Market Strategy Analysis on Montgras

Hung-Chang Huang 1467751 Case Questions: MontGras 1. (a) To what extent can MontGras control its own market position, as opposed to being dominated by the country-of-origin effect, and be perceived as a â€Å"Chilean Wine†? MontGras, the export-focused winery that was founded in 1992, unlike many other Chilean wineries, actually possessed a considerable control on its own market position in the late 1990s and early 2000s.Although the overall consumer perception towards Chilean wine products indicated that they need to put more efforts to build a solid image globally and that their major advantage is the low price, the situation might not necessarily hurt MontGras’ current market position if and only if the management the link between the decision to adopt the quality strategy, rather than volume strategy, and the fact that Chilean wine lacked a proper image.By pursuing quality-oriented strategy, MontGras is able to further cultivate its brand awareness as a result of th e success of the ultra-premiums(Ninquen line) and the super-premiums(Reserva line), and to eliminate the inefficient cost spent on the joint effort with Chilevid aimed at building a stronger image for the entire Chilean wine industry.Consequently, the problem of country-of-origin effect was, in fact, not significant enough that hampered MontGras’ marketing position as long as the company is fully understand what the appropriate marketing strategy is and adopt it with regard to different market ecologies of MontGras’ export destinations. (b) What implications does this have for marketing strategy? With the worldwide overproduction of vintages, competitions of wines in all segments were predicted more intense, especially in the basic segment, which traditionally accounted for nearly half of the market share of many countries, and 55% of MontGras’ total product in 2001.This indicates that already saturated basic segment, with the smallest gross profit margin for al l the players within the segment, would become a less and less lucrative red ocean. On the other hand, with the recognition that the country-of-origin effect does not incur severe damage to the company as anticipated, MontGras is able to reallocate its advertising expense through emphasizing on the brand, or on the product lines instead of building a stronger image of country-of-origin that would consume a huge portion of its dvertising expense, but unsure of whether consumers in UK or US would buy their effort. Hence, both the two aforementioned factors might serve as a juncture for MontGras to reassess its business strategy, which could be broken into producing part and marketing part, in order to keep the profitable business for long. 2. Evaluate the US and UK options separately. For each country, which option would you recommend and why? In MontGras’ major export market, UK, the company has already gained a substantial success that it ranked one of the 10 most Chilean win e exporters in terms of the value of products.In this picture, its partner distributor in UK had played an important role in MontGras’ UK penetration since 1996. Considering UK market feature, partner with leading supermarket chains such Tesbury is a comparatively feasible way to expand MontGras’ market share because these chain systems control more than 60% of all wine sales. However, partner with Tesbury is not free from side effects. First, at initial collaboration phase, MontGras enjoyed a short term victory without paying the cost of promotion.But in the future, is it able to reap without paying, or would Tesbury ask for more contribution from MontGras after it become too subservient to the large retail system? Second, partner with Tesbury could well create a supplanting effect that threatens its old partner distributor. Thus, my recommendation for MontGras in UK would be to diversify its distributor partnerships as a way to prevent over dependency, which would so mehow cast uncertainty for MontGras’ positioning strategy in the long term.Also, in order to pave the way for future expansion in premium segment, MontGras should keep records of the new marketing plan for Ninquen wines that if the targeting sales of 5,000 cases can cover the proposed GBP 20,000 and generate profit. In the highly fragmented US wine market, with regulatory three-tier distribution system, MontGras had to tackle business with importers, which are usually state-licensed wholesalers too. In addition, by the four prescribed criteria in choosing a countable partner importer, MontGras should be able to prevent the failures from unsuccessful previous partnerships.The first candidate of its partner distributor, World Wine Importers, a larger player that operated 200 brands with a 60-staff sales force, proposed to promote the Reserva line in a volume-oriented strategy with a price range of $8-$11; Cabo Imports, another candidate that operated 50 brands and a sales force of 35, offered a distinct proposal for MontGras that it intend to raise consumers’ perception towards MontGras’ quality and pric range also to broaden the return for both parties through setting a price range $8-$15, and it also intend to release the Ninquen line as a flagship product targeted a $25 retail price.Although the partnership with World Wine Importers seems more lucrative to MontGras in terms of the sales generated by large amount basis, however, simply adopt the results from simple additive questions is obviously not sagacious enough for Mr. Middleton. In general, Cabo Importers would offer a great stage for Reserva(60% of the total), and the newly released Ninquen as well. Thus, accepting Cabo Importers’ offer would be advantageous for MontGras’ market position in US market.

