Corporations develop a number of strategic plans and initiative in order maintains their competitive advantage in the market (Cravens, 2006). The current report analyses strategies and marketing objectives for a retail company based in Australia. The company has a single store based in Sydney and is currently analyzing scopes for further expansion. The company’s retail store has a warehouse located at the back of its stores that maintains stock of various items from major companies. The company enjoys strategic leadership in areas of marketing especially due to its location at the hub of the city. It is easily assessable by roads, trains and other modes of transport. The company also has an online presence with its e-marketing portal that encompasses all the products sold by the company and caters to its customers by means of home delivery solutions.
While the company had been developed with a series of objectives and strategies, they have been primarily made with the strategic vision and mission of achieving competitive advantage in the market (Heath, 2008). The scope of the report is to develop strategic marketing steps for the company aligning with its strategic objectives, vision and mission statement. Such marketing tactics and strategies are not only made by analyzing external environmental threats and factors and then aligning them to current competencies and internal capabilities of the organization. The strategic marketing plan for the current organization has been developed after meeting with the CEO and confirming the objectives that might be considered will understanding the current objectives of the firm. The impact of the current marketing objectives has been assessed in conjuncture to achieving directions for the company and scope for future strategic extensions has also been discussed that can help the company achieve targets pertaining to critical success factors especially in regards to profitability (Armstrong, 2014).
Strategic directions of the company can be understood by means of the various mission, vision and values as well as purposes of the organization (Aldrich, 2008). The company functions in the retail segment and aims to be a leader of the segment by encompassing marketing objectives. The strategic directions for the company are provided by its shareholders as well as stakeholders that include employees, customers and others. The strategic directions are aimed at creating an unique retail experience for the customers in the company.
Mission: “To become a leader in Sydney’s retail segment”
Purpose: “To provide consumers with the highest quality of retail products”
The company’s strategies are designed such that it can establish its core competencies in the market in accordance with its visions and mission statement. The strategy that the company follows in the market is Porter’s Cost Leadership strategy (Allen, 2006). Sydney has various retail stores and companies as Coles, Tesco, Metro in order to compete with them the company adopts cost leadership in the market and offers products at a substantially low cost. It attracts a broad range of customer base from Sydney as well as from surrounding areas in order to provide them perishable as well as non-perishable items. Cost leadership strategy allows the company to sell the products at minimum profits above its costs. The company procures various materials from company warehouses, it highly integrated and sophisticated value chain renders the company cost advantage in the market. With high numbers of competing companies especially branded retailers it becomes extremely difficult to sustain in the market. The low cost advantage strategy of the company aims to establish leadership in this way as companies of other brand names have a differentiation focus. The current company aims to cater to personal choices and requirements of the customer by its services and products. The company has a warehouse and Just-in-Time(JIT ordering system that replenishes stock as soon as they run out of it. This tactics enables the company advantages in the market and develop a highly satisfied customer base.
Strategies are formed for the company after careful analysis with external or macro factorial analysis for the company. PEST is an abbreviated form for political, economic, social and technological factors (Adkins, 2007). Macro environmental analysis is done for the company using PEST analysis as below;
Australia and especially Sydney is characterized by highly conducive environment to conduct business. There is minimum political and bureaucratic intervention to conduct business thus, retail sector has been booming in the country. There is a high amount of influx from international companies in order to cater to the market segment demands as well (Aaker, 2008).
Australia has a stable economy with currency rate. The GDP of the country is also robust with an ideal combination of factors from production as well as service related output. Secluded and unaffected from most of the world economies, the country enjoys enormous freedom on its economic aspects. Especially the country has a stable economic demands characterized by high growth especially in the retail sector due to high influx of immigrants and foreigners.
Australia has a high number of immigrants and foreigners due to its existing world renowned universities and famous tourism destinations (Hill, 2013). Thus, the growing social variety crowd and robust population structure acts as an impetus for many industry especially in the retail segment. Currently Australia is experiencing a host of foreign companies that are setting up and building their facilities in the country. This makes the environment of the country more competitive.
Technologically Australia is extremely sound and retail segment has experienced multiple changes in their technological aspects. Almost all retail companies in Australia especially Sydney offers their products and services online basis. With integrated delivery systems connected technologically to warehouses, there is a huge gain that customers get from such offers and dispositions (Barney, 2015).
Companies and industries in Australia is bound by the legal and ethical standards provided by the government. Especially in the retail segment companies needs to adhere by legislations of the land pertaining to areas of employee recruitment hiring and firing policies, Sales of Goods Act, and other pertinent legislations as and when applicable (Bani-Hani, 2009). Employers in Australia need to also abide by Anti-Discrimination Laws and other employee related laws to provide adherence to legal standards and codes of conduct. Australia is characterized by stringent laws and legislation system that companies needs to adhere.
Australian companies have strict adherence to ethical principles regarding any consumer related marketing and strategies. Further they apply ethical codes of conduct in case of sale of goods such that they can benefit the Triple Bottom Line of business activity.
The retail company has a legal wing which manages and handles the legislative compliance and other pertinent requirements for the company (Alvesson, 2012). Further its ethical wing has set up codes of conduct and Corporate Social Responsibilities that the company can adopt and follow such that its ethical standards can be met. The company has opted for a series of ISO certifications for the purpose of compliance to standards and norms for ethical principles.