Marketing Startegy Essay Sample
- Pages: 11
- Word count: 2,864
- Rewriting Possibility: 99% (excellent)
- Category: marketing
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Introduction of TOPIC
Gunnebo – THE LEADING GLOBAL PROVIDER OF A SAFER FUTURE
Gunnebo’s goal is to create value for its customers, shareholders, employees, partners and society in general.
* Gunnebo is the result of more than 40 acquisitions made during 1995 and 2013.
* Gunnebo has 5,500 employees
* Annual turnover amounts to app 600 MEUR
* Sales Companies in 31 markets in Europe, Asia, Africa, Middle East, Australia and Americas
* Sales in a further 100 markets via partners
The Group operates in following areas of excellence-
* Security Solutions for Improved Efficiency
* Entrance Control for Uncompromising Security
* Global Services for Securing Everyday Business
* Security Solutions –
A global market of more than 800,000 retail bank branches 5,000 cash centres and 2,000 central bank branches and millions of stores establishes Gunnebo as a truly global Bank security and cash handling service provider
* World-leading brands – Chubbsafes, Rosengrens, Fichet Bauche, Hamilton,Steelage etc.
* Offering includes
Vault Doors, Safe Deposit Lockers
Fireproof document safes
Fireproof data media safes
Deposit safes, security doors, Safe Auto, Interlocking doors
Entrance Control Solutions
* for Mass transit (metro, Airports)
* Immigration, boarding and anti-return gates for airports * Tripod Turnstiles, Entrance Gates, Speed Gates, Full-Height Turnstiles and Security Revolving Doors * Certified Manual Attack, Bullet and Blast-resistant doors and Windows * Certified Security Airlocks and Portals
* Global Services –
* Lifecycle Care – Maximising your security investment * Business Care – Supporting and Managing your security processes
1b. Which customers/ market segments is your chosen company serving today?
Identified segments –
* Banking & Finance
* Industry & Petro Chemicals
* Leisure & Entertainment
* Hospitals & Health Care
* Public Transport
* Power Plants
* Corporate Buildings
* Education & Research
* Transport & Logistics
* Law Enforcement & Prisons
* Central Banks
* Government Banks
* Private Banks
* Cooperative Banks
* Airports & Metros
* Corporate Headquarters, Embassies
* Hotels & Hospitality
* Retail Stores
* Jewelers, Record Management Company’s
Which customers will you serve in the distant future of ten years?
In addition to above new customers that would get added are- * Outsourced Security providers
* Cash Carrying & Management Companies
* New Retail Chains
* Defense Industry
* Home Segment
1c. Who are your Competitors today?
Who will be your Competitors in the near future?
The industry has shown varying characteristics in various regions. While South Asia & Americas remains a focus area for high growth, the major European market is showing a downward trend. A new set of local players mainly in APAC are likely to take advantage of tremendous growth opportunities. For most of the players in this region, India will also continue to figure in high growth strategy markets.
In the field of Physical Security, we can see entry of small players who would like to take advantage of growing markets. They would be small timers may be fly by wire operators who want to taste success in small time. In India, a few names like Celfrost, Kubs ,BMS etc may do so.
With new technological advancement, some players may switch over to offering high end security solutions in Defense and Government segments. With terrorism and unrest threats occurring all over, we can say that some of the current players who are providing high end security solutions may do exceedingly well.
The areas of cloud computing & Digital Security, Internet based protocol systems, Document Security & Storage ,Cash Management activities also offer a tremendous scope for operators who will start providing end to end security solutions to customer.
New Retail formats will speed up the need of having advanced security solutions. Corporate & Home Security will also require new dimensions of security.
1d. What is the basis of your Competitive Advantage (CA) today?
Gunnebo is the Global leader in select segments and identified product lines. It has a leadership position in Physical Security business and offering of cash management & high end security solutions in Europe & Americas. The group owns famous brands like Chubb, Hamilton,Fichet Bauche, Rosengrens, Steelage etc who are held in high esteem in various markets.