Fractional reserve banking dissertation The WritePass Journal

Fractional reserve banking dissertation Chapter 1 Fractional reserve banking dissertation Chapter 11.1 Introduction1.2 Research Aim1.3 Research Objectives1.4 Research Method1.5 Dissertation Structure1.6 LimitationChapter 3 Methodology3.1 Data Sources3.2 Methodology Approach3.2.1 Data Samples3.3 Selection of Research Methodology3.4 LimitationsRelated Chapter 1 1.1 Introduction Fractional reserve banking concepts, theories and a real life case of debate by the Bank of England Governor Mervyn King have been investigated in this dissertation from a perspective   differed to the mainstream. There have been controversy on the discussion on the nature and uprising of fractional reserve banking. Therefore, the author believes a need for awareness on the history and nature on subject is worth identifying. The approach mentioned above is expected to form a new angle on the issue investigated and conducting further insight for a more dynamic instead of a static framework in forthcoming research. Based on extensive reviews on texts, books, research papers and websites. Appropriately, from the literature review, the author would consider fractional reserve banking as a widely spread banking system in which allows banks to create money in a banking system by lending a fraction of its deposits   while keeping only a small fraction of the original deposit as a reserve available for withdrawal and daily operations. This kind of de facto banking operation system has been legit and practiced by all commercial banks. Accordingly, a vase amount of publications have been stating the goldsmiths were the inventors of this banking mechanism. In this dissertation, the author would be looking into the background of a brief history of fractional reserve banking in the 17th century, as this operation has been operating throughout the globe in every commercial banks for decades.   In addition, a critical review Fractional Reserve Banking as a system as a whole and its affects on our modern day society. And by explaining some common misconception on fractional reserve banking and full reserve banking. In addition, evaluating a case of speech by the Bank of England Governor Mervyn King and the Bank of England’s view on this banking system and concluding with some perspective on future development and reformation on the current fractional reserve baking system. 1.2 Research Aim The aim of this research is to investigate, identify and indicate the existing critical factors and problems behind the fractional reserve banking system in the UK by going through a critical literature review and a case on the Bank of England’s Governor Mervyn Kings’ speech on the subject and identifying possible reform suggestions. In order too achieve the research aims, the following objectives below have been set. 1.3 Research Objectives This research approach is expected to investigated and identify the background history, insolvency and possible reform suggestions in the current fractional banking system in the UK. It will mainly focus on critical analysis and literature review and case study on fractional reserve banking, full reserve banking, critiques on fractional reserve banking and possible reform suggestions from a financial and ethical perspective. In order too fulfill research approach, the research objectives have been created and summarized as follows: Firstly, identify the concept and background of fractional reserve banking, capital reserve ratios, full reserve banking and reform proposals by reviewing literatures. Secondly, find out the history and possible up rising of fractional reserve banking. Thirdly, distinguish misconceptions and critical analysis on fractional reserve banking. Fourthly, explore and recognize key factors and problems above the theories by critical analysis on the selected case study. Fifthly, perceive possible reform suggestions to the current fractional reserve banking system. 1.4 Research Method In order to achieve a high standard quality of result, it would be important to identify the research method and methodology. General business research stages will be followed in the research process. The general business research stages includes defining the objective, planning a research design, planning a sample, collecting data, analyzing the data, framing a conclusion and lastly, preparing the report (Zikmund,2003) The main research method in this research approach would be literature review. In order to maintain a high quality and thorough systemic research; gathering supportive information, theories and frameworks   includes published researches, academic journals, case studies, academic publications is necessary. 1.5 Dissertation Structure Chapter one is an introduction briefly introducing some background information, research aim, and objectives for this research approach. Chapter two largely focus on the relevant literature reviews to the research project which consists of history on fractional reserve banking, definition and concepts and misconceptions on the subject. The literature review is to identify supportive and relevant information to the research area and focus. Chapter three will be providing an overview on the methodology and research method selection, supportive software used for extensive comparative analysis and the chapter will also be identifying data formulation. Chapter four will be revealing the research result, findings and case analysis, which is supportive, and relevance to the further discussion. Chapter five will be concluding the research paper with suggestions for reform and points out critical factors uncovered in this research approach, and future improvement. 1.6 Limitation Because of exceptionally limited time in the whole research process, the result and quality of the research paper is therefore in constriction. On the other hand, a lack of up to date literatures and researches in terms of critiques on fractional reserve banking has inevitably increased the difficulty in acquiring expressive and reliable data in the systemic approach. As stated above, therefore the author would have a level of difficulties in obtaining the perfect research result. Chapter 3 Methodology 3.1 Data Sources The research frameworks are well organized and carried out accurately in order to achieve a research result as precise as possible. First of all, to understand the importance of the research methodology, the research process will be identified and explained. In this case, relevant literature review from all possible sources and formats from books, journal articles, thesis and the internet will be included as the primary source of data. The secondary, research data format would be using a case study as its function is to verify arguments from other sources and helps drawing views and debates on the nature of the subject. 