MKT4221: Leadcom Corporation's Global Marketing Strategy for Germany

This report examines Leadcom Corporation's strategy for entering the German telecommunications market. It begins with an introduction to the company and its global objectives, followed by an in-depth analysis of both macro and micro environmental factors influencing the market. The analysis in...Read More

Marketing

Executive Report
Report will prepare about changes in an economy that will affect working of
leadcom corporation. Strength in economy of Germany help company to achieve their
goals and objectives of business easily. Support of UK government make organization
work attractive and effective. Cultural analysis make employees more attractive in
different dimensions of both Malaysia as well as Germany.

Table of Contents
INTRODUCTION...............................................................................................................3
Analysis and Findings .......................................................................................................4
Macro environmental factors ........................................................................................4
Micro environmental factors .........................................................................................5
Hofstede's Culture.........................................................................................................6
Market selection strategy ..............................................................................................8
Mode of entry ................................................................................................................9
Recommendations and implementation..........................................................................10
CONCLUSION ................................................................................................................11
REFERENCES ...............................................................................................................11

INTRODUCTION
Marketing play an important role in promotion of products and services and to
make organization goals attractive and achievable. Leadcom corporation is an
Telecommunication company with quality services like Digital loop carriers, rectifiers
and multiplex system. Report will discuss about macro environment like economic social
and cultural forces that will affect working of organization. Discuss porter five forces to
analyze micro environmental factors. Cultural analysis with Hofstede Dimensions,
market selection strategy with help of STP analysis. Discuss mode of entry in German
market for Leadcom Corporation.
Bout Leadcom Corporation
leadcom global objective
Global objectives of Leadcom are to
 To increase its market share by 10% in global market by end of present financial
year.
 To increase global consumer awareness by means of expanding operations.
 To reduce cost of domestic operations by 5%.
ANALYSIS AND FINDINGS
Deeplist analysis
Leadcom corporation SDN BHD company of Malaysia wants to expand their
business at global level to improve their presence and increase overall profitability of
business. The company can make Germany its host country for expansion of Business
because Germany is Developed country and which is why can provide all the required
resources for business along with opportunities.(Roberts, Kayande and Stremersch,
2019). DEEPLIST Analysis includes analysis of Demographic, Economic,
Environmental, Political, Legal, Informational, Social and Technological factors of
business. Through this framework business can identify and understand influence of
these factors to identify potential opportunities and threats that are there in Micro
Environment. Skilled labour and resources available in economy help them to minimize

cost of production. Due to development in economy and rapid changes help Leadcom
corporation to achieve their goals easily. Leadcom is a telecommunication industry and
overall investment of Germany in their research and development projects and focus on
areas like energy. IT, security help company to expand easily.
Germany is a 4th largest economy all over the world and high standard of living and
social security help businesses to expand easily. Some of the Macro factors that help
Leadcom corporation to develop their business in economy are as follows.
Demographic  Current population of Germany is
83,705,138 which is projected at
83,783,942 at mid year.
 76.3% population of Germany is
Urban population.
 Germany has the largest telecom
market of the Europe.
Economic  Gross demostic product per capita
in Germany is $46,564 whihc have
increased by 1.2% in 2020.
 In this 68.7% GDP is contributed by
service sector.
 Germany is fourth largest country in
the world.
 IN 2017 country accounted for 28%
of Euro market by IMF.
Environmental  German has been considered as top
third country suffering from extreme
whether condition by global Climate
Risk Index.
 In this factor those who are charging
high for practices which are

environment unfriendly are taxed.
Political  Germany is 9th least corrupt country
in the world.
 Political stability of the Germany is
very high.
Legal  The level of business freedom in
Germany is 83.3%.
 Telecommunication business in
Germany is Governed by
Telecommunication Act.
Information  In global consumer confidence
index of 2018 rank of Germany was
108.
social  Consumer behavior in Germany is
very ethical.
 In present environment customers
trust more on customers rather than
businesses.
Technological  In Germany ministry of technology
and Science organize and
coordinate and decides for
programs of science on the country.
Porters five forces
Threat of new entrants It is largely depends on barriers for to enter
in a specific market for new companies. If
no barriers are available then it becomes
easy for a company to enter into a market.