The Group enjoys a distinct competitive advantage on following parameters-
* Global Presence – Presence in more than 40 countries and operates globally through more than 100 partners. * Product Offerings- Market leader in field of Physical Security products, High End Security Solutions, Cash Management Solutions, Entrance Control Solutions and Global Services Solutions. * Value Focused – Delivering Value for Customers, Stakeholders, Partners, Employees * High Focus on Innovation & R&D – New technological advancements creating better product offerings
* Distribution – The group operates through mix of Key Accounts & Channel Partners globally which helps to stay focused. * Manufacturing facilities – State of the art set ups spread globally in Americas, Europe, South Africa, India, Indonesia, China which helps them to serve markets more effectively and efficiently. * Focus on New Emerging Markets- Americas and APAC continue to be high growth markets. * Mergers & Acquisition- The group has consolidated its presence globally and has taken over local players to continue its market leadership. * Global Services – Life Cycle Care & Business care offer a distinctive advantage over competitors.
What is likely to be your CA in the near future?
The present strengths will continue spearheading the growth engine. They need to be further consolidated at grass root levels in order to deliver an efficient value system to customers. However with changing market dynamics, there would be many challenges and some of them are –
* Product Offering & Positioning
The focus on offering better high end solutions will continue to dominate in near future. This will be the real differentiating strategy in wake of security threats worldwide and mounting security requirements and measures.
* New areas in Cash Management, Record Management and Intelligent Building Management Systems.
* Focus on Technology, Automation & Advanced surveillance systems
1e. What Skills & Capab
ilities (SC) make you unique today? The strengths as given above
* High end Security Solutions- Offerings meeting various customer segment requirements. The offerings in the field of Banking, Retail, Cash Management, Entrance Control and Services offer a unique proposition to customers.
* Focus on Technology & Innovation – The product line is unique and meets various requirements of customers.
* Resources – The group attaches importance in hiring & nurturing best talent in the industry.
* Manufacturing Set ups – The local set ups spread across globally attach importance to local R&D. Products are made as per various standards which makes it easier to penetrate respective markets. EN, BIS,UL are some of the standards to which most of the products comply.
Skills & Capabilities required in Future –
* Resources – It is people who will make the difference. Talented and committed teams who can deliver value to customers and organization.
* Innovation – With changing dynamics, new thinking which will create new opportunities and ability to look at unseen markets.
* Solutions – Move up the value chain and offer better solutions to customer.
* Services – With rising customer needs, offer efficient and effective service levels to demanding customers.
1f What kind of Marketing Challenges (MC) do you face today?
* Brand Awareness – The group is made out of acquisitions and is present in various markets globally. It is identified more as a local brand. The challenge is to create brand awareness as a global market leader offering world class products.
* Local Brand & Local Solutions – Since the group has continued to retain local brands under group umbrella, it is a general perception that the group emphasizes more on local solutions rather than offering global solutions.
* Synergy in Marketing Operations and Strategy – The group has identified focus areas and segments which are different in different markets. While modern banking and cash management are high priority areas for Europe and Americas, the focus on physical security products dominates markets in APAC region. The challenge is to identify the market dynamics and adopt an effective market penetration strategy.
What MCs are you likely to face in the future?
* Differentiation – in line with differentiation proposition and cost curtailment
* Product Mix – Manage product life cycles, introduction of new product lines in line with market needs
* Adoption of technology & automation – Be the first to offer comprehensive solutions to customer with adoption of new convergence, technology and automation products
* Global & Glocal Solutions – A proper marketing strategy for fine balance of global and glocal offerings to customer.
What is Blue Ocean Strategy ?
In today’s competitive world, organizations have to deliver consistent results. Results in areas of growth, margins, controlling costs and value to its shareholders. The market characteristic has become dynamic and uncertain. Downward trend in most countries is forcing organizations to look out for new avenues of growth and sustainable business. It is this phenomenon worldwide which is compelling the industry to step out of the comfort zone.
Today’s market boundaries, rules and competitors are defined. Organizations operate within this zone with product, positioning and market share. With mounting economic pressure, organizations have to look at new ideas and new horizons to drive the growth engine.
Before that it is important to mention in brief what strategy is about. As we know strategy is first activity of management required at all levels. Strategic decisions have long term direction, are contextual specific, flexible with a fine fit of resources and activities and gives long term competitive advantage. In this age of uncertain future, organizations have to look up to integrated approach to devise the best sustainable strategy for wealth creation for its stakeholders.
