Factors impacting strategy 2014

Topics: Strategic management, Marketing, Tobacco Pages: 31 (4246 words) Published: May 2, 2015
MARKETING STRATEGY

MKT540 Marketing Strategy Assessment 2
Factors Impacting Strategy

Executive Summary
There are numerous factors that impact and inform the development of an organisation’s marketing strategy. For companies to succeed in the ever-evolving and turbulent marketplace of today, they must identify factors that influence and impact the direction of the industry and integrate them into the marketing strategy accordingly. This report looks at the ways in which corporate capability, competition, markets served and the environment impact upon the growth and sustainability of an organisation and its customers. Case studies are used for each element discussed and a marketing strategy checklist is provided at the end.

Table of Contents

1. Corporate Capability.…………….………………………….……………………..…4 1.1 Zappos – Changing the Soul of Shoes….....………………...………………….……5

2. Competition…………………………………………………….……………….…….7 2.1 .2 One Bean in a Pod – Competitive Advantage for Nespresso.……………………11

3. Markets served and investigated…………………………………………….………..12 3.1 IKEA getting comfortable in China……………………………………...……….....13

4. Environmental Factors……………………………………………….………………15 4.1 Tobacco industries deem PESTLE a pest…………………….…………………….17

5. Marketing strategy checklist for a regional based marketing agency………………..19

References………………………………………………………………………………23

1. Corporate Capability
“A capability is a set of business structures strategically understood.” (Stalk, Evans & Schulman, 1992). The corporate or organisational capabilities a firm possesses determines it’s ability to maintain relevance and in the ever-changing marketplace in which they operate. Corporate capabilities are influenced by factors that include: financial strength; human strength and corporate culture; raw material reserve; engineering, production and technological competence; overall management; and marketing strength. Each of these factors must integrate with one another if the firm is to succeed in developing and implementing growth strategies. The marketing strategy explores each resource capability in concert with the expectations held by it’s interest-holders to determine corporate readiness for new developments (Jain, Haley, Voola, Wickam, 2012).

A corporate appraisal is useful in evaluating ways in which top management, marketing, production, finance, research and development, social responsibility, and past performance of the firm impact upon current and future progression. It provides the strategic perspective necessary to shape and implement company goals developed by marketing strategy (Jain, et al., 2012).

An organisation’s capabilities possess the ability to differentiate a firm from it’s competitors and strengthen market position in a way that becomes challenging for competition to emulate. As customer preferences rapidly change and evolve leaving product life cycles far shorter than in previously traditional markets, product capability is no longer enough to form distinctive competencies, nor at times is technological advantage. (George Bradt, Forbes 2013). Adaptability, mission, consistency and involvement are the 4 traits tied to performance, according to Daniel Denison (1990) who, in an states that ‘company culture affects bottom line’ (Denison Consulting, 2013).

Figure 1: Daniel Denison’s model (1990)
Source: Extracted from Denison Consulting, 2013.

1.1 Zappos – Changing the Soul of Shoes
Online U.S based shoe retailer­, Zappos, is an example of how corporate capabilities impact marketing strategy. Awarded sixth of ’50 Most Engaged Workplaces’ in the US, Zappos’ CEO, Tony Hsieh attributes the company fast growing success to it’s core strategy; company culture. Undergirded by a mission of ‘delivering happiness’ to customers, Zappos empowers it’s employees to take ownership of their roles, promoting innovation and ideas whilst...


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The Denison organisational culture model (1990)
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Tulshyan, R. (2013). Home Depot’s failure in China: Ignoring women. Atlanta Business Chronicle. Retrieved from: http://www.bizjournals.com/atlanta/blog/femme-fortune/2013/04/home-depots-failure-in-china.html?page=all
Webb, G
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