International Business Development: Strategic Analysis of Mazepoint

This report provides a comprehensive strategic analysis of Mazepoint, a web-based business intelligence solutions and services organization located in London, UK. The analysis begins with an overview of Mazepoint's mission and vision. Section 1 delves into external factors using PESTLE analysi...Read More

International Business
Development
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Contents
Introduction...............................................................................................................3
Section 1:...................................................................................................................3
1. An Overview of the Organization.........................................................................3
2. Evaluation of various external factors while formulating strategy for Mazepoint
applying PESTLE analysis, role of strategy in strategic direction and stakeholder
analysis......................................................................................................................3
3. Evaluation of various internal factors while formulating strategy for Mazepoint
applying SWOT analysis including identification of the organizational strategic
capabilities and its’ relevant components..................................................................6
4. Evaluation of the competitive forces within the market sector of Mazepoint
applying Porter’s Five Forces and devising strategy towards improving competitive
edge and market position by applying the Ansoff Matrix.........................................7
Section 2:...................................................................................................................9
1. Evaluation of the different types of strategic directions available to Mazepoint
and presentation of my analysis under the realms of Porter’s strategy model as well
as Bowman’s strategy clock......................................................................................9
2. Recommendations of the most appropriate growth platform and strategies like
Hybrid strategy, Diversification, and Vertical/horizontal integration for Mazepoint.
.................................................................................................................................11
3. Conclusion...........................................................................................................12
References...............................................................................................................12
Introduction

In today’s world of highly competitive business, long-term planning needs to be formulated and
implemented to achieve specific goals. Various specific strategies are used to achieve this goals.
Strategic management is the process by which large organization formulate and implement long-
term plans to achieve a specific objective in a competitive world. It is a very important key
element of business success. There is no way to survive and succeed in today’s competitive open
market economy without strategic management. In conclusion, the emergence of strategic
management in order to achieve specific goals and utilize different types of facilities by tackling
various adverse environments in the large organizations of the world today.
Section 1:
1. An Overview of the Organization
Mazepoint involves web-based business intelligence solutions and services. This organization
located in London, England, United Kingdom. It is a private organization. This organization
works with business intelligence, information technology and professional service. This
company’s website is www.mazepoint.com and phone number 44 (0)20 7348 7600.
A mission is an institutional declaration aimed at gaining social approval to do business in a state
or society. In order to gain social legitimacy, an organization declares to the public that its
product or services are reasonable and acceptable. And vision is the dream of the entrepreneur.
Those who built the organization have a far-reaching dream. The desire to achieve that dream is
vision. Mazepoint is a service organization. Goal of Mazepoint is to give service to their client
and always make them satisfied. And the vision of Mazepoint is to be the best business
intelligence solution and service organization in the whole country.

2. Evaluation of various external factors while formulating strategy for
Mazepoint applying PESTLE analysis, role of strategy in strategic
direction and stakeholder analysis.
PESTLE analysis is very important for any type of business. It gives ideas about different
business factors that are directly related to the business. It is not possible to run a business
properly without full understanding of these factors. These business factors directly affect the
business (Perera, 2017). In PESTEL analysis, managers discuss about six factors. These six
factors are:
I. Political
II. Economical
III. Social
IV. Technological
V. Legal
VI. Environmental
Political Factor: The political factor is made up of political elements such as sovereignty,
government and its policies, political parties and organization, political stability, law and order
situation etc. The business activities of a country depends on existing political system: decision,
promotion, encouragement, position, direction and control. It’s a fundamental elements of
financial growth.
Economic Factor: A country’s economic environment is depends on financial system, economic
resources, economic system, economic policy, trade cycle, economic resources etc. The
economic environment of a country has a significant impact on business. The economic system
includes capitalism, socialism and mix economies.

