Strategic Marketing Management: Lamborghini WOCHOI Singapore Launch

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This report provides a comprehensive market analysis for the launch of Lamborghini's new WOCHOI model, specifically targeting high-net-worth women in Singapore. It examines the automobile industry's market trends using PESTLE and SWOT analyses, identifies key competitors, and assesses customer attitudes. The report also explores Porter's generic strategies, including cost leadership, differentiation, and focus, to determine the most suitable approach for Lamborghini. Furthermore, it addresses social and ethical issues and consumer motivation, detailing segmentation, targeting, and positioning strategies for the new product. The report concludes with recommendations for an extended marketing mix to ensure the successful and sustainable launch of the WOCHOI model in the Singaporean market.
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Running head: Strategic marketing management
Strategic marketing management
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Table of Contents
Part 1: Introduction......................................................................................................................................3
Product........................................................................................................................................................3
Part 2: Market trends...................................................................................................................................4
PESTLE.....................................................................................................................................................4
Political................................................................................................................................................4
Economy..............................................................................................................................................4
Social factor.........................................................................................................................................5
Technological factors...........................................................................................................................5
Environmental factor...........................................................................................................................5
Legal factors........................................................................................................................................5
SWOT analysis.........................................................................................................................................5
Porter’s generic strategies.......................................................................................................................6
Cost leadership....................................................................................................................................6
Differentiation.....................................................................................................................................7
Focus...................................................................................................................................................7
Key competitors..........................................................................................................................................7
Customer attitude........................................................................................................................................8
Social and ethical issues............................................................................................................................10
Consumer motivation................................................................................................................................10
Part 3: Segmentation, targeting and positioning........................................................................................10
Part 4: Recommended extended marketing mix........................................................................................13
Conclusion.................................................................................................................................................15
References.................................................................................................................................................16
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Part 1: Introduction
In the globalizing world introducing a new product is very tough task for any business
organization. In the recent time automobile industry is also experiencing high acceleration in
terms of introducing new products very frequently. In this environment of automobile industry
Lamborghini has decided to introduce a brand new model targeting the women having a high net
worth and disposal income (Tai Tais) oriented lifestyle. Tai Tais is a Chinese colloquial term
which is used for women who do not work and spend so much on themselves to amek their
lifestyle more adventurous and luxurious. It is considered same as the Cantonese title for a
married woman. In order to introduce a new product organizations need to analyze the market
trends and positioning strategies required to make the project successful and sustainable for
longer time period.
Overall design of the car is according to the women’s demands and is expected to attract
maximum number of targeted customers. Company is planning to launch this modal as soon as
possible. For this company conducted a research for the project sustainability in the targeted
country as well as targeted customer segment (Ulrich, 2015). In this report a complete market
analysis of Automobile industry in Singapore has been done for the launch of this new model of
Lamborgini. This market analysis will help to understand market scenario as well as
segmentation, positioning of the new product in targeted market and many more factor to help
the organization in making effective strategies for the business of new modal.
Product
Company is calling this new model as WOCHOI. This name is decided to distinguish and
specify the model particularly introduce for women. Company had designed the new model in
Met Red to attract women. This modal has a cabriolet of Met Black color. This will give a tough
look to the car. In addition, the company has designed a interchangeable bumper that is easy to
fix suitable for women. Interior of the modal has designed to look fancy for women and includes
essential accessories like selfie camera, and a make-up kit to give a quick to their make-up. Door
opening of the car is similar to that of the door opening style in typical high class models of the
brand like Huracan. To make it more attracting company is providing the door line decorated
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with diamonds. For safety purpose, design of the new model provides an internal button that is
linked to police station control room in order to inform in case of any emergency. This will
attract the target customers. To take care of women stuffs additional personalized scuff plates are
provided in the design.
Part 2: Market trends
Singapore has a strong economy with average annual growth rate of 2.0% (Tradingeconomics,
2018). This increasing economy of the country is enhancing the lifestyle of people over there.
This is making companies to enhance their products as per the increasing lifestyle of people.
