Description Report of a Business Project Essay Example
Description Report of a Business Project 8
From the case of Showbiz Company it is clearly demonstrated that the company has got numerous strengths that have made it a market leader for several years. Some of the strengths that have been attributed to the Showbiz Company include: the ability to partner with other businesses such as the Qantas holidays that has enabled it to get and manage many allocations for many major events. The showbiz company’s strength is also built in the fact that, the company has been able to establish product and services channels which include its own showbiz loyalty program. Finally, the company apart from it is ability to negotiate with the customers and offer unique customer services; it is also able to partner with major industry players (Michael & Thomas, 2004).
Given the circumstances under which showbiz company is operating, it is evident that for it to maintain and sustain its business, it has to offer their services at a much higher prices than its competitors in order to cater for the cost incurred in establishing and running its partnerships and business links like the web sites and Qantas FF. It is also noted that the company is more engaged in doing business with the Qantas Box office, however, much viable it looks for the business, on the other hand it is viewed as a very big weakness for the company. This is because any organizational structuring that may occur at Qantas Company is likely to affect showbiz business greatly because of its level of dependence (David and Richard, 2004).
Business opportunities refer those new business deals that are available in the market. They are actually identified through an external market analysis. Some of the main opportunities that are there for the showbiz company include: Ever increasing customer demand because of the several functions that are held in the country every year. Development of new technology options has also provided a very great opportunity for the company to update its business in order to operate both online and offline to meet varied customer demands. Finally, provided the current global business situation, the showbiz is in a position to expand it is business to other foreign countries because many of the international trade barriers have been removed (Jerome, 1996).
Business threats that face the company in most cases are caused by changes in the external environment. In the case of the showbiz company some of the threats that have been cited include: Decreased demand for luxury tickets which has been attributed to increase cost of living that has taken much of the income that otherwise could have been used for entertainment. Another threat that is eminent in the case of the Showbiz Company is the fact that several ticketing agencies are now joining the private labeling and packaging industry thus making the competition tougher for the Showbiz Company (Malaval, 2001).
Porters Five Forces
In carrying out his research, Michael Porter, did focus more on the private policy as compared to public policy in order to illustrate how companies can maximize profits rather locating excess profits. The economists’ study that was done before Porter’s publication had indicated that different industries recorded different levels of profits because of their varied structural differences. However, at the moment many companies are carefully integrating the concept of industry factor in their strategy decision making processes. In the case of the showbiz company, Porter’s study is important in the fact that it will help the business align itself strategically in the industry with regard to those fundamental competitive forces that prevail in the industry (Malaval, 2001). The factors include:
Entry of competitors
The entry of new companies into industry often causes more competition for the already existing market among the rival companies. The major challenge for any given company is to be able to maintain its market share while identifying the new opportunities. However, this model developed by Porter, has informed the showbiz company whereby the company embarked itself in developing a strong reputation by offering excellent customer service in order their loyalty. By doing this, the company is able to remain a market leader regardless of any competition from a rival doing private labeling and packaging (Pfoertsch, 2006).
Threat of substitutes
Substitute goods and services provided in any given industry, are always intended in providing alternative options for the already existing services. More often than not, the substitute products and services are tailored in a away that price and quality are made friendlier to the customer than already existing products. However, in the case of the showbiz company, apart from quality and specialized products services, a variety is offered in order to suit the varied demands of the market (Pfoertsch, 2006).
Bargaining power of buyers
Buyers in any given industry always have bargaining powers when they are several companies providing same products and services, when the buyers have various substitutes to their needs and lastly when the products and services are not a priority to them. However, in managing this kind of force in the industry, the showbiz company has come up with the strategy of ensuring that many buyers are reached as much as possible through tourism and international marketing apart from ensuring that strategic marketing proposals for events and executing activities are put in place to explain its core values (Leyland & Honeycutt, 2001).
Bargaining power of suppliers
In order to manage the bargaining powers of the suppliers, the showbiz company has developed unique benefits that are realized from its direct relationship with producers and promoters hence are not bound by venue contracts like the ticketing companies and therefore they can sell their tickets at any particular venue (John, 2005).
Rivalry among the existing players
The showbiz company has strategically established partnerships with key players in the industry such as Disney’s The Lion King, We Will Rock You National Tour and Quidam Tour (official VIP Corporate Hospitality partner) ticketing agencies in order to neutralize the effect of rivalry in the industry (James & Narus, 2004).
Michael Porter’s study is based on the following assumptions:
From the risk-return perspective, the model requires that risk rates of return be adjusted accordingly in order to ensure that they are constant across all the firms and the industry.
Free business market environment where firms are free to join and leave the industry at will.
No government interference.
. (John, 2005) In a period of one year, the showbiz company has to come up with short-term strategies which see the company increase its cash flows. However this could only be done by the company placing more emphasis on how to convert more packages into sales through innovative ways that motivate and recognize individual sales teams. Creation of more new revenue streams could also be used to boost the company sales if new market gaps are identified and provided accordingly
In order for the showbiz company to realize it is medium term goals, it has to come up with strategies that will identify new business deals and partners that the business could invest in. At this point, the company need to objectively plan how to utilize more revenues generated from short-term strategies in order to diversify it is products and services. More specialized services, targeted programs and technical aid could play a very vital role in creating more business partnerships. Contingency mitigation is very essential in order to ensure that wrong customer perceptions are managed and interest for the services boosted (Brown & Hayes, 2008)
It is recommendable that for the company to develop Long-term strategies, the business should remain focused and lay stronger foundations when the economic situation is tough in order to remain successful during the industry turndown. This is possible only if the showbiz could invest in a more appropriate technology and capitalize fully on the available market opportunities and customer desires. Intensive market surveys and research are important for the business to identify the right opportunities and remain focused on the available chances of growth. It is also important to recognize that being as good as the market is not enough to outshine the competitors but through continuous product and service differentiation (Dwyer & John, 2006).
Brown, D & Hayes, N 2008, Influencer Marketing: Who really influences your customers?, New York, Butterworth-Heinemann.
David, A., and Richard, E. 2004, Fundamentals of Business Marketing Research, Best Business Books, an Imprint of The Haworth Press, Inc.
Dwyer, F & John F 2006, Business Marketing: Connecting Strategy, Relationships, and Learning, London, McGraw-Hill/Irwin
James, C & Narus, J 2004, Business Market Management: Understanding, Creating, and Delivering Value, London, Pearson Education, Inc.
Jerome, E 1996, Basic Marketing: A Managerial Approach. Homewood, IL: Irwin
John, A 2005, Past indicates promising future for B-to-B direct; BtoB magazine.
Leyland, F & Honeycutt, E 2001, Business-to-Business Marketing: A Strategic Approach, London, Sage Publications Inc.
Malaval, H 2001, Strategy and Management of Industrial Brands: Business to Business Products and Services, Michigan, Springer.
Michael, D & Thomas, W 2004, Business Marketing Management: A Strategic View of Industrial and Organizational Markets, 8th Edn., London, Thomson/South-Western.
Pfoertsch, K 2006, B2B Brand Management, Berlin, Springer.
More Important Things