Strategic Management Report: UBUY's Objectives, SWOT & Market Analysis

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This report provides a comprehensive analysis of UBUY, an e-commerce website, focusing on its future strategic directions. It begins by examining the macro environment, including political, economic, social, technological, legal, and environmental factors, and assesses the attractiveness of the industry. The report then evaluates UBUY's strategic position, product performance, core competencies, resource allocation, and competitive and market pressures. A SWOT analysis is conducted to identify the organization's strengths, weaknesses, opportunities, and threats. Finally, the report outlines UBUY's SMART objectives, emphasizing specific, measurable, attainable, relevant, and time-bound goals. The analysis aims to provide insights into UBUY's strategic planning and future growth prospects within the e-commerce landscape.
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STRATEGIC MANAGEMENT
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Table of Contents
Introduction................................................................................................................................2
Macro environment and attractiveness of industry....................................................................2
Political...................................................................................................................................2
Economic................................................................................................................................2
Social......................................................................................................................................2
Technological.........................................................................................................................3
Legal.......................................................................................................................................3
Environment...........................................................................................................................3
Strategic position........................................................................................................................3
Product performance with core competencies........................................................................4
Resource allocation, competitive &market pressures............................................................4
The strategic direction of UBUY...............................................................................................4
Strength...................................................................................................................................4
Weakness................................................................................................................................5
Opportunities..........................................................................................................................5
Threats....................................................................................................................................5
SMART objectives of UBUY....................................................................................................5
Specific – Area to improve.....................................................................................................5
Measurable – Quantify progress.............................................................................................5
Attainable –Be realistic..........................................................................................................6
Relevant – Big picture............................................................................................................6
Time – Be patient...................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7
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STRATEGIC MANAGEMENT 2
Introduction
This paper focuses on the approach of the future strategic directions of the UBUY. This is an
e-commerce website. This organization has the objective to deliver an excellent variety to
customers in the product by maintaining a good network with vendors (Bosdriesz, Witvliet,
&, etc. 2012). In today’s time vendor like more sales in a short time by conveying an easy
method of shopping and delivery to make it valuable for them. This organization delivers
good categories of a product by window shopping. The following discussion covers the
conduciveness of the macro environment and attractiveness by evaluating strategic position
and direction in the environment by relevant management tool with SMART objectives.
Macro environment and attractiveness of the industry
An organization is influenced by the environment of their work (Castaño, Tracy, &
McAllister, 2011). Many factors affect customers and suppliers and controlled by a specific
extent of organization. The future of the microenvironment depends on factors of the macro
environment. Macro environment includes government, society, tax, rules, technology,
policies, economics, and so on. This influence all players operating in the market. Online
shopping industries regularly monitor alterations of the political and regulatory environment
and make modifications accordingly. The industry of Ecommerce has seen growth in recent
years with fluctuations.
Political
The governing and political environment in the region or nation is determined by the ruling
government, opinion of the public, and pressure/customer advocacy groups. This is the most
turbulent force in the environment. UBUY obey the rules and regulations of Maldives. The
Maldives did not have specific laws regarding e-commerce at it is a new emerging industry.
Economic
The economic part of a nation's environment has an important impact on the organization and
its activities (Lorenzoni, Curzio, Karakachoff, &, etc. 2013). These include the entire GDP
per head, GNP trend, exchange rate, employment level, monetary and fiscal policies,
availability of energy and raw material and cost, inflation rate, investment, banking policies,
etc. The economy of Maldives is stable parallel to other South Asian nations. Inflation's of a
nation are raising a bit unemployment rate in the Maldives that is very low. This will support
to UBUY to increase the customer power of buying.
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STRATEGIC MANAGEMENT 3
Social
Social environment includes close analysis of society (Tibbetts, & van 2013). This include
factor that is significant in this analysis of customer lifestyles as a community of Maldivian
has a nature of high spending. The community is more aware of the environment change as
UBUY provides environment-friendly products. There are a large number of youth in the
nation as an organization should increase products of youth.
Technological
Technological factors are very significant for organizations like UBUY that depends on
online business. Newest innovations and inventions in the e-commerce industry can be
exploited by UBUY to deliver best services to customers in the most efficient way.
