E-MARS Marketing Analysis

1. Introduction

It is well-known that it is a PC-based game. It was simulated to reflect the global competitiveness of the athletic footwear industry and the nature and structure of the real world, which makes it possible to run the company as a typical representative. It is the head of the company’s head of anti-competitive runs the other class members. The researcher will choose five forces and SWOT analysis to discuss the case. In this paper, firstly, the researcher will introduce the Business Strategy Game. And then, it will introduce the general strategies to run the game and analyze the foot wear industry. For the well development of this company, it will give the SWOT analysis of the company. Finally, it will give some recommendations to the company.

2. Generic strategies

The company’s business pattern, after all, is a sports shoe company. It produces the shoes in the company’s factories rather than outsourcing to contract manufacturers. In all aspects of business strategy game closely reflect real-world athletic footwear market, the competitiveness of the operation. All company in the same field and industry environment for marketing, researchers has been identified as closer to the real-life management experience. Thus, in this way, the researchers access to the company E-Mars, footwear and join in the competition.

3. Analysis of the footwear industry

Industries may vary widely, and in many factors, such as market size and growth rate, product of different characteristics, product innovation, the supply amount of autonomy, / demand conditions, technological renew, vertical integration, the pace of competition and competitive rivals, the buyer’s the needs and requirements, marketing of scale, learning and experience curve effect (Tallman, Jenkins, Henry & Pinch, 2004). Force many breakthroughs in the greatest force changes in the industry of concern have not changed. These forces include foreign competition, intellectual property infringement, new products and services, to attract and retain talent development. With the social and economic development, there are other forces, product liability, the liability of the changes in the technology risk, changing board members, and international alliances and joint ventures, there are capacity-building strategic plan, executive compensation linked to stock price-related the risk of competition from other countries and continue to invest in needs (Thompson, Strickland & Gamble, 2008). On one hand, these can bring some threats and pressures to the companies. On the other hand, managers also can make use of the pressures to improve their services and productions’ quality. If all the companies in the industry are in competition, the level of the industry will increase and the competitive intensity and industry profitability will be higher (Douglas, 1996).

4. The new entrant in footwear industry

Footwear industry is a traditional industry (Stefanie, Thomas, 2004), filling with the number of competitors. In thus case, researchers have built up a shoe company E – MARS, and beginning to participate in competition with others in the new ways. The first step for the E- Mark is to do the research and to compare with the competitors analysis of new shoes. Footwear market share in the footwear industry develops in related to the market conditions. Footwear market, the profit is always a basic and essential industry growth, but the market share, it is mostly by some well-known shoe companies such as Nike, Adidas, who owns the brand name, the occupation. As the well-known people, footwear industry is a highly profitable industry with strong competitions of new entrants. Therefore, the company will lead to a worsening exchange to get more market competition.

5. Analysis of E-Mars Company

Competitors in the same or nearby industries are often close rivals, while competitors in the distant industries or not belong to the same strategic groups usually pose little or no threats on each other. In order to analyze the case, the best way is to make use of strategic group analysis (Thompson, Strickland & Gamble, 2008). In this case, the paper is mainly discussing about the footwear industry. Firstly, industry members have to indentify the objectives, such as main sources of competitive forces and strength of these forces. Secondly, make use of key analytical tools which is mainly five forces model. The Five Forces model can also be applied to the analysis of the Mars’ strategies and decisions (Anne, Naomi, Thomas, 1998).

Firstly, from a long-term supplier, including all sources of inputs, in order to request services or goods. The power of suppliers is likely to be high in this time: the market is comprised of several (North America) dominated by large suppliers rather than other fragmented sources of little scale. There is not any substitute for a specific input, suppliers, customers scattered. So they the bargaining power is rather weakness, conversion from one supplier to another higher cost, which hinders the acquisition of the supply industry in their development industry in the purchase of industry with low barriers to entry. In this case, the footwear buying industry always faces a supplier’s profit margins for its high pressure. The strong relationship between the suppliers may reduce the organization’s strategic choice (Thompson, Strickland & Gamble, 2008).

Secondly, on the other hand, the bargaining ability of consumers determines the customer’s profit and sales pressure. The bargaining ability of customers is likely to be high, they purchase with large amount. There is always a buyer concentration. Supply system includes a shoe large number of small operators in providing the industry’s high fixed-cost operation (Anne, Naomi & Tom, 1998). The product is non-discriminatory may be replaced by substitutes. To switch to another brand is relatively easy and does not involve high price. The price of customers is low, profits and price-sensitive customers can produce their own products, the product is not for the strategic importance of customers; customers know the cost of the shoes. (Anne, Naomi & Tom, 1998).

Thirdly, there is potential threat of new brands of this field. The easier it is for other companies to enter the footwear industry; competition in the footwear industry will be higher. In this case, the new entrants may change the market sharing, the main factors (such as market sharing, price, and customer loyalty). There is always a reaction for the customers preferring. So in the footwear industry players adjust the existing potential pressure. Entries of the new competitors will depend on which barriers to entry.

