Navy Company: Strategic Marketing and Business Analysis Report

This report provides a comprehensive analysis of the Navy Company's marketing and business strategies. It begins with an introduction to the company and its operations, followed by a detailed market analysis that examines competitors, geographic markets, technology trends, buyer preferences, market segmentation, and market share. The report also incorporates Porter's Five Forces model and PESTLE analysis to assess the external environment. A critical analysis of marketing expenditure is presented, including expenses, revenue percentages, and the impact on the company's performance. The report then provides recommendations for improving the company's strategies. Finally, a stakeholder report is included, which identifies key stakeholders and suggests communication strategies based on their power and interest levels. The report concludes with references to supporting literature and includes relevant illustrations to aid understanding.

MANAGEMENT
STRATEGY

Table of Contents
PART 1-1. INTRODUCTION.........................................................................................................3
2. MARKETING ANALYSIS.........................................................................................................3
2.1. Competitors.....................................................................................................................3
2.2 Geography and Technology.............................................................................................3
2.3 Buyers preferences and Market Segmentation.................................................................4
2.4 Sub Strategies groups in mobile industry.........................................................................4
2.5 Market Share....................................................................................................................6
2.6 Porter five forces model...................................................................................................7
2.7 Pestle analysis...................................................................................................................8
2.8 Competitive Advantage....................................................................................................1
3. Critical analysis of Marketing expenditure..................................................................................7
3.1. MARKETING EXPENSES............................................................................................9
3.2. PERCENTAGE SHARE OF MARKETING EXPENDITURE ON YEARLY BASIS 10
3.3. REVENUE AMOUNT..................................................................................................11
3.4. PERCENTAGE OF REVENUE DESCRIPTION ON YEARLY BASIS....................12
4. Recommendations......................................................................................................................13
PART 2- Stakeholder Report.........................................................................................................15

PART 1-1. INTRODUCTION
The Navy company is a company based on United States of America. The company is
telecommunication company. Navy is successfully operating their business activities for more
than 8 years. The organisation has faced ups and downs in their performance in the competitive
market of United States. This is report is based on the marketing and the business strategies of
the company Navy. This file will highlight about the market analysis. Along with this, the report
will also focus on the competitive advantages. The report will also discuss the outsourcing
manufacturing. Lastly the report will make recommendation for better performance for future.
2. MARKETING ANALYSIS
Following approaches are used to do proper marketing analysis.
2.1. Competitors
Competitors are those organisations which practice their business in the same sector and target
the customers with same specification (Daft and Marcic, 2016). These business affects the
business activities of the Navy. The Competitor of Navy are -
 The Innovator's
 Red
 Blue
 Leaders
 Grey
 Ochre
 Pink
 Yellow
2.2 Geography and Technology
The Mobile for company target these countries geographically are -
 United States of America
 Asia
 Europe
The demand in the international market has variation. The demand of techniques differ from time
to time in different countries. Due to increase in demand in the international market and the
regular innovating in the technology it is clear that the market of these countries are not stable,
which means the market of these country are still at growing stage(fig. 1). The demand in

different countries are inclining and declining at different time moreover the demand in tech 1 in
also incline and decline at different time, which clearly indicates that the consumers will be more
attracted towards better technology in the future.
(Figure. 1 Total Global Demand by Region and Tech)
2.3 Buyers preferences and Market Segmentation
The analysis of consumer demands helps the company to identify potential of products feature
and specification and the customers will to pay for different featured product along with this the
competitive position in the market.
Consumer behavior was different in every country. This is the main reason behind the
Segmentation strategy of company. In Europe and United States of America people are more
attracted toward the advance and better technology however in people in Asia are more
sensitivity towards the price of the products. Therefore, company sells their products in low price
there.
2.4 Sub Strategies groups in mobile industry
It is the aspect in which positioning of the products are done by the company in the
market. Positioning is a strategy, in which company develop a reputation of their brand and
products in front of the customers and attract the customers to purchase their products by using
their brand image (Christopher, 2016). Navy is a company which spends lot of money in
research and development. It helps to company to position their products as advance technique
products.
R1 R2 R3 R4 R5 R6 R7 R8
0
1000
2000
3000
4000
5000
6000
7000
Tech 1
Tech 2
Tech 3
Tech 4
Total
R1 R2 R3 R4 R5 R6 R7 R8
0
1000
2000
3000
4000
5000
6000
7000
USA
Asia
Europe
Total

