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Nestlé CompanyA place among the top 25 companies of the Karachi stock exchange. Headquartered in Lahore the company operates 5 production facilities. Two of its factories in Sheikhupura and Kabirwala are multi products factories. One factory in Islamabad and 2in Karachi produce bottled water. Through its effective marketing and vast sales and distribution network throughout the country, it ensures that its products are made
available to consumers whenever, wherever and however. In the line with Nestlé’s global philosophy, Nestle Pakistan is proud of its commitment to excellence in product and safety and quality and providing value and services to its consumers. On the social front it is very responsible when it comes to environmentally sound business practices and corporate social responsibility. Nestle Pakistan operates in many ways but people product sand brands are the main flag bearers of the company’s image
1. Nestlé’s Vision:Good Food, Good Life
“At Nestle, we believe that research can help us to make better food, so that people live a better life.”
2. Mission Statement:
“Nestle is dedicated to providing the best foods to people throughout their day ,throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.
How Nestle Define Marketing:
Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of nestle marketing is to attract new customers by providing superior value and to keep and grow the current customers by delivering satisfaction.
Nestle defines marketing as:
Good Food, Good Life
A social and managerial process where by individual & groups obtains good food and good life through creating and exchanging products and values.
3 . N e s t l é ’ s B u s i n e s sGOALS & OBJETIVES:
1. Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.
2. Nestlé does not favor short-term profit at the expense of successful long-term business development.
3. Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.
4. Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in
4. Marketing Mix:Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. The many possibilities can be collected into four groups of variables known as the four P's that are as follows:
1- PRODUCT:Product stands for goods and services that the company offers to target market. Nestlé kit Kat is in four sizes including K.K Chunky, while Polo is in three sizes. The shape and the color of the Kit Kat and Polo are quite attractive for the customers. The labeling, packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The packaging includes an expiry date and time along with a manufacture date. Second part of labeling includes the quantity of product in grams along with ingredients and contents of chocolates and candies.
2- PRICE: The amount of money charged for a product or service, or sums of the values that consumers exchange for the benefits of having or using the product or services. The price of Nestlé Kit Kat and Polo varies increases with the increase in its size.
3- PLACING:Placing stands for company's activities that make the product available to the target consumer. Nestlé' distribution is using the direct distribution channel to supply confectionary products weekly to the retailers.
4- PROMOTION:Producing a quality product, pricing it attractively and making it available for the target consumer is not the only problem companies need to solve. Modern era is the era of communication with customer, assuring customer satisfaction, demands for personal and non-personal communication with the target customer to build a relationship with them. In an area-storming activity, giving out products free, gift hampers, attracts new customers; kites depending on the season (for existing and potential customers) are given. The basic purpose is to explore the area that is being unexposed and to bring awareness in the people.
5. SWOT Analysis Of Nestle:
STRENGTHS ______ TO BUILD ON
WEAKNESESS ______ TO COVE ON
OPPORTUNITIES ______ TO CAPTURE
THREATS ______ TO DEFEND ON
STRENGHTS: The greatest strength of nestle is that it includes a culture that is team focused and an open door policy. Nestle focus on collectivism and performance orientation attitude which encourages employees to work harder. Another thing is high level of market share and that people all over the world trust and recognizes Nestle as a big brand name. Strength is that people trust on Nestle. It looks at achieving higher volumes by renovating existing products and innovating new products. Strength is that they are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths.IT is an important aspect that people all around the world are becoming more conscious about health, that’s why they prefer Nestle. Good Food, Good Life
•The only brand in the area maintaining its quality and taste and having the same impact on its customer •Economical•Pure Drinking Water in market (Free of chemicals)•Strong Brand Name
WEAKNESESS:One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants. Nestle Plain Yogurt has proved to be a Nestle weakness because it has been unable to make its market place in USA. But Nestle by analyzing the sensitive areas can overcome its weaknesses.•Communication is weak•Lack of Awareness
OPPORTUNITIES:Nestle in Pakistan has a great opportunity for expanding its markets because in Pakistan there is a large ready market of food and beverages due to trends of eating and the increasing .I t also has opportunities largely in China and India as well. Through proper marketing research Nestle can cash on to these opportunities.•Concentrating on these areas can increase sales•Increase in product line.