Social Factor: Social environment refers to the socio-cultural environment. A society’s
attitudes, beliefs, aspirations, expectations, desires, habits, customs etc. affect the business. The
importance of social factor is essential for the smooth running of a business.
Technological Factor: Technology has a profound effect on the business environment recent
times. The technological factor is a combination of science and technical education, science
related training and research, use of advance technology, technology import opportunities etc.
Legal Factor: The government passes many kinds of laws for the welfare of the people. Laws
are also passed at the international level for various benefits. Business activities have to be
conducted with in this law. The legal factor is the environment that is created in the conference
of all these law.
Environmental Factor: The environment factor which is formed by the combination of climate,
climate, topography, soil, sea, rivers, area, location, natural resources etc. of a country.
Environmental factors should be considered before starting business activities. Because business
is heavily influenced by the environment.
Above we have learned the factors and details of PESTLE analysis. The importance of PESTLE
analysis in running a business is huge. Mazepoint is a service organization. In order to provide
maximum service, Mazepoint must analyze the components of PESTLE analysis and if there is
any deficiency, it must be filled.
Strategy and factors
Strategies give an integrated overview of the most important internal and external factors an
organization considers. Strategy aids in the future planning of a company and identification of
organizational forms. It gives an organization a sense of security and directs the actions of the
organization.
Stakeholder Analysis
Stakeholder management is when successful people do something within a discipline that aims to
succeed with the support of others. Through this discipline they believe they will succeed where
others fail. Key people are identified through this stakeholder management. Stakeholder
planning builds support for individuals to succeed (Serravalle & others, 2019).

You have a long list of people and organization affected by your work. Many people may be
concerned about what you are doing but many people do not. In this case, the power interest grid
is used to differentiate/prioritize the stakeholders. Helps to identify stakeholders based on power
and interest in the program. When you plot your stakeholders on a power/interest grid, you can
determine who has the high or low power to influence your program and who has more or less
interest. You have to be kept pleased people with high power. When a stakeholder has all of it,
ensure that you are meeting their expectations completely. The power-interest grid is shown in
figure-1:
High
Power
Low Interest High
Figure-1: Power-Interest Grid
3. Evaluation of various internal factors while formulating strategy for
Mazepoint applying SWOT analysis including identification of the
organizational strategic capabilities and its’ relevant components.
Strategy and factors
Keep Satisfied Manage Closely
Monitor
(Minimum Effort) Keep Informed

There are many factors that we have to maintain while formulating strategies. Firstly, an
organization articulate their vision and mission. Then identify the stakeholders, the internal
environment and the external environment. SWOT analysis is very important in this case.
Organization need to look after their strength, weakness, opportunities and threats into a single
analysis. Finally organization analyze competitive advantage, make smart goals and determine
the action steps.
SWOT Analysis
SWOT analysis is one of the best strategic analysis model for any company. It analyze the
strength and weakness for the organization and also looking at the opportunities and threats to
the business. When an organization analyze all of these, it is easy to formulate strategy for future
(Vlados, 2019).
McKinsey 7s Model
McKinsey 7s model is a popular strategic planning tools. McKinsey 7s model has seven
components. This model shows us how the organization work efficiently and effectively with
these seven elements (Gechkova & Kaleeva, 2020). The elements are:
I. Strategy
II. Structure
III. System
IV. Shared values
V. Style
VI. Stuff
VII. Skills
Value Chain Analysis
Value chain is a discipline that refers to a chain of operations performed by an industry to
operate a firm, market and provide a valuable product or service to the customer. A firm value
chain begins with raw materials and represents the various processes involved in the production
of goods and services and ends with the delivery of goods to the customer (Muflikh, Smith &
Aziz, 2021). Value chain new product development, which creates new product or services at

later stage supported by human resources, accounting and information technology. The value
chain structure has come to the forefront of thinking and analysis for strategic planning and
competitive strategy. It has expanded beyond a single entity. Offline local value chain creates an
enhanced value chain, which can be global. It is model that’s helps to go to the resource level to
create value and competitive advantage.
Strategic Capabilities and Components
Strategic capabilities relate to an organizations capacity to leverage all of its skills, abilities, and
assets to create a competitive environment. As a result, the company survives and its value
increases. There are usually two parts to strategic power: resources and competencies. Resources
are the assets that organizations have or may have access to. Competencies are the way to
manage these resources efficiently. Strategic skills can be varied to achieve long-term success.
4. Using Porter's Five Forces model, evaluate the competitive forces
within Mazepoint's market sector, and devise a strategy for enhancing
competitive edge and market position using the Ansoff Matrix.
Porter’s Five Forces Model
The Porters Five Forces model discusses five key forks that determine a company's profitability.
This model typically examines the structure and strategy of a company. These five factors affect
every business. Porters Five Force is used to evaluate market competition, attractiveness and
profitability (Bruijl, 2018). That five factors are:
I. Industry rivalry
II. Potential elements
III. Supplier
IV. Customer
V. Substitute products