3.2 Methodology Approach 3.2.1 Data Samples The method adopted for this research project involved extended on-site visits to Thomson One Banker and Emerald Journals. In addition to it, SSRN research database Accordingly, Thomson One Banker represents the most important data source. A relevant case from the data sources was carefully selected to achieve a better understanding of the factors and critiques on fractional reserve banking. The author also implemented additional press research to verify the data in the Financial Times and The Economist. 3.3 Selection of Research Methodology In this research paper, the author tends to apply case study approach and sources of data from literatures. Which emphasize on observing and reasoning as a result of understanding the nature of the phenomena in terms of expressing the observation the author’s point of view. The case study method is also known as the realistic analysis that studies a current phenomenon within its present-day and real life perspective involving various sources of data (Yin, 2003). Anderson (1998) added that the case study approach is about the exploration of contextual realities and dissimilarities between what was planned and what have actually occurred in terms of who, why and how things happen. As well, Edge and Coleman (1986) mentioned that the case studies enable researchers to gain high degree of confidence in their judgment and verdict, which as well improve the degree of humility. The case study approach is a common use of technique of corresponding to what, who, when and how things happen. Therefore, the case study approach is chosen in order to assist the author to deliver a conclusive debate. From a several source of supportive evidence, literature review and case study enables the author to look deeply into real life happenings. Furthermore, An explanatory case study offers the data and perception based on cause-effect relationships, responding to whom, why and how things happen in its natural context that includes the point of view of the participants (Kos, 1991). And throughout the methodology progress, it has been a great media of increasing the existing understanding of the processes by businesses and other organizations implemented, this is because it is a way of creating consistent and yet valid evidence. 3.4 Limitations Arising from the extensive case studies and literature reviews, the research methods can hardly be factually completed due to the limitations of the research approaches. There are at least three obstacles in obtaining unbiased references from the methods chosen. Potential inadequacies in this research include the large amount of data, which may have led to missing important data or overweighting some findings due to focusing on a particular and big set of data. Besides, it is possible that revisiting the data would reveal other issues and aspects would occur. Moreover, a research study generally is limited to descriptions of what the author gathered from the case study and literature reviews analyzed, which also limits the ability to generalize the results. On the other hand, the research study is time-consuming to gather and even so it takes lots of time to analyze as cutting corners on either of these aspects can probably cause to lower the value and credibility of the research paper. As a result, the author might or might not give valuable data in the time given. Besides, the author faces the challenges in representing of the information gathered. Every researcher has different ways of presenting the same set of data based on different styles and emphasis which leads the author to have difficulties in summarizing the data collected. Shionoya (1992) defines that methodology is known as the philosophical study of reason behind a prescribed use of methods. Consequently, studies of various definitions, concepts and theories are preferred to verify the functions and importance of methodology. This study correspondingly indicated the purpose for applying different methods and clarified the motive of a specific method which in terms of aiding in framing the particular discussion.   Consistently, this theory is considered as predictable and recognizable. As quoted from Easterby-Smith et al (1993), the discipline which investigates and evaluates methods of inquiry, of validation, of teaching etc., a theory within that discipline. It is important to pay attention that methodology is about method and not the same as method (Easterby-Smith et al, 1993). Accordingly, as there are different emphasis within methodology and method, this theory has distinguished the point on investigation and evaluation which has illustrated the methodology and method noticeably. However, in terms of the distinctive yet complex methodology, as the theories gathered and examined is the result the research in which that the real functions might influence the research, therefore, there are still many components to be considered within the research process. In fact, there are array of research methods available is widespread. Khairul (2008) mentioned that the choice of which method to employ is dependent upon the nature of the research problem. However, the actual suitability of a research method comes from the nature of the social phenomena should be explored (Morgan and Smircich, 1980). In substance, Remenyi and Williams (1993) presents as many as 20 types of qualitative methods and Creswell (1994) proposes basic methodological traditions of research namely ethnography, grounded theory, case study and positivism and post-positivism for phenomenological studies. In addition, Quinn-Patton (1987) offers various methods for consideration. Methodology unquestionably can be used as a decision-making procedure, which is carried out for guidelines of one or more analysis or suppositions. Khairul (2008) stated that a paradigm is a hypothetical design that likely to classifies the researcher’s reality yet one may not be aware of it. Consequently, there is a connection of theoretical decision making to strategies of collecting different backgrounds and different types of figures. Furthermore, the choice of which appropriate method to employ is important in terms of those available background information and figures. Under the circumstances, it is clear that every type of methodologies and methods has explicit and implicit research design. Accordingly, methodologies and methods shape the research process in terms of questions asked and answers received, as well it privileges specific ways of knowledge. In the main, paradigm and perspectives are taken adequate account in the framework of the research. Thus, research methodology is the way showing researchers conduct their researches. A paradigm is defined as a worldview representing people’s value judgments, norms, standards, frames of reference, perspectives, ideologies, myths, theories, and so forth, in terms of managing their thinking and actions (Gummesson, 1991). As cited from Leedy (1997), there are mainly two basic methodological traditions of research derives from the nature of reality, known as positivism and post positivism namely phenomenological. In order to maintain the analysis of the phenomena, sufficient information and precise elements might be required in positivist paradigm. Conversely, the use of several sources of information can help extensively in improving the validity and reliability of the research. By studying every aspect of the problem from as many angles as possible, and by using different sources of data, the case study research strategy is a powerful research tool in the hands of a capable researcher (Hodkinsons, 2001). It is believed that bias is everywhere but it can be minimized with following the steps as mentioned above.   