Threats:Nestle is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customers. Another threat is due to the increasing popularity of its competitor OLPERS in local and international markets.
•Segments are being shared by competitors•Uncertain conditions will effect the sales (diseases of animals)•Under cutting by competitors.
6. PEST Analysis:The main theme of PEST analysis is to measure market potential and situation, by indicating growth or decline. PEST analysis can be used for marketing and business development assessment and decision-making, and the PEST analysis encourages proactive thinking, rather than relying on habitual or instinctive reactions.
1: Political analysis:Nestle’s baby milk can be affected by political change in several different ways i.e. political change can influence public priorities and funding arrangements. Nestle has to operate within the framework of laws set by Parliament, and that’s why it depends on political considerations.Government plays vital role by imposing the law and regulation on the companies. Government set standard laws for companies that has to met otherwise they have to pay fines.Nestle is trying to met all the standard laws which are set by the government. For example Health and Safety Act, Disability Act but unfortunately Nestle break the law. Government laws and regulation in accounting standards, taxation requirements, including tax rate changes, new tax laws and revised tax law interpretations are highly influenced on Nestle business.Nestle is also very keen about stability of government stability in countries where they are trying to get in (especially in underdeveloped countries where political stability is at risk).They are also subject to state, local, foreign environmental laws and regulations.
2: Economical Environment: Nestle needs to have enough information about the country inflation rate, economic growth rate, and national per person capital income, in which they are willing to start their business. Economic condition varies from country to country. Before starting the baby milk has focus on the above factors. These are the factors that Nestle has to consider before setting corporate objectives. Global economic turmoil has major influence on Nestle business because customers are spending less and they have to adopt different strategies in order to run business smoothly.
3: Social analysisSocial or cultural environment had great impact on Nestle. The main focus of social/ cultural includes the Social change involves changing attitudes and lifestyles. The social and cultural environment is constantly changing. Different countries had
different culture (language, religious beliefs, food, family, clothing and their lifestyle). Nestle has to developed strategies which are according to belief and culture in multicultural country like UK. Every country has different consumer taste and lifestyle and Nestle has to develop effective strategies in order to met different lifestyle consumer behaviour. Company is totally dependent on the consumer lifestyle and their attitude. Product or services cannot be successful until company has enough information about the consumer lifestyle. Nestle has to take social and cultural factors under consideration in order to achieve their strategic objectives.
4: Technological:Technological change has the most rapid, persistent and profound effect. It creates opportunities for new products and product improvements and of course new marketing techniques- the Internet, e-commerce. Technology creates opportunities for new product or product improvements and new techniques of marketing such as internet and e-commerce. Technology has great influence on business operations and overall decisions. Nestle uses technology by taking orders via telephone and online by internet. Moreover, Nestle uses technology in various business activities such as record of their customers and employees.
7. NESTLEPorter’s five forces modelWe can further analyze the NESTLE by using Porter’s five forces model. Porter’s Fice Forces Model was created to act as a framework for industry analysis and strategy development. This model consists of five different forces that impact competitive intensity which portrays an image of the overall attractiveness and profitability of an industry. To get a better understanding of Nestle status in the industry we can use the Five Forces Model.
1. Threat of New Entrants
The food processing industry is very large and competitive. As we see in the industry comparison, firms within the industry do quite well. As a result, many companies enter into the market every year in an attempt to gain a portion of the profitable market. Nestle has been around for over a century and has a long history of quality products and consumer satisfaction. This has allowed the company to obtain a large market share. New entrants into the industry must attempt to seize a portion of Nestlé’s market share in order to stay in business. Essentially, Nestle is constantly a target, and so the threat of new entrants is moderate.
2. Threat of Substitute Goods
Due to the nature of the industry, Nestlé’s threat of substitute goods is high. From bottled water to lean pockets, there are arrays of similar products that compete directly with Nestle. It is important for Nestle to continuously find new ways to improve its products as the competition is so fierce. In recent years, Nestle has focused on the health and wellness aspects of its products to maintain its competitive edge in the market.