Especially women in Singapore are increasing their lifestyle more and looking for more and
more luxury (Trollinger, 2016). In this trend automobile industry is experiencing a change in the
market trends of country. This is increasing the demand for luxury cars. Lamborghini can take an
advantage of this trend to introduce this new modal. Further analysis of the market and its trends
can be done with the help of some market analysing tools like: PESTLE, SWOT, and Porter’s
five force analysis. With the help of these tools company can understand the market trends of
Singapore in better way and can prepare more effective strategies for the marketing of this new
model called WOCHOI.
PESTLE
Political
Political scenario of Singapore is quite good for or at low risk in comparison to other Asian
countries. The political and economic risk consultancy has stated that Singapore has the lowest
risk in the continent.
Economy
Singapore is a vibrant developing economy showing a good economic growth rate in last few
years. With a much increasing GDP growth economy of the country is developing at a very fast
pace. With an economic freedom score of 88.8 country’s economy has secured second position
in the list of most free economies for 2018 (Trollinger, 2016). Corruption free environment is
making the county best suitable for business purpose. In addition county has the highest per-
Capita income in ASEAN.
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Social factor
Country is like any other European county having a high literacy rate. Although younger
generation of the county is attracted to the western culture, residents work hard and fulfill their
basic requirements. High class people are more attracted to the western culture and looking for
real luxury.
Technological factors
The IT infrastructure of the country is worthy to praise as it has lowered the cost and time for
conducting business.
Environmental factor
Environment Ministery of the country is continuously working on making environment more
clean and safe for residents. Since pollution due to transportation is the main problem for
government to handle, luxury cars with low pollution are easily marketed to the public increasing
the demand.
Legal factors
Country’s laws and regulation are favorable for business purpose. Transportation laws of the
country are in the favor of business organization as well as consumers.
SWOT analysis
SWOT analysis defines the possible internal and external analysis of the organization to
understand the business in much better way. Business sustainability and growth can be visualized
using tool like SWOT only. For this launch of new modal SWOT analysis of the company is as
following:
Strengths Weaknesses
Lamborghini has a well-established
market in country
Company has a world renowned
brand name
Company has one of the best engines
in world for its cars
Cars manufactured by the company
consumes high cost fuel
Company manufactures cars of high
price
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It has an attraction of Affluent class
Uses best technology for its products
Opportunities Threats
Company can expand its availability
in other segments on the industry
It has an opportunity to manufacture
hybrid cars
Since the company manufactures cars
in limited addition only to rise its
brand value but it can increase its
production as per demands in the
market
Cars of the company consumes more
fuel
More competitors are rising in the
market
Porter’s generic strategies
In order to get a competitive advantage in the market organization need some strategies to make
their product or service more sustainable in the market among other similar products or services.
In this way there are different strategies to take this competitive advantage by any type or
organization or industry. These strategies are called Porter’s generic competitive strategies.
Cost leadership
In this strategy an organization sets out to become the lowest cost product produces in the
industry to attract more customers with its low price tag. Lamborghini cannot follow this strategy
as its cars are very advanced as well as luxury. This much luxury comes with a high price tag
only.
Differentiation
In this strategy organization looks for a uniqueness in its products to introduce its products as
exclusive of its kind. With the launch of this new luxury car designed for women company is
using the same strategy. This main objective of the new car production is in itself a
differentiation for company making its new car unique from any other luxury sports car available
in the market designed especially for women (Bertozzi, Ali and Gul, 2017).
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Focus
This generic strategy focuses on a narrow competitive scope within the industry. Lamborghini’s
new model is also focusing on this narrow competition in the industry to manufacture a care for
women. This main focus of producing a car, targeting only women with high net worth and
disposal oriented income, has more growth opportunities in the market.
Key competitors
Lamborghini is a luxury sport car manufacturing company for high class people. In this segment,
key competitors of the company are manufacturers of same segment sports cars like, Ferrari,
Aston Martin, McLaren, Bugatti, Lotus and many more (Glied and Altman, 2017). These all
brands are manufacturing high class luxury cars availing their customers in an affordable price.
