netrashetty
Netra Shetty
Convergys Corporation (NYSE: CVG) is a corporation based in Cincinnati, Ohio that provides customer relationship management services, consulting and professional services, billing services, and self-care technology. Most of its clients are companies in the telecommunications, financial services, technology, government, and employee care markets.
The business has nearly 75,000 employees and clients in more than 70 countries, speaking more than 35 languages, from 85 sites across North America, Europe, the Middle East, India and Asia (most notably in the India and the Philippines), the Pacific, and Latin America.
Convergys provides support to companies like General Motors and Comcast.
orter identified the five forces model of competitive strategy. He identified the five forces as:
The threat of new entrants and the appearance of new competitors
The degree of rivalry among existing competitors in the market
The bargaining power of buyers
The bargaining power of suppliers
The threat of substitute products or services which could shrink the market
The strength of each of these forces varies from industry to industry, but
taken together they determine long-term profitability. They help shape the process firms can charge, the costs they must pay for resources and the level of investment that will be needed to compete. The threat of new entrants limits market share and profit; powerful buyers or suppliers, using their superior bargaining power, can drive down prices or push costs up, eroding margins and so on (Witzel 2003). The five factors affect the strategy of the organization. It is important to analyze and study these five forces to be able to craft a successful strategy. To be successful, the organization must respond effectively to the pressures of these five forces.
Competitive Forces Analysis for Stobo Castle
Threat of New Entrants
The spa industry is now becoming more competitive. Different spas with different concepts and themes are entering the market. The threat of new entrants for Stobo Castle is high as new spas are being developed and built. These new spas are likely to become competitors. There are many hotels in Scotland that are adding spa facilities.
Degree of Rivalry among Competitors
The competition in the spa industry is becoming stiffer. The degree of competition is considered high among competitors. The existing competitors of Stobo Castle are spas within Scotland’s leading resort hotels such as Turnberry, Gleneagles and the Sheraton in Edinburgh. Among the direct competitors of Stobo Castle are the spa facilities at Peebles Hydro and MacDonald Hotel at Cardona.
Bargaining Power of Buyers
More and more people are becoming health conscious. The fact that spas are increasing in number in Scotland means that the market is growing. As the market grows, different markets are becoming more accessible. Consumers have more choices. Different spas offer almost the same services as Stobo Castle. The bargaining power of the consumers is considered strong.
Bargaining Power of Suppliers
The impact of the suppliers to Stobo Castle is very minimal.
Threat of Substitute Products
Other forms of wellness and health spas are also sprouting. For example, spas are now being built inside hotels. This could shrink the market for Stobo Castle.
Marketing Research Plan
Stobo Castle is one of the premiere spas in Scotland. The spa attracts numerous guests. Since its opening, Stobo Castle has attracted has attracted wealthy customers. The current aim of the spa is to attract a more diverse customer, aiming at customers with modest incomes.
Research Problem and Objectives
The aim of the marketing research is to identify the customer needs in B2B and B2C markets. Specifically the marketing research aims to answer the following questions:
1. How can Stobo Castle attract the B2B market?
2. How can Stobo Castle attract the B2C market?
3. What are the characteristics of the B2B and B2C markets?
4. What marketing tools and strategies should be used in order to attract these markets?
Research Brief
The aim of the marketing research is for the Stobo Castle to attract more visitors. Through the marketing research the management aims to discover ways of communicating and attracting the B2B and B2C markets. In order to gather the needed information, the marketing team will use both secondary and primary data. The secondary data will come from existing researches and information about B2B and B2C markets. The marketing team will investigate by examining secondary data. The secondary data will provide a starting point for research and offer the advantages of low cost and ready availability.
In order to increase the reliability of the secondary data, the researcher will collect primary data. In order to discover how visitors and target markets feel about the topic in question, the researcher will conduct a series of data-gathering procedures.
cus strategy is that a firm is better able to serve a limited segment more efficiently than competitors can serve a broader range of customers. Firms using a focus strategy simply apply a cost leader or differentiation strategy to a segment of the larger market. Firms may thus be able to differentiate themselves based on meeting customer needs, or they may be able to achieve lower costs within limited markets. Focus strategies are most effective when customers have distinctive preferences or specialized needs.