3. Bargaining Power of Suppliers
Nestle prides itself on creating and maintaining positive relationships with its suppliers all over the world. Due to the large purchasing power of Nestle and the fact that the suppliers of agricultural commodities offer a product that is far from unique, Nestle holds more bargaining power than its suppliers. Aside from this, Nestle does prefer to create and preserve long term relationships with its suppliers as this helps to ensure the quality of the raw materials being purchased. In addition, Nestle also offers useful advice to its suppliers on how to perform more efficiently to minimize unnecessary costs.
4. Bargaining Power of Customers
Customers have a very large amount of bargaining power regarding their consumption of Nestle products. As stated before, there are close substitutes for Nestle products which allows for the preferences of the customer to be very powerful. Nestle understands the power of the customer and has taken specific steps to meet the needs of its products consumers. For example, Nestle is incorporating health and wellness into the creation of its products as society has begun to grown more health conscious.
5. Competitive Rivalry within the Industry
Nestle is a powerhouse in the food processing industry but so are PepsiCo, General Mills, and Mondelez International. These, and other food processing companies, are in a constant battle to outperform one another. In advertising alone, these companies spend millions of dollars to appear more desirable than their competition. Rivalry in this industry is very high which benefits the consumers. As long as these companies continue to improve to obtain competitive advantage, consumers will continue to enjoy the improved products.
CocaCola Company1. Introduction:
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world.[1] It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. In 2013, Coke products could be found in over 200 countries worldwide, with consumers downing more than 1.8 billion company beverage servings each day.
2. CocaCola ’s Mission:Our road map starts with our mission, which is enduring. It declares our purpose as a company and serves as a standard against which we weigh our actions and decisions.
To refresh the world To inspire moments of optimism and happiness To create vale and make a difference
3. CocaCola ’s Vision:Our vision serves us as a framework for our road map and guide every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable quality growth.
CocaCola’s vision consist of 6 P’s:
1. People: Be a great place to work where people are inspired to be the best they can be.
2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
3. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
4. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
5. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
6. Productivity: Be a highly effective, lean and fast-moving organization.
4. C o c a C o l a ’sObjectives and Goals:
The main objectives for the Coca-Cola Company are to be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world. By having these objectives, it forms the foundation for companies in the decision making process.The Coca-Cola company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance.
5. CocaCola’sSWOT Analysis:
Strengths-Popularity-well known-branding obvious and easily recognized-A lot of finance-customer loyalty-International Trade
Weaknesses-Word of mouth-lack of popularity of many Coca Cola’s brands-Most unknown and rarely seen-result of low profile or non-existent advertising-health issues Threats-changing health-consciousness attitude-legal issues-Health ministers-competition (Pepsi)
Opportunities-many successful brands to pursue-advertise its less popular products-buy out competition.-More Brand recognition
6. CocaCola’sPEST Analysis
The PEST Analysis identifies changes in the market caused by:
1. Political 2. Economical3. Social and 4. Technological factors.
Political: Those Non- Alcoholic Beverages like; Coca-Cola, are within the food category, under the FDA (Food and Drug Administration). The government has control over the manufacturing procedure of these products in terms of regulations. Companies who fail to meet the standards of law, are fined by the government. Following are provided some of the factors that are influencing Coca-Cola's Operations.
1.Changes in Laws and Regulations like; changes in Accounting Standards, taxation requirements (tax rate changes, modified tax law interpretations, entrance of new tax laws), and environmental laws either in domestic or foreign authorities.
2.Changes in Non-Alcoholic business era. These are; competitive product and pricing policy pressures, ability to maintain or earn share of sales in worldwide market compared to rivals.
3. Political Conditions, specifically in international markets, like; civil conflict, governmental changes and restrictions concerning the ability to relocate capital across borders.