The author understands that it is the crucial task in the research paper to reduce the bias level. Reference Admati, A.R., DeMarzo, P.M., Hellwig, M.F., and Pfleiderer, P (2010), ‘Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital regulation: Why Bank Equity is Not Expensive’ Stanford Business School, mimeo. Arrow, K.J. (1951), ‘An extension of the basic theorems of classical welfare economics’, In Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probability, ed. J. Neyman, Berkeley: University of California Press, 507–32. Arrow, K.J. and Debreu, G. (1954) ‘Existence of an equilibrium for a competitive economy’, Econometrica 22, 265–90. Bagehot, W. (1873), ‘Lombard Street: A Description of the Money Market’, Wiley Sons, (reprinted 1999). Bank of England, (2009), ‘Financial Stability Report’, June 2009, available at bankofengland.co.uk/publications/fsr/2009/fsrfull0906.pdf Diamond, D.W. and Dybvig, P. H. (1983, 91(3)), ‘Bank Runs, Deposit Insurance, and Liquidity’, The Journal of Political Economy, pp. 401-19. Brennan, S., Haldane, A. and Madouros, V. (2010), ‘The Contribution of the Financial Sector Miracle or Mirage?’, available at bankofengland.co.uk/publications/speeches/2010/speech442.pdf Colangelo, A. and Inklaar, R. (2010), ‘Banking Sector Output Measurement in the Euro Area – A Modified Approach’, ECB Working Paper Series No. 1204. Debreu, G. (1951), ‘The coefficient of resource utilization’, Econometrica 19, 273–92. Fisher, I (1936), ‘100% Money’, Revised edition, New York: Adelphi Company, 1936. Friedman, M. (1960), ‘A Program for Monetary Stability’ New York: Fordham University Press, 1960. Haldane, A. (2010), ‘The $100 Billion Question’, available at bankofengland.co.uk/publications/speeches/2010/speech433.pdf Hellwig, M. (1995), ‘Systemic Aspects of Risk Management in Banking and Finance’, Swiss Journal of Economics and Statistics, Vol. 131 (4/2), 723-737. IMF (2009), ‘Global Financial Stability Report’, April 2009. Institute of International Finance (2010), ‘Interim Report on the Cumulative Impact on the Global Economy of Proposed Changes in the Banking Regulatory Framework’, available at ebf-fbe.eu/uploads/10-Interim%20NCI_June2010_Web.pdf Kay, J. (2008), ‘We let down diligent folk at the Halifax’, Financial Times, 24 September 2008 Kay, J. (2009), ‘Narrow Banking: The reform of banking regulation’, CSFI report. Keynes, J.M. (1936), ‘The general theory of employment, interest and money’, London: MacMillan (reprinted 2007). Kotlikoff, L.J. (2010), ‘Jimmy Stewart is Dead: Ending the Worlds Ongoing Financial Plague with Limited Purpose Banking’, John Wiley Sons. Lacker, J.M. (2010), ‘Real Regulatory Reform’, available at richmondfed.org/press_room/speeches/president_jeff_lacker/2010/lacker_speech_201 00301.cfm Miles, D. (2010), ‘Leverage and Monetary Policy’, available at bankofengland.co.uk/publications/speeches/2010/speech451.pdf Modigliani, F. and Miller, M.H. (1958), ‘The cost of capital, corporate finance and the theory of investment’, American Economic Review 48, 261–97. Pigou, A.C. (1920) ‘The Economics of Welfare’, 4th edition, London: Macmillan, 1932. Tobin, J (1987), ‘The Case for Preserving Regulatory Distinctions’, in Restructuring the Financial System, Federal Reserve Bank of Kansas City, 1987, pp. 167-183 Tucker, P. (2010a), ‘Resolution of Large and Complex Financial Institutions: The Big Issues’ available at bankofengland.co.uk/publications/speeches/2010/speech431.pdf Tucker, P. (2010b), ‘Shadow Banking, Financing Markets and Financial Stability’ available at bankofengland.co.uk/publications/speeches/2010/speech420.pdf Weitzman, M. L. (1974), ‘Prices vs. Quantities’, Review of Economic Studies, vol. 41, p.477-91. Wolf, M. (2010), ‘The challenge of halting the financial doomsday machine’, Financial Times, 20 April 2010.

Following Germany Essay

Following Germany Essay Following Germany Essay Following Germany’s Bread Crumb Trail In the German public, there was little acceptance that the Germans had been defeated in war. The higher commands, also known as the German High Command, claimed that the army had not been defeated in battle, they evaded responsibility for the defeat, and blame was attributed by many to the civilian elements, mainly Socialists, Communists and Jews. They wouldn’t accept the responsibility of the war or that they did anything wrong. The people continually grew resentful towards the reparations, which were perceived much harsher due to the German leaders’ deliberate misrepresentation. The reparations that the Germans had to pay were the rules to the Treaty of Versailles. It was a supposable set of 132 billion gold marks. However the actual amount they had to pay was 50 billion gold marks. It was stated that the 112 billion marks in â€Å"C bonds† were actually a strategy to fool the public into thinking they owed more than the real amount. (There was A, B and C bond s, they only ever planned on collecting the A and B bonds). They paid 20 billion gold marks, a worth of about five billion U.S. or one billion British pounds. The rest was in goods or assets. The economic problems that the payments brought, and with the already existing resentment with their imposition/situation. The reparations were considered one of the largest factors leading to the rise of Hitler and his dictatorship. In some of the history books revolving around Germany’s perspective of the Treaty argued that the Germans could have paid the reparations. But it was more the fact that they were unwilling to pay, not unable or incapable. They were one of the only/richest countries who had the money to pay the expenses of the war. In the 1920’s the Germans had two strands of foreign policy that were not mutually exclusive. The Fulfillment Politics went through the motions of the reparation hoping something would fail and lead to a