Figure 2 Resource and Developing of companies in different years
THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow
Year 1 295,250 230,000 25,000 0 215,000 0 0 0 0
Year 2 614,223 0 0 282,858 0 0 0 48,598 0
Year 3 254,356 0 0 0 0 0 0 51,000 0
Year 4 827,339 403,500 195,000 0 0 0 0 49,000 0
Year 5 226,122 7,400 2,330,000 0 0 0 0 0 0
Year 6 300,000 145,000 351,000 1,279,179 0 1,230,000 0 1,255,812 0
Year 7 149,593 701,821 24,000 846,700 775,000 354,000 0 51,785 0
Year 8 94,593 150,000 0 133,000 334,000 347,160 927,300 52,700 0
Total 2,761,476 1,637,721 2,925,000 2,541,737 1,324,000 1,931,160 927,300 1,508,895 0
Table 1. The research and developing of Firm across the years.
The rival companies of Navy also spends huge amount of money on research and
development. From the above table it has been clear that almost every company spends lot of
money of R&D activities every year whereas the Navy company is spending required amount on
research and development. This proper management of financial resource in R&D activities
helps the company to gain competitive advantages.

2.5 Market Share
Figure 2. Market-share of the companies in different years.
It has been clearly indicated that the company Navy has maintained their market share in
the competitive market internationally. The market share of the company has incline and decline
across years. The market share of the company has decline dramatically in last year. Highest
market-share of the company was 12.68 percentage in the first year and the lowest was 5.05
percentage.
THE INNOVATOR'S Red Blue Leaders Grey Ochre Pink Navy Yellow
Year 1 12.68 11.42 10.16 13.85 13.28 13.28 12.68 12.68 0.00
Year 2 17.50 9.78 8.60 17.83 11.48 11.48 11.36 11.97 0.00
Year 3 18.59 8.56 9.22 17.74 9.58 9.58 9.54 10.05 7.15
Year 4 16.88 17.90 4.90 18.98 8.26 8.26 8.25 8.83 7.74
Year 5 15.91 18.29 3.76 17.97 8.73 8.73 8.73 9.29 8.60
Year 6 15.21 25.80 4.76 16.55 7.57 7.57 7.29 7.95 7.29
Year 7 11.37 29.48 12.36 11.10 7.26 7.15 6.89 7.48 6.89
Year 8 25.63 22.02 17.13 11.28 7.15 0.22 4.91 5.05 6.62
Table 2. Market-share of firms in various years.

2.6 Porter five forces model
There are fewer firms in domain position in mobile manufacture industry. The main reason
behind this is because these types of industry require huge amount of capital. Opening business
in these type of industry is not that hard but surviving in this sector with high level of
competition is very difficult unless and until the firm doesn't bring any innovation in the market
moreover the company need to bring innovating in regular bases to compete in the market like
this (Fayol, 2016). The industry analysis of mobile manufacturing is given below by using porter
five forces model.
 Threats of new entry: Mobile industry are this industry which requires lot of capital as
well as the nature of the market is very competitive these decrease the risk of new
entrance. The mobile manufacture companies need to invest huge amount of money in
research and development activities regularly and the new business doesn't have so much
fund to carry out these activities frequently. All this factor decline the threats of new
entrance in the market but if the market is having a good growth rate and profitability
then multinational company can enter the market (Fleming and Koppelman, 2016).
 Buyers power: The power of the buyers in these business sector is very high because
almost every company in these industry uses competitive pricing with special and extra
features, The customers in this situation are in winning corner because the customers can
opt for different brand if he/she is nor satisfied from the price of the product.
 Threats of substitution: The threat of substitution is very high in this business sector
because the company interest lots of money in research and development every year.
After few months of mobile launch the same phones are available at cheaper price
because of regular innovating in the industry.
 Suppliers power: The power level of the supplier are medium because they have option to
supply to various mobile manufactures. This is also the reason behind their high
bargaining power.
 Rivalry : The competition in this business sector is very high because of the profit margin
in the business and the regular rate of innovation has increased the competition in the
market of mobile manufacturers (von Bonsdorff and et.al., 2018).

