Technology has changed market dynamics and it is absolutely true. Nothing has affected the world market deeply as technology has. Tech has changed everything. It has changed the way people, eat, sleep and see things. It has not just changed our view of the world, it has changed our views of ourselves. We are no more the beings that used to live, eat and die in a small society. We are the people who cannot stay a single moment away from technology. Many of us even sleep with it. From business to healthcare, all is unwell without technology. It is why businesses have shifted their focus sharply towards technology. In fact technology is the glamor of business. Without it, businesses would find it absolutely difficult to gain operational efficiency. Operational efficiency leads to better production ad increased peace of mind for the managers who would otherwise be working hard to achieve high production.
Now, production is just one facet of business. It is not all the business. Apart from production there are things like marketing, advertising, and customer service which are all just as integral to achieving sales and profits. So, undoubtedly technology is the boon of the millenium. Social media is a small but shiny part of the tech story. Tech has achieved more than just bringing the world together by creating new platforms where the entire globe can assemble and exchange ideas. It has showed us a new world. An all new world which had been existing but we were ignorant of. There are critics of technology who would like us to believe that technology is leading us to the doomsday. However, nothing can be farther from the truth. The truth is that everyone wants convenience and everyone wants to be productive. Technology has added a new dimension to the productivity of people and business. The rise of the giants like Amazon, Microsoft and Apple (Lets keep Google aside for the moment, coz it’s already growing bigger than our imagination) testifies to the old belief that man will someday hold his control in his hands. Technology does have that immense potential. Drone technology to nano bio and all that stuff just leave us curious about how much more we would be able to see in our life-times. Brands like Toyota, Ford, BMW, Audi have become global names that occupy a seat in the hearts of their fans everywhere because of technology. Tech has added beauty to our lives. It is making life beautiful not just for we can watch HD televisions but for we can have healthier and happier hearts because of technology. Technological growth has aided healthcare. It has raised its potential and made it more targeted. Now, if technology has already changed as much then what do you assume it will do in future. Well, it might take our imagination to the next level. Everything is bound by data and data is shaping modern world and giving it new dimensions to think in. So, just may be technology is going to take us farther from the limits of human curiosity and imagination.
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The hegemony of OPEC in the global oil industry is well known. We know how it controls oil prices globally and how eve US has not been able to challenge the cartel's status and control over oil. the last oil embargo had already left US deeply troubled. It is why despite so much debate it has not brought antitrust suite against the cartel. Prior to the formation of OPEC the international oil industry was controlled by the seven sisters or the seven oil companies. The agreements that these companies drafted were generally favorable for the companies. the oil producing nations were not so developed those days and were just developing. They were happy with what hey received from these companies as they lacked the resources to produce oil themselves. These nations received one time royalty payments except for Venezuela. It was also the first nation to raise taxes against the companies and object to their methods. It accomplished some strong profits in its own favor that encouraged other oil producing nations. This is how OPEC came to be born. OPEC's first meeting was held in 1960 and in its initial years OPEC did not influence moil prices significantly. After 1970 OPEC countries started exerting control over the oil prices. these nations which were once being exploited of their valuable oil git 100% control of their oil and oil fields by 1973. OPEC countries enjoyed better profits and revenues which led to faster rate of growth. Since then OPEC has remained in control and has used its power to influence demand and supply as well as prices of oil globally. This is a significant power which is difficult to challenge. It is also for its influence, control and methods of operation that it is called the world's biggest oil cartel.
The mission and vision statements are important for all brands. Whether it is a small brand or a big brand each one has a mission and a vision. A mission is like the objective of the business. It is what mission the business serves. Businesses do not exist without purpose. However, profits are not their sole purpose. They are also here for the betterment of the society and its service. The products or services they make also help people with so may things in life. Several of the big brands have quite elaborate mission statements like Pepsi or Coca Cola.