This competition of manufacturing such luxury cars in a low price is creating a tough
competition for all of these brands. Among these Ferrari is making huge revenue of around $3.5
billion (Owler, 2018). The revenue of the company is $700 million (Owler, 2018). The
competitors of the firm include Lotus, Bugatti, McLaren and Bentley that may affect the
operations and success of the firm (Beaverstock and Faulconbridge, 2014).
Perceptual map
High Price
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Low Quality High Quality
Low Price
Customer attitude
It has been noted that in the last few year from 2013 there is a decline in the number of
purchased cars. This was a continuous decline making a serious decrease in the number of
purchased cars. On other hand for the industry it is noted that customers for luxury cars are
increasing continuously.
When it comes to the statistics of number of cars in Singapore there is a decrease in the number
of cars over last few years. This decline in the purchase of cars is recorded only for mass market
brands like: Toyota and Hyundai. Meanwhile number of cars from very high end brands has
increased significantly (Dewhirst and Lee, 2018). This shows that people in Singapore are
demanding more high class cars with luxury and technology. This is a positive point for the
company to launch this new car in such favourable scenario of people switching for costly cars.
The below graph shows that in the last few year the number of mid-low end brand cars has been
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decreased from 83% to 78% whereas the number of high end car brand cars has increased from
17% to 22%. This is a significant growth seen in the number of high end brand cars in the
country (Viscardi, Arena, Barra and Guadagno, 2016).
(Source: https://www.theonlinecitizen.com/2017/03/09/singaporeans-are-buying-fewer-cars-but-
more-expensive-cars/)
Social and ethical issues
If the company launches a new Lamborghini model in the market then it will face ample of
social and ethical issues. Due to change in preferences and tastes of women, the company will
fail to identify the choices of the customers. Along with this, customs, values and buying
behavior issues could also be entertained by the company. On the other hand, ethical issue is one
of the significant issues for Lamborghini while introducing new model in the market. The ethical
issues are related to code of conducts, behavior and ethics.
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Consumer motivation
If the company fulfils the preferences, needs and requirements of the women then it will help to
motivate them effectively and carefully. Various factors need to be considered to motivate and
promote the consumers in the rivalries market. The consumer motivation would increase if an
organization recognize and evaluate the choices of the consumers in a great extent.
Part 3: Segmentation, targeting and positioning
Segmentation
It is stated that segmentation may be defined as a process of dividing the entire market into the
different small units to maximize profitability and revenue in the international market. The new
Lamborghini model WOCHOI will help to improve and enhance its sale and impress large
number of women in Singapore (Taran, Nielsen, Thomsen, Montemari and Paolone, 2015). The
success and growth of new Lamborghini model depend on the target market. Segmentation is
done after considering the four major areas such as demographic, behavioral, psychographic and
geographic (Dibb, 2010). The segmentation areas for Lamborghini new model has been
discussed below.
Demographic: In demographic area, the company will focus on the income, family life,
ethnicity, occupation, religion, social class of women in the marketplace (Lee et al, 2011). The
firm cannot attain long term goals and objectives without using segmentation strategy.
Demographic segmentation is essential to analyze and evaluate the income level of women in
Singapore. Without analyzing and identifying the income level of women, the company cannot
sale new model in the global market. Women who maintain high income level can buy this new
Lamborghini model (Safko, 2010). Lamborghini is a global well known luxury car brand that
represents high technology level, innovation ability, and quality standard. It satisfies for social
super class women to enjoy symbolic brand in the market. Women have an independent and
attractive personality, advocate fashion and strong initiative (Grant, 2016). It is noted that
women do not have much understanding of the car, generally they like cars more than driving
cars. They are highly focused on the price, whether durable and solid whether to safety.
Geography: Lamborghini will also focus on the geographic location to attract and retain
maximum number of women in Singapore. The geographic area includes climate change,
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weather, region, and size. Geocoding may help the company where prospective women
customers may be clustered and target them with ample of campaigns and programs including
direct mail (Chauhan, 2015). Geographic segmentation is significant to stand out against the
competitors in the market. The company is trying to capture entire female target audience by
using segmentation strategy (Caunhye, Nie and Pokharel, 2012).