4. Ability to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology.
Economic: In 2001, the recession influenced the companies operations, but because of aggressive actions the US Economy estimated to have returned in positive growth in 2002. Currently, because of global recession, Coca-Cola can borrow capital and invest in other products, because the interest rates are
lowered. Also, it can borrow to advance its research of new products and technology. By researching for new products is cost effective, the company could sell its products at a lower price, so its customers would purchase more Coca-Cola products at a lower price.
Social: The majority of US citizens are excersizing healthier lifestyles. That has strongly influenced the sales of non-alcoholic beverage sector, because many customers are switching to bottled water and diet colas like; Coca-Cola Light or Zero, instead of drinking beer or other beverages. Additionally, time management is quite 43 % of all households, and it has increased. Customers aged from 37 to 55, are concerned with their nutrition. Also, large portion of the population is within the range of baby boomers age. While many customers are getting at older ages in life, they are more concerned in long term increasing their permanence. That will continue to affect the non-alcoholic beverage sector, by increasing the demand, in healthier and other beverages.
Technological: Some factors that affect the company's actual results to vary essentially from the expected results, are the following:
1.The efficiency of company's advertising, marketing and promotional programs, The new technology advances of television and internet that use incomparable effects for advertising through the use of media. Those advances make the products seem attractive. This supports the selling promotion of the products. Coca-Cola in media tends to use this technology so, to sell effectively its products.
2. Entrance of cans and plastic bottles in the past, have increased sales volume for the company because they are easier to carry and customers can bin them once they have been used.
3.Since the technology is advancing continuously there has been entrance of new machineries' equipment all the time. Because of that, Coca-Cola's production volume has increased sharply compared to few years ago.
4. CCE-Coca-Cola Enterprises have six factories in Britain by using modern technology equipment so to ensure top product quality and quick delivery. In Wakefield,Yorkshire in 1990, CCE opened one of the Europe's largest soft drinks factory. That factory has the ability to produce faster the cans of Coca-Cola even faster than bullets of a machine gun.
7. Coca Cola’SPorter's Five Forces Model
1. Bargaining Power of SuppliersMost of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak.
2. Bargaining Power of Buyers Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse prices based on their power to bargain.
3. Threat of New EntrantThere are many factors that make it hard for new player to enter the beverage industry some of important factors are brand image and loyalty, advertising expense, bottling network, retail distribution fear of retaliation and global supply chain.
4. Threat of Substitute ProductsLarge numbers of substitutes are available in the market such as water, tea, juices coffee etc. But firms counter them with innovative marketing and massive advertising which build growth for their brands by highlighting their benefits. Players also differentiate themselves by well-known global trade marks, brand equity and availability of the products which most of the substitute products can not contest. To protect themselves from competition players in soft drink industry offer Diversify products such as such as Pepsi offers soft drinks (Pepsi, Slice, Mountain Dew), beverages (Tropicana Juices, Dole Juices, Lipton tea, Aquafina bottled water, Sport drinks, Tropicana Juices), Snacks (Rold Gold pretzels and Frito-Lay). Coke also offers most
diversified range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and lemon.
5. Competitive Rivalry within an Industry
Beverage industry competition can be classified as a Duopoly with Pepsi and Coca Cola. The market share of other competitors is too low to encourage any price wars. Cola-Cola gets competitive advantage through the well-known global trade marks by achieving the premium prices. It means Cola-Cola have something that their competitors do not have. While Pepsi has leveraged its worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally
HONDA COMPANY
Introduction: Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan.
The company was incorporated on November 04, 1992 and joint venture agreement was signed on August 05, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by then President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed in Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad. Since then the Dealerships network has expanded and now the company has Twenty One 3S (Sales, Service and Spare Parts), Eighteen 2S (Service and Spare Parts) and Five 1S (Spare Parts) authorized dealerships network in all major cities of Pakistan.
Since the commencement of production in 1994, the company has produced and sold more than 200,000 cars till July 12, 2012.
All dealerships are constructed in accordance with the standards defined by Honda World over.
Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards.
We always strive to give outstanding service to our valued customers. In addition to providing regular service to customers, the company also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given our
customers absolute confidence in our cars, clearly evident from the ever increasing sale volumes.