Nurse Graduate Challenges Essay Example | Topics and Well Written Essays - 2500 words

Nurse Graduate Challenges - Essay Example The transition of newly graduated nurses (NGOs) into professional service is on its surface, no different from the transition of a newly graduated teacher into becoming full-fledged professors. But an essential difference lies in the need for NGOs to alter their personal perceptions and shape them in accordance with their upcoming professional responsibilities (Heslop, McIntyre and Ives, 2001). Duchscher (2010) defines it as "consist[ing] of a nonlinear experience that moves the new practitioner through personal and professional, intellectual and emotive, skill and role relationship changes and contains within it experiences, meanings and expectations." This transition is also characterized as the evolution of the nursing student into hospital staff following four stages: (1) honeymoon, where the graduates are expectedly anxious to get a moving on their careers; (2) shock, where the professional value and intellectual credence of the graduates are forced to face the realities of the industry; (3) recovery, when the graduates begin to have a full rein on their careers and start to have the hang of things; and finally, (4) resolution, when the graduates are able to establish habits and form long-term goals (Kramer & Schmalenberg, 1978).This NG transition has been classified as the initial twelve months into practice where character transformations, perception changes, intellectual enhancement, emotional adjustment, physical development and even social maturity are attained (Duchscher, 2010).... Duchscher (2010) defines it as â€Å"consist[ing] of a nonlinear experience that moves the new practitioner through personal and professional, intellectual and emotive, skill and role relationship changes and contains within it experiences, meanings and expectations.† This transition is also characterized as the evolution of the nursing student into hospital staff following four stages: (1) honeymoon, where the graduates are expectedly anxious to get a moving on their careers; (2) shock, where the professional value and intellectual credence of the graduates are forced to face the realities of the industry; (3) recovery, when the graduates begin to have a full rein on their careers and start to have the hang of things; and finally, (4) resolution, when the graduates are able to establish habits and form long-term goals (Kramer & Schmalenberg, 1978). This NG transition has been classified as the initial twelve months into practice where character transformations, perception cha nges, intellectual enhancement, emotional adjustment, physical development and even social maturity are attained (Duchscher, 2010). Challenges Associated with Transition The main crisis in the transition of graduating nursing students into practicing or professional nurses lies in the difficulty to translate their numbers into the field (Duchscher, 2010). That is, the number of students that are apparently graduating is not equivalent, actually less than the number of nurses entering service in health institutions and hospitals. Somehow, a large fraction of the graduates opt out of the industry and take on employment in private facilities or even to some

A letter of divorce from Essay Example | Topics and Well Written Essays - 500 words

A letter of divorce from - Essay Example Have you any idea how humiliating it is for me to hear the other women talking about you, and looking at me with pity in their eyes? It seems to me that you are more interested in your art and your political slogans than in your loving wife and your poor child. In recent times you have provoked angry reactions from your supervisors through your meddling in political affairs. Instead of getting along with the powers that be, you have chosen to mock them, and this has brought disaster to you and also to your family. I ask myself, what was the point of all this time spent on writings? Has it brought us a decent place to live and a peaceful family life? Your seniority in the plant should have been rewarded long ago, but it is your own fault that others have been chosen before you. All of this shouting and wailing, and all the cartoons in the world, will not change the powers that be. I have had enough of being the laughing stock of the whole region, married to a man who does not know his place, and cannot understand when he is up against an impossible task. I don’t believe any of your promises any more. Sometimes I wonder if you are really married to your brush and inkstand.

Why does the United States have an inconsistent policy in the middle Essay - 2

Why does the United States have an inconsistent policy in the middle east - Essay Example It is argued that United States foreign policy should reflect the national values and the goals set up by the founding fathers of the U.S (Oren, pp.23).  The united states  have been on the receiving end towards its policies in the Middle East, a situation that has shifted from the last 200 years (Schuler, para.2). This paper  therefore  explores the reason for United States foreign policy inconsistency in the Middle East. Interest of United States in Middle East One of the reason the United States keep shifting goal post when it comes to foreign policy towards Middle East is that it has a legitimate interest in the region.  The presence of United States in Middle East commenced during the American civil war when the Ottoman Empire and the United States entered a treaty on trade and maritime law and this was merely to get oil from the region (Schuler, para.6).  The motive of foreign policy that was aimed at oil shipment and other trade suffered setbacks when there were ma jor shake ups in Saudi Arabia and Iran and this led to the shift of the policy to safeguard the interest of the United States.  The situation was further aggravated by the Iraq-Iran War which interfered with Gulf Shipment and this lead to changes in the foreign policy. The incoherent and inconsistent foreign policy towards Middle East is also a way of securing access to the region that has vital oil resources.  United States seeks to ensure a constant supply and open flow of oil and this has led formulation of foreign policy that supports corrupt and repressive royal family of Saudi Arabia who violate human rights in the country.  The need for open flow of oil also meant that United States up  to  1970s  supported  the corrupt and repressive shah of Iran (Kamrava, pp.198). This has led to the breeding of leaders that are not welcomed at home although United States strongly support them so as to accomplish its interest. The issue of balancing the national and domestic p olitical interest has also resulted in conflicting foreign policy in the Middle East. This has made it difficult for the United States government to formulate consistent policies towards the Middle East Region.  