Behavioral: In this segmentation, the company focuses on the women status, loyalty to the new
model in Singapore. It identifies and analyzes the choices of potential user, nonuser, regular user
and first time user to increase and improve the sale of WOCHOI.
Psychographic: The Company would focus on the psychographic areas such as interests,
opinions, attitudes, lifestyles and activities of women. The organization will further focus on
those women who are working in MNC’s. Lamborghini will identify and measure the disposal
income and net worth of women (David, 2011).
Target market
The main target market of the company would be women who are very rich and lifestyle oriented
with maintaining high net worth and disposal income. The company will further target the
elected women leader and married women. Lamborghini focuses on the income level of women
who seek excitant. So the firm produce new Lamborghini model like WOCHOI which is high
power, high speed and in met red color (Menkhoff, Wah and Loh, 2016). This will help to
maximize the outcomes and revenue and further it will also help to gain rivalries benefits in the
international market. Women pay more and strong attention to the safety performance and car
appearance (Keller, Parameswaran and Jacob, 2011). Generally it is noted that Lamborghini is
not suitable for lady because they are unable to control the Lamborghini. But this new model
WOCHOI would be developed and made after considering the choices, preferences and security
of women in the competitive market. The organization mainly focuses on those women who are
age group between 25-30 years (Bhasin, 2018). Women who age group between 25-30 years is
very exciting, higher consumption ability, seek individual character and they can pay extra what
they want. This age must be the significant marketing Lamborghini object. The luxurious design
of the new model itself will attract the target market but company can showcase this luxury to
attract more women.
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Positioning
Lamborghini has good position in Singapore market for its super cars. Since 2001, Lamborghini
Singapore has handled the exclusive distribution for its super sports cars. This distribution of
exclusive addition cars is managed under the Euro Sports Auto Private Limited. In 2005,
Lamborghini was recognized as “Dealer of the Year in Asia Pacific Region” by Automobile
LamborginiS.p.A. and in 2008 for “Best Sales Performance”. Over that last decade in Singapore,
company had infused sports driving with the spirit of exploration and exhilaration of adventure.
In the target market segment of women of age group 25-30 looking for more adventure and
exploration company will get and advantage. In this order to market this new car company can
use the brand name value along with the uniqueness of WOCHOI. Also the fancy advertising for
the new car will help to attract more women for the car.
A new Lamborghini model that has been taken in the task is WOCHOI. This Lamborghini model
is targeting women who are lifestyle oriented with a high net worth and disposal income (Tai
Tais)). Tai Tais is a Chinese colloquial term which is used for an elected leader wide or head
wide of a multi wife, wealthy married women who does not work or family. It is considered
same as the Cantonese title for a married woman. The care would be in met red color because
this will help to attract maximum number of women in the international market. To market this
new model company will use an attracting slogan goes like: “WOCHOI: Luxury with Power”.
This will give the experience of both the comfort as well as power to make it more adventurous.
To promote this model company can use the below logo matching with the car specifications:
(Source: http://www.likecovers.com/cover/lamborghini-logo-yellow)
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Part 4: Recommended extended marketing mix
The marketing mix strategy is essential and effective to meet the long term requirements and
needs of the business and further, this strategy is also significant to overcome the competitors in
the international market (Yeshin, 2012). The recommended marketing mix for new Lamborghini
model has been discussed below.
The traditional market mix elements
Product strategy: It has been found that Lamborghini is one of the most popular sports car
brands in the world. In today’s era, the company is expanding and exploring the business widely.
The product strategy is vital to introduce or launch new product in the global market. Therefore,
the company will need to use product strategy to fulfill the long term requirements and needs of
the customers (Vrontis, Thrassou and Lamprianou, 2009). Lamborghini is well known for
manufacturing sports cars and SUV’s globally. The special features would be presented in new
model which is developed by the company for women. The company will focus on the interior,
internal button, seat, personalized scuff plates and door to cope up with rivalries in the
competitive market. The company should check quality and features of new model before
launching it in the international market. Effective and unique product strategy shall be used by
the firm to strive with rivalries in the market. It should differentiation its products from the
competitorsto build and develop a dynamic image in the minds of the customers (Mbaskool,
2018).
