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Marketing Strategy for A Reassessment of the Relationship Between Income Inequality and Poverty
Posted by Addison on Mar-29-2023
Introduction
The report primarily focuses on the marketing strategy of A Reassessment of the Relationship Between Income Inequality and Poverty to give a reader an overview of the growth dynamics of the company. Recently, several strategic issues and managerial problems have been identified in marketing strategy of A Reassessment of the Relationship Between Income Inequality and Poverty that have drawn the attention of the entire management to devise new marketing strategies that can help the company to resolve the problems to continue its expansion and future growth to achieve a competitive edge in the marketplace. This report is written to provide A Reassessment of the Relationship Between Income Inequality and Poverty marketing strategy with the required strategic solutions using multiple frameworks and tools.
External Environmental Analysis
PESTLE Analysis is the most popular strategic tool that is used by many organizations when conducting an external environmental analysis. This framework typically focuses on political, economic, social, technological, legal, and environmental factors that can impact the macro environment of the business (Zalengera, E.Blanchard, & C.Eames, 2014).
Political factors
Political Stability
A Reassessment of the Relationship Between Income Inequality and Poverty operates in a politically stable environment, which means that it provides the company with more friendly and stable business growth opportunities (Christodoulou & Cullinane, 2019). However, since A Reassessment of the Relationship Between Income Inequality and Poverty operates in multiple countries, there are high chances of various political tensions that can cause instability in market growth trends for A Reassessment of the Relationship Between Income Inequality and Poverty. This can limit the company's growth opportunities.
Pressure Groups
Moreover, it is important for A Reassessment of the Relationship Between Income Inequality and Poverty to analyze and monitor the activities of pressure groups. A Reassessment of the Relationship Between Income Inequality and Poverty can create a close collaboration with these groups to achieve long-term goals.
Corruption and Changing Policies
A Reassessment of the Relationship Between Income Inequality and Poverty must keep a close check on the changes in any government policies because they can directly impact the performance of the business. The operations of A Reassessment of the Relationship Between Income Inequality and Poverty are its different countries can become unpredictable if there is a high level of corruption and weak enforcement of the law (Achinas, Horjus, & Achinas, 2019).
Trade and Taxes
The profitability of a company is directly influenced if there are high taxes in a country. A Reassessment of the Relationship Between Income Inequality and Poverty should look into the taxation policies in each country before further expanding its operations (Eierle, Hartlieb, & C. Hay, 2022). Similarly, if there are high trade restrictions, it can get difficult for A Reassessment of the Relationship Between Income Inequality and Poverty to import and export its products, impacting the relationships with trade partners.
Economic factors
GDP, Employment, and Exchange Rates
The long-term growth strategies of A Reassessment of the Relationship Between Income Inequality and Poverty are majorly determined by the GDP growth of the economy. The purchasing power of consumers significantly increases with a high GDP. High unemployment in an economy shows that A Reassessment of the Relationship Between Income Inequality and Poverty can benefit from surplus labor with low-cost wages. Furthermore, A Reassessment of the Relationship Between Income Inequality and Poverty should monitor interest rates as it can affect the borrowing ability. With that being said, if there is a high fluctuation in currency, the profitability of A Reassessment of the Relationship Between Income Inequality and Poverty can also be influenced (Sadeghi, 2020).
Labor Market
It is important for A Reassessment of the Relationship Between Income Inequality and Poverty to make appropriate predictions regarding the labor market conditions in a specific economy (Sadeghi, 2020). This can help the company to hire a more talented workforce that can improve the performance of the company.
Industry lifecycle stage
A Reassessment of the Relationship Between Income Inequality and Poverty should consider expanding its operations in growing economies to benefit from growth opportunities. It can be challenging for A Reassessment of the Relationship Between Income Inequality and Poverty to enter a mature industry at a growing stage (Villamarín & Pinzon, 2017).
