The paper will study about the fundamental component in international marketing. The company, Pret a Manager, has been used in this paper. The owners of the company want to expand internationally. With the help of SOSTAC analysis, a report will be developed for the expansion of the company. The potential nations of is Greece.
SOSTAC analysis stands for Situation, Objectives, Strategy, Tactics, Action and Control. It is established by PR Smith. The model is commonly employed business and marketing planning.
For situational analysis of the company, PEST analysis has been employed. PEST stands for Political factors, Economical Factors, Social Factors, and Technological Factors.
Legal and Regulation factors are assessed in the political environment in a nation because they have the capability to impact trade market and business environments. The political environment is critical when expanding business in a new economy, practically for an organization like Pret a Manager.
|
Greece |
United Kingdom |
|
|
Country Risk Rating |
B |
A4 |
|
Business Climate Rating |
A2 |
A1 |
The above table demonstrate a ranking system by global edge. The business utilized a ranking system: D, C, B, A4, A3, A2, and A1 (highest to lowest). Greece graded lowest in business climate rating (Global edge 2022). Greece is a parliamentary democratic nation. The political environment of Greece has evolved a measure of creativity and variety across Europe. As a consequence, success rate of Pret would rise in nation with a high degree of stability and dependability.
Economic risk could be evaluated by assessing the disadvantage in an economy of a nation. With this aspect, Pret would evaluate economic impact. Indicators including Unemployment and gross domestic product (GDP) are measured. GDP, PPP is among the primary variables utilize to determine the country’s economic development. The reason it is important for Pret is that it signifies possible profitability and health of an economy.
As seen in the above table, the highest GDP, PPP is of Greece and then of UK. State of economy is also indicated by unemployment rate. As seen, Greece has unemployment rate of 16.85%, which is lower than UK (Globaledge 2022). It also proposes that Greece is developing and has a high power for consumer purchasing. It will escalate quantity of possible customers and the demand of Pret’s items.
A social factor examines the social environment of the economy, and measure factors such as population analytics, demographics, tourist attraction, and so on.
From the chart, it is seen that Greece has population of around 10 million (World Bank 2022). The population of a nation could be utilized to identify its prospective audience base. A nation with greatest number of people has more consumers to target. Pret, usually functions in urban areas, hence urban population is critical to the company. Like country population, Greece has urban population of about 8 million. This provides specific number of prospective audience to Pret. Moreover, Greece has a diverse culture and attracts more than 7 million tourists every year, which is advantageous to Pret.
Greece coffee consumption rate is 2.4 kg per capita, which is higher than that of United Kingdom (Caffeine informer 2022). The above data is important, since Pret sells a broad range of coffee. For that reason, the quantity of coffee consumed in Greece signifies the prospective demand of the coffee range for Pret A Manager.
This aspect could impact Pret in several ways. Mobile phones and research and development expenditure are instances of technological factors (Siokas, Tsakanikas, and Siokas 2021). Greece has a enormous technological infrastructure. Due to it, Pret could grasp their modern technology. The innovation has modified the manner a customer buys items. It is important for Pret due to its loyalty to sustainable livelihood and manufacturing of local and fresh organic items to produce a unique and everyday altering menu. For that reason, Greece with high R&D profits from undertaking methodically to gain information
SMART Stands for Specific, Measurable, Achievable Realistic, and Time bound (Hedin and DeSpain2018). SMART objectives for Pret are:
This step implies to distributing particular accountability of particular task to particular person. It confirms that the strategies are successfully implemented. It is significant to make certain that the planned arrangement in the strategy and tactics division is accomplished or not. Internal marketing, checklists, regulations, processes, and systems are all covered in this section (Stephenson, 2021). The goal is to figure out who is in charge of what, when they are in charge of it, and how they are in charge of it. A gantt chart has been created to illustrate the same. Evidently it would rely on resources and finance available to Pret A Manager. It is expected that owners, managers and advisers of business is accountable for considerable amount of strategies. It is expected take 10 months for planning and implementing strategies, and has been estimated two months after that to track and record the performance.