2.7 Pestle analysis
 Political Factors: The political factors can impact the firm in both positive and negative
impact on the business activities of the company. If the government of the home country
has good relation with other countries then it opens more growth opportunities for the
business like Navy company. If the trade and business policies of the country are
favorable for the companies then it will increase the chance of growth and development.
 Economic Factors: Economical factor have a big influence in on the companies like
mobile manufactures because if the economic is unstable and the inflation is high that
will surely increase the prices of raw material and price of other service and products
company purchase form others and the company like Navy can't increase their price of
product after introducing the first batch in the market (Bower, 2018).
 Social Factors: Social factor include the income group of the customers, age, gender and
many more. These factor have a direct impact on the demand of the product. If the
education level and the income of the customers are high then the customer are more
willing to purchase the premium products of the company. Navy introduce their products
with every price range so every customer can afford the product of their brand.
 Technological Factors: The technology factor have a huge impact the mobile
manufacturing industries because the mobile industries are totally dependent on the better
quality and advance technology. The Navy invest lot of money in Research and
development to cop-up in the competitive market.
 Legal Factors: With the change in government, the new government introduce new rules
in the country and the company need to change their business structure according to the
new rules. If the company violent any rules and regulation then the company need to pay
huge money as penalty and fines,
 Environment factors: The factor came to spot light in recent year because of lack of raw
materials and increase in pollution. The company need to contribute towards the social
culture factor which helps company to gain good reputation in front of customers. The
Navy company have a strict waste-management policy in their company moreover the
company uses their resources in very effective manner (Holling, 2017).

2.8 Competitive Advantage
Competitive advantage refers to the position where company is earning more profit as
compared to their rivals. It is considered to be the unique ability of the company which make its
value proposition higher than competitors (Amarakoon, Weerawardena and Verreynne, 2018).
Competitive advantage helps company to sustain its business in competitive business world.
There are various frameworks through which Navy Company will analysis its source of
competitive advantage. These frameworks are as follows -
VRIO ANALYSIS
VRIO analysis is the analytical framework used by the company. This analysis helps
company to evaluate its various resources which will lead company to get to know about its
competitive position which is related to the competitive advantage (VRIO Analysis, 2018). There
are 4 dimensions through which company is able to understand its effectiveness regarding the
resources. These 4 dimensions in the context of Navy Company are as follows -
(Illustration 1: 4 Dimensions of VRIO analysis
Source: VRIO Analysis, 2018)

Value — Navy's financial, non-material and human resources are unique which create value for
the customers. This make company to gain financial and competitive benefits. This make
organization at the competitive advantage position.
Rareness — For the competitive advantage, Company's resources should be rare and uncommon.
Navy's human and financial resources are rare for another companies. This make it more
competitive strong as compared to another businesses.
Imitability — Here, imitability means the resources, (company has) are very difficult and
expensive for the another companies to imitate. It leads company to gain competitive advantage
over its competitors. In case of Navy Company, it is very difficult for its competitors to try to
copy their resources which lead Navy to gain competitive advantage.
Organization — Navy company is properly organized its management system, structure, culture,
employees, objectives and activities (Miller, 2019). This lead to properly utilization of human
resources, financial resources and non material resources of the company. Due to this proper
organization, company is able to gain competitive advantage.
From the above analysis, it can be demonstrated that company's various resources are
well utilized which lead company to successfully able to reduce it's some costs as compared to
another companies. Overall, it makes company's position competitive.
VALUE CHAIN ANALYSIS
Value chain analysis refers to the process of analysing various business activities in order
to get to know about the contribution towards the value creation of the company (What is value
chain analysis ?, 2019). These business activities are highly divided into 2 types of activities –
Primary Activity and Support Activity.

(Illustration 2: Activities involved in Value Chain Analysis
Source: What is value chain analysis ?, 2019)

Value chain analysis of the Navy Company -
For the analysis, Company have to look upon its primary and support activities which are
as follows -
Primary Activities -
Inbound Logistics — It refers to the activities which include the receiving, storing and supplying
of raw materials from the warehouses to the production department in order to manufacture the
mobile phones.
Operations — It refers to the activities which is related to the conversion of raw material into
finished goods. It is also known as production process.
Outbound Logistics — It is just opposite of inbound logistic. In outbound logistics, finished
goods such as mobile phones and its related activities are being distributed to the customers. It
includes various direct and indirect channel distribution.
Marketing and Sales — It involves all those activities through which Navy company is creating
awareness about their products in order to enhance the selling of the mobile phones.
Services — It can be defined as the activities through which company is maintaining or
improving the products' performance in order to create more and more value of the products for
the customers.
Support Activities -
Procurement — It refers to the process through which company is able to purchase the required
resources and raw materials for the purpose of producing mobile phones.
Technology Development — This support activity is related to the research and development
process of the organization in order to do improvement or up-gradation in the products.
Human Resource Management — It refers to the activity which is related to the human resource
capital of the Navy Company. Without this activity, no organization will be able to conduct
primary and support activities both.
Firm Infrastructure — Firm infrastructure is the management structure and system through
which the whole organization is able to do another business activities such as planning,
financing, budgeting, controlling and complying with rules & regulations etc. (Jones, Demirkaya
and Bethmann, 2019).