Strategic Marketing Report: Lynk & Co.'s UK Market Entry Strategy

This report provides a strategic marketing analysis for Lynk & Co.'s entry into the UK market with its new Roadster X vehicle. The report begins with an organizational overview, including company and product descriptions. It then delves into an environmental analysis, utilizing a PESTLE framework to assess political, economic, social, technological, legal, and environmental factors impacting the company. The report explores potential market entry modes, including franchising, licensing, and strategic alliances. Furthermore, it examines market segmentation, targeting, and positioning strategies. Finally, it applies Porter's generic strategies – cost leadership, differentiation, and focus – to determine competitive advantages for Lynk & Co. in the UK market. The report concludes with a summary of findings and recommendations.

STRATEGIC
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
ORGANISATIONAL OVERVIEW................................................................................................2
Company Overview....................................................................................................................2
Product Overview........................................................................................................................2
ENVIRONMENTAL ANALYSIS..................................................................................................2
PESTLE Analysis........................................................................................................................2
MARKET ENTRY OPTIONS........................................................................................................6
Franchising..................................................................................................................................7
Licensing.....................................................................................................................................7
Strategic Alliance........................................................................................................................8
MARKET SEGMENTATION........................................................................................................8
Segmentation...............................................................................................................................8
Targeting.....................................................................................................................................9
Positioning...................................................................................................................................9
PORTER'S GENERIC STRATEGIES............................................................................................9
Cost Leadership...........................................................................................................................9
Differentiation...........................................................................................................................10
Focus.........................................................................................................................................10
Critical Evaluation....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
Strategic marketing is a way through which organisations determine a pathway to gain
effective competitive advantage in the market. For this purpose, Lynk & Co. is being chosen
which is a Chinese manufacturer aiming at entering the UK market with its new offering,
Roadster X.
The report required an effective environmental analysis for which, PESTLE Analysis was
used which provides a framework to assess external factors of business environment.
Another agenda of the report was related to determine entry modes essential for the firm
to enter the UK market. For this purpose, Licensing, Franchising and Strategic Alliance were
assessed effectively.
The report also required to determine the target market to attain which, STP approach
was used to derive segments and target effective potential customers.
Lastly, the report needed strategies for the firm to enhance its competitive advantage. To
attain this, Porter's Generic Strategies were used which were Cost Leadership, Focus and
Differentiation strategies.
INTRODUCTION
Strategic Marketing is an effective process through which organisations tend to plan,
develop as well as implement several activities which helps an organisation in effectively
gaining a competitive edge in the market. Furthermore, it provides a company an effective
pathway through which the firm could effectively enhance their business operations and enhance
their capabilities in achieving their business objectives (Lee and et. al. 2013). The report below is
based on Lynk & Co., which is a Chinese Car Manufacturing organisation, which is currently
aiming at entering the UK market with new innovative services in its vehicles. It covers a
detailed analysis of the external environment of the UK which would be having an impact on the
company. Further, the report includes critical analysis of three market entry-modes which could
be effective for the firm to enter the UK market. It also covers segmentation of market as well as
generic strategies for the firm to gain a competitive advantage.
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ORGANISATIONAL OVERVIEW
Company Overview
Lynk & Co is an automotive organisation which was found in 2016 and is owned by
Zhejiang Geely Holding Group. The firm offers new age vehicles, specially designed for a
sustainable performance and the firm stresses effectively on making its products in a
technologically advanced manner. Furthermore, the organisation makes products which are low
on pricing and ensure maximum comfort to customers. Currently, the firm is planning to bring a
new product within the UK market to capture an effective market share (Najev Čačija, 2013).
Product Overview
Lynk & Co would be manufacturing a new vehicle, by the name of “Roadster X”, which
would be a technologically advanced SUV incorporated with high end digital and comfort
technologies. However, the firm would be introducing new and innovative features with this
vehicles for its customers within the UK. The first innovative feature which Roadster X would be
incorporating is Vehicle-To-Vehicle Communication. This feature would enhance the safety of
passengers within the car. Any spontaneous changes in speed or direction of other vehicles
would be sensed by the Autonomous infrastructure of the car and it would accordingly assist the
driver to act accordingly. Moreover, Artificial Intelligence is also utilised in its design to make it
fully autonomous, which would enable the car to have a 360- degree environmental analysis
using an array of sensors, making it fully capable for Driverless movements (Proctor, T., 2014).
ENVIRONMENTAL ANALYSIS
PESTLE Analysis
It is very important for Lynk & Co to analyse the macro environment of the UK, in order
to analyse the prominent factors within the external environment which could possibly have an
impact on the company. The reason for the same is that it would allow the organisation to
analyse effective opportunities for the organisation which is present within the external
environment of the country. For this, PESTLE Analysis is used, which is an effective framework
for the organisation in determining external pointers influencing its operations and strategies
within the UK (Kellezi, 2014). This analysis is briefly performed below:
External factors Opportunities Threats Solutions
2

