BSS058-Strategy and the Global Competitive Environment Assignment Sample
Analysis of industry and trends are essential for companies in adopting future trends in an effective way for gaining a high rate of annual turnover. In relation to this, industry analysis also helps in determining the major strengths and weaknesses of this industry.
In the opinion of Ungerman et al. (2018), marketing industry has a major market share in global perspectives and has a high rate of future opportunities.
Thus, this study focuses on the industry analysis and future trends of marketing industry. Thus, a brief industry background, future trends and developments of marketing industry, identification of two scenario dimensions and selection of appropriate tools are involved in this context.
Marketing industry of UK has occupied the major market values and strong hold in country’s environment. It has been evident that revenue growth of marketing industry has crossed the threshold of £30bn in this year (ALRIGHT MEDIA, 2022). Thus, it has been found that different marketing organisations of UK has mostly focused on the retail sector for developing their advertisements and sharing product launching news along with increasing their brand awareness.
It has been found that there are above 2500 marketing companies present in UK (Eveleigh, 2022). Marketing industry of UK such as “The SEO Works”, “Favoured” and “Bursts Digital” involve a majority of technological advancements for offering high facilities to their client companies.
Marketing industry of UK thus has increased its customer growth by 20% in UK by 2022 (ALRIGHT MEDIA, 2022). These companies often involve technologies like “Artificial Intelligence”, “Conversion Optimisation”, “Search Engine Marketing”, “Remarketing” and “Email Marketing”.
These often ensure effective marketing options for their client companies in order to increase their customer engagements.
Future trends and developments in marketing industry
There are different future trends and developments, which can emerge in marketing industry, which can help the marketing industry in expanding its businesses and marketing holding in this country. As per the views of Bleier et al. (2020), marketing industry is a high scope sector as it includes a high rate of innovation, uniqueness and creative decision making.
It has been found, proper evolutions of digital marketing approaches can assist marketing companies in enabling client companies in retaining customers and increasing customer growth. It can be acknowledged that at the time of COVID–19, it can be helpful for these companies in gaining proper benefits. Therefore, there are different future trends and technologies like integrated AI, augmented reality and virtual reality.
Artificial Intelligence or (AI) has been integrating day by day by increasing its efficiencies and facilities. In this account, integrated AI can offer human-like calls to customers, chances of being hyper-personalised through individual product recommendations, customer assistance suggestions and smart recommendations of contents.
In this account, it can be stated that client companies of marketing organisations of UK can gain a major customer growth and customer satisfaction rate by gaining a high rate of facilities. On the other hand, in case of virtual reality and augmented reality, these can help these marketing companies in offering businesses in understanding preferences of customers and determining potential customers in a new market.
Other than this, voice marketing and proper analytical decision making can evolve marketing activities of this industry in an effective way. As included by Perkin (2022), data driven decision making is common in marketing activities, henceforth improvements of it can be effective for marketing companies with the help of analytics.
Thus data driven decision making can be developed in an improved way by launching actual personal customised products for individual customers by improving analytical capacity in case of customers’ opinions and replies. Other than this, voice marketing can be developed by using voice assistants.
Identification of two scenario dimensions
Scenario 1: Technological advancements
Technological advancements like integrated AI, virtual reality, augmented reality and voice marketing can be developed in marketing activities for increasing customers’ satisfaction by modifying their purchasing intentions within client customers.
Therefore, for handling these, skilled employees are needed in marketing companies who have technological skills as well as innovation skills. Thus, marketing companies of UK like PPC GEEKS and Spin Brand can adopt these technological advancements for gaining a high rate of clients towards their companies due to skilled employee recruitments.
On the other hand, as stated by Samiilenko et al. (2021), networking stability and budget stability can be managed within marketing companies for gaining a high rate of stability in utilising marketing technologies. Therefore, these two also need to be handled by adopting future trends in technological advancements.
Scenario 2: Data Driven Decision Making
Data driven decision making also is an effective key area regarding the future trends of marketing. As included by Perkin (2022), Data driven decision making involves skilled employees, proper budget and utilisation of social media platforms.
Marketing organisations thus can include employees who have the skills regarding analytical thinking, problem solving and strategic decision making, steady cash flow and posting surveys and different customer connecting posts on social media platforms.