For example, due to the differences between the white house advisers and officials in the state department and pentagon led President Truman to formulate a reactive and inconsistent policy towards Palestine in 1947-1949 a situation that contributed to escalated tensions in United States relations with both Israel and the Arab Community (Hahn,pp.45).The level at which United States administrators have succeeded in safeguarding United States interest in the Middle East has  therefore  largely depended on the incumbent president. Securing Territorial Boundary in Middle East United States foreign policy has not been inconsistent in terms of maintaining the status quo of the Middle East territorial boundary (Oren, pp.35). This has led to support of other nations while sidel ining others.  For instance, there has  been  unqualified support for Israel with a view of maintaining the territorial boundary between Palestine and Israeli.  United States is offering economic and military assistance to Israeli and  these  incoherent policies  have created perceptions in the Middle East that is the main cause of injustices in the region.  Currently, majority of the Middle East countries view United States and Israel has  having  mutual interest or that Israel is a tool of United States foreign policy (Kamrava, pp.197). Global Superpower The position of United states globally especially after the Gulf war and the Cold war also led to the development of various foreign policies which were inconsistent and some of them generated anger and resentment in the Middle Ea

Htc Business Model Essay Example for Free

Htc Business Model Essay Executive summary Using Googles Andriod platform has given HTC a boost, but now the Taiwanese handset maker are vulnerable to underwhelming sales in America and Europe. Their hope? China. HTC only entered China in early 2010, much later than its established peers. It is playing catching up with international premium brands, such as Apple, Samsung and LG, where HTC is currently aiming to get a slice of the pie. However, the company is also facing stiff competition from local brands who operate at the lower price market. In this Global Marketing proposal, we propose several initiatives for HTC to grow its current 1% marketshare in the China mobile phone market, including new products for HTC to tap into the lower price market as well as localized promotion campaigns to sell phones in rural areas. It is time for HTC to sway away from satisfied with being quietly brilliant. Context analysis Company Background HTC Corporate, founded in 1997, was a relatively obscure Taiwanese original design manufacturer (ODM). Incorporated as High Technology Computer, HTC focused on manufacturing of computer notebooks. The company created the worlds first pocket size PC in collaboration with Microsoft in 1998[1]; it later developed the iPAQ, one of the earliest PDA for Compaq in 2000. HTCs close tie with Microsoft led them to develop XDA[2] in 2002, first ever smartphone operated on Windows. The company remained true to ODM principles when it produced smartphones by efficiently catering for carriers specifications and requests. HTCs ODM smartphones continued to generate profit margin as high as 20% compared to industry average of 5%[3]. According to Harvard Business Review, HTC shipped more than 70% of the worlds Windows smartphones in 2006 at its peak. HTC won a reputation for excellent smartphones. But it wanted more, and began to invest more in innovation before eventually creating its own brand in 2007. HTC set up a unit called Magic Labs[4], where engineers from various disciplines come up with lots of ideas, even if most were quickly discarded. From this unit bred several ground breaking ideas, including HTC touch, a touch screen device that appeared few weeks before Apples first iPhone; and first ever Android phone in collaboration with Google. Reaping from the Androids high penetration rate, the company experienced unprecedented growth from 2008 onwards and became the top seller of smartphones in America in 3Q of 2011, according to Canalys Research. HTC has recently eclipsed Nokia in market capacity and has climbed up to the no.3 spot for smartphones sold worldwide, behind Apple and Samsung. In terms of brand equity, the company has invested heavily in developing its own brand and broke into Interbrands top 100 Brands 2011[5] (no. 98) . China: Macro-environmental Factors Politics China remained a single party directed country since the founding of Peoples Republic of China in October 1949. Putting political ideologies differences aside, efficient decision-making is widely seen as a characteristic of Chinas political system. The profound changes that have taken place in various fields of this nation: from Deng Xiapings Special Economic Zone in the 80s to the economic leaps in the turn of the century. Inefficiencies in the political system such as corruption still exist today, but Chinas communist party has taken bold steps for reform. The party has embraced market socialist economy to lead China out of poverty and soar to one of the most powerful nations in the world. Economic Despite China has mounted new heights in her economy, outshining Japan as the second largest economy in the world, the slowdown in economic growth has not abated. The housing boom in the past decade is now over, implying that growth now weigh on heavy industry and local consumption. In the past, China has offered massive infrastructure stimulus, as it did to prop up growth following SARS and the global financial crisis. However, local governments have learned not to overheat the economy, as evidenced by the late 2011 credit crunch in Wenzhou[6]. Central government is expecting a moderate GDP growth of 6%, but China is due for correction in its property and possibly stock market. Social Chinas Communist Party maintained its strong foothold in the nation, as the country enjoyed a period of unprecedented prosperity in the past decade. As Chinas economy take flight, the number of local billionaires and millionaires grew by leaps and bounds. The wealth gap, at the same time, widened drastically. As a consequence, there have been several localized pro-democracy campaigns since 2011. Termed Jasmine revolution, citizens used social network site such as microblogs to organize public protests demanding fairness, housing and food – social issues that are often overlooked during economic boom. Such unrests were quickly put to rest as Beijing aims to mitigate any form of dissidents since learning the hard lessons from Tiananmen protests in 1989. Other than localized protests and occasional controversy in human rights, Chinas social order have been maintained. Technology China has sparked its technological boom since it gained accession