Question:
Discuss About The International Journal Hospitality Management?
It is mandatory for an organization to select the adequate market and entry mode to introduce themselves to the customers in the global world. Target market helps the organization to attract the correct customers for their product. It helps them to select the type of customers they want for their product. Entry mode helps the organization to enter in the new surrounding efficiently, it also helps the organization reduces the risk and gain the customers of the market. Further, the companies who achieved competitive advantage by using these strategies are:
Apple Inc. is an international company famous for manufacturing products like iPhone, iPod, MacBook etc. The products of Apple are sold worldwide through retail, online, and direct stores. The company is excelling the market and gaining maximum customer satisfaction due to which the growth of the company is initiated in the market. As it is known, Apple products are considered most efficient products in the market to which the customers focus on repurchasing the Apple brand products only. The market strategy of apple helps the organization in gaining the competitive in the market (Dinnie 2015).
Talking about the market strategy of the organization, the company proficiently targeted the right customers for their product who will create actual sales. Apple is regarded to be the most premium brand in the electronic software industry. Thus, the company initiated to target rich and upper-class customers who will actually buy the products of the organization. The company aimed high to target the customers who can purchase their premium brand and they also created product differentiation by introducing efficiency technology in it. This activity identified the product in the market due to which the tech-savvy customers of the organization interest was gained by the organization (De Mooij 2013). Thus, these customers became the fixed customers for the organization. The process through which the company grew in the global market is not that they serve premium products, but the reason behind the competitive advantage is that the customers of the organization are the static customers of the organization who initiate repeated sales. Once a person uses the Apple brand product, they further use the same company products only for the rest of their lives. This is the main factor of growth of the organization (Verbeke 2013).
Supposing if the company targeted the customers of middle or low class, then Apple wouldn’t have a sustainable growth I the market because company placed the right product in the wrong market. This will initiate good returns for the operations resulting in negative growth of the organization.
Further, Apple Inc. gained the market capitalization in the global business context by entering in al market by incensing their products. The International licensing agreement refers to the agreement which enables the foreign country firms to manufacture the products of the proprietor‘s firm and sell them in their local target market (Brouthers 2013). As the name of the company Apple is already established in the market, resulting to which it was easy for the company to enter in any international target market. Further, it issued the license to the manufacturing company prevailing in the market which they are targeting for the production of the apple company products in their company. Thus, it process helped the company to expand their customer base in the international market. The manufacturing company also gets the right to access the patent and trademark of the apple company. So, knowing the fact that the company already has an efficiency brand image in the global market, thus, the premium customers the market gets attracted and sale process is initiated (Ang, Benischke, and Doh 2015).
Mercedes is an automobile multinational brand based in Germany. The manufacturer of the company Daimler AG produces luxurious automobile such as buses, cars, trucks etc. The company is world’s one of the biggest brand selling best luxurious cars to the customers situated everywhere is in the world. Talking about the competitive advantage which the company Mercedes receives is that due to having an extended customer base and brand image in the market the company enjoys competences. Further, some of the activities which the company initiated in their management process helped them to achieve this position in the market.
Like, the company aptly selected the right people to target in the market. The strategy of Mercedes behind market segmentation was that they wanted to create product differentiation, resulting to which the management divided the target market on the basis of four smaller segments that are; geographic, demographic, physiographic, and on the basis of the behavior of consumers (Amos 2016). Further, as the company wanted to create product differentiation in the market, resulting in which the company targets the upper-class customers in the market who prefer luxury at any cost. Also, the people having a special interest in cars were target by the company, looking at the consumer behavior the company launched the S-class which became highly famous as it benefitted the customers with the satisfaction which they want to gain by using the product. Thus, due to adequate market selection, the company gained their current position in the market. The company emphasized majorly on the design and specifications of the product, due to which the company became a rich brand and target the rich customers only (Úbeda-García, et. al., 2014).
The company Mercedes does not believe in franchising their products from other entrepreneurs in the global market, instead, they aim to provide efficient products to each and every customer of the company. Thus, the company uses the green Field strategy to introduce themselves in the global market. This strategy helps the company to manufacture their product themselves and reduce complaints of clients. This process also helps the company Mercedes to control the operation and initiate activities under the surveillance of the management. Entry timing also strategically assist the company in gaining the competitive advantage in the market (García-Lillo, Úbeda-García, and Marco-Lajara 2017). The company Mercedes initiated the business process with an aim to gain the market capitalization globally. Thus, they became the fast follower of the technology and circulated their product worldwide.
In today’s world, the major focus of the companies is to create a brand image of the product globally. Once a brand image of the product is created in the market, then the company gains a competitive edge in the market. Thus, the fact shall be understood that brand image can help the company to initiate competence in their management. A premium price of the product helps the company to place themselves as a premium or luxurious brand in the market. The brand position of the product also helps the company to raise themselves above from the competition in the market. Global positioning refers to the place which the customers keep the products and perceive it as the best (Giachetti, and Marchi 2017). It helps the company to gain uniformity in products and helps the customers to known adequately about the product and company’s image in the market. Further, the company which gained efficiency by using these strategies is discussed below:
Samsung Company is a South Korean multinational conglomerate comprised of various businesses under them. The company mainly deals in producing hardware electronic products. The company is regarded to be one of the best company selling smartphones worldwide. With this effect, it is easily understood that Samsung has an identified image maintained in the market. Thus, it shall be known that global branding helped the company and its product to create emphasis on the customers and initiate the sale. Marketing strategies like adaptation and aggregation helped the company to survive tough competition in the global market (Saeed, Nematiyan, and Albonaiemi 2016).