Threat of new entrants in germany for
leadcom corporation is low because in
economy large number of organization are
working in different market. Due to high
capitalization cost for setting new network,
distribution and other services reduce new
entrants in market. Large number of rules
and regulation for telecommunication and
technical industry make it tough for new
entrants and it is quite expensive and
require capital for factors like production
and manufacturing.
Bargaining power of suppliers Overall profitability of company largely
depends on their suppliers. Bargaining
power of suppliers in germany is low
because large number of suppliers are
available in market and few buyers and
industry are available in market(Gneezy,
2017). It help Leadcom corporation to
expand their business easily increase
profitability by gaining a cost advantage
from suppliers in market.
Bargaining power of Buyers High quality of products and
affordable prices affect customers power.
In germany due to few companies are
available in market reduces bargaining
power of buyers and help Leadcom to
increase their customer base. Increase in
income and standard of living of
consumers decreases their bargaining
power and concentrated customers base in

market make it easy for company to
increase their sales.
Threat from substitute products When buyers easily able to find a
substitute product with effective price and
better quality of product reduces
profitability of organization. Substitute
products in telecommunication industry of
germany is low because of non traditional
products which are reasonable for
consumers. Due to new innovation of
internet telephones and other services
make Leadcom corporation to innovate
new services for customers to gain an
competitive advantage in market.
Rivalry with existing players Rivalry from other players is now for
each and every industry all over the world.
Competition form other rivals in germany is
intense for Leadcom corporation and
require more investment in research and
development activities to compete in
market. Company need to know customers
expectation and needs and prepare their
product according to those needs of
customers.

Hofstede's Culture
It is one of the most comprehensive studies to know how values in workplace are
influence by culture(Wirtz and Lovelock, 2016). Dimensions help to distinguish
members of one group from people of other. Model consist of following dimensions to
distinguish Malaysia culture from Germany.
Dimension Malaysia Germany
Power Distance Index
Dimension expresses
degree to less powerful
members of society accept
and expect power is
distributed unequally. It also
shows all individual in
society are not equal and
have culture of unequal
attitude.
In Malaysia power score is
very high which is 100
means everybody in society
accept a place and have
their own needs, employees
are able to take their
decision on their own and
equal distribution of work.
Germany belongs to low
power distance countries
with score of 35. Common
meeting style and
participative communication
with employees.
Management and
leadership take all decision
and provide guidance and
employees have less power
to take decision.
Individualism
Dimension means
individual take care of their
own or their immediate
families(Goldberg, Fishbein
and Middlestadt, 2018). It
shows a self image of
individual is defined in
terms of I or We. In
collectivism preference of
an individual to take care of
Malaysia belongs to
collectivism society with
score of 26. In country
employees have strong
relations with their employer
where they take
responsibilities of each
other and link with each
other like a family. Show
close commitment to family
and relationship in
Germany belongs to
individualism society with
score of 67. Individual is
responsible towards
immediate families.
Preference of people play
an important role in their
loyalty and increase
responsibility (Goldberg,
Fishbein and Middlestadt,
2018). Relations of

relatives in a particular
group in exchange of
loyalty.
exchange of loyalty. employee and employer are
more based on contract
rather than trust and mutual
agreement.
Masculinity
Masculinity shows a
preference of an individual
in society like achievement,
assertiveness, reward for
success that shows them
unique or different from
crowd. Feminine culture
shows that people care for
each other and to improve
quality of life rather than
standing different from
crowd.
Malaysia with score of 50
unable to identify preference
of people in this dimension.
Germany belongs to
Masculine society with
score of 66 people value
performance they show
status on basis of cars,
watches, technology.
Employer provide rewards
and benefits on basis of
performance and efforts of
employees. Achievement of
goals is priority of
businesses and employees
in economy.
Uncertainty Avoidance
Dimension shows the limit
of members in society to
which they feel
uncomfortable with
uncertainty and ambiguity.
Issues is that how society
manage the fact that future
is never known.
In Malaysia has low UAI
with score of 36 as compare
to Germany. Society has
relaxed attitude towards
uncertainty or changes in
the future (Goldberg,
Fishbein and Middlestadt,
2018). People are not afraid
of innovation, employees
are flexible at work and
have a set schedule. People
believe rules are not
Germany belongs to High
UAI countries with score of
65 proper planning and
systematic overview to be
given in order to proceed. In
Germany employees are
ready with their plans in
case of changes and
acceptance to change is
also low in Germany.

necessary it they are
ambiguous.
Long term orientation
Dimension shows society
need to manage link with
past to deal with future
challenges. Societies with
low score maintain time
honored traditions in
viewing societal changes.
Society with high score
have pragmatic approach
with efforts in education to
prepare for future (Payne
and Frow, 2017).
Malaysia indicates
normative culture with low
score of 41. People put
more emphasis on getting
quick results and have
respect for tradition and
concentration to save future
is also less.
In Germany people belong
to Pragmatic approach with
high score of 83 people are
able to adapt traditions
easily and work according
to changing situation
(Payne and Frow, 2017).
More emphasize to save
and invest and to achieve
positive results.
Indulgence
Dimensions means human
drives related to enjoying
life and having fun also
shows extent to which
people try to control their
desires and impulses.
In Malaysia with high score
of 57 indicates that the
culture is indulged. People
put more emphasis on
enjoying their life and fulfill
their desires and have fun.
They put more efforts and
time in leisure activities and
spend money to enjoy.
German belongs to restrain
culture with low score of 40
people have less time to get
indulged in leisure activities
and more emphasize to
work.
Market selection strategy
Strategy help to enter in a new market more smoothly and effectively and require
to achieve overall goals easily. Help companies to get best market that help them to
develop and achieve their goals easily.
STP