Fourthly, the threat of other brands exists. The threat from other brands exists if there are better performance parameters of a lower price for the same purpose of the alternative products. They are likely to attract more large proportion of market capacity, thereby reducing the potential sales volume for existing brands. This category also involves supporting products. Similarly, the threat of new entrants to the alternative treatment, such as brand loyalty from customers, close customer relationships factor into the cost of customers on the relative prices of substitutes performance, and current trends.

Fifthly, there are also the competitions among the existing brands. This force describes the existing brands in the competition between the intensity of Footwear Company. When the price is high, the profit results in pressure by the pressure of competition. Each company or even has non profit in the footwear industry. Competition among existing firms may be very fierce when there are approximately the same scale, a lot of players, the players have a similar strategy; not with the players and their products. So it is very different, there are a lot of price competition, low market growth rate (growth of a company may just be the cost of competitors), while the high exit barriers (such as the expensive and highly specialized equipment).

6. Analysis of the company in SWOT

SWOT analysis method, also known as trend analysis, it is by the University of San Francisco professor of management at the beginning of the 20th century, put forward 80 years, is a way to a more objective and accurate analysis and study of a unit of the real circumstances. SWOT represent: strengths (advantages), weaknesses (weaknesses), opportunities (opportunities), threats (threats). Through the SWOT analysis strengths, weaknesses, opportunities and threats is a comprehensive assessment and analysis of the conclusion, and then adjust the enterprise resources and business strategies to achieve business goals. SWOT analysis has gradually been applied to many companies including: business management, human resources, product development and other aspects. (Nile & Jeffrey, 2004). By using the SWOT analysis determines the key issues, also identified as the marketing objectives. SWOT analyses can PEST analysis and Porter’s Five-Force analysis used in conjunction with other tools. Marketing students is keen on the SWOT analysis because of its ease of learning and ease of use. When using SWOT analysis, to the inclusion of elements not related to the form which is very easy to operate.

As a way of integrating and summarizing all aspects of internal and external conditions within the enterprise, organizational strengths and weaknesses, opportunities and threats can be available in the SWOT analysis (Moser, 2008).

6.1 Strengths

From the figure, the researcher also finds out that good quality and service are another advantage for the company and for years, the company’s image rating has been in high level. The company’s production and marketing services are a large number of resources to ensure customer satisfaction. The image ratings remain high, and contribute to the company occupied more customers and market share.

Year

Image rating

6.2 Weaknesses

When the same product because of price competition, it is an important factor in the price advantage can help the company compete with others (Jana, 2008). Receives less than the wholesale price in the footwear market, the average price could help to improve the company’s potential for above-average sales volume and market share. The following figures will appear in the footwear market, the wholesale price changes. It is very easy to find, from this year’s 11-year 18 in E changes in the wholesale price of Mars. From the figure, the researchers can find the price of an electronic Mars vulnerability factors, the higher the price will increase the effectiveness of advertising, more and more retailers display and sports shoes and other factors, brands, this shoe group of consumers.

EPS¼ˆ$¼‰

Year

Stock price is a sign which can reflect the management and operation situation of the company. Stock price is reflected by several factors, such as some management polices. In addition, higher dividends will also be welcomed by shareholders and this will have a positive effect on the company’s stock price. From the figure the researcher can make a conclusion that from the year 11 to the year 18, the stock price of E-MARS is in a fluxion significantly and at the year of 18, it has reached the highest. The researcher considerers that the reasons can be concluded as follows: the company is the lack of effective use of funds, excessive stress is very bad, and the stock price is low. In this case, if the company’s stock price was very low, which means that it had no money to expand their market and develop itself.

Stock Price

Year

6.3 Opportunities

The figure can make tell us that though the stock price is in fluxion and the company is in the competition with others of the footwear industry, its revenue is still high and increasing by year. And the increasing profits can help company develop by making advertisings, improving technologies, promoting private production. And these will also bring a new increase profit point for the company in return.

Revenue ($000s)

Year

6.4 Threats

Marketing Strategy must establish on the customer buying patterns. Detergents are fast moving consumer goods, whose sale is high frequency, have a wide range of consumer groups. Fast moving goods are always bought out of impulse by consumers, who are insensitive to others’ advice. Compared to durable consumptions, consumers’ loyalty to fast moving goods is not high, so the quality of production can easily be experienced and judged. In addition, the competitors become too powerful, not easy to catch up with the original company has developed into a weak competitor. The company lost its price advantage, because most companies have shut down production of the same or lower prices (Stefanie & Thomas, 2004).

7. Recommendations for the future development

From the analysis of the company, the researcher found out some problems in the management and operation and provided a set of learning points for the company. First, justify cost. E-MARS has to justify the company’s extra cost for its productions, such as production design, making advertisings. Second, make an advantage in technologies and raise technical standards because technology not only can help the company keep and improve the position in the competitiveness environment but also can decrease the cost. Third, improve customer relationship and the company’s image in their impressions.

8. Conclusions

In conclusion, the researcher introduces the Business Strategy Game and made some strategies and decisions for the new company. Then the researcher also made an analysis of the management situation by SWOT and five forces theories and provided some recommendations for the company’s future development. And in order to be good managers, the researchers will adopt more effective ways and plans to manage and operate the company through their leadership efforts.