Social factors
Demographics
A Reassessment of the Relationship Between Income Inequality and Poverty should study the changing patterns of demographics, such as socio-economic variables, the aging population, and trends in migration (Barbara & Cortis, 2017). This can help the company to identify the right segment to target with a high potential for growth opportunities.
Cultural norms
Every country and society has a distinctive culture with different norms and values. It is important for A Reassessment of the Relationship Between Income Inequality and Poverty to study and identify social class stratification.
E-commerce
There has been a significant shift in online shopping. A Reassessment of the Relationship Between Income Inequality and Poverty needs to adopt necessary changes considering the growing use of social media networking sites and mobile phones to increase its revenue and overall profitability (Villamarín & Pinzon, 2017).
Technological factors
Technological innovations
On-going technological innovations should be considered carefully by A Reassessment of the Relationship Between Income Inequality and Poverty so that it can stay ahead of the competitive market. A Reassessment of the Relationship Between Income Inequality and Poverty should continue working on introducing major technological transformations to achieve a competitive advantage (Rastogi & TRIVEDI, 2016).
Social Media Marketing
The collaboration with consumers has been growing rapidly because of the development of communication technologies (Rastogi & TRIVEDI, 2016). A Reassessment of the Relationship Between Income Inequality and Poverty can take it as a great opportunity where can use innovative strategies to expand its customer base.
Environmental factors
Waste Management
A Reassessment of the Relationship Between Income Inequality and Poverty should implement the latest technological tools to minimize environmental pollution. Waste management is now getting popular and has been considered a major business norm (Igliński, Iglińska, & Cichosz, 2016).
Climatic Conditions and Eco-friendly products
Climatic conditions can influence the efficiency of A Reassessment of the Relationship Between Income Inequality and Poverty. The cost of a company's operations can be increased if there are extreme weather conditions. Similarly, there has been an increasing demand for eco-friendly products. A Reassessment of the Relationship Between Income Inequality and Poverty should work towards adopting more sustainable business practices to gain customer trust (Barkauskas, Barkauskienė, & Jasinskas, 2015).
Legal factors
Employee protection laws
It is important for A Reassessment of the Relationship Between Income Inequality and Poverty to follow the health and safety laws for its employees that are issued by the authorities to ensure the safety of its labor.
Consumer laws
A Reassessment of the Relationship Between Income Inequality and Poverty should protect its customer data to ensure their security and privacy concerns. Moreover, it should set the right price with the right product quality (Igliński, Iglińska, & Cichosz, 2016).
Porter's Five Forces
A Reassessment of the Relationship Between Income Inequality and Poverty can use Porter's Five Forces to analyze the competitive landscape of the industry. The strategic planners of A Reassessment of the Relationship Between Income Inequality and Poverty can use this framework to make effective decisions.
Threat of New Entrants
A Reassessment of the Relationship Between Income Inequality and Poverty operates in an industry where it is difficult to achieve economies of scale, making it difficult for new entrants to enter the industry (Yunna & Yisheng, 2014). There is a strong product differentiation with high capital requirements. Moreover, it is difficult to establish a distribution network easily in this industry. Thus, A Reassessment of the Relationship Between Income Inequality and Poverty has a weak threat of new entrants.
Bargaining Power of Suppliers
There are more suppliers in the industry of A Reassessment of the Relationship Between Income Inequality and Poverty. This shows that there is less control over prices. Organizations like A Reassessment of the Relationship Between Income Inequality and Poverty can easily switch to other suppliers because of less differentiation in products. This makes the bargaining power of suppliers a weak force in A Reassessment of the Relationship Between Income Inequality and Poverty's industry (H. Th. Bruijl, 2018).
Bargaining Power of Buyers
The industry in which A Reassessment of the Relationship Between Income Inequality and Poverty operates has many suppliers as companies to buyers. This means that buyers have fewer options and do not have control over prices (H. Th. Bruijl, 2018). The high product differentiation shows that there are few alternative products for buyers, and there is a high switching cost. This makes the bargaining power of buyers a weak force in the industry.
