Strategic Foresight Sample
Introduction
Strategic forecasting is a systematic process by which new ideas for the future and new strategies for business are adopted. At present, the change in the business environment indicates a change in corporate strategy. Strategic forecasting is a process of changing and analyzing the technique of long term business which is digitalized the worldwide business of firms in the UK. In recent days, all the large companies adopt digitalization and online marketing for good service to their customers. It is a big change in industrial policy all over the world and disrupts the business of physical stores. This assignment has discussed the dominant logic of disrupting the traditional strategy of the business and gives the solution to get a new industrial policy for digitalization. Companies have to make their own decision to stay in the traditional market or go to the online market of business. The assignment differentiates between other approaches to business with strategic forecasting.
Dominant Logic
Dominant logic is the fundamental perspective of business study that depends upon customer primacy. It is the radical change in customer view from one market to many markets of one product (Black and Rebello, 2021). Dominant logic indicates the different types of markets been introduced in the recent year in the business market. In the UK, digital market services are introduced in the last few years. The business market of the UK spends 62% budget on their digital market to achieve the goal of excellent customer service. Digital marketing become the dominant business platform in the UK which controls the whole market system of this country. But there are some physical stores are still surviving in the competitive market of the business firm (Pulsiri and Vatananan-Thesenvitz, 2021). They follow the traditional rule of industrial policy and do not adapt the digitalization. One of the most important physical stores in the UK is “We Are Bookish”. This book store follows the traditional industrial rules and continues its business for a long time. This book store simultaneously competes with the gigantic online industry such as; Amazon and Flip kart. Though these online companies have worldwide business and popularity still this physical book store gives customer service in the UK. We Are Bookish consist of a book club which gives the reader a friendly atmosphere to read the books and do group studies and analysis.
The most important site of this store is a net gallery which discovers the new books from the world. Amazon has the kindle version of books to read and a paperback system to buy the books which attract reader very much. To compete with Amazon it makes a book gallery and audio book reading system and gives the reader the atmosphere of the library which very influences the reader of the UK. This book store has also a facility for purchasing books which is equivalent to Amazon (Gordon et al. 2019). The dominant factor of online shops is their offers on cost price and their advertisement for the product. Physical stores give the same type of offers on cost price to compete with online shops.
Risk analysis of the company
The risk of marketing the traditional companies becomes very important in the present day. Online markets capture an approximate two-thirds portion of the market system (Arokodare et al. 2020). There is huge competition in the physical market to enhance their business like other online companies. Some companies adopt both the online and offline market to enhance their business firm. It is helpful for all the citizens of the Country. Senior citizens are not used to the online shopping system and they still depend upon the offline marketing system. So the large companies give their services in the offline market also. However, most people depend upon online shopping mostly which gives negative feedback for offline shopping. The below developed table is tried to manage the potential development of offline shopping process nowadays with the significant risk description measurement.
| Risk description | Likelihood (1-5) | Severity (1-5) | Impact (Likelihood*severity) |
| Resistance to change through digitalization | 4 | 3 | 12 |
| Less customer attraction | 4 | 4 | 16 |
| Low financial performance | 5 | 5 | 25 |
| Lack of competitiveness | 3 | 3 | 9 |
Table 1: Risk Analysis of Offline market
The important problems of offline shops are
- Resistance to change through digitalization – These companies have a traditional market system, which does not help to enhance the business area all over the world (Ferro et al. 2019). It is a rigid marketing system rather than the online marketing system. The market becomes up to date with the dynamic change in industrial policy. Digitalization can change the situation of a low level of productivity of offline companies. Hence, it can be mentioned that the offline are still become more resist in terms of the aspect of digitisation. Most of the organisation are critically followed this aspect, hence it is required for offline market to demonstrate with major changes for future advancement.
- Less customer attraction- The offline market is controlled manually in the UK, which is the old theory of the market controlling system. Through this process, the head of the company cannot get full knowledge of the market system. In the online market, authorities control the full market system by using computers. There is a target market that offline market’s productivity is depending upon but the online market is and their growth depends on ability of high customer attraction.
- Low financial performance- The advertisement quality of the physical market is very low which has less attraction power. The customers of all countries are attracted by the presentation of products of the company which is very unattractive in the offline market. On the other hand, online platforms give a more attractive presentation of products, which influences the customer to buy more products. Lower customer attraction is associated with the aspect of low financial performance, which is critically endured by offline market.
- Lack of competitiveness- Physical market has less finance than the online market because it has no marketing facility all over the world (Gómez-Luciano et al. 2019). This hampers the marketing process of the online company very much. So the competitiveness of an offline company is very low rather to the digital market.
Proposals for adaptation of new strategies
Many problems arise in the physical market to compete with the online market process. So the authority of physical stores adopts new strategies to enhance their business on large scale. The digitalized business module is not prepared for the physical stores. The online market continuously throws challenges to the offline market to adopt the digitalization or die due to rapid changes in the market system. At present, the pandemic due to covid-19 in all over the world can be considered as the most important cause of online marketing. In this situation, the government did not permit to stay out, as online marketing is increasing gradually for this purpose. The business of all the physical stores is hampered due to this pandemic, which give a financial crisis all over the world (Bryant et al. 2018). Most tangible elements affect the offline or physical stores regarding the digitalization of the market. Traditional marketing systems hamper the business process of physical stores at present. Competing with the gigantic online marketing system, the physical market must adopt the new industrial policy. Digitalization can enhance the business area from a smaller scale to a larger scale. Physical market will overcome the technological barrier to get the good marketing system.