Industry Rivalry: In general, if there is more competition, then the lower the price of the
product or service, the better the market will be. In the absence of competition, the company has
the potential to make higher profits by charging higher prices and increasing sales.
Potential Elements: This factor is used to review whether a new company is entering the
competition. Because when a new company enters the market, the level of competition rises. In a
business that requires a lot of money, this risk is usually smaller. This is explained in terms of
what will happen if a new contestant enters.
Suppliers: It is a very important factor. It is easier to survive in a competitive market if the
supplier supply the product fluently. But if there is scarcity of product or the company has to buy
product at high price then it is very hard or not possible to survive in the competition.
Customer: The power of the customer is the pressure exerted by the customer or consumer on
the business organization to get high quality product or good consumer service at lowest price.
Managers have to analysis power of customer for competitive market.
Substitute Product: When company ‘A’ offers a product or service but customer purchase the
product or service from company ‘B’. However, company ‘B’ is not a direct competitor of
company ‘A’. Somehow the product or service is matched and this product or service is being
threat for company ‘A’. And this is the threats of substitute product.
Mazepoint is a service SME organization. It involves web-based business intelligence solution
and service. There are many competitors in the market who involves with this type of business.
We know that Porters Five Model is designed to understand the competitive market and how to
survive in the market. We have already discussed about porters five factors. Since Mazepoint is
within a competitive market, it also needs to analyze Porters Five model and make decision
through it.
Ansoff Matrix
Ansoff matrix is known as product market expansion grid. It helps a firm to find market chances
in individual markets and products. This grid is depends on the situation of products and

markets. Product market expansion grid talks about four combination (Khajezadeh & others,
2019). These are:
I. Market Penetration
II. Market Development
III. Product Development
IV. Diversification
Market Penetration Strategy: In this strategy manager focuses on improving existing products
sales in current market. When managers don’t want to change their existing product and market
rather they want to increase the sale then manager apply this strategy.
Market Development Strategy: In this strategy manager focuses on launching a new product in
current market. Manager apply this strategy when they have a present market and they need to
announce their new product in that market.
Product Development Strategy: Managers apply this strategy when they want to enter in a new
market with their existing products. Sometimes managers want to present their current product in
a new market to increase sale and gain more profit, in this situation manager’s use this strategy.
Diversification Strategy: In this strategy manager focuses on a new market with a new product.
Sometimes organization wants variation that’s why they produce new product for new market.
For this types of situation managers can use Ansoff’s diversification strategy (Hanlon, 2021).
Ansoff Matrix is a very important theory or strategies for products and markets. Organization
can use any strategy from Ansoff Matrix. Because the strategy depends on the organization’s
situation. If organization wants to increase sales in current market they use market penetration
strategy or they want to introduce new product in existing market then they apply market
development strategy. If organization wants to enter a new market with existing products then
they have to apply product development strategy or if they want to enter in a new market with a
new product then they should use diversification strategy. So it is all about the situation of the
organization. Organization also can use two or more strategy in same time if they have different
product and alternative market.

