Strategic Analysis for a consumer service provider in Asia (SWOT analysis, PESTLE Analysis, Porter’s five forces Analysis)
1- Introduction
Asia has been considered especially for transferring the production with the advantage of lower laborer costs, and Asia has a great number of populations in the world and has been attractive for the western companies to provide maximum service. This perception has gone to change day by day, now governments are aware of producing domestic service and pushing back to import service in their market, Asian countries work hard to produce domestic goods and services to compete with foreigner providers. Now western service providers have adopted active rational strategies to grip on the situation in an Asian market, companies offer great benefits and quality service to decrease the value of local service.
Western companies focus deeply on decision making by their management system. As estimated in the report that was published in the last year, Asia has taken over from Europe as the largest global market and now worth is USD 691 billion. Europe now seems second place with an amount of USD 649 billion, followed by Latin America (USD 342 billion), North America(USD 529 billion); the other countries are taken together (USD 256 billion. This report presents the decreasing position of western countries in an Asian market. So the western countries are busy to utilizing their marketing skill in the Asian market for providing strength to their supply of service
Model-1
2- External analysis (PESTLE Analysis)
In Asian markets, both foreign and local producer is busy with setting their strategies and also finding the ways to utilizing it well, companies’ analysis on the whole situation and examine the core issues. In the external analysis companies used to apply PESTLE analysis method to understand the environment and dissolving the market problem.
(a)- PESTLE analysis
This is the big picture analysis; pestle analysis is the study of providing the external observation about the market environment. In the Asian market, it is difficult to analyze some situation for foreigner investors, because local investors understand the choice of local people in the market, and they know what the preference of local companies in the matter of providing foods and services.
• Political factor
Many European companies and foreigner investors facing the challenges to achieving maximum profit because of political disturbance, companies are allowed to invest but they work under the strict rules and they are not free at all to do their job with their own strategy. So, political factor influence badly in the subject of investing in Asian countries. Moreover, the Political factor of pestle analysis defines that Companies have to follow the customer protection law, employment laws, health and protection requirements and environmental guideline.
• Economic factors
The economic factor of pestle analysis defines that In the affair of operational competence, companies considering on labor cost trend, working practices, income outline, and availability of expertise, skills levels, and unemployment. Producers determine the feasibility of a market and also looking for the viability of credit and the current cost of living for the target market. In the Asian countries, foreigner investors have charged for excise duties and exchange rates. Moreover, here pestle analysis describe that especially foreigner investors look for paying attention to the economic factors, on the other hand, local producers trying to escape to come to the economic law.
• Social factors
Social factor of pestle analysis characterize that In Asian countries both local and European investors compete for each other to apply social factors, they consider especially on cultural and social meetings, career trends, income statistics, employment level, population growth rate, and the age distribution.
In the Asian market service providers utilizes critically to the social factor and cross-cultural communication, because producers have considered that offering social rights to workers does works like key success. Companies also respect the religious belief in their workplace, provide them friendly environment.
• Technological factor
Technological environment is going to rapidly change; companies are struggling to install the latest technology in their workplaces. In Asia, organizations protecting their advantage, if companies fail about the technological improvement that provides the opportunity to the smaller producers in the market, Organization is busy to research on all technological factors for achieving a great number of productions and also managing the stable workplace to keep discipline in the industry.
• Legal factor
Asian companies behave sensitively and critically with this legal factor in Asia because legal factor always effects negatively on the business, companies making the strategy to following the government's law that how tax system will be applied on investments and earnings, some Asian countries restrict the trading and consider the excise duty. In addition to this, the Legal factor of pestle analysis describes that Some companies have not healthy control over the market, in this position companies restricted to go forward and continuing on their activity in the market.
• Environmental factor
Environmental factor of pestle analysis identifies that In Asian countries, organization prefers infrastructure, disposal of material, cyclical weather, and energy availability and cost, environmental include also significance production process. The issue about environmental safety has turned out to be very significant as the effect of the under-regulated financial action is seen nowadays.
Model-2
3- Internal analysis (SWOT Analysis)
In this internal analysis, the organization has focused on individual things in the market throughout SWOT analysis, Asian companies are aware of the importance of culture, expertise, resources and also about having a unique quality. Most Asian producers and organization considering the different aspect of their organization, in this internal analysis resources includes the physical infrastructure, machinery, plants, and building and also they consider the financial position
In the affair of unique quality, producers handle the trade secrets, customers, and special contracts, companies are also busy to identifying the skills of their workers and examining the position to front the competitor. In the internal environment, companies have settled the SWOT analysis to identify the strength, weaknesses, opportunities, and threats in the market.
(a)- SWOT analysis
Asian organization has managed their own SWOT strategy according to their market position, in this strategy companies used to examine the overall environment in the market, SWOT analysis identified the strength of organization in the market, organization perform rationally to understand their SWOT strategy in the market.