Legal
This is very important for doing business globally (Dollard, Osborne, & Manning, 2013).
UBUY should aware of the compliance. Organizations that operating internationally can lead
to pressure and increase operational costs. UBUY should be very careful about the applicable
laws and compliance.
Environment
This is the most important factor in today’s business as a focus on sustainable development.
The Maldives is progressing to make the nation carbon-free. UBUY should address the many
environmental factors that have an impact on its organizational survival.
Strategic position
This is a system of pre-paid credit that customers can use to maintain a balance of money
with UBUY and can be redeemed as they purchase online. This strategy of innovation will
permit shoppers to store money on a website and use it to buy items without having to reach
for a credit card for every transaction (Viswanathan, Jung, Venugopal, &, etc. 2014). This
will support the customers of UBUY for shopping many times and enjoy a faster and simple
process of checkout. There is no need to fill the financial details every time and will save
time. This will support the UBUY to increase loyal customers and gain new customers as this
strategy is time-saving and easier. This organization will get more profit as customers will be
attracted towards the portal due to strategy. Strategic position for the organization is very
important.
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The clear understanding of the procedure of the strategic position is very important for the
economy. The strategic position of the organization is the direction and scope over the long-
term. This organization achieve an advantage by the configuration of its resources in a
changing environment and meet the requirements of the market with expectations. Strategic
positioning replicates UBUY choices to create values differently than rivals. This
organization translates into two things like lower costs or premium price for the organization.
This will be a very systematic analytical procedure of the organization to differentiate and
define. Strategic positioning is a cultured approach to strategic planning.
Product performance with core competencies
This is a leading consideration in the assessment of positioning (Park, Chinta, & Lee, 2011).
Product of the UBUY will perform in a manner that is consisted of strategic positioning.
Strategic position is consistent with the organization's main competencies. The organization
has a very compatible business model and not leverage the organization's business strengths.
Resource allocation, competitive &market pressures
This analysis address the organization's present resource allocation that is very important to
make sure about the resources of a business. These are people, supply channels, and
equipment. These will support to maintain the position of the organization. External factors
have a very important role in the analysis of the strategic position. Changing market
conditions and competitive positioning affects the outcomes of the strategic positioning
efforts that are already entrenched in customer consciousness.
The strategic direction of UBUY
This can be identified by using the strategic management tools that include instrument like
SWOT analysis (Yuan, 2013. The strategic management tool is very important to determine
the organization positioning for the next years. This support UBUY to map out a plan for the
future. UBUY includes mission, vision, and value statements. The mission of the UBUY is to
provide employees and stakeholder clarity about the overriding purpose of the organization.
This mission of UBUY Maldives will put combinedly a portal by clarity about the overriding
purpose of the organization. This organization has a mission to discover quality products
online and make the experience of shopping delightful. The vision of the UBUY is to
accomplish a profitable growth. The other objectives of UBUY are to deliver a quality
product to customers by satisfying online shopping experience and attending their needs
24*7. Following are the internal strategic factors for UBUY.
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STRATEGIC MANAGEMENT 5
Strength
UBUY is one of the leading organization in this industry. This organization has many
strengths and help to thrive in the market. This support organization to protect the share of
the market in a new market. This organization has built a new revenue stream by the
expansion that helped the organization to track record of product developing. It has built a
culture in dealers and distributor to promote organization product. It has developed a reliable
network of distribution that reach a majority of its potential market.
Weakness
Structure of organization is compatible with the current business model as limit expansion in
adjacent segments of the product. UBUY has a higher rate of attrition and spends more
compare to competitors on employees. This organization does not have proper financial
planning as ratios like current and liquid ratio suggest that an organization can use money
more effectively rather than its present.
Opportunities
The organization has invested in the vast sum of money on the online platform. It has opened
a new channel of sales for UBUY. Customer’s behavior towards new trends has opened a
new market. The new technology has provided the best pricing strategy in the new market.
This will enable the organization to maintain loyal customers by great service and value
oriented propositions.