Section 2:
1. Evaluation of the different types of strategic directions available to
Mazepoint and presentation of my analysis under the realms of Porter’s
strategy model as well as Bowman’s strategy clock.
Mission, culture, vision, values, philosophy, and principles are all examples of strategic
directions. Mission of Mazepoint is to give service to their client and always make them
satisfied. And the vision of Mazepoint is to be the best business intelligence solution and service
organization in the whole country. Values of Mazepoint is simple and straight. Being honest and
open, doing the right thing, work hard and enjoy the journey.
According to the Porter’s strategy model and applying the model on business, Mazepoint has
competitors and the market has a big number of clients. Making a decent deal that pleases clients
will improve the company's image and increase Mazepoint's visibility. In this competitive
industry, this is something we can exploit to our advantage. A good solution or service at a
reasonable price can entice people and organization to take service from Mazepoint. Because not
every consumer is willing to be flexible with the price, Mazepoint offer less price for service. For
that Mazepoint has less fear from losing their consumer. But we know that Mazepoint is a small-
medium organization so they have some financial and manpower problem. And competitors
obviously take that advantage but Mazepoint give their consumer expert solution and service and
that’s why Mazepoint has less fear for competitors and newcomers companies.
Bowman’s Strategy
Bowman’s strategy clock is the position of an organization or a product in the market depending
on the price and the perceived value (Echchakoui, 2018).

Figure: Bowman’s Strategy Clock
Bowman’s strategy clock has eight strategies. Organization take different strategies depending
on the market condition.
01: Low Value Added
In this strategy there are very low price with low quality of product. Managers wants to sell a big
amount of products and attracts prices conscious customers.
02: Low Price
In low price strategy company pricing their product at low price and customers also know that
the benefits of this product is average. But this product quality as not bad as the position one
strategy.
03: Hybrid
The hybrid strategy's company offer the best product with least price. In this strategy companies
try to introduce a product that better than rivals and product benefits is more than product price.
04: Differentiation
In this strategy companies try to give their customer maximum benefits with average price. In
this strategy company try to make change with their product as well as customer.

05: Focused Differentiation
In this strategy company offer less benefits than products. In this situation company charge high
value but doesn’t give benefits compare to the price. In this strategy company can make a lots of
profit.
06: Risky High Margins
This position is high risk margin because in this position customer generally don’t buy products.
Because customer can buy this product from position three with low price. In this position
company is pricing their product to high than the quality.
07: Monopoly Pricing
In monopoly market, company can pricing their product as much as they want because generally
in a monopoly market, a single company control the whole market. So they can take price as
much as they want.
08: Loss of Market Share
In this strategy no one buy any product. Many times company make a product for first time and
for the innovation cost they have to make the product over price. For continuous innovation
companies make better product with low price but the first product price always will be high.
And that’s why this position name is loss of market share (Sridharan, 2020).
Mazepoint may achieve its desired aims and objectives if its position is set in position 3, which is
hybrid. Because, in hybrid strategy's company offer the best product with least price. In this
strategy companies try to introduce a product that better than rivals and product benefits is more
than product price.

2. Recommendations of the most appropriate growth platform and
strategies like Hybrid strategy, Diversification, and Vertical/horizontal
integration for Mazepoint.
Hybrid strategy is a very important strategy for any kind of business. In this strategy the price is
lower than the product quality. Company apply this strategy for making a good impression in the
market. Company offer their best quality product at the least price. If a company apply this
strategy they can beat their competitor (Wan & others, 2020). This is a tactic Mazepoint can use
which will increase the level of product quality. Diversification is also a good strategy. Generally
a company use this strategy after create a good market of their product. In diversification,
company make a different type of product for different market. Actually company want to create
a new market and make profit (Jaafar & others, 2021). Horizontal integration is a business
expand strategy. In this strategy company buy another same type of company to expand their
business. Vertical integration is a strategy where company doing or acquire all the phase of the
manufacturing or distribution of a product. Mazepoint can join forces or buy another company
alike and expand in the area. Such strategy can help in growth of Mazepoint significantly.
3. Conclusion
The business will grow faster if a strategy plan based on external and internal factors is
implemented. And not only the growth, publicity, brand value and standing out in the
competitive market is possible. Strategic management is a very important part of running an
organization properly and efficiently. An organization can never achieve its mission vision
without strategic management. There are many issues in this strategic management that different
decision are made through analysis. Strategic management is very important and complex. It
forces the company to take different types of strategies in different situations. So, the importance
of strategic management for managing the company properly is huge. Every company should
always implement the right strategy with the help of strategic management.

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