Customer attraction is lesser in the physical market than in the online market. The marketing system in the online market is very significant and attracts most people. Advertisement quality of the online market is very crucial for growing the business (Santos et al, 2020). The physical market will adopt good technology to make attractive advertisements which attract people for marketing. Amazon has a big billion days in the offering purpose which give an excellent business to Amazon. Competing with this type of marketing system, the physical store will also adopt this type of offering system for their product.
The financial crisis in the physical market is one of the most important problems in the marketing system. The online market has business areas all over the world and has lots of share brokers for their companies so they do not get any financial crisis (Parnell and Brady, 2019). But small industries and physical stores have a few investors that do not give any financial support to elaborate on their business. After the digitalization of physical stores, they will adopt both online and offline markets which gives them a lot of investors for their company.
Physical stores are controlled manually which gives negative feedback to their business process. They adopt the new technology to control the whole business management by providing a system. Lack of competitiveness is also observed in the physical stores (Klofsten et al. 2019). The new industrial policy is elaborated on the healthy competition of physical stores to achieve profit for the companies.
Conclusion
This assignment has described the competition between the digital marketing system and the physical marketing system. The traditional market is up to date with its marketing style with digitalization which is very essential for the present day. The domination of the online market is identified in the UK which enhances the marketing system all over the world. But some offline stores in the UK still do business to compete with the digital market. They adopt the new style of business but do not change in the online market. It is very helpful for all types of customers to get offline market in the present day in the UK. It has been concluded that to reach the goal of digitalization for physical stores, they adopt the new strategies for business purposes in the UK. So, the physical market will adopt the new industrial policy to reach the high profitable business market.
References
Arokodare, M.A. and Asikhia, O.U., 2020. Strategic agility: Achieving superior organizational performance through strategic foresight. Global Journal of Management and Business Research, 20(3), Available at; https://www.researchgate.net/profile/Professor-Asikhia/publication/339876898_Strategic_Agility_Achieving_Superior_Organizational_Performance_through_Strategic_Foresight/links/6152f9e7154b3227a8b4cad4/Strategic-Agility-Achieving-Superior-Organizational-Performance-through-Strategic-Foresight.pdf [accessed on 6 May,2022]
Black, R. and Rebello, S., 2021. Towards Sustainable Futures-Using strategic foresight in the design of transformative sustainability. Available at: http://openresearch.ocadu.ca/id/eprint/3169/1/Black%2C%20Rebecca%20%26%20Rebello%2C%20Stephanie_2021_MDES_SFI_MRP.pdf [accessed on 6 May,2022]
Bryant, S.T., Straker, K. and Wrigley, C., 2018. The typologies of power: Energy utility business models in an increasingly renewable sector. Journal of Cleaner Production, 195, pp.1032-1046. Available at: https://eprints.qut.edu.au/118659/7/118659.pdf [accessed on 7 May,2022]
Ferro, C., Padin, C., Høgevold, N., Svensson, G. and Varela, J.C.S., 2019. Validating and expanding a framework of a triple bottom line dominant logic for business sustainability through time and across contexts. Journal of Business & Industrial Marketing. Available at: https://www.researchgate.net/profile/Juan-Sosa-Varela/publication/330219263_Validating_and_expanding_a_framework_of_a_triple_bottom_line_dominant_logic_for_business_sustainability_through_time_and_across_contexts/links/5cbf5ea292851c8d2200501a/Validating-and-expanding-a-framework-of-a-triple-bottom-line-dominant-logic-for-business-sustainability-through-time-and-across-contexts.pdf [accessed on 6 May,2022]
Gómez-Luciano, C.A., de Aguiar, L.K., Vriesekoop, F. and Urbano, B., 2019. Consumers’ willingness to purchase three alternatives to meat proteins in the United Kingdom, Spain, Brazil and the Dominican Republic. Food quality and preference, 78, p.103732.Available at: https://hau.repository.guildhe.ac.uk/id/eprint/17416/1/Frank%20Vriesekoop%20consumers%20willingness%20upload.pdf [accessed on 6 May,2022]
Gordon, A., Rohrbeck, R. and Schwarz, J.O., 2019. Escaping the” faster horses” trap: bridging strategic foresight and design-based innovation. Technology innovation management review, 9(8), pp.30-42. Available at: https://publikationen.reutlingen-university.de/frontdoor/deliver/index/docId/2319/file/2319.pdf [accessed on 6 May,2022]
Klofsten, M., Fayolle, A., Guerrero, M., Mian, S., Urbano, D. and Wright, M., 2019. The entrepreneurial university as driver for economic growth and social change-Key strategic challenges. Technological Forecasting and Social Change, 141, pp.149-158. Available at: https://nrl.northumbria.ac.uk/id/eprint/38280/1/TFSC_Klofsten%20et%20al_.pdf [accessed on 7 May,2022]
Parnell, J. and Brady, M., 2019. Capabilities, strategies and firm performance in the United Kingdom. Journal of Strategy and Management. Available at: https://e-tarjome.com/storage/panel/fileuploads/2019-08-31/1567243612_E13311-e-tarjome.pdf [accessed on 7 May,2022]
Pulsiri, N. and Vatananan-Thesenvitz, R., 2021. Triangle relationship: A Review of dynamic capabilities, strategic foresight, and organizational learning. International Journal of Business Environment, 5(3), pp.1-18. Available at: https://www.theijbmt.com/archive/0939/2098339679.pdf [accessed on 6 May,2022]
Santos, R.C. and Martinho, J.L., 2020. An Industry 4.0 maturity model proposal. Journal of Manufacturing Technology Management. Available at; https://pustaka-sarawak.com/eknowbase/attachments/1585622665.pdf [accessed on 7 may, 2022]
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