Environmental And Sustainability Priorities: Strategic Recommendations For Different Companies

Analysis of Alibaba SWOT

Discuss About The Environmental And Sustainability Priorities.

The following report is aimed at suggesting strategies to the CEO or the Board of Directors for a number of companies for the long term sustainability of the following companies. The report is based on the use of a number of different strategic tools for the business that helps the organization to prepare an effective and sustainable strategy for the development of the business (Schaltegger, Lüdeke-Freund & Hansen, 2016). The proper act of finding potential customers and retaining the old customers is a must for the business organizations that offers their product and services to the customers. It is important to create a proper relationship with the customers after they make their first purchase as because satisfying the customers can improve the quality of their service. It is important for the business to concentrate on the retaining ability of the customers so that they can gain proper profit. The strategic recommendations will help the management of the companies to provide extra effort to their retaining powers.

Alibaba is one of the largest e-commerce companies of the globe and the largest in Asia. The company was founded by Jack Ma in the year 1999 and it provides B2B, B2C and C2C business services to a varied range of customers (alibaba.com, 2018). The company has been reeling under pressure because of the huge competition in the market as well as the rise in the number of different similar companies offering similar or even better services. The management of the organization needs a dynamic and effective strategic policy to overcome the existing problems so that they can remain competitive and sustainable in the market. A set of strategic recommendations has been provided by the researcher to help the management in implementing the different frameworks to help the company.

The present mission of the company is to take the appropriate steps so that it becomes easy for the organization to operate anywhere in the world. The management of the business enables the business to transform itself according to the needs of the market. The use of internet helps the organization to reach the traders, suppliers as well as the customers. However the organization must change their mission to adapt to the new changes in the business world. The mission of the organization for the coming days must be to implement a proper and effective planning which will make them reach out to a varied range of customers and help in the expansion of their business (alibaba.com, 2018).

Analysis of IKEA PESTLE

The present vision of the organization is to build a proper infrastructure of commerce. The company hopes that the customers will certainly meet, work and stay at Alibaba (alibaba.com, 2018). However the following concept seems obsolete as because the emergence of new organizations has provided options for the customers to switch their loyalties once they receive better services. Thus the vision of the company at the present stage must be to retain the customers by offering the best services in the market.

Strengths	Opportunities
·         Large Scale of  Operations ·         Leadership Abilities ·         Proper Relationship with partners ·         Share in the Market	·         Experience in China ·         Demands of e-commerce
Weaknesses	Threats
·         Large Number of Sellers ·         High Rate of Discounts and Offers ·         Cultural misconceptions	·         Huge Competition ·         Economic Instability ·         Loss of profitability

Strengths- The large scale of operations of the company have enabled them to be the best in the market. The company has its base in the largest populated country of the world and also one of the leading economies of the world. Combination of both these factors has been helpful to make the company achieve immense profit. This is easily reflected in the market share of the company which is approximately 58% in China far better than a mere 22% of its closest rival (Witjes & Lozano, 2016). Another main strength of the company is the presence of Jack Ma and his ability to lead the company. Last but not the least the efficient relationship with the suppliers of the organization has been the key to success for the company. The company provides discounts and special offer for the traders, dealers as well as the third party suppliers who carry on business with the organization.

Weaknesses- The presence of a large number of sellers is one of the main weaknesses of the organization. The large number of sellers has led to the emergence of different sellers in the online market place. The huge competition in the market has led to the pullout of reputed brands from the market (Gamble & Thompson, 2014). As discussed earlier the management of the company offers huge discounts to the customers, sellers and the traders of the organization. Though this is strength of the company this can lead to the loss as the management has to incur a lot of amount behind advertisements. Cultural misconceptions while expanding the business internationally is also one of the weaknesses of the mentioned company

Threats- The biggest threat of the company lies in the international expansion of the business. The presence of large companies like Flipcart and Amazon will limit the expansion of the business in countries especially like India. The economic instability in most of the Asian countries is also a major threat to the ambitions of the business organization.

Strategic Recommendations for Bluebird Taxi

Opportunities- The experience of the organization in China is certainly one of the major opportunities of the company. The thorough knowledge of the e-commerce market will help the management to expand the business in other parts of the world. The demand foe e-commerce business is on a rise and is expected to pick pace in the next decade which is an added advantage for the organization.

The SWOT Analysis of the market has figured out some of the crucial gaps that lay in the planning of the organization to be sustainable in the near future. Some of them are as follows;

1. Alibaba must reduce the number of sellers with whom they do business and concentrate their operations within a few sellers. This will help to reduce competition.
2. The tendency of the company to offer products at a much lower rate than the market has been the cause of large amount of losses. Therefore it will be much smarter to reduce the amount of discounts and reserve the discounts to specific products and occasions.
3. The company must follow the recommendations and study the culture of a country before beginning their operations. Proper cultural conception can ease business operations.

Social- Social factors are one of the main considerations that the management of IKEA must keep in mind before they expand their business globally. The company before entering any new market must conduct a proper and thorough analysis to gain a proper understanding of the demography of the area (ikea.com, 2018). Inter-country migration from the countryside to the city in search of employment is on a rise and has led to the increase in the demand for the functional low cost furniture. Therefore it is important for the organization to concentrate on this particular demand apart from carrying out its usual business. The management must also consider the presence of proper infrastructure in the host country as because the absence of such an infrastructure can be a major hindrance to the smooth operations of the organization.

Technological- The use of internet facilities has enabled the globalization of the business world. The management of IKEA must use internet and other latest technology to offer customers the products and services at their doorsteps. To facilitate such a service the company must create a separate online platform. The company must also have a clear idea about the demographics of the host country which will include the age, income, demands, family size and some other notable factors. This will help the management to provide the exact range of furniture that are in demand in the market (Doppelt, 2017).

