Academic Level: –
Volume of 8 pages (2200 words)
Assignment type : Essay
Amex want to introduce unsecured loans for SME’s, we have to find the best way to do this.
• Focus on SME loans
• Mapping out existing client delivery of AMEX (small loans to SME’s)
• who are the players in the delivery of service process? (distribution strategy)
• how do competitor’s delivery chain work? (you need to look at competitors in terms of supply chain context)- as in how do competitors deliver their SME’s loans.
• Present information in a visual way; who is involved in the supply chain, who the stakeholders are in terms of the SME’s market. Talk about: What roles do they have, influences they have in the supply chain… how much influence they have?
• Is AMEX engaging with SME’s? (this is the problem, they are targeting SME’s, but are not engaging with them).
• You are to come up with strategy for AMEX to give unsecured loans to SME’s
o Partnering with NAB?
Phase 1- Basic Demand Conditions
• Consumption patterns – Amount of consumption by type and trends, fluctuations and cycles in demand.
• Who buys and consumes? Segment the whole consumer market using appropriate segmenting variables, i.e. geographic, demographic, psychographic, behavioural, VALS. It is appropriate for more than one segmenting variable to be used. Provide actual Australian data and justify the use of various segmenting variables used. Why are they relevant and what do they add to your analysis?
• How, when and where do consumers buy? What is the purchasing behaviour process? Decision making unit (consumer/industry), buying process, alternatives considered, information sources, decision criteria, existing knowledge and beliefs etc.
• Environmental Impacts on Demand – Environmental factors affecting demand: including, socio-cultural, economic and material environment, regulations, technology, and relevant infrastructure (transport, communication, finance etc).
• Using the Buyer Power section of Porter’s 5 Forces, what can we learn about buyer power in this market?
• Any marketing models or frameworks applied to the demand conditions you consider appropriate.
• Use appropriate Blue Ocean Strategy theory and models to evaluate the demand conditions.
Phase 2 – Nature of Industry Marketing and Competitive Positioning Strategies
• Identify the kinds of strategy selection used by the Client Partner and competitors (e.g. six basic strategies can be the starting point for your own custom strategy – Cost Leader with Product Life Cycle Focus; Differentiation with Product Life Cycle Focus; Broad Cost Leader; Broad Differentiation; Niche Cost Leader; Niche Differentiator or Porter’s Generic Strategies.
• What is the market positioning and differentiation of competitors in the market? Market positions and strengths and weakness of main competitors and internal environmental issues where relevant such as organisations resources, capabilities and core competencies (Resource Based View), primarily of our partner and its product.
• What are the kinds of marketing mix strategies of the Client Partner and competitors?
• branding, product/service design, packaging, before and after sales services
• prices, margins, finance and contractual arrangements
• advertising and promotion
• marketing channels, logistics, margins, role of e-commerce.
• Cooperative Strategies: strategic alliances, supplier, customer, distributor and complementor relations (including technical alliances, government relations, co-marketing arrangements, sponsorship, trade associations, etc.)
• Other aspects of trade and marketing practices and issues not elsewhere covered.
• Environmental factors affecting competitive and cooperative strategies (including, socio-cultural, economic and material environment, government and regulations (taxes, tarriffs, trade practices act), technology (standards bodies), professional bodies and relevant infrastructure (media, transport, finance etc.)
• Use the ‘Barriers to Entry’, ‘Internal Rivalry’ and ‘Substitute Products’ analysis of Porter’s 5 Forces for the industry.
• Any marketing models or frameworks applied to the competitive conditions you consider appropriate.
• Use appropriate Blue Ocean Strategy theory and models to evaluate the competitive position.
Phase 3 – Supply Conditions and Intermediaries, Environment and Observers
Supply Conditions including for example:
• What are the conditions for supplying the product? Number, type, size and location of direct and indirect competitors supplying the product or service (including both domestic based and international import suppliers) i.e. What are the supplier alternatives?
• What are the concentration or lack of concentration of ownership and trends in supply. Use Supplier Power analysis from Porter’s 5 Forces.
• Nature of value creation and delivery system linking producers and consumers for this type of product or service (including channels of distribution, key input suppliers, key complementors and other relevant intermediaries that impact on the cost of the product)
• Government actors involved and their role
• Any marketing models or frameworks applied to the supply conditions you consider appropriate.
• Use appropriate Blue Ocean Strategy theory and models to evaluate the supply conditions.
Intermediaries, Environment and Observers
• Nature of Intermediaries (e.g. distributors, transportation, logistics, warehousing, retailers) predominant in the industry and their role.
• Industry Observers Outside the Firm and Service Organisations and their influence/role such as: Industry Studies, Unions, Business Press (BRW), Local Org. Chambers of Commerce, State Governments, Federal Government, Domestic Trade Bodies/Statistics and International Organisations, e.g. OECD; World Bank, etc. Service organisations such as trade associations, investment banks, consultants, advertising agencies, etc.
Phase 4- The current Australian Marketplace
• This section needs to include an analysis of the overall Australian consumer and business environment inclusive of issues such as consumer and business confidence, cost of living, accessibility and affordability of technology, Human Development Index ratings and other indicators that you believe affect the market of our partner.