In order to have sustainable competitive advantage, organizations are following new strategies. Blue Ocean strategy is about newness. It talks about nonexistent industries which are not present today. Undefined market place termed as new opportunities. The focus shifts to value innovation, differentiation, focus, creation of demand in a new market place.
A century back, we did not think about innovation. Nobody thought about mobile, aviation, internet, social media, and entertainment. They were created and thus defined new market place, new opportunities and made competition irrelevant. It is the first mover advantage who takes maximum benefit while others catch up.
Blue Ocean strategy is about Value Innovation. Organizations have to create leap in value for buyers thereby making competition irrelevant and creating uncontested market space. Focus shifts for better deliverables. The choice is made of differentiation and cost factor. Low cost and differentiation which can provide value to customers and organizations.
Strategy Canvas –
In this case, the focus shifts to making differentiation in market place. As we said, Blue Ocean strategy is all about creating new opportunities, undefined market place through value innovation. It looks up to alternatives and non-existing customers to redefine market place.
In order to take actions, Blue Ocean strategy looks at four pertinent questions –
* Which factors industry takes for granted to be eliminated
* Which factors to be reduced
* Which should be raised well above standards
* Which factors should be created that have not existed before
Example- In India, manufacturers take it for granted that products supplied with BIS logo carries a mark of certification and therefore quality can be compromised. As a result, customers are under threat of supply of substandard material for which they have paid the demanded price. It is therefore important to remove this perception from the mind of suppliers and make them accountable for deliverables.
In order to grab major share of pie, suppliers come with a low cost strategy. There is no differentiation nor is it a satisfactory qualifying criterion of supply of good quality products. The overdependence on price needs to be reduced and customers have to be properly educated to reduce this differentiating factor.
In fierce competition, price ultimately wins. Low cost operator walks away with major share of wallet. In order to curb this practice, the industry bar has to be raised. This can be done with addition of technology, convergence, meeting customer expectations at a different level so that the focus shifts from low cost to technology differentiator.
This would mean offering products and solutions which are unconventional and give different experience to customers. Such offerings are not available with competitors but can be easily perceived by customers as good differentiators.
Therefore to summarize, Blue Ocean Strategy believes that industry conditions can be shaped. The right strategy with focus and value innovation can create a quantum leap in buyer value to dominate the market. It is prudent to have deep customer insights to look for buyer solutions, solving major bottle necks and unwanted compromises made by customer. These insights give tremendous opportunity to come out with undefined solutions and undefined market place, Organizations look up to these as seizing opportunities to have sustainable competitive advantage.
Security Industry – where Blue Ocean strategy can offer newer market opportunity.
Customer Insights while buying physical security products for banking and finance industry.
* Issue of low cost suppliers
* Issue of inconsistent suppliers
* Issue of substandard products
* Issue of convergence and technology products
Looking into these aspects what can be done to work on Blue Ocean strategy
1. Low Cost suppliers – By raising industry standard bar of quality and performance. Have strong industry standards in place so that customers are able to define purchase and performance parameters which can keep low cost competition away. 2. Inconsistent suppliers- Due to approval process of governing and regulatory bodies, lot of inconsistent supplier are able to get licenses to operate. Most of the time, small and inconsistent operators do way with performance parameters and are able to create a market share based on cost proposition. A high awareness about performing standards and compliance to minimum requirements can create new market opportunities. 3. Substandard Products – Mainly affecting quality parameters in view of approval of licensing bodies. Stringent norms, quality processes can do away with cost drivers and create value for customers.
4. Convergence and technology products – Today most of the suppliers are at par when they get a license from licensing authority. While some operate on cost proposition others operate on differentiation proposal. Since government undertakings as customers have to comply with regulations, most of the time purchase decisions are made on the basis of lowest bidder. In order to tackle this problem, organizations can look at offering value added products. Say for example – a normal safe purchased in a bank which can be bought at varying prices. Under Blue ocean strategy, unique features can be added which can be better differentiating factors. The safe can be fitted with extra bio metric locks for added security. This positioning can be offered with differentiation and standard cost focus thereby creating an undefined market and new opportunities.
Value Innovation –
Of all the options listed above, Convergence and new technology products will definitely create value for customers. To a great extent, the competition can be nullified and we are able to create uncontested market space. This would mean Raise and Create option to fulfill customers unfulfilled needs and aspirations.
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