Posted at 12.29.2018
Business environment is very vibrant and it is important to the strategic marketing and corporate and business strategy of all the organizations operating in the business world. It is very important for organizations to devise marketing strategies and commercial strategies after inspecting the exterior environment effectively and efficiently. Any problem or ignorance in research of external environment can cause the business to face severe results. (Porter, What's Strategy, 1996)
Organizations always seek to gain a sustainable competitive advantage in the market place by planning effective and effective marketing and commercial strategies. Efficient and effective marketing strategies permit the business to exploit their center competencies and capabilities to get short-term and long-term marketing place success. Efficient marketing strategy of an organization is always integrated with the organization strategy of the organization. Corporate and business strategy is the larger picture of the organization while strategic marketing reaches the Strategic Business Units (SBUs) degrees of the business. (Porter, The five competitive forces that condition strategy, 2008)
In this newspaper, the writer is assumed to be working for an organization which really is a banking corporation operating in UK. The assumption is that the business is "Standard Chartered Standard bank" that is reviewing its marketing strategy and wishes to look at a more "consumer oriented" online marketing strategy. The writer is the person in a team of operational professionals who are participating in an integral role in devising a new online marketing strategy of Standard Chartered this is the oldest lender of UK (150 Years). The situation of Standard Charted will be studied to comprehend the tactical marketing concepts and devise an effective strategy. The Paper is divided in three main parts. The first part highlights the utilization of marketing techniques to ascertain expansion opportunities in a market and statement on the impact for the organization of current changes in the marketing environment including other efficient areas of a marketing strategy. The second part includes an examination to identify the existing advantages and weaknesses in a online marketing strategy. The 3rd part analyzes that the organization could respond to the changes and key appearing themes or templates in a online marketing strategy. It also plans how to use marketing strategy options in a market and create appropriate proper marketing aims for market.
In order to study and ascertain the growth opportunities for Standard Chartered Bank UK, the most effective way is to study the exterior environmental factors. The very best tool for learning the exterior environmental factors is politics, economic, political and communal (Infestation) evaluation that discusses the most influential factors for the marketing strategy of a business. The Pest Examination for UK banking industry can help the functional managers' team to ascertain growth opportunities in the united kingdom industry which is the following:
If we rationally analyze the politics conditions of United Kingdom then the political condition in the exterior macro environment are:
The UK economy is an open economy which allows and appreciates overseas/local direct ventures. The UK includes the market based mostly / free market market with less governmental control and interventions. The federal government takes on its role as a facilitator rather than influencer available industries and market segments.
UK government supports and appreciates competition among different organizations to improve their efficiency also to make wider choice/lower prices open to consumers. In this way, the government facilitates both the organizations and competitors.
There is a political stability in the united states which provides opportunities for overseas direct assets. (The Country wide Archives, 2010)
Standard Chartered has actively undergone progress through extension in other areas of the Europe for beating your competition. It is a powerful and efficient strategy to grow under steady politics conditions of United Kingdom.
Economy is suffering from a recession scheduled to global financial crisis. It is a hazard for the financial sector because standard chartered is working in this sector.
Unemployment has increased.
Bargaining power and throw-away income of consumers has decreased due to inflation and unemployment. It really is threat for consumer banking.
Production level has decreased and the federal government is considering revising its taxation procedures due to economic recession. That is a hazard for Wholesale banking sector
But, current economic climate has began recovering now eventually.
Standard Chartered is facing some difficulties due to the economic and financial recession in UK. (BBC Media, 2010)
Consumer's focus is now shifting towards standardized goods and services are low prices. Individuals are now more focused towards savings rather than spending. It is a chance for standard chartered loan provider.
Consumers tend to be more rational and advanced now. Bank services are needed to be very direct and personal.
Brand loyal customers are now becoming brand switchers due to low disposable incomes.
The demographics of UK has modified considerably with the increased number of younger technology and presence of different ethnic teams such as Asian, and Us citizens across the world that have low incomes and low purchasing capabilities. There can be an chance for standard chartered bank or investment company to unveiling products/services targeted towards young people with low incomes and low cost savings. (Walayat, Britains Inhabitants Growth and Ageing Demographics Impact on UK House Prices, 2010)
The government helps competing technologies in the UK and appreciates technology and technological trends.
High Research financing for scientific development is being made UK administration in different sectors.
To support wide open economy to increase competition for providing better services to consumers, the federal government performs the role at a catalyst in technological trends throughout the European countries.