Therefore, this is another essential scenario which is found from the analysis of future trends and developments within marketing industry.
Analysis through appropriate tools
Figure 1: PESTLE Analysis
(Source: Influenced by Shtal et al. 2018)
|Political||● UK is politically stable in recent times. This country has a 0.47 political stability index (GLOBAL ECONOMY, 2021). This country includes Parliamentary Democracy.||From this, it can be found that the political stability of UK increases the scope of marketing industry in gaining a high rate of positive impacts on smooth improvements.||Positive|
|Economical||● GDP growth rate of UK is 3.75% which has increased from previous year (STATISTA, 2022).||Increments of GDP growth have depicted the price reduction. This has a major positive impact on marketing industry as marketing agencies utilise advanced technologies by reducing implementation costs of these.||Positive|
|● Inflation growth rate of UK is 7.41% which has increased from previous year (STATISTA, 2022)||Increments of inflation growth rate have reduced average household income of people which develops financial losses among companies by reducing customers. In this case, marketing companies further suffer from issues due to reduction of clients. Thus it has a negative impact on the marketing industry of UK.||Negative|
|● Tax rate of UK is 20% on £12,571 to £50,270 which has decreased in this year (ACCOUNTANCY.CO.UK, 2022)||Reduction of tax rates increases profitability of companies. Thus marketing industry of UK can acquire a high rate of revenue and net turnover in 2022 for this reduction of tax rates. In this account, this has positive impacts on marketing industry.||Positive|
|Social||● There are 3.1 million companies in UK (THE COMPANY WAREHOUSE, 2022).||These high numbers of companies within UK has a major positive impact on marketing industry of UK for gaining a high rate of clients.||Positive|
|● In recent times, customers of UK are likely to be fond of innovative marketing activities and campaigns.||This further has a positive impact as marketing industry thus can develop major future trends and developments in case of marketing technologies for implementing more unique and innovative approaches in marketing.||Positive|
|Technological||● UK is a technology oriented country and thereby major technological advancements are discovered and implemented in marketing like chatbots AI, integration of block-chain, integration of AI, 5G network and virtual reality.||This emergence of advanced marketing technologies has a major positive impact on marketing industry and gaining a high rate of adaptability in future trends and developments in case of gaining a high rate of customer growth.||Positive|
|● In 2022, governmental authorities of UK have invested £743.5 million in technologies as well as research and developments (GOV.UK, 2022).||This high amount of governmental support and guidance in finance further has positive impacts on implementing recent technology trends by managing implementation costs within marketing industry.||Positive|
|Legal||● The Companies Act 2006 (c 46), “Employment Rights Act 1996 (c. 18)”, “National Minimum Wage Act 1998 (c. 39)” and “Health and Safety at Work etc. Act 1974 (c. 37)” are major business legislations of UK.||This can help in developing stable workplace management along with workforce in marketing companies. Thus this has major positive impacts on marketing industry of UK.||Positive|
|● “Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277) (CPUTs)” and “Business Protection from Misleading Marketing Regulations 2008 (SI 2008/1276) (BPRs)” are followed by marketing companies in UK (LEXOLOGY, 2022).||These major regulations and policies help marketing companies of UK in maintaining stability in providing proper marketing actions to companies.||Positive|
|Environmental||UK has several environmental threats like waste generation, litter, air pollution, deforestation, soil contamination and climate change||These often have negative impacts on marketing industry as these companies have to produce major electronic waste and thus air pollution and soil contamination.||Negative|
|“Environmental Protection Act 1990 (c. 43)” is needed to be followed by companies.||This protection law helps marketing industry in developing a high rate of smooth progress.||Positive|
Table 1: PESTLE Framework
(Source: Created by Author)
2: Porter’s five forces
Figure 2: Porter’s Five Forces
(Source: Influenced by Hole et al. 2019)
|Bargaining Power of supplier||Bargaining Power of buyers||Competitive rivalry||Threats of substitutes||Threats of new entrant|
Table 2: Porter’s five forces
(Source: Created by Author)
In case of bargaining power of suppliers is low within marketing industry of UK as there are huge numbers of suppliers for providing proper marketing resources. As determined by Terech (2018), marketing companies involve resources of different technologies and materials like computers, business cards, brochures and catalogues. In this aspect, due to huge amount of suppliers available, marketing organisations of UK gain their required resources in an easy way so that bargaining power of suppliers is low in this industry. On the other hand, bargaining power of buyers is moderate in marketing industry. On one hand, in UK, there are more than 2500 marketing companies (Eveleigh, 2022). Henceforth client companies have an immense amount of options for marketing activities. On the other hand, there are 3.1 million companies which need marketing strategies in an effective way for engaging majority of customers. Thus client companies are moderate as per context of marketing industry of UK. Marketing companies has taken strategies of diversification in approaches on a rapid basis for retaining them. Furthermore, competitive rivalry is high in marketing industry of UK as there are high rates of marketing agencies within UK. Therefore, marketing agencies can use pricing strategies and product quality enhancement strategies for gaining a high rate of competitive advantages. Finally, threats of substitutes and threats of new entrants are high because there is a low amount of investments needed in this industry. These can be reduced by including proper brand awareness and customer retention.