It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet customer expectations, and to provide good value for money.
Currently, we are offering Honda Accord, Honda CR-V, Honda CR-Z, Honda Civic (four models) and Honda City (four models) in wide range of colors with advanced technological features.
1. Honda’s VisionMarket leader in the motorcars industry, emerging as a global competitive centre of production and exports. Striving to be a company that society wants to exist by sharing joys with people throughout the world creating products that maximize the joy of customers, with speed, affordability and low CO2
2. Honda’s MissionA dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.
Quality Policy Commitment to provide high quality motorcars & parts Right work in first attempt and on time Maintain and continuously improve quality Training of manpower and acquisition of latest technology Safe, clean and healthy environment Market leadership and prosperity for all
3. Honda’sStrategic objectives Strategic management is nothing but of the art of implementing and evaluating well decisions that enable an organization to achieve its objective. Setting organizations objective is one of the most important and challenging task. The success and failure of the organization depends upon the setting of the strategic objectives. Strategic objectives are set for longer period. In Honda Motors strategic objectives set for three to five years.
Honda Motors understand their internal capabilities as well as environment .Strategic objectives plan gives guidelines and directions to Honda Motors for where to start and where the organization is going. Another objective is to motivate the managers and team members for giving reward when they are taking initiative for to progress of the organization. The objective setting helps to evaluate the success of Honda Motors in the strategic planning.
4. Honda’sSWOT Analysis
StrengthsHigh R&DInnovationMarket share leadership in smart segmentStrong brand equityUnique productsProduction system that is refined over the years
WeaknessesHigh cost structure compared to China Company depends on profits coming from throughout the world, thus subject to global economies performance.
OpportunitiesNow a day, Customers continuously increased interest into less fuel consuming and minimum pollution cars, Honda Motors having powerful R&D to develop these types of cars for taking more and more benefit of the market. Customers required quality product with paying minimum cost. Honda motors taking this advantage having his product minimum cost and best quality as compare to other products.
ThreatsEconomic slowdown due the financial crisis in 2008External changes (government, politics, taxes, etc.)Lower cost competitors or imports
5. Honda’sPEST AnalysisPOLITICAL FACTORSDue to UK government had proposal that limit number of cars being sold in the country. Honda sales would affect by this issue and couldn’t manufacture more number of cars compare to previously.UK consumers pay higher pre-tax prices for cars than anyone else in the Europe.UK government was keen to attract foreign firms to invest in UK. Honda investing in UK as initial stake in rover.ECONOMIC FACTORSExchange rate from £ to Yen. Due to UK and Japan exchange rate are not stable always and it would affect Honda’s cars price not stable.Income rising means that consumer income rising and their purchasing power have increase. Honda has kept up with this by introducing new models of car to go on sale this year.Due to global cost of petrol keep on rising to make consumers to struggling in their economic problem. Therefore, Honda introducing more economical cars and eco-friendly technology cars such as 1.4 Honda Jazz and Honda Civic Hybrid.
SOCIAL FACTORSSocial factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:In UK, consumers have a strong beliefs in their local brand instead of other country brand such as Japanese brand Honda, Toyota and etc. Therefore, Honda wanted to change their beliefs in introducing ego-friendly cars which is Honda Civic Hybrid.Language barriers Honda is moving to worldwide business so they deal in the English language easy for customer to understand.In UK, cars product are not too expensive as in other high tax country. Therefore, consumers rather to purchase high quality automobiles from western country such as BMW, BENZ, BENTLY and etc.
Technological factorsTechnological factors show how the trend helps the businessNowadays, people too rely on GPS( Global Positioning System) to search a location they want to go due to GPS had developed by new technology. Therefore, Honda cars have had to include Satelite Navigation System in their newer models.Environmentally friendly cars Honda developed i-vtec, which is a follow on from their infamous vtec engines. The vi-tec engine provides fuel economy, ample torque and clean emissions.According to (Honda website) Honda has always been passionate in innovating technology and challenging boundaries of mobility advancements. It is our continuous commitment in providing joy of mobility for communities all over the world with our innovations in safety, environment and advanced mobility.As you can see at economic factors at above, which is cost of petrol price keep on rising in Malaysia. Therefore, Honda has been engaged in eco-friendly technology for a better, more sustainable future. The result of the Civic Hybrid is combining fuel efficiency and eco-friendly technology with fun diving.