It is an digital marketing tool at a more tactical communication level. It help
Leadcom corporation to target market easily and sell their products and services more
effectively.
Segmentation
Leadcom corporation define their market where they are going to develop their
business. Company need to segment market of Germany using variety of different
segmentation which help them to create a group of consumers(Chaffey and Smith,
2017). Allocate consumers in market on basis of their needs, behavior and other
characteristics. Company need to prepare profile for each and every customers on
basis of their preference, demographics, styles. Company need to select a segment
where their telecommunication technology and products fits effectively according to
requirement of customers.
Targeting
After segmentation of market on basis of preference of an individual. Leadcom
needs to select most appropriate to be selected as their target market. Company need
to know their firms strategy in Germany and competition available in market,
attractiveness of customers towards product and know their own abilities in new
economy to compete with competitors to achieve their goals.
Positioning
Leadcom need to know how to compete in target market (Chaffey and Smith,
2017). Company need to prepare strategy to develop a position for their product and
brand in target market. Providing unique and superior product help company to develop
an image in market for their products and services and require to maintain effectiveness
to achieve goals and objectives. Company need to know the value that their product
provide to customers to achieve their goals more easily.
Mode of entry
Attractive policies and effectiveness of German market attract companies to
enter in market. Due to their good ranking all over the world for their business
effectiveness help to attract customers easily(Kingsnorth, 2019). Some of the modes
those make it easy for leadcom corporation to enter into German market are as follows.

Franchising
It is one of the effective and way to enter into a new market by providing brand
name, concepts, expertise that are needed to operate business in overseas market.
Leadcom corporation is able to attract establish company in Germany who have loyal
customer base able to increase profitability for their business. Company is able to
reduce cost of entry in Germany with franchising. Franchising partner in Germany have
a proper knowledge of German market which help Leadcom to earn advantage of
attracting local customers. Reduces overall risk for company as local business entity is
involved (Kingsnorth, 2019). Franchising help Leadcom Corporation to expand in
multiple regions in germany with minimum investment.
Franchising reduces control of Leadcom corporation on their distribution channel
and products as they are largely depends on their partner in Germany to distribute their
product and services. Company is unable to maintain privacy and keep trade secrets
from partners.
Franchising also increases risk for company because a partner may become a
future competitor for business and affect overall working of organization at a large
scale(Summers, 2019). Selection of wrong franchisee with bad image in market of
Germany ruin Leadcom name and goodwill.
Recommendations and implementation
Marketing play an important role in overall success of organization to improve
effectiveness of products and services and to achieve goals and objectives of business.
Marketing help to develop a presence for a business and improve efforts for overall
success at a large scale.
4P's of Marketing Strategy
Product
Product is both tangible and intangible that help organization to achieve goals
and objectives of business. In context of Leadcom communication they provide
telecommunication services to their customers which help them to attract customers

effectively towards their business and make them effective in market in front of their
competitors to achieve goals and objectives of business.
Price
Companies minimum price for their products help them to attract customers
easily. Price effectiveness help to increase profit margin. Price of their products make
them attractive and unique in market.
Promotion
Company use advertising and other technologies to promote their products and
services. Promotion help company to attract customers, social media marketing help
company to promote product in germany.
Place
Germany is one of the effective and attractive place that help them to achieve
goals and objectives of business. Place make them attractive in market, right place help
company to achieve goals easily and effectively.
CONCLUSION
Report will prepare about different environmental factors that will affect working
of Leadcom corporation in German. Strong economic conditions of economy help them
to develop business at a large scale and innovate their products and services. Different
dimension show different perspectives of both Malaysia as well as Germany shows
impact on changes easily. Franchising is an effective way to enter into a German
market. In attempt to expand its operation there are various potential pitfalls that
Leadcom corporation can face such as noncooperation of Germany and laws for other
country firms. Another pitfall can be acceptance of the people of Germany, of people
and customers of Germany do not accept the company then it will become meaningless
to carry out all the operations.
To prevent Leadcom from this pitfalls company need to ensure that people of Germany
are able to project a positive image of the company. This will enable Leadcom to get
support and acceptance of customers of Germany.

REFERENCES
Books and Journal
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