Political These factors are the
ones which are related
to government
regulations and
political framework
which could have a
major impact on the
company and its new
product within the new
market (Tirunillai and
Tellis, 2014). In
context with the UK,
currently, the whole
country's political
scenario has taken a
drastic shift after the
Brexit referendum in
2016. It had a major
impact on the political
ties of UK with other
countries. After its
separation from the
European Union (EU),
the country is quite
independent in terms of
formulating its own ties
with other nations.
With respect to China,
UK has had effective
ties with the country
However, currently
within the UK, the
political regulations
prevailing within
the country are not
certain and the
country is
experiencing a lot
of political
uncertainty. This
could be a threat for
the company.
However, to effectively
enhance opportunities,
the firm could keep its
internal policies flexible
for time being and in
accordance with the
changing policies.
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lately. Moreover, after
Brexit, a wider scope
came into existence the
UK would be forming
its own trade deals with
China. Moreover, a
Joint Trade and
Investment Review
was formulated, which
is different from that of
general trade
agreements and under
which, various deals
were signed worth £9
Billion (Brexit : What’s
Next for the China-UK
Relationship?, 2019).
Economical These factors are based
upon the economic
performance of a
nation. All the factors
associated with the
economy such as
inflation rate, FDI,
interest rate, etc., are
covered within these
factors. It is very
important for Lynk &
Co to effectively
analyse these factors
which would allow the
However, with the
impact of Brexit,
inflation rate has
increased by a
substantial rate.
Moreover, with the
impact of Brexit,
the nation also
experienced a
downfall in the
valuation of Pound,
as a result to which,
it could be a
struggle for the firm
However, to convert the
same as its opportunity,
the firm must use
discount pricing to
create a wider customer
base within the UK.
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firm to enhance
opportunities related to
its investment in the
UK markets. In context
with the company, UK
is one of the top
recipient of Chinese
Foreign Direct
Investment, worth €23
Billion in 2016
(Brexit : What’s Next
for the China-UK
Relationship?, 2019).
This could be an
opportunity for the firm
to invest in UK as the
consumer market of the
firm could be
effectively captured
with such effective
investment trail.
Reason for the same is
because such long
economic ties within
these two nations
would bring
advantages for the firm
to invest in UK market.
Another effective
factor which could be
an opportunity for
to sell its offerings
at a better price.
This is because the
firm would be
threatened to lower
down its price in
order to encourage
people to buy the
cars..
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Lynk & Co is that the
UK is quite effective in
providing ease to
foreign companies in
operating within the
country in respect to
establish their business
organisation and
perform sales and
marketing activities
easily. This could be a
major advantage for the
firm in case its
planning to reach out
the customers of the
UK with its Roadster X
(Todor, 2014). The
firm could utilise
marketing strategies
like social media
marketing to attract
customers and could
establish their outlets at
prominent locations
easily.
Social These factors
undertake all the
prevailing social trends
into consideration. All
the social elements
which are dominant
As for the customer
market within the
UK, people within
the UK, especially
millennials are
effectively shifting
Thus, the company must
communicate with
customers regarding its
effective and affordable
pricing and innovative
features which could
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within the UK market
and could likely effect
Lynk & Co., are
covered in these
factors. There is a high
demand among
customers for vehicles
which could provide
them utmost comfort
and safety which would
convert the threat of
public transport into
opportunity. This is an
opportunity for Lynk &
Co. as the vehicles
which the firm would
be selling within the
country would be
equipped with effective
features which would
provide them with both
comfort as well as
safety, within short as
well as long trips.
Moreover, with
provision of vehicles
which are according to
the prevailing trends
would help the
company in positioning
itself in a better manner
their interests
towards commuting
from public
transportation rather
than owning private
vehicles.
Furthermore, they
are preferring cab
hiring services for
longer trips across
cities. This could be
a threat as well as a
severe challenge for
Lynk & Co to sell
Roadster X within
the UK. Reason for
the same is that
people seek
convenience which
they find in public
transport rather than
private (West, Ford,
and Ibrahim, 2015).
develop their interest
effectively towards this
offering.
7

within the UK (Wilson
and Gilligan, 2012).
Technological These factors
undertake all the
technological elements
which have a huge
impact on companies
and their offerings in
different prevailing
markets and distinct
conditions. The market
of the United Kingdom
is quite advanced in
terms of security and
with ongoing
technological
development,
automotive companies
are under a constant
pressure to effectively
produce vehicles which
are in accordance with
the current market
conditions. As per
these factors, Roadster
X has several
innovative and
technologically
advanced features
inbuilt within its
infrastructure, which
However, one
prominent threat
present in this
factor is the failing
of AI and high
dependency on
automation, which
has previously
failed in case of
TESLA.
In order to convert this
into an opportunity, the
firm must appropriately
check and monitor its
effectiveness and update
technology to serve
better.
8

creates ample
advantage for the
company to compete in
technologically
advanced market of the
United Kingdom with
using AI and
Automation
technology.
Furthermore,
inclination of its
offerings towards such
fine use of Automation
technology and
Artificial Intelligence
would allow the
organisation in
sustaining
appropriately within
the country and would
capture an effective
marketing share.
Legal These factors involve
regulations and laws
which are very
important for
companies to comply
with in order to ensure
an effective legal
position and ethical
framework within their
However, there is a
threat currently
about changing of
the legal structure,
which might cause
ineffectiveness of
the firm in case of
its compliance with
these laws.
This requires the firm to
stay flexible and
updated in relation to
ensure effectiveness in
the same.
9

organisations. Within
the UK, there are
several laws which are
very important for
businesses within the
automotive industry to
follow. For instance,
Climate Change Act,
2008, is one of the
most crucial
legislations which
ensures that the
vehicles are designed
in such a manner,
which contributes to
environmental
protection. This is an
appropriate opportunity
for Lynk & Co. as
Roadster X is designed
in an effective manner
in context with
environment, as the car
is fully electrical,
which reduces the use
of fuel. Such
compliance will be an
opportunity for the firm
over its competitors as
communities would
encourage people to
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