6. Honda’sPorter’s five forces Honda
1. Rivalry: competition in the automobile industries is very high, because there are many firms in this industry which offer many choices for the customers, so each firm try to do its best to make more profit than others, and make its products the more sellable in the market.
Toyota, Ford, General Motors are the main competitors of Honda, so it should keep on innovating, improving, researching, and developing to stay effective in this sector.“The degree of rivalry in the automotive industry is further heightened by high fixed cost associated with manufacturing cars and trucks and the low switching cost for consumers when buying different marks and models”
2. Threats of substitutes: there is not a huge threat of substitute in the automobile industry that offers utility, independence and no wasting time, even if there is a large number of transportation. There are bicycles, subways, buses, trains and airplanes that could make our life easier, but that can be less convenience than automobiles. The price of fuel have a large effect on the consumer’s decision to buy vehicles, also the maintenance and the insurance of the car, but the automobile still has an important use in our personal and daily life.
3. Barriers to entry: it is not easy for an entrant to enter into the automobile industry easily, because of the brand loyalty of the consumers. It is substantial for established companies to have barriers to entry to protect themselves, because some companies are entering into foreign markets by buying an existing company or either merging with it and then realising a huge profit. With local knowledge and expertise, companies have the potential to compete in the market in which they operate against the domestic firms.“Honda took the risk of entering into a long and complex relationship during the 80s with a European company universally considered to be one of the least capable automobile manufacturers in the west “British Leyland”.
4. Buyers bargaining power: consumers have many choices and brands, but the factors that affect more the consumer to buy a certain brand from another are: the appearance, quality, price, design. Consumers want always something new and nice looking with the latest technologies. The car had to be efficient, by saving fuel, protecting the environment, and running fast.Since there are lot of competitors, people have more choices to select the less costly, and better in quality, for being loyal to a certain brand, that’s why Honda tries to make its cars unique.“Honda has a history of delivering high quality and fuel efficient vehicles, so the consumers are seeking the best product for a good price. Honda has being a leader in producing fuel efficient and low emissions vehicles”
5. Suppliers bargaining power: there are many suppliers in the automobile industry, and “many suppliers rely on one or two automakers to buy a majority of their products. If an automaker decides to switch the supplier, it could be devastating to the previous supplier business. As a result, suppliers are extremely susceptible to the demands and requirements of the automobile manufacturer and hold very little power.
Disney Company
1. Introduction:The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.
2. Disney’s Mission:The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."
3. Disney’s Vision:The Walt Disney Company vision statement is precisely what they have been doing for almost a century: 'to make people happy.' Most people who've been to Disney world can attest to the truth of this statement. Disney serves as an example of commitment to other peoples' happiness.
4. Disney’s Objectives:
1) To be one of the world’s leading producers and providersof entertainment and information
2) Maximize earnings
3) Allocate capital to growing businesses to drive long term share-holder value
Three key Strategies of Disney Parks and Resorts:
- Enhancing guest experience
- Expanding globally
- Enter in new vacation business
5. Disney SWOT Analysis:
Strengths
Cable Prowess: Disney’s cable networks, especially the ESPN sports channels, are cash cows, earning high ratings in key demographic segments and generating the lion’s share of the company’s profits. And recent distribution deals, like last year’s multiyear contract with Comcast (CMCSA), suggest that the profits will keep rolling in – even as competition intensifies and sports programming costs continue to rise sharply.
Solid Theme Parks Business: This business has faced headwinds from higher investment activity and an uneven macroeconomic environment. But pricing remains healthy, and recent attendance and guest spending trends have been pretty encouraging. What’s more, the aggressive investments of late, highlighted by a new “Avatar Land” themed area to be added to the Florida park, a major expansion in Hong Kong, and a $4.4 billion Shanghai Disney Resort that is scheduled to open in 2015, should begin to garner substantial benefits during the latter stages of the decade. And renewed strength across the U.S. economy, where the rebound in the housing sector has been surprisingly sharp, should help matters in the near term, and lead to a further uptick in domestic attendance.