Threat of Substitute Products and Services
A Reassessment of the Relationship Between Income Inequality and Poverty operates in an industry that offers very few substitutes to its customers. The substitutes that are available are expensive because of their high quality (Zhao, Zuo, & Wu, 2016). However, companies like A Reassessment of the Relationship Between Income Inequality and Poverty sell their products at a lower prices. This clearly shows that buyers may feel reluctant when switching to other substitutes.
Rivalry Among Existing Firms
A Reassessment of the Relationship Between Income Inequality and Poverty operates in a less competitive industry. The already established companies have a large market share, meaning that any move by the existing companies will be noticed. Moreover, A Reassessment of the Relationship Between Income Inequality and Poverty has to take several competitive actions to become a market leader, as the industry is likely to grow rapidly in the coming years (Aithal, 2020).
SWOT Analysis
A Reassessment of the Relationship Between Income Inequality and Poverty can make use of SWOT analysis to effectively analyze the company's internal strengths, weaknesses, external opportunities, and threats.
Strengths
Strong distribution network
A Reassessment of the Relationship Between Income Inequality and Poverty operates in various countries and has multiple outlets that help the company to deliver its products quickly to its customers. This shows that A Reassessment of the Relationship Between Income Inequality and Poverty has a strong distribution network (Benzaghta, Elwalda, & Mousa, 2021).
Financial position
A Reassessment of the Relationship Between Income Inequality and Poverty has established itself as a strong financial company over the past few years. It has generated enough profits that can be used to finance any future expenditure (Basset & Mohamed, 2018).
Automation
A Reassessment of the Relationship Between Income Inequality and Poverty has adopted the latest and innovative technology in its business operations, which has allowed the company to reduce its production costs (Benzaghta, Elwalda, & Mousa, 2021).
Social media presence
A Reassessment of the Relationship Between Income Inequality and Poverty has been successful in establishing itself as a strong brand on social media platforms that, includes Facebook, Twitter, and Instagram. This increases customer engagement (Basset & Mohamed, 2018).
Weaknesses
High rent costs
A Reassessment of the Relationship Between Income Inequality and Poverty has its manufacturing plants on rented properties. This increases the company's overall costs, and a significant portion of A Reassessment of the Relationship Between Income Inequality and Poverty's profits go into paying the rent (Comino & Ferretti, 2016).
Research and Development
A Reassessment of the Relationship Between Income Inequality and Poverty has not been able to conduct effective and in-depth market research regarding new markets and products (Comino & Ferretti, 2016). Customer trends are always evolving, and it is important for A Reassessment of the Relationship Between Income Inequality and Poverty to take immediate action in conducting its research.
Centralized Power
There has been a centralized decision-making process in A Reassessment of the Relationship Between Income Inequality and Poverty. This means that employees have to consult their managers before taking any decision themselves. This slow down the decision-making process. and employees feel demotivated. Thus, impacting the operations of A Reassessment of the Relationship Between Income Inequality and Poverty (Comino & Ferretti, 2016).
Opportunities
Presence of Internet
A Reassessment of the Relationship Between Income Inequality and Poverty has a great opportunity of expanding its business by using the internet. Since there has been a growing trend in online shopping A Reassessment of the Relationship Between Income Inequality and Poverty can boost its sales by expanding its online stores (Yan, Xia, & X.H.Bao, 2015). Additionally, social media platforms can be updated constantly to engage customers with all the new products introduced by A Reassessment of the Relationship Between Income Inequality and Poverty.
Technological Innovations
Technology is constantly evolving, and A Reassessment of the Relationship Between Income Inequality and Poverty can benefit from it by implementing the technology in its various departments. Manufacturing process can be completed automated, which can eventually help A Reassessment of the Relationship Between Income Inequality and Poverty to reduce its costs (Taghavifard, Mahdiraji, & Alibakhshi, 2018).