to the world trade organization in 2001. Internally, China has developed a matured internet market which now boost one of the largest internet users in the world. In mobile phones, the market evidenced a dynamic growth due to the rapid development of mobile subscriptions and growing third-generation (3G) networks. China: Smartphone Market Industry analysis After Chinas telecommunications operators acquired 3G licenses, they formed several strategic alliances with mobile phone brands. For example, China Unicom has established alliances with Apples iPhone and Lenovos LePhone, whilst Motorola and HTC and strategic partners with China Telecom. Customer analysis According to government statistics in 2012, China has become to first country to top 1 billionThe cell phone users, a soar from 2010s 787 million users. The number of users is equivalent to 74% of Chinas population. That being said, only 14% of users are 3G users. Mobile phones are seen as a necessity, as customers regularly use phones for texting and micro-blogging. Competitor analysis Mobile phones are relatively consolidated in China, with the top five brands deriving nearly 72% of total retail volume stales in 2010[7]. Top five brands are Nokia (34.2%) , Samsung (18.1%), LG (6.8%), ZTE (6.3%) and Huawei (6.3%). Apple (1.4%) and HTC (0.7%) are late boomers in the market, with both companies having entered China in 2009 and 2010 respectively. According to market research by Canalys[8], international brands such as Samsung, Apple and HTC should continue to dominate in the space above RMB2,500 (US$400). Leading local tier-one brands, such as Huawei and ZTE, are diversifying beyond the entry level by launching a number of high-profile, flagship smart phones. As of late, Lenovo has made efforts to penetrate the low cost, rural market by introducing models starting from RMB700 (US$158). Company Analysis HTC in China HTC only entered China in 2009 and occupied a market share below 1% as of figures in 2010. Its strategy is to challenge Samsung and Apple as the biggest smartphone players in Mainland, but it also faces stiff competition from local brands such as Tianyu and ZTE Despite its geographic proximity in Taiwan, HTC started off late in China than in richer parts of the world largely because the countrys 3G structure was not as matured in 2009 as today. Targeting Positioning HTCs mission statement is â€Å"to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world class manufacturing and logistic and service capabilities.† Whilst this may have been a successful formula over the past 10 years in geographic location, HTC is in danger of falling behind competitors in China. HTC currently has 10% of the market for smartphones costing more than RMB2,000 (US$320). Its strategy is to target those high-end customers who utilizes 3G network and appreciates international brand. As if HTCs Magic Lab works tirelessly to come up with numerous innovative products, HTC currently adopts a similar volume approach in its phones. HTC regularly pushes forward phones in the market. In 2011, when Apple had launched one new iPhone, HTC introduced fifteen new models. HTCs Challenge After a meteoric rise which placed it briefly atop the U.S. smartphone sales charts, HTC revenue as a whole in the first two months of 2012 was a staggering 45% down on last year. HTC has run afoul of punitive legal juggernaut Apple, which delayed the availability of HTCs handsets. Determined to avoid the fate looming over troubled rivals like Research in Motion, HTC saw a big revitalization push in China, championed by several flagship phones such as HTC One X and Evo 4G Lite. Sales in Europe have been dropping but HTC saw better than expected revenue in China. The rise of HTC in China despite its late entry could be partially attributed to their advanced operating systems with Android and excellent hardware, such as dual core processing units and friendly features where the phone rings louder when in a bag. But with competitors catching up hardware specifications overnight these days, can HTC sustain its China growth? The challenge of HTC faces is not neither simply in hardware nor software. HTC needs to formulate a marketing and branding strategy for China, as to fend off the fierce challenge by international brands (Apple, Samsung) and local players. Proposed Marketing Campaign For the proposed marketing campaign, we propose a bi-polar approach to target existing high-end customers of HTCs and also tap into the basic customers specturum, an area HTC has not entered so far. High-end customers HTC is currently focusing on high-end customers who are tech savvy, able and willing to pay for premium mobile phones. These high-end customers are currently up and coming professionals, live a fast moving lifestyle and mostly reside or work in first or second tier cities, such as Beijing, Shanghai and Xi Chuan. All of these customers have subscribed or are going to subscribe 3G network, in order to make the most of out HTCs smartphones. In addition to product quality and operating system, high-end customers nowadays also care about brand reputation and image. The proposed marketing campaign for HTCs high-end customers is therefore to enrich the brand experience and differentiate HTCs personality. Basic customers As mentioned earlier, 3G users accounts to less than 20% of Chinas mobile phones market. According to market analysis, local players, best represented by ZTE and Huawei, are more popular amongst price sensitive mass and lower-end customers. These basic customers reside in third tier cities or rural areas, demand basic functions for their phones and also aspires to own a smartphone one day. Product Designers collaborations are nothing new. Indeed, they are now a well-established marketing tool – as well as source of income. Standard Hotel Group in America has joined forces with the likes of surfwear brand Quiksilver to provide exclusive trunks and bikinis that guests can purchase in the groups resorts. HM, the Swedish fashion behemoth, took rise after asking Karl Lagerfeld, designer for Chanel and owner of Fendi, to come up with a special collection back in 2004. For mobile phones,it is no different story. RIM collaborated with Porsche design and launched a high-end luxurious blackberry in 2011. LG and Prada started working together in 2006[9] and continued to attract fashionistas for their crossover phones. For high-end customers, HTC should leverage connection with a renowned brand within the Chinese community and produce collaborate products. Nike would deem to be an appropriate choice, given the brand is held in high regards among Chinese and its innovative brand image aligns with that of HTCs. Nevertheless, Nike has strong connection with Apple as Nike currently produces Nike+ a tracking device that connects an athletes performance