Strategic Acquisitions: Disney, particularly during the Bob Iger era, has an excellent track record of inking accretive deals that enhance its growth profile. Following its purchases of Pixar (for $7.4 billion in 2006) and Marvel (for $4.2 billion in 2009), the company bought Lucasfilm, owner of the hugely successful “Star Wars” franchise, late last year for about $4.1 billion. This transaction should
not only shore up Disney’s (recently shaky) studio operations, but it ought to be good news for the consumer products and retail businesses. The first Disney-produced “Star Wars” feature is set to hit theaters in the summer of 2015.
Excellent Free Cash Flow: This, along with a first-rate balance sheet (Financial Strength: A++), allows the company to pay a modest dividend and stay active on the stock-buyback front. It also supports M&A pursuits, and we would anticipate that Disney will keep adding to its entertainment arsenal via acquisitions going forward.
Weaknesses
Uneven Box Office Receipts: Disney has had its share of movie flops lately, such as The Lone Ranger and last year’s big-budget John Carter. (The latter prompted a huge write-down, and the former Johnny Depp-led Western may eventually require one as well.) These misfires, should they persist, will likely keep future growth in check, though the film operations account for less than 15% of total revenues, and the company has sought to reduce risk by releasing fewer titles and making more sequels of proven franchises, like the Iron Man and Pirates of the Caribbean series.
Soft Broadcast Segment: This segment has been a mediocre performer in recent times, with programming costs on the rise and ratings (and advertising revenue) at ABC being rather underwhelming. Plus, broadcast television continues to lose viewers to cable channels and interactive content. And more Americans are getting involved with social media, which means that fewer hours are being spent in front of the tube. While the company insists that ABC is among its core assets, we would not be surprised to see a sale of the broadcast network before too long. This would allow Disney to solidify its cable empire at a time when competition is heating up.
Interactive Losses: The interactive business has operated in the red over the past several years, mainly because of weak video game sales and a failure of social network gaming to take off. Still, management expects the unit to turn profitable shortly, and has high hopes for a new “Infinity” platform that lets animated Disney and Pixar characters be synthesized into the gaming experience.
Opportunities
China: We see China as the biggest external opportunity for Disney, as it looks to enter new overseas markets and leverage its iconic entertainment properties. With this in mind, we’ll be closely watching developments at the new Shanghai Disney Resort, which has been fifteen years in the making and is expected to be a runaway hit with China’s rising middle class. We have every reason to believe that the new resort will be successful, thanks, in part, to the company’s learning experience with Hong Kong Disneyland, which opened its doors in 2005. That important project taught Disney how best to adapt its theme parks to the preferences of its new Asian customers.
Threats
Falling Cable Fees: With cable being Disney’s primary cash generator, a material drop in fees from the likes of Comcast and Time Warner Cable (TWC) would likely spell trouble for the company’s bottom line. At the very least, we expect some moderate pricing pressure to eventually emerge, in light of the maturity of the pay-TV market and the decision by many young consumers to bypass cable television in favor of cheaper alternatives.
Costly Sports Rights: The battle for sports distribution rights remains cutthroat, and is likely to push programming costs markedly higher in the years to come, something that could result in a profit squeeze. Most of ESPN’s existing distribution agreements, like the one it has with the NBA, are quite lengthy, however, so costs are unlikely to skyrocket anytime soon. Plus, fee growth remains decent enough at this juncture to offset any new cost headwinds.
Heightened Competition: Given the smashing success of ESPN, it’s not surprising that rivals are entering the sports fray. In fact, ESPN is now competing for viewers with NBCUniversal’s NBC Sports (NBCUniversal is owned by Comcast) and 21st Century Fox's (formerly News Corp.) (FOXA) Fox Sports West cable channels. And we expect this trend to persist well into the future, which may well drive up programming costs
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