Globalization
The continuous increase in globalization has allowed A Reassessment of the Relationship Between Income Inequality and Poverty to expand its business operations across borders. It has the opportunity of entering new markets (Yan, Xia, & X.H.Bao, 2015).
Threats
New Entrants
Recently, many companies are entering the industry in which A Reassessment of the Relationship Between Income Inequality and Poverty operates. This means that there are chances of increased competition. This poses a threat to A Reassessment of the Relationship Between Income Inequality and Poverty as it has to put more effort into gaining market share (Taghavifard, Mahdiraji, & Alibakhshi, 2018).
Fluctuations in exchange rates
The exchange rates are highly subjected to fluctuations that negatively impact the sales of A Reassessment of the Relationship Between Income Inequality and Poverty. A Reassessment of the Relationship Between Income Inequality and Poverty needs to study the changing fluctuations to keep up with its profitability (Vlados & Chatzinikolaou, 2019).
Consumer trends
The consumer trends are constantly changing, that causes changes in their demands. This puts pressure on companies like A Reassessment of the Relationship Between Income Inequality and Poverty, who have to continuously meet their consumer demands. Moreover, there is a significant threat from substitute products because consumers tend to switch to these companies (Vlados & Chatzinikolaou, 2019).
Marketing Mix
Product
A Reassessment of the Relationship Between Income Inequality and Poverty operates in a wider range of products. Each of the products has its further product lines that are sold under the A Reassessment of the Relationship Between Income Inequality and Poverty. This means that customers can benefit from a large variety of products. A Reassessment of the Relationship Between Income Inequality and Poverty sells highly differentiated products with higher quality that, gives it a competitive edge (Khan, 2014).
Price
A Reassessment of the Relationship Between Income Inequality and Poverty follows a competitive pricing strategy. The company also takes into account all its costs before setting its prices (Londhe, 2014). Currently, A Reassessment of the Relationship Between Income Inequality and Poverty is using a product bundle pricing strategy where customers get bundled products at lower prices.
Place
A Reassessment of the Relationship Between Income Inequality and Poverty has adopted various distribution channels to reach its customers. The company sells its products through its website directly (Thabit & Raewf, 2018). Apart from this, it also distributes its products to wholesalers, who then further sell it to small retailers. A Reassessment of the Relationship Between Income Inequality and Poverty has its own retail stores where it sells its products directly to consumers.
Promotion
A Reassessment of the Relationship Between Income Inequality and Poverty uses traditional and modern promotional techniques. TV ads are used to reach a larger audience. A Reassessment of the Relationship Between Income Inequality and Poverty also advertises on social media sites such as Facebook, Instagram, and Twitter. Events are sponsored by the company. Moreover, A Reassessment of the Relationship Between Income Inequality and Poverty participates in several exhibitions (Londhe, 2014).
VRIO Analysis
Valuable
A Reassessment of the Relationship Between Income Inequality and Poverty engages in corporate social responsibility activities. This has allowed the company to establish a strong brand image. Since, A Reassessment of the Relationship Between Income Inequality and Poverty has a well-established distribution network, the products are reached to consumers in a timely manner. A Reassessment of the Relationship Between Income Inequality and Poverty has been able to introduce innovation in its various departments, which has lowered its costs (Ariyani & Daryanto, 2018).
Rare
A Reassessment of the Relationship Between Income Inequality and Poverty operates in multiple countries. This means that its global presence is a rare factor. It works towards an organizational culture that encourages teamwork, and creativity among employees (Ariyani & Daryanto, 2018). A Reassessment of the Relationship Between Income Inequality and Poverty is also able to adapt to different societies, and cultures due to its exposure to various locations.
