals and others intensifies in terms of the strategies used for luring the customers.
Workforce strength is weaker in CENTRIA, which helps Kingspan in achieving higher
competitive edge.
VRIO analysis of resources and capabilities
VIRN analysis is assistance for the brands to gain an insight into the ways in which
competitive edge can be strengthened. The components of this analysis are value, rareness,
imitability and non-substitutable.
Economic rent sources are obstacles for the new entrants to establish their position in
the market. This aspect is beneficial for Kingspan to redesign the marketing strategies, so that
more customers can be lured to the brand. Outsourcing the business strategies to the external
agencies acts as an agent in terms of expanding the scope and arena of the supply chain
network (Hitt, Ireland and Hoskisson 2016). The major drive behind this is the latest
technologies like cloud computing, Big Data and others enabling the staffs to store bulk data.
Inventory management is one of the parameters, which assists Kingspan to minimize the
delays in making the supplies according to the requirements. Tracking devices are used for
monitoring the manufactures, which is assistance towards averting the instances of
complaints due to defective products.
Premium quality pricing strategies for the raw materials act assistance for generating
customer loyalty. Aggressive marketing strategies like product development is one of the

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sources through which plans are created for penetrating into the foreign markets. Considering
the speed of the delivery of the orders is also one of the aspects, which makes it rare from the
competitors. Reduction of the operational costs and deals for the suppliers is one of the
means, which is imitable, intensifying the competitive rivalry. Therefore, Hanson et al.
(2016) assumes that attempts can be made for upgrading the customer care and support.
Expanding plans is also effective for strengthening the customer base. Wastewater
management reflects the flexible capabilities in terms of accomplishing the goals and
objectives. Generic commodity market is beneficial for stabilizing the position in the local
markets of Ireland.
Ghemawat’s CAGE Framework
The main components of CAGE framework are cultural distance, administrative
distance, geographic distance and economic distance. In case of Kingspan, the cultural
distance includes ethnographic differences reflecting the socio-cultural background of the
employees. Social media marketing is assistance in terms of diversifying the workplace
culture. Ethical Code of Conduct is implemented for standardizing the organizational
behaviour (Engert, Rauterand Baumgartner 2016). Strict action is undertaken for ensuring
that there are no instances of conflicts, discrimination, harassments, dilemmas and others.
The aspect of protective packaging is considered to possess the high linguistic contents, as it
is the topic, which draws the attention of the customers and the environmentalists.
In case of the administrative parameter, the corporate governance relates to
community wellbeing policies and plans, which expands the scope and arena of the business.
Mention can be made of the Equality Act (2010), Data Protection Act (1998), ethical code of
conduct, which ensures the privacy and security of the clients and customers. Along with this,
environmental; directives are complied with in terms of contributing to the preservation of
the ecological biodiversity. Specific reference can be cited of the wastewater management,

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which is done under the supervision of the experts for averting the mistakes and illegal
instances (Höglund et al. 2018). In this context, Health and Safety laws are also implemented
for standardizing the manufacturing processes.
Geographic distances are covered through the means of social media marketing and
outsourcing activities. Acquisition of the brands dealing in transport facilities and services is
assistance for Kingspan in terms of linking the factory produce to the deliveries in the firm.
The flexibility of these transports are thoroughly checked for averting the instances of
malfunctioning at the actual time of deliveries. Climactic differences are mapped before
planning the transportation of the manufactured products to the firms. Consciousness in this
direction is effective in terms of ensuring the freshness of the products until it reaches the
clients and the customers.
Economic distances are covered by Kingspan by catering to the income and lifestyle
of the customers. This activity is assistance in terms of identifying the targets, which helps in
improving the focus of the business (Bergh et al. 2016). Costs and quality of the raw
materials differs according to the geographical area specifications. Accessibility to these raw
materials and innovative packaging prices decides the budget allocation.
De Wit and Meyer’s profitability-responsibility tension
De Wit and Meyer’s profitability-responsibility tension helps brands like Kingspan to
detect the basic sources through which the leadership skills, abilities and competencies can be
enhanced. The dimensions in this aspect are strategy process, strategy content, strategy
context and purpose. The tensions in the strategy process revolve around logic and creativity;
deliberateness and emergence; revolution and evolution. These aspects map the strategic
process from thinking to change. Strategic contents are divided into business level strategies,
corporate level strategies and network level strategies, where the tensions relate to markets
and resources; synergy and responsiveness along with cooperation among the brands for

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maintaining the market position in the competitive ambience of the market (Jenkinsand
Williamson 2015).
Strategic contexts relate to the industry capabilities, organizational capabilities in
terms of controlling the internal resources and capabilities for penetrating into the foreign
markets. In the aspect of purpose, the tension is between profitability and responsibility,
where the true essence of leadership is exposed. Emerging successful in proper execution of
the self-actualization is beneficial in terms of staffs of Kingspan to lure large number of
clients and customers. Mention can be made of the training and development programs,
which briefs the employees about the means of sustainable management practices through
innovation and continuous improvement strategies. The estimated time of the training is 5
hours, within which the employees are trained about the basic means of wastewater
management, managing the floor systems, façade systems, timbers (Rees and Smith 2017).
The employees are inspired through the means of disseminating the importance of self-
evaluation and accepting the way the self is exposed in different situations.
Summative analysis
1. Consistency in the strategic performance of kingspan is reflected from the continuous
evaluations of the performance management. The board panel of Kingspan is entrusted with
the responsibility to prepare the strategies, where continuous improvement strategy attains an
important position. Taking a cue from Hambrick and Fredrickson’s Five Major Elements of
Strategy Content, is can be said that the important parameters of strategic formulation in
brands like Kingspan are aims, objectives, values, mission, standards and benchmark levels
and monitoring mechanisms. The managers and the head of the department are in-charge of
creating 5 year strategic plans, which includes the budget, capital expenditure and material
contracts. The mission is to accelerate zero emissions for ensuring the wellbeing of the clients
and the customers, which is to be achieved through the acquisition of low cost technologies.