• Strength - SWOT Analysis
Asian organizations proved developing themselves, especially Japan, China, Russia, and North Korean organizations have proved their market approach in markets, companies have played the developed role in the automotive corporation even worldwide. the pestle analysis defines that Strong government support in developing process and preference domestic contents are strength factor in the Asian market.
• Producing ability and program planning• Preference of domestic content
• Ripple effect on tourism and industrial products
• Strong government support in developing
• Growing presence in the international market as a regional player for animation and live action
• Active overseas promotion of industry players who are capable of servicing the needs of the global market
• Overseas promotions based on cooperation between the government and private companies
• High presence in overseas markets
• Lower production costs and content prices
• Weaknesses - SWOT Analysis
In recent years recall level has increased in this situation consumer confidence has reduced about some brands, market size always goes limited in some cases. A misunderstanding between sellers and buyers creates the weak environment in the market; less skilled workers and the goods that people are less informed also creates trouble in the market.
• The necessity of expanding investment in the productions due to relatively high production costs and insufficient budget in some cases• Diffusion of the satellite broadcasting and relatively slow growth of other subscription services
• Aggressive sales promotion abroad and still limited successful cases
• Limited domestic market size
• The limited size of human resource for production
• Opportunities - SWOT Analysis
Many companies have considered on developing new and innovative electric vehicle, companies also struggle to cooperate with other countries to given strength their organization, producers analyzes all opportunities to provide better service to their customers. Asian companies also attract the customers by offering their services at the low price, in this term companies produce more attractive and innovative brands.• Good penetration of Internet
• Start of terrestrial digital broadcasting
• The relatively high level of GDP per capita
• Strong connections with Islamic nations, which provide the wide opportunity for market expansion
• Threat - SWOT Analysis
Some companies are highly competitive because of having same production and maximum demand for their service, in the Asia automotive companies has remained under the threat because automotive production remained always demanded side in Asia. New investors also are the great sign of threat for big industries in the Asian markets.
• Importance of export and import in the content industry as same as other industries• Brain drain into other countries
• Comfort zone mentality
• The limited size of domestic population
4-Strategic options
• Porter’s Five Forces
Organizations need to consider other internal and external environment to make the grip on organizational strategy in the Asian market, companies have also adopted Porter's five forces to provide disciplined strategy in their organization. Porter’s Five forces provide the better understanding of the external environment, produces utilizing these forces to make the big decision in their organization. Understand the macro environment also provide the sense to handle the competitor's impacts on organization, Porter's has defined some technical points to improve the ability of organization. In Japan, most automotive companies utilize the porter’s ideas to reduce the pressure in their workplace.
• Competitive rivalry
Asian organizations utilize this action to achieve the success of the organization and also trying to understand strategic planning of competitors, competitive rivalry provides a way to behave strongly to front the competitors. Competitive rivalry provides the ability to make sudden action and decision in the market• The threat of the new competitor
Asia is big continent and the doors are always open for the new investors, customers always examine the new production of their goods and services, this situation creates trouble for the existence, investor, this action leads the organization that how to deal with new competitors in the market.
• Threat of substitute
This threat of substitute defined as the goods or services for a particular customer need that is available in another place or market, this offers from another industry with providing benefits to the consumer like to those of the manufactured goods formed by the firms in the industry.
• Bargaining power of supplier
In Asian market there is the strong relationship between market and material supplier, this action defines the relationship between buyer and seller, an organization provides better environ to this force. In this matter, customers are more concentrated than sellers.
5- Recommended strategy
(a)-Providing products information to the employeesThis method is useful for the organization to support and discipline, this strategy makes able to employees to understand the nature of goods and services.
(b)- Employees’ training to understand the customers
There are different customers in the market and have their own sense of choice, it is good for employees to achieve training to understand the need of customers that what customers want to buy in the market.
(c)- Building infrastructure
Consumers perceive to asking a question for less effort, they use to call for customers care center, offering this service increase the satisfaction of customers and also increase the value of service provider to front the other competitors in the market.
(d)- Resolving customer’s issues
Customers always facing many issues in the marketplace, they need cooperation for the guide to select better service; customers need support by the different resource like the website and the agents that guide them properly.
(e)- Creating experience
I recommend that try to ensure that each committed to a client is a personalized experience. Its ability to a make a solid relationship with a consumer, a relationship that increases the desires and that will guide a very important experience.
6- Conclusion
In this Asian market strategic report, we learn that Asian countries have managed to develop the organization in their marketplaces; they utilize different strategies to resolve the problems. Producers are also aware of following the law to cooperate with the government; organization supports their workers in the workplace and has provided those social rights and free environment to describe their experience with the management,
SWOT analysis makes clear that Companies perform rationally to handle the situation in front of competitors, in this competitive environment companies using the aggressive strategy to make grip over the market. Furthermore, SWOT Analysis describes that Asian organization also examines the customer's issue and looking extremely busy to resolve them, the company has considered the political issue, social factor, and environmental issue. In the discipline, a producer has deeply concentrated on installing the latest technology to achieve maximum production and providing the less hard-working environment to their workers. Companies also offer innovative service and offer complete information about the goods and services.
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