The last step is control which entails tracking activities and performance to make certain that individuals who are accountable for particular tasks complete them that and the goals are met. In layman’s words double-checking if everything is in order and working properly. It’s critical that this be a productive and favourable method, with the goal of determining any areas that are deteriorating behind and resolving them promptly and capably before they become troublesome. It’s not a game of pointing fingers at people who don’t follow through on their commitments. For instance, it might be evident that it is not possible to accomplish certain goals, because of alteration in external environment, including such as health worry concerning consumption of sugar, or activities of rivalry, or any changes in the laws of the potential nation in which the company wants to expand. Even though it is not a motive to discard any goal, it might be a motive to revaluate it, and concentrate on different goal in which the strategy could be enhanced or improved (Pranata and Amaranti 2021). As stated above that it is significant to participate in proceeding strategy of tracking and controlling, when required augmented and adapting goals and objectives to benefit from possible opportunity or to organize for possible threats in the market.
Porter Diamond is established by Michael Porter to significantly assist the competitive edge of a group or a country has, because of some elements that are available to them as well as to how administration perform to boost the position of county in a internationally competitive environment. Michael porter states that a capability of company to contend in global context is based in unified set of place, tat specific industries in several other nations. To determine which factors will make Pret A Manger effective in the global market, one must first examine what made Pret A Manger so popular and profitable in its native market: the United Kingdom. This is done using Porter’s Diamond Model (Erboz 2020). It compromises of Factor condition, demand condition, Firm strategy, structure and Rivalry, related and Supporting Industries.
Factor condition: The Porter Diamond model’s first component is factor conditions. Factor condition in a particular nation refers to capital, natural and human resources, accessible to them. Capital, knowledge, physical, human resources and other resources, might not be available in that country of origin.
Demand Condition: The demand of native country greatly influences how positive markets within a country are. Businesses are also encouraged to grow, create, and increase quality. A wide market signifies more numbers of opportunities and challenges to grow. In every location where Pret operates, their product is in high demand since it provides customers with organic and healthier meals, providing them an advantage over similar products supplied by competitors.
Firm structure and Rivalry: Domestic competitiveness compel business to widen their capabilities and strength,. This explains missions and objectives and the kind of rivalry in a particular market. Rising rivalry from Starbucks, Caffe Nero, Greggs, and Costa are challenging from Pret A Manager.
Related and supported Industries: The existence of related and supporting industries offers a strong basis for the success of the target industry. To provide more value to customers and become more competitive, firms frequently form partnerships and alliances with other businesses. Suppliers, in particular, are critical to enhancing innovation by offering improved and higher-quality inputs, immediate support, and short communications networks.
References
Siokas, G., Tsakanikas, A. and Siokas, E., 2021. Implementing smart city strategies in Greece: Appetite for success. Cities, 108, p.102938.
Caffeine informer, 2022. Caffeine (Coffee) Consumption By Country. [online] Caffeineinformer.com. Available at: <https://www.caffeineinformer.com/caffeine-what-the-world-drinks> [Accessed 5 February 2022].
Erboz, G., 2020. A qualitative study on industry 4.0 competitiveness in Turkey using Porter diamond model. Journal of Industrial Engineering and Management, 13(2), pp.266-282.
Global edge, 2022. Greece: Risk Assessment. [online] Globaledge.msu.edu. Available at: <https://globaledge.msu.edu/countries/greece/risk> [Accessed 8 February 2022].
Globaledge, 2022. Results >> globalEDGE Comparator. [online] Globaledge.msu.edu. Available at: < https://globaledge.msu.edu/comparator/home/results?year=2020&field=SL-UEM-TOTL-ZS&field=NY-GDP-MKTP-KD-ZG&field=NY-GDP-MKTP-PP-CD&country=54&country=78> [Accessed 7 February 2022].
Hedin, L. and DeSpain, S., 2018. SMART or not? Writing specific, measurable IEP goals. TEACHING Exceptional Children, 51(2), pp.100-110.
Pranata, Y.A. and Amaranti, R., 2021. Rancangan Strategi Pemasaran Media Sosial Menggunakan Model SOSTAC. Jurnal Riset Teknik Industri, 1(2), pp.110-120.
Stephenson, R., 2021. How to write a digital marketing plan using PR Smith’s SOSTAC® planning model.
world bank, 2022. Population, total | Data. [online] Data.worldbank.org. Available at: <https://data.worldbank.org/indicator/SP.POP.TOTL?view=map> [Accessed 9 February 2022].
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