Threats
Competitors of UBUY has developed new technology that is a very serious threat to the
industry for a good future. Customers have the nature of continuous change as an
organization operates in many nations that exposed to currency fluctuation in many numbers
of the market around the world.
SMART objectives of UBUY
Objectives of the organization are very useful for achieving goals by aligning with the overall
strategy of marketing (Dameri, 2013). For achieving goals organization will have more
important structure goal by using SMART target framework.
Specific – (Competitive advantage)
The organization should have a structure to achieve goals and have a definite intent. UBUY
must have clarity about the specific numbers, timeline, and ending target. This can be an
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STRATEGIC MANAGEMENT 6
amount of generated revenue that includes many process orders, improve website traffic,
conversion and customer value. These will support the organization to gain a competitive
advantage.
Measurable – Differentiation
The goal of UBUY should be trackable that is very useful for the progress in number. The
organization should use e-commerce management software to the fulfillment of more than
fifty percent of inventory. This will lower the amount of inventory and help to save the time
of packaging and shipping. This will support the organization to make the different market
than competitors and help to get a competitive advantage.
Attainable –Be realistic
Organization goals should be reachable. This is a very good challenge for the organization
that needs time and effort. This will support the organization to do something within its
capacity to achieve. This is a very important way to realistically achieve serves to dishearten
in the long run. The organization should be very sensible and pragmatic to determine and set
a goal in the process of achieving success. A measurable amount of progress will support to
desire for improvement and work towards a goal
Relevant – Big picture
The objective of UBUY should be fit in the overall strategy of a business. This support to
consider that business will go in the long term and fit in the bigger picture. These are very
important for the organization towards the relevant vision of UBUY.
Time – Be patient
The set goals of the organization should allow enough time to implement and establish the
strategies that plan to use to accomplish it. The organization should have short term goals as
it supports to achieve a larger goal. The organization should give enough time to complete
goals and persistent strategy.
Conclusion
This paper elaborate on the macro environment and the attractiveness of UBUY. This
environment includes political, economic, social, technological, legal and environment. The
strategic position of the organization is very useful for the strategic direction of UBUY. In the
end, the paper describes the smart objective of UBUY.
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References
Bosdriesz, J.R., Witvliet, M.I., Visscher, T.L., and Kunst, A.E., 2012. The influence of the
macro-environment on physical activity: a multilevel analysis of 38 countries worldwide.
International Journal of Behavioural Nutrition and Physical Activity, 9(1), p.110.
Castaño, Z., Tracy, K. and McAllister, S.S., 2011. The tumor microenvironment and systemic
regulation of breast cancer progression. International Journal of Developmental
Biology, 55(7-8-9), pp.889-897.
Viswanathan, M., Jung, K., Venugopal, S., Mine fee, I. and Jung, I.W., 2014. Subsistence and
sustainability: from micro-level behavioural insights to macro-level implications on
consumption, conservation, and the environment. Journal of Micromarketing, 34(1), pp.8-
27.3
Lorenzoni, V., Curzio, O., Karakachoff, M., Saponaro, A., Sanza, M., Mariani, F. and
Molinaro, S., 2013. The effects of the macro-environment on treatment retention for problem
cocaine users. International Journal of Drug Policy, 24(1), pp.52-59.
Tibbetts, J.R. and van Proosdij, D., 2013. Development of a relative coastal vulnerability
index in a macro-tidal environment for climate change adaptation. Journal of coastal
conservation, 17(4), pp.775-797.
Dollard, M.F., Osborne, K. and Manning, I., 2013. Organization–environment adaptation: A
macro‐level shift in modeling work distress and morale. Journal of Organizational
Behavior, 34(5), pp.629-647.
Park, D., Chinta, R., Lee, M., Turner, J. and Kilbourne, L., 2011. Macro-fit versus Micro-fit
of the Organization with its Environment: Implications for Strategic
Leadership. International Journal of Management, 28(2), p.488.
Yuan, H., 2013. SWOT analysis of successful construction waste management. Journal of
Cleaner Production, 39, pp.1-8.
Dameri, R.P., 2013. Searching for smart city definition: a comprehensive
proposal. International Journal of computers & technology, 11(5), pp.2544-2551.
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