Inimitable
The products produced by A Reassessment of the Relationship Between Income Inequality and Poverty are of a high quality. Customers make repetitive purchases, and thus it is an inimitable source. (Miethlich & G. Oldenburg, 2019). A Reassessment of the Relationship Between Income Inequality and Poverty has a significant placement of its stores that gives an easy access to its customers. Additionally, the company has been using a competitive pricing strategy because it has been able to achieve economies of scale, thus lower production costs.
Organization
A Reassessment of the Relationship Between Income Inequality and Poverty, over the years, has successfully gained a financial strength. A Reassessment of the Relationship Between Income Inequality and Poverty can make use of these finances to invest in major acquisitions that give it more growth opportunities. The advancements in technology have allowed A Reassessment of the Relationship Between Income Inequality and Poverty to manage its operations more effectively. Distribution channels are another resource for A Reassessment of the Relationship Between Income Inequality and Poverty. The supply chain is very efficient, resulting in more revenue (Miethlich & G. Oldenburg, 2019).
Value Chain Analysis
Primary Activities
A Reassessment of the Relationship Between Income Inequality and Poverty is involved in primary activities such as the production of goods and then selling them to the target audience.
Inbound Logistics
A Reassessment of the Relationship Between Income Inequality and Poverty should ensure to have a strong relationship with its suppliers to avoid any inconvenience in receiving, storing, and distributing the product. This will help A Reassessment of the Relationship Between Income Inequality and Poverty to have a more effective transformation of a product (Ariwibowo & Saputro, 2021).
Operations
Operations involves manufacturing as well as services. A Reassessment of the Relationship Between Income Inequality and Poverty should conduct an in-depth analysis of its operational activities to remain ahead of its competitors (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015). This will increase the productivity of the company, and more profits can be generated.
Outbound Logistics
It is important for A Reassessment of the Relationship Between Income Inequality and Poverty to analyze, and optimize its outbound logistics so that it is able to achieve the long-term corporate goals. Managing outbound activities properly reduces the chance of late deliveries (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015).
Marketing and Sales
A Reassessment of the Relationship Between Income Inequality and Poverty should use various marketing and sales techniques to differentiate its products from its competitors. A Reassessment of the Relationship Between Income Inequality and Poverty can adopt marketing and sales activities such as promotional activities, advertising, and building strong relationships with suppliers and customers (Ariwibowo & Saputro, 2021).
Services
In terms of services, A Reassessment of the Relationship Between Income Inequality and Poverty must ensure that it provides its customers with the pre-sale and post-sale services (Jaligot, C.Wilson, & R.Cheeseman, 2016). The post-sale service typically falls into the promotional activities of a company. A Reassessment of the Relationship Between Income Inequality and Poverty can thus develop its customer loyalty.
Secondary Activities
Firm infrastructure
A strong infrastructure of a firm can enable A Reassessment of the Relationship Between Income Inequality and Poverty to optimize the entire value chain of the company. Moreover, by controlling the infrastructure activities, A Reassessment of the Relationship Between Income Inequality and Poverty can be in a better position to get a strong foothold in the competitive marketplace (Darmawan & Wiguna, 2014).
Human Resource Management
A Reassessment of the Relationship Between Income Inequality and Poverty should place its major focus on analyzing the different aspects of HR, such as recruitment, selection, training, and performance evaluation of employees (Darmawan & Wiguna, 2014). A Reassessment of the Relationship Between Income Inequality and Poverty can reduce its costs by identifying and analyzing the costs associated with hiring and training.
Procurement
Procurement is an important element in the A Reassessment of the Relationship Between Income Inequality and Poverty's value chain. It is important for the company to assess its overall procurement activities so that the inbound, outbound, and operational activities can be optimized (Kumar & P. V., 2016).
Ansoff's Matrix
A Reassessment of the Relationship Between Income Inequality and Poverty can implement Ansoff's Matrix to make decisions regarding its business growth. This framework includes four different strategic choices that can be selected by A Reassessment of the Relationship Between Income Inequality and Poverty.