Pricing strategy: Being a luxury car maker, the company generates a market of buyers who are
seeking for class coupled with performance and elegance as the criteria for making a vehicle
purchase (Avraham and Ketter, 2012). It shall be noted that the company should use premium
pricing strategy to capture entire women in the marketplace. It has been found that Lamborghini
has targeted upper class women who is both affluent and rick as its target customer. By using
premium pricing strategy, the firm would be able to distinguish its product from the rivalries in
the market. The Corporation will adopt premium pricing strategy because it is well aware of its
customer trust and loyalty in a large extent. Maximizing turnover and trading profits have taken
company to new heights (Mbaskool, 2018).
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Place strategy: It has been analyzed that Lamborghini has more than 135 dealers in more than
50 countries. Thus, it can take ample of benefits in Singapore also. Japan, UK, middle East,
Canada and China are largest market for the company to increase and enhance its profitability
and outputs (Mbaskool, 2018). The company should use an effective and efficient workforce for
designing and producing new model MOCHOI in the marketplace. Along with this, it should use
unique and dynamic distribution channel that helps in prompt distribution with the support of
dealership, manufactures and franchise arrangements. Distribution strategy shall be used by the
company to introduce new model WOCHOI in the market. By using distribution strategy, the
company has been able to capture entire target audience through its supply chain. Place should
be decided after considering the needs and requirements of women in Singapore (Mangold and
Faulds, 2009).
Promotion strategy: Lamborghini is one of the biggest and popular luxury brands in the market.
The company should adopt various marketing plans to remain in limelight and generate brand
visibility in the minds of the consumers. Lamborghini is a well-known brand name and is known
even in place where it does not operate its promotions activities globally. The firm should use
pull and push advertising strategy to direct sale the products in the market. Apart from this, push
ad shall be done by the organization to promote new Lamborghini model in Singapore. Extensive
marketing campaign and programs which include niche marketing, digital marketing, and GTR
racing must be used by Lamborghini to launch new model WOCHOI in the international market.
The social media platforms and promotional events can also be further used by the firm to attract
ample of women widely. Commercial channels such as magazines, television and billboards
might also be used to increase awareness among the women (Mbaskool, 2018).
Service marketing mix elements
People: The company posses effective and dynamic management team to conduct business
activities and actions in a hassle free manner. Lamborghini hires qualified, skilled and talented
staff to offer products in the global market. No company can attain uplift profitability without
using dynamic and strong management team in the competitive market. It is recommended that
the company should focus on the training and development coaching of the workers to increase
the number of women internationally (Bhasin, 2018).
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Process: The delivery of cars shall be done with the customer present so that long term
objectives and goals can be attained. Lamborghini should use effective and unique process to
produce new model in the market (Lovelock and Patterson, 2015).
Physical evidence: Physical evidence shall be provided by the firm while selling the WOCHOI
internationally. Along with this, some additional services must also be provided by the company
to women globally. Apart from this, managers and employees should maintain reciprocal
relationship with customers at the stores while selling. In this way, the company has been able to
introduce new model WOCHOI in the global market (Gordon, 2012).
Conclusion
On the above mentioned analysis it is concluded that Lamborghini is one of the biggest brands
who produces sports cars and SUVs. The above mentioned analysis shows that how the company
produces a new model MOCHOI for women customers in the international market. Here is the
discussion about the marketing trends and environment that help in maximizing the sale and
revenue of the firm in the market. Pestle analysis, SWOT analysis and key competitors that play
a vital role in launching new model in Singapore also have been explained in the task briefly.
There are four parts of the task: in first part the paper provides a brief information about the new
Lamborghini model and second part, the paper outlines the pestle analysis, consumer behavior
and SWOT analysis. In third part, the paper shows that how segmentation, targeting and
positioning strategy help in attain attracting and retaining the women customers globally. In final
part, a recommended marketing mix strategy has been explained briefly.
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