3: Scenario planning
Figure 3: Scenario Planning
(Source: Influenced by Oliver and Parrett, 2018)
Scenario planning is an effective framework for understanding possible driving forces, critical uncertainties, plausible scenarios as well as implications and paths. As opined by Oliver and Parrett (2018), scenario planning can help in determining strengths and weaknesses of future adaptation of a scenario. For this study, implementation of advanced technologies is considered as the scenario for the marketing industry. In case of driving forces, preferences of customers and major advantages of advanced technologies are main driving forces of technology adaptation in marketing industry. On the other hand, as per context of critical uncertainties, privacy leak and online breaching are major critical uncertainties of marketing industry. Plausible scenario can be the challenges of marketing companies at the time of having improper technological skills of employees, it can develop major resource mishandling there. Besides that, marketing companies can use implications and paths by using strategies of recruitment management and giving training to employees.
4: Swot analysis
● Marketing agencies in UK have an immense amount of customers in this country.
● Marketing companies in UK have a high competition in country perspectives.
● Marketing agencies have major future opportunities with technological advancements.
● Increased implementation costs of advanced technologies can hamper stable work flow within marketing companies.
Table 3: SWOT Analysis
(Source: Created by Author)
5: Ansoff’s matrix
Figure 4: Ansoff Matrix
(Source: Influenced by Thompson, 2019)
In case of market penetration, marketing companies can increase their customer and revenue growth by increasing its service quality. Marketing companies can increase their service quality by using differentiation strategies and pricing approaches. Other than this, market development can be handled by marketing companies by including different customer segmentation like retail sector, manufacturing sector and hospitality industry. Furthermore, product development can be involved here by investing in research and developments for technological advancements. Finally, diversification can be developed in these companies by including related and unrelated diversification in their service provision.
6: Cascade of choices
Figure 5: Cascade of Choice
(Source: Influenced by Zhou et al. 2021)
Cascade of choice is an important framework of strategy toolbox as this can help marketing industry of UK in developing major strategies for meeting goals. As described by Zhou et al. (2021), Cascade of choice involves needs of strategy implementation in organisations. Goals and aspirations of marketing agencies are to create interests for the majority of people towards their client companies and thus to increase customer growth of their client companies. On the other hand, marketing companies play within retail sectors and manufacturing sectors majorly. Marketing agencies can win within the marketing industry by involving cost-effective services and including service differentiation on a rapid basis. Besides that, marketing industry of this company can include configuration by including a high rate of capabilities in technology implementation. Finally, priority initiatives can be developed by recruiting skilled employees, maintaining a steady budget and network flow in working environment. In accordance with this, marketing companies can use this for achieving their desired goals.
From the above discussions, this study can conclude that marketing agencies of UK have major future scopes and opportunities for improving their marketing initiatives by using technological advancements such as AI, virtual reality and augmented reality. On the other hand, from Porter’s five forces, bargaining power of suppliers is high, bargaining power of buyers is moderate, competitive rivalry, threats of new entrants and threats of substitutes are high as per context of marketing industry of UK. From, SWOT analysis, it has been found that these companies have high competition but high customer growth. These agencies further have high opportunities of technological advancements but have threats in privacy leaking and online breaching.