Economical- Weak economies in most of the developed and developing countries has been a major weakening factor for the business of the organization. The fall in the purchasing power parity has led to the fall in the demand of furniture in different countries. The strategy of the company in such cases will be to change the range of furniture and introduce quality items at the market rate. Apart from this the company must follow the FDI rules and regulations in different places that will be helpful for them to gain success (Doppelt, 2017).

Conclusion

Environmental- The demand for the organization to meet up with the different environmental regulations like the reduction in carbon emissions and the introduction of recycling and environment friendly procedures is on a rise. The company must follow the rules and reduce the sourcing of raw materials. It is important for the organization to do away with the disposal of dangerous waste products and introduce environmental friendly packages.

Political- As evident the political factors of the host country is the most important consideration for IKEAA before establishing the business. There have been a number of different instances where the organization has suffered badly just because of political crisis. The legal and the management wing of the organization must go through the taxation policies of the country before starting the operations.

• Competition- The competition in the market is on a rise since the last decade and the Unique Selling Point of the company has been adapted by most of the other furniture companies where it operates (Cohen & Kietzmann, 2014). Thus the need of the hour is to change the strategic selling approach and introduce a new and innovative concept to achieve a stronghold in the market.
• Threat of Substitutes- The presence of a large number of substitute products at a cheaper rate has led to a loss of customers for IKEA. The rivals of IKEA are producing exactly the same kind of furnitures and are offering a lower price for the products. The lower price tags are luring the customers away from IKEA. Therefore it is important for the management to enter into low cost furniture market and offer both the brand value and quality assurance of the company to the customers. The company will be able to provide tight competition to the substitutes once they plan any such venture.
• Degree of Competitive Rivalry- The Company must adapt cost pricing strategies for surviving the large scale competition of the furniture market. The management team must adapt a cost reduction for selected range of furnitures to attain a competitive edge in the market (Beckmann, Hielscher & Pies, 2014).
• Threat of New Entrants to the Market- The new entrants in the market provides a low threat to IKEA considering the large scale of operations of the organization. However the company must monitor the activities of such firms before they provide extensive competition to them.
• Power of Buyers and Suppliers- Buyers and suppliers of the organization is the crucial elements to the success of the business and thus a good relationship beyond the business must be established to ensure sustainability.

Market Development	Diversification
Ø  Bluebird management must target local markets on a dynamic basis and also target easy accessible South East Asian Markets. The company must conduct the SWOT and PESTLE analysis before entering such markets. Ø  The use of different sales channels is preferred. Apart from its presence in the online market the company can also access different other ways like mobile bookings. Ø  Use of market segmentation can be useful. The company can arrange different cars from luxury to super luxury for different customers Ø  Bluebird Taxi can operate shuttle trips along with office specials to expand their business on a wide scale	Ø  Diversification strategies are risky to adapt because of the absence of proper expertise in the required field. Ø  The diversification strategies if adapted can lead to adverse effects for one organization while a positive result for the other.
Market Penetration	Product Development
Ø  The management of Bluebird  must let go the traditional strategies and adapt new marketing strategy that are appealing and acceptable to the new generation Ø  Introduction of a proper loyalty program can help in the expansion of business Ø  Special discounts and promotions are helpful for Bluebird taxi given the rising demand of affordable and comfortable public transport Ø  It will be wiser for the management to buy some smaller companies that offers similar services in the market.	Ø  As mentioned in the marketing strategies of the organization the company must extend the company services and introduce new ones to cope with the new demands of the customers Ø  Development of the existing services like introduction of more cabs should also be considered Ø  Maintenance of customer loyalty schemes can be helpful for the organization to retain the customers.

Bluebird Taxi has the ambitions to expand their wings and start its services in new markets of the world. The management must consider the growing South East Asian market to begin their operations. This includes markets of Thailand, Singapore, India and other smaller countries. The company will have to consider some factors before starting their business. Some of them are as follows;

The company must have a proper idea about the cultural mix of the host country as absence of such information can lead to problems. The culture of Singapore is different from Indonesia and thus before operating in the country the management must have a clear idea about the cultural traditions (Alves & Alves, 2015). The drivers and the operators need to be hired from the host country to avoid any cultural misconceptions. However the company must also ensure to provide the employees of the host country a proper training to help them have a clear idea of the company.

The management of the company must maintain fair relations with the suppliers in these countries to get the required logistical support. The absence of a logistical support can lead to failures.

The presence of rival companies like UBER, OLA, Meru cabs is a threat for the organization. Therefore it is recommended to start their business on a low scale with minimum investment as large scale investment in the beginning may lead to huge losses.

The management of the business can consider starting their business in new markets with new concepts. For example instead of beginning operations of cabs, the organization can consider the introduction of luxury cars and vehicles designed for specific purposes.

Conclusions

The recommendations provided by the organizations will surely help the management to formulate smart and updated policies to succeed in the business and stay sustainable. The companies must create more opportunities and tackle threats by means of proper strategic planning by taking advantage of the strengths and working on the weaknesses. Ensuring the proper quality of the products and keeping the price of the products at a reasonable rate is the key to the success of the business. Thus all the three companies as discussed in the assignment must work in coordination with the organization to meet the demands of the customers and stay competitive in the market. Sustainability must be a part of the business strategy of the business organizations and thus these must be integrated into all the different business strategies of the organizations. Apart from this innovation and technological advances can also lead to long term sustainability of the business organizations.

References

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