The main reason due to which Samsung is gaining maximum sale of its products in the market f compared with competitors is that the company manufactures all types of products that are high class, middle and lower class product. Looking at the preference of the market the company produces and manufactures products accordingly for the people who buys premium product whereas people who prefer middle range products buy the same form the market. Although due to this process the image of the company is not maintained as a luxury brand in the market, the company has gained the market capitalization by positioning the product at the adequate place (Dinnie 2015).
Further due to these activities initiated by Samsung the global brand image of the company created the hybrid image in the market. Hybrid structure refers to company’s image which produces all types of product and services. The product division helped the company to classify different products with different image. Products with premium prices are regarded as premium Samsung products and vice versa. With this strategy, the company slowly captured the global market along with the local customers (Verbeke 2013). Also, the product is positioned in the market by looking at the past activities of the company, thus, with this effect, different products are placed differently in the global market-based upon their level of satisfaction which they provide.
Tesla Motors Inc. is an America automaker, energy Storage Company. The company is known for producing specialized electric cars which help in creating a sustainable environment. The initiative which the company started helped to create a global brand in the market. Tesla motors innovatively produced e-cars which less emitted pollution and generated less use of petroleum as well. Due to this process, the company identified themselves in the global market. The company showcased their product in such a way that, a strong brand image of the Tesla motors was created in the market. Talking about the brand structure, Tesla motors enjoy the image due to product dominance in the market. There is no other company in the market selling electronic cars with such efficiency. The company gains the competitive edge without market their new products in the market. As the customers already knew the quality of the products which the company serves, due to which they got attracted towards the electronic cars and purchased them. Thus, due to this feature, the product was positioned at the premium place in the market (Foley 2016).
Apart from that, the company sells normal cars well, before electronic cars the company gained the market capitalization by serving efficiency to its clients. Tesla eliminated the competition prevailing in the market by creating a recognized image in the market which possessed maximum sale of products of the company. Also, tesla is efficiently using the power in the market by selling products which are efficient and effective for people as well as nature. This image of the company is created in the market due to the placement of their product in the target market. Looking at the underlying market dynamic the company produced this product so as to change the face of the automobile industry and catted a differentiated position in the market. Also, the corporate branding feature helped the company to look at its future growth in advance. Branding helped the company to sustain the current growth in the competitive market; it also reduces the risk of competition in the market (Hoang, and Rothaermel 2016). Thus, with this process, the long-term vision of the company Tesla is also implemented. And now by gaining the major share of the global market the company can easily amend the automobile industry and create it in favor of society and customers.
Conclusion
Thus, in the limelight of above-mentioned event, the fact that shall be noted is that it is not easy for companies to gain a competitive edge in the target market; but if once an identified brad image is created globally then the company relieves them from the risk of competition. Further, it shall be noted just like Mercedes and Apple is important for the companies to place the product in the correct target market according to the type of their product. Along with this global branding helps the company to identify themselves in the global competitive market and gain the competitive edge.
References
Amos, D., 2016. How to Define Your Target Market.
Ang, S.H., Benischke, M.H. and Doh, J.P., 2015. The interactions of institutions on foreign market entry mode. Strategic Management Journal, 36(10), pp.1536-1553.
Brouthers, K.D., 2013. A retrospective on: Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 44(1), pp.14-22.
De Mooij, M., 2013. Global Accounting and advertising: Understanding cultural paradoxes. Sage Publications.
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Foley, J., 2016. Shared Value and Competitive Advantage: A Tesla Motors Case Study.
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2017. The intellectual structure of human resource management research: A bibliometric study of the International Journal of Human Resource Management, 2000–2012. The International Journal of Human Resource Management, 28(13), pp.1786-1815.
Giachetti, C. and Marchi, G., 2017. Successive changes in leadership in the worldwide mobile phone industry: The role of windows of opportunity and firms’ competitive action. Research Policy, 46(2), pp.352-364.
Hoang, H. and Rothaermel, F.T., 2016. How to Manage Alliances Strategically. MIT Sloan Management Review, 58(1), p.69.
Saeed, N.B., Nematiyan, M. and Albonaiemi, E., 2016. Effective factors on the value of international brands in Iranian consumers (Case Study of Samsung brand in Khuzestan market). International Journal of Humanities and Cultural Studies (IJHCS)? ISSN 2356-5926, 2(3), pp.974-984.
Úbeda-García, M., Cortés, E.C., Marco-Lajara, B. and Zaragoza-Sáez, P., 2014. Strategy, training and performance fit. International Journal of Hospitality Management, 42, pp.100-116.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
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