A vision is associated with the brand's future. It spells out where the brand expects to be in the future. Having a vision statement helps brands know where they are and how they can reach the desired positions in future. The mission and vision statements generally talk of the products and services these brands produce as well as their customers, their employees and in many cases about their social responsibility too. For example Pepsi's vision: At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose. ......... Wherever we do business, Performance with Purpose is our guide. We believe that delivering for our consumers and customers, protecting the environment, sourcing with integrity and investing in our employees are not simply good things to do, but that these actions fuel our returns and position PepsiCo for long-term, sustainable growth. There are so many things included in this vision from employee empowerment to social responsibility as well as product quality and sustainability. Businesses do not exist solely for profits. They also exist for empowering people and the society. To do this it is important that they adopt ethical practices. Ethics hold a special value in the world of business which is because the companies that were involved in unethical business have done great deamage to their own reputation as well as as the trust that society had placed in them. Another important benefit of adopting ethical practices is increased business performance and productivity. Ethical business does not mean not focussing on profits. You can focus on your profits and still remain ethical. You do not need to steal from your customers, employees, shareholders or your society to become a profitable brand. Instead what happens when a business adopts ethical practices is that its image improves. The environment and culture of such companies is also a lot better and such companies are great to work for. Research has highlighted that the companies that have a good and ethical image have benefitted both in the short and the long term. The modern business environment is full of such examples where great brands are great becasue they are ethical. Starbucks is a great example of ethical business operation. It focuses on ethics in all aspects of business from sourcing and supply chain management to employee conduct and customer service. The premium coffee brand has made a place for itself in the heart of its customers based on its quality and ethcial business. It does not allow any kind of discrimination at the workplace whether it is against the emplkoyees or the customers. Apart from that it focuses on the empowerment of the farmers it sources its coffee from. the business has also invested in social responsibility and environmental protection. Now, one of the key strengths of Starbucks is its brand image. Businesses must understand the power of ethics. Having an ethical image and environement means gerater popularity and customer loyalty too.
AUDI SWOT ANALYSIS
Important strengths:
A detailed swot analysis of BMW (2016) What is a PESTEl analysis?PESTEL is an acronym for Political, economic, social, technological, ecological and legal. The world market has entered teh era of globalization. A large number of firms are doing business internationally. It means that they are affected by global factors. The pestel factors influence mainly the big businesses. However, the small businesses may also be influenced by them. An economic or social or legal change can affect any business. These pestel factors are important and should be kept in mind while formulating strategies for specific markets. Suppose Coca cola is trying to expand into a new market, say Hongkong or Korea. Before formulating a strategy and launching the company’s products there, the managers can conduct a pest analysis of Coca cola to know how favorable the Hong Kong market is politically, economically, legally or socially for the lauch of a new product or brand there.
Political factors: The political factors can include government regulations including taxes as well as particular regulations related to the specific sector under question. For example Coca cola belongs to the food and beverages sector. The company would need to find if the regulations applicable to it are favorable. There are other political factors like the stability of the government and the political environment that can impact the brand’s sales and revenue in any specific market. www.cheshnotes.com/2016/10/airlines-industry-pestel/Economic factors: Economic factor are also of huge importance for brands operating in global environment. Now, let’s say an airlines brand is trying to expand to China. It should first conduct a pestel analysis to know if the market has most or all factors favorable. If the Chinese economy is doing well, it can expect to do well in the market. If the economy is facing a decline, entering the market will not be a profitable decision. Social: Social trends are of huge value for brands that are affected by changing social trends. For example Mc Donalds is considering expanding to Middle East and requires to know if it would sell there. It must first consider analyzing the environment in the market by doing a PESTEL analysis of the fast food market before making an entry. If the local culture and people’s preferences do not favor fast food, entering the market will be an unprofitable decision. This also applies to the fashion brands. Technological: These factors have grown in importance in the 21st century. All brands whether big or small depend on technology and particularly information technology. It is important for both marketing and sales. The technological factorps play a huge role in the growth of the businesses in the 21st century. Ecological or environmental: Sustainability has become an important concern and a major trend in the 21st century. Many governments are especially favoring sustainable brands and products. Brands should know how green they are and how it affects their popularity and awareness. Legal: Law is an important concern for any business and they need to focus especially on compliance. However, laws may differ based on the market a brand operates in. Still, legal issues have a major impact on brand’s profitability and require consideration before investment. If the laws are stiff in any partiocular market, businesses must conduct full research before deciding to launch their brand there. |
AuthorAbhijeet Pratap Archives
October 2021
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