Market Penetration
Production capacity
A Reassessment of the Relationship Between Income Inequality and Poverty can increase its overall production capacity. This will allow the company to reach more wider audience in an existing market. A Reassessment of the Relationship Between Income Inequality and Poverty can also benefit from the reduced costs by expanding its production capacity. Thus, A Reassessment of the Relationship Between Income Inequality and Poverty can attract more customers using competitive pricing (Madsen, 2017).
Marketing Investment
A Reassessment of the Relationship Between Income Inequality and Poverty can penetrate the market by investing more in marketing and sales activities. This will help the company to engage with its customer more effectively, leading to more potential customers (Dawes, 2020).
Distribution Channels
Innovative and unique distribution channels can be explored by A Reassessment of the Relationship Between Income Inequality and Poverty. This will enable the company to reach new segments and groups of customers (Dawes, 2020). In addition to this, A Reassessment of the Relationship Between Income Inequality and Poverty can penetrate the market by improving its supply chain, giving more accessibility to customers.
Joint Ventures/Acquisitions
A Reassessment of the Relationship Between Income Inequality and Poverty can enter into joint ventures or can take over other leading companies of the market. This will give A Reassessment of the Relationship Between Income Inequality and Poverty more market share.
Market Development
Research & Development
A Reassessment of the Relationship Between Income Inequality and Poverty should keep on investing in its R&D department, so it is able to identify the changing trends of the market. This will help A Reassessment of the Relationship Between Income Inequality and Poverty to target the right market at the right time (Mukangai & Murigi, 2021).
Expanding Regionally
A Reassessment of the Relationship Between Income Inequality and Poverty can enter in a new market by expanding its operations regionally. This includes considering different cities of the country. A Reassessment of the Relationship Between Income Inequality and Poverty must consider any cultural differences when entering a new market (Mukangai & Murigi, 2021).
New Segments
New segments of the current market can be explored (Mukangai & Murigi, 2021). A Reassessment of the Relationship Between Income Inequality and Poverty can add new features and product uses to its existing products that satisfies the needs of a different customer segment.
Product Development
Modifications
A Reassessment of the Relationship Between Income Inequality and Poverty can modify the existing product by improving its features to enhance the product offerings.
Launching additional products
A Reassessment of the Relationship Between Income Inequality and Poverty should invest in its R&D department so it can come up with new and innovative products that attracts and fulfill the needs of the target audience. This will boost the sales of A Reassessment of the Relationship Between Income Inequality and Poverty and will increase profitability (Khajezadeh, Niasar, & Asli, 2019).
Diversification
Vertical Integration
A Reassessment of the Relationship Between Income Inequality and Poverty can consider vertical integration. This will allow A Reassessment of the Relationship Between Income Inequality and Poverty to develop and launch new products that are similar to its existing product category (Khajezadeh, Niasar, & Asli, 2019).
Horizontal Integration
A Reassessment of the Relationship Between Income Inequality and Poverty can diversify its business operation using horizontal integration. This means that the new products and services of A Reassessment of the Relationship Between Income Inequality and Poverty will not be related to its current products (Dhir & Dhir, 2015).
A new business diversification
Entering into a completely new business can be considered by A Reassessment of the Relationship Between Income Inequality and Poverty. The organization can work towards starting a new business that can give a company more growth prospects in the future (Dhir & Dhir, 2015). A Reassessment of the Relationship Between Income Inequality and Poverty can conglomerate with the help of mergers and acquisitions.
Conclusion
To conclude, it could be said that A Reassessment of the Relationship Between Income Inequality and Poverty can resolve its current managerial and strategic problems by focusing on its existing products. The company can adopt more attractive marketing strategies that can help A Reassessment of the Relationship Between Income Inequality and Poverty to boost its revenue and profitability. It is recommended to focus on maintaining strong supplier relationships. Moreover, it is also advised to focus on more innovative products so A Reassessment of the Relationship Between Income Inequality and Poverty can remain competitive in the market.
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