ACCOUNTANCY.CO.UK (2022), UK Tax Rates, Thresholds and Allowances for Self-Employed People and Employers in 2022/23 and 2021/22. Available at: https://www.theaccountancy.co.uk/tax/uk-tax-rates-thresholds-and-allowances-for-employers-and-the-self-employed-in-2021-22-and-2020-21-2-51801.html [Accessed on 09 June 2022].
ALRIGHT MEDIA (2022), 2021 strongest year ever for UK’s ad market. Available at: https://alightmedia.com/2021-strongest-year-ever-for-uks-ad-market/?utm_source=rss&utm_medium=rss&utm_campaign=2021-strongest-year-ever-for-uks-ad-market [Accessed on 05 June 2022].
Bleier, A., Goldfarb, A. and Tucker, C., (2020). Consumer privacy and the future of data-based innovation and marketing. International Journal of Research in Marketing, 37(3), pp.466-480.
Eveleigh, S., (2022), The UK’s 42 Best Marketing Agencies. Available at: https://gripped.io/digital-marketing-strategy/top-marketing-agencies-uk/ [Accessed on 06 June 2022].
GLOBAL ECONOMY (2021), United Kingdom: Political stability. Available at: https://www.theglobaleconomy.com/United-Kingdom/wb_political_stability/ [Accessed on 07 June 2022].
GOV.UK (2022), Government funding boost for life-changing technologies. Available at: https://www.gov.uk/government/news/government-funding-boost-for-life-changing-technologies#:~:text=The%20government%20has%20today%20announced,as%20a%20global%20Science%20Superpower [Accessed on 11 June 2022].
Hole, Y., Snehal, P. and Bhaskar, M., (2019). Porter’s five forces model: gives you a competitive advantage. Journal of Advanced Research in Dynamical and Control System, 11(4), pp.1436-1448.
LEXOLOGY (2022), Advertising & Marketing in the United Kingdom. Available at: lexology.com/library/detail.aspx?g=f2a04ce7-deb1-4ae4-9b99-ceba664a114d [Accessed on 12 June 2022].
Oliver, J.J. and Parrett, E., (2018). Managing future uncertainty: Reevaluating the role of scenario planning. Business Horizons, 61(2), pp.339-352.
Perkin, N., (2022). Agile Marketing: Unlock Adaptive and Data-driven Marketing for Long-term Success. Kogan Page Publishers.
Samiilenko, H., Bonyar, S., Ivanova, N., Khudolei, V. and Kukhtyk, S., (2021). Features of creative marketing in the conditions of the innovative economy development. Laplage em Revista, 7(3), pp.89-102.
Shtal, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T. and TOIBOLDINOVA, Z.G., (2018). Methods of analysis of the external environment of business activities. Revista espacios, 39(12), pp. 1-9.
STATISTA (2022), United Kingdom: Real gross domestic product (GDP) growth rate and Inflation rate from 2017 to 2027. Available at: https://www.statista.com/statistics/270384/ [Accessed on 08 June 2022].
Terech, A., (2018). An introduction to marketing and branding. Generations, 42(1), pp.45-49.
THE COMPANY WAREHOUSE (2022), How many businesses are there in the UK?. Available at: thecompanywarehouse.co.uk/blog/how-many-businesses-are-there-in-the-uk#:~:text=Companies%20House%2C%20who%20keep%20the,which%202.8%20million%20are%20active [Accessed on 10 June 2022].
Thompson, I., (2019). Ansoff Matrix. In The Procurement Models Handbook. 12(2), (pp. 45-47). Routledge.
Ungerman, O., Dedkova, J. and Gurinova, K., (2018). The impact of marketing innovation on the competitiveness of enterprises in the context of industry 4.0. Journal of competitiveness, 10(2), p.132.
Zhou, F., Xu, X., Trajcevski, G. and Zhang, K., (2021). A survey of information cascade analysis: Models, predictions, and recent advances. ACM Computing Surveys (CSUR), 54(2), pp.1-36.
24/7 Chat Support | Get A+ Grade | Written by Top-Notch Subject Experts | 20% Off 1st Order |