data with iPhones, iPods etc. If there is a brand for up-and-coming professionals which matches HTCs pricing and targeting strategy, Adidas would be a great fit. Rather than choosing a luxury brand such as LVMH or Gucci, a partnership with Adidas could not only appeal to the sports lovers, but also be perceived as socially acceptable. Partnering with luxurious goods might risk further alienation as the wealth gap widens in China. Adidas is actively investing on its mi adidas platform that rivals Nike+. The sports company enjoys a good reputation in China after sponsoring Team China in Beijing Olympics, and its innovative roots in products and designs could enrich the HTC brand experience. For basic customers, HTC could build 2G or even very basic 3G phones to attract the mass. With much reduced functionality and a lower price point, HTC could attract the 80% users who have not yet subscribe to 3G network. While the simpler handsets should have less fancy functions, embodying the HTC names mean that that the phones should still be innovative. HTC could be more localize with these phones by having local functions such as Chinese keyboard and improved durability that adapts to environment in rural areas. Perhaps basic phones could have a brighter screen for users to view the screen easily in open rural areas, or made in anti-sand materials as desertification is common in northwest China. Aside from hardware reengineering, HTC needs to redesign its software capabilities. HTC is relatively weak in content when compared to rivals such as Apple. It has no plans to launch its own app store, preferring instead to reply on Android marketplace and its apps. HTC acquired French content provider Abaxia in June 2010[10] to develop innovative apps for its devices. Recently, it has installed digital map apps in HTC Sense interface. Currently, there is a market gap in smartphone manufacturer originated apps in China. Almost all of the apps available on Android/iPhone system are developed by individual software company. HTC could potentially develop operating system with apps linked to popular Chinese social media sites, such as QQ and Sinas Microblog. Price HTC should continue to target upper tier price points for its high end customers. Its currently price point closely resembles Apples and Samsungs, averaging around RMB2,500 (US$400). The high price setting strategy further illustrates HTCs ambition to compete with the international brands but the company could consider undercutting its price by a fraction, say less than 10%, than the leaders so as to gain stronger market share. Price reduction should not be advertised aggressively, as it might signal a loss in quality. For products in the lower end market, HTC should try to be a price leader in the arena. Lenovo markets its cheaper line of phones around RMB700, and HTC should try to undercut Lenovo. It is important to capture the basic customers first, with the hope that HTC could persuade basic users to switch to more expensive phones over time. Place According to Economists, HTC now as 2,300 authorized retailers in China. Apple has 3,500 – not withstanding its flagship Apple store and website – while Nokia and Samsung have 9,000 each. HTC could open more shops by granting authorized retailers license, but it is easier said than done as brands jostle retailers for shelf spaces. Rather than investing heavily in opening its own shop, HTC could form a strategic partnership with popular online shop Taobao or Alibaba to reach customers in the second or third tier cities to compliment its e-shop. Further place promotion could been referred in HTC ambassador campaign in People section. In first tier cities, HTC could theoretically leverage on Adidass store presence and distribution network. Nonetheless, HTC should adopt a selective approach by opening flagship store that can illustrates its customer experience. Promotion In HTCs incumbent global marketing campaign, the company slogan is quietly brilliant. HTC commercials do not focus on the precise functionality of their handsets but the way people use them. The concept itself is intuitive, but the campaign is not as much advertised in China as other places – the slogan does not even has a Chinese translation. As a result, HTCs promotion in China is product focused. HTC One X advertisements were filmed where a photographer takes pictures with HTC phone while skydiving – stressing the superior camera quality of the handset. To revamp the promotion campaign, HTC should first come up with a better slogan for China or even for its global campaign. Stressing on the way people interact with HTC cell phones is a good idea, but conceptually the slogan could be more straight forward – Nokias connecting people or LGs life is good are good examples. For China specifically, HTC needs to build on build on enriching users experience. Yan Siqing, chief operating officer of China Telecom said HTC grew rapidly despite its late start because it provided a â€Å"good user experience†. Nationwide promotion campaign should focuses on how HTC helps people to capture their moments in life. Whether is at work, in sporting moments or vacation, a user-friendly HTC handset is always there to make things happen. People Simliar to Unilevers â€Å"Shakti Revolution† to help women in rural India to become entrepreneurs[11], HTC could foster partnership with non governmental organisations, banks and local counties, to promote handsets at rural areas through employing HTC ambassadors. Ambassadors are underpriviledged residents in country sides and they are invited to become direct-to-consumer sales distributors for HTCs basic handsets for second or third tier cities. Contrary to normal mom-and-pop shops, HTC should provide training in selling, commercial knowledge and bookkeeping to help ambassadors become micro-entrepreneurs. This proposal could not only expand HTCs reach in the lower tier markets, but also been seen as a socially responsible act of goodwill. [1]Kim R. Yoffie D., HTC Corp. in 1999, 8th Dec 2009, Harvard Business Review [2]Sourced online: http://xda.o2.co.uk/ [3]Kim R. Yoffie D., HTC Corp. in 1999, 8th Dec 2009, Harvard Business Review [4]HTC: The brand from no where; The Economist, 7th Apr 2012, sourced online from [5]http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx [6]Wolfe A, Gurushina N Gassambe I, China Outlook: The Tao of Hard Landing, 28 May 2012, Roubini Global Economics Report [7]Mobile Phones in China, Category Briefing, 19 Sep 2011; Passport GMID [8]http://www.digitimes.com/news/a20120619PR203.html [9]http://www.gizmag.com/lg-prada-collaborative-phone/20862/ [10]http://www.ubergizmo.com/2010/06/htc-acquires-abaxia-to-strengthen-its-software-capabilities/ [11]http://www.unilever.com.au/sustainability/casestudies/economic-development/creating-rural-entrepreneurs.aspx