Standard Chartered has invested greatly in advanced technology to improve its banking businesses. (DTI, 2003)
Economic conditions and competition is a hazard for the bank organizations of UK. But, Standard Chartered is centering efficiently on different varieties of bank services such as consumer bank, wholesale bank, retail bank and corporate bank which clearly uncovers efficient collection management of Standard Chartered loan provider. Standard Chartered lender is seeking a differentiation strategy relative to competition by offering different products and services to customers which is actually following variety based placement which was defined by Michael Porter (1996, What is Strategy) to differentiate and compete with the opponents. (Standard Chartered Standard Website, 2008)
People now need cost savings due to financial recession. Also the federal government spending in technology has increased. People are more focused on standard goods and services at low prices and market has become fragmented and saturated. Therefore, Standard Chartered is offering standard goods and services to customers by accessing them effectively and efficiently. Standard Chartered has utilized top quality technology to assimilate its banking functions and romance marketing such as online banking, ATMs, and and yes it has employed most advanced technology in branch banking. It is attempting to reach customers with standard services at low prices with access based positioning as defined by Michael Porter (1996, What is Strategy) which is doing it by getting customers online, privately and through social media. It is also important to note that technology and information has now become a competitive edge for organizations. Exactly the same is the trick for Standard Chartered lasting competitive advantage available on the market that is technology and information. It's the effective and effectively strategy by Standard Chartered to reach customers innovatively and successfully by causing effective use of technological conditions to exploit communal conditions of UK.
But, gleam threat for Standard Chartered in utilizing differentiation strategy because the public, economic and scientific conditions highly appreciates an expense advantage rather than differentiation edge in UK as a result of low disposable incomes of consumers and low purchasing power. Cost benefit may allow standard chartered to offer banking services to customers at relatively low prices to target more customers than competitors.
Standard Chartered must employ a cost advantage rather than differentiation advantages because competitive advantages are now imitable, customers have low throw-away incomes, economic recession and low purchasing electricity which is the time to look at a penetration pricing strategy to capture as much market share as Standard Chartered can to beat your competition. Therefore, acquiring market talk about is the progress opportunity designed for Standard Chartered. Also, it is just a "customer oriented" online marketing strategy.
The situation examination or the SWOT examination is an effective tool for evaluating the internal advantages and weaknesses of Standard Chartered Bank or investment company to recognize the strengths and weaknesses of online marketing strategy.
Standard Chartered is one of the oldest banking of UK. It gets the first mover gain in the bank industry of UK.
It gets the international publicity and it offers usage of international resources. It is able to gain location advantages by expanding to a fresh geographical region. It is also able to gain ownership advantage due to overseas immediate investment support and free market economy of UK.
Standard Chartered has sustained a variety based mostly and access founded positioning which is problematic for competition to imitate.
The bank has the skilled man capital
The standard bank has made technological investments and it is the technology innovator in banking sector.
Standard Chartered has failed to sustain a cost advantage. The Infestations research highly appeals a cost edge in the bank sector alternatively than using a differentiation benefits.
The current Infestations analysis discloses that bank sector market can be been successful if Standard Chartered increases a cost advantage rather than differentiation benefit such as financial recession, low bargaining electricity of customers, low disposable earnings and market saturation etc.
The Standard Chartered can invest in the expanding economies and can harvest its major capital investment from UK to get location and ownership advantage.
Low entrance and exit barriers of Market
Competitors are productive in imitation of competitive advantages
Customer sophistication and rationality
Low throw-away income of customers
The basic purpose of commercial strategy of an organization is to maximize shareholders' value and same is the situation of Standard Chartered UK. The most effective way to increase shareholders' value is to increase customer value that may cause more sales, success and market talk about. Customer value at this time in UK is "money". Therefore, value serves as a "Value is the worthy of in monetary conditions of the cultural, economic, technological and service benefits in trade for the price paid for the typical Chartered Services". The price of these bank services of Standard Chartered should be relatively less than the competing products and it will save for the money for customers in accordance with competitors in terms of investment profits and interests. It's possible only when Standard Chartered targets minimizing overall costs at the organizational level and supply chain level. Supplier aspect is important because bargaining power of suppliers is low and standard chartered can discuss more with suppliers to bring its overall costs and in return provide services to its customers at good deal which will definitely save money for them. It is also attractive as customers have low purchasing vitality and low throw-away incomes.
Positioning of Standard Chartered must be improved to "cost" instead of differentiation. Positioning can be explained as what customers understand as benefits and drawbacks of our own products and services. The required placement for the brand would be "value" as it provides value to customers by keeping their money and increased price in terms of economic, sociable, technical and service benefits in accordance with competitors.
It can be concluded from the above proper marketing strategy of Standard Chartered that environmental factors are highly important to the inner business operations and marketing strategy of an organization. A successful attempt to recommend a new strategy for Standard Chartered Bank or investment company was recommended in this paper.