Marketing Managment Essay Example | Topics and Well Written Essays - 1250 words

Marketing Managment - Essay Example This step of strategic planning process involves strategic thinking i.e. what the firm needs to do ten to fifteen years from now. The mission is followed by analysis, which involves environmental scan this analysis is important because a business strategy should be congruent with the capabilities of the firm and its external environment. This scan involves industry and competitive analysis, company analysis and identification of competitive strategy. For analysing the industry environment porter’s five forces model is used. The rivalry among firms identifies the extent of competiveness, strength of barriers to entry, buyer power, supplier power and the threat of substitute all are analysed and listed as a part of the industry analysis. In the company analysis the present strategy is assessed based on the performance indicator and financial analysis. A SWOT analysis is conducted identifying the strength, weaknesses, opportunities and threats for the firm. Also PEST analysis, in volving the political, environmental, social and technological changes affecting the firm, is also conducted. Lastly identifying competitive advantage involves core competency and benchmarking. Core competence is what a firm does best and benchmarking is comparing ones products and services with that of the customer in order to add any improvement to the existing product and services. After the situation analysis is the step of goals and objectives. The goal setting and objectives formation is a crucial part of the strategic process. Goals are broad target of what is to be achieved which are then translated in to more measurable, workable, achievable and specific targets know as objectives. After this step comes the grand strategy... This paper approves that studying the industry through porter’s five forces model gives a good picture of the automotive industry. The rivalry among firms in this industry is high due to the great diversity of rivals culture, slow market growth, high fixed costs and low switching costs for the customer. The threat of substitute to this industry is low because all other transportation vehicles don’t offer the same utility, convenience and independence. The industry has high barriers to entry due to high capital requirements and the specialized nature of the industry. The power of supplier is less as compared to that of the buyer. The buyer of the automotive industry is very high. This essay makes a conclusion that the goal for Volkswagen is to bring diversity and new models to their product line. The objective is to introduce newer models like the hands free driving and bring technological advancement in their product line. The corporate strategy for this company is a combination of growth and stability. The company plans to use concentration strategy and bring new models to the same customers. Also in order to grow they will maintain their sales and grow slowly out of their declining profits. The product marketing strategy for VW is affordable price car for everyone so as to increase it market share from the existing one. The company has carried out focus group researches to identify the needs of customers and develop a price that adds value to the customer purchase as a part of VW’s value proposition.