A focus strategy is often appropriate for small, aggressive businesses that do not have the ability or resources to engage in a nationwide marketing effort. Such a strategy may also be appropriate if the target market is too small to support a large-scale operation. Many firms start small and expand into a national organization. For instance, Wal-Mart started in small towns in the South and Midwest. As the firm gained in market knowledge and acceptance, it expanded through-out the South, then nationally, and now internationally. Wal-Mart started with a focused cost leader strategy in its limited market, and later was able to expand beyond its initial market segment.
A firm following the focus strategy concentrates on meeting the specialized needs of its customers. Products and services can be designed to meet the needs of buyers. One approach to focusing is to service either industrial buyers or consumers, but not both. Martin-Brower, the third-largest food distributor in the United States, serves only the eight leading fast-food chains. With its limited customer list, Martin-Brower need only stock a limited product line; its ordering procedures are adjusted to match those of its customers; and its warehouses are located so as to be convenient to customers.
Firms utilizing a focus strategy may also be better able to tailor advertising and promotional efforts to a particular market niche. Many automobile dealers advertise that they are the largest volume dealer for a specific geographic area. Other car dealers advertise that they have the highest customer satisfaction scores within their defined market or the most awards for their service department.
Firms may be able to design products specifically for a customer. Customization may range from individually designing a product for a customer to allowing customer input into the finished product. Tailor-made clothing and custom-built houses include the customer in all aspects of production, from product design to final acceptance. Key decisions are made with customer input. However, providing such individualized attention to customers may not be feasible for firms with an industry-wide orientation.
Other forms of customization simply allow the customer to select from a menu of predetermined options. Burger King advertises that its burgers are made "your way," meaning that the customer gets to select from the predetermined options of pickles, lettuce, and so on. Similarly, customers are allowed to design their own automobiles within the constraints of predetermined colors, engine sizes, interior options, and so forth.
Potential difficulties associated with a focus strategy include a narrowing of differences between the limited market and the entire industry. National firms routinely monitor the strategies of competing firms in their various submarkets. They may then copy the strategies that appear particularly successful. The national firm, in effect, allows the focused firm to develop the concept, then the national firm may emulate the strategy of the smaller firm or acquire it as a means of gaining access to its technology or processes. Emulation increases the ability of other firms to enter the market niche while reducing the cost advantages of serving the narrower market.
Market size is always a problem for firms pursing a focus strategy. The targeted market segment must be large enough to provide an acceptable return so that the business can survive. For instance, ethnic restaurants are often unsuccessful in small U.S. towns, since the population base that enjoys Japanese or Greek cuisine is too small to allow the restaurant operator to make a profit. Likewise, the demand for an expensive, upscale restaurant is usually not sufficient in a small town to make its operation economically feasible.
Another potential danger for firms pursuing a focus strategy is that competitors may find submarkets within the target market. In the past, United Parcel Service (UPS) solely dominated the package delivery segment of the delivery business. Newer competitors such as Federal Express and Roadway Package Service (RPS) have entered the package delivery business and have taken customers away from UPS. RPS contracts with independent drivers in a territory to pick up and deliver packages, while UPS pays unionized wages and benefits to its drivers. RPS started operations in 1985 with 36 package terminals. By 1999 it was a $1 billion company with 339 facilities.
GENERIC STRATEGIES
AND THE INTERNET
Porter asserts that these generic competitive strategies were not only relevant for the old economy, but are just as vital today. Indeed, he goes on to say that terms such as "old economy" and "new economy" may be misguided, and the concept of a firm's Internet operation as a stand-alone entity preclude the firm from garnering important synergies. Furthermore, the Internet may enhance a firm's opportunities for achieving or strengthening a distinctive strategic positioning. Therefore, effective strategy formulation at the business level should pay off, not in spite of the Internet, but in concert with it.
Porter describes how companies can set themselves apart in at least two ways: operational effectiveness (doing the same activities as competitors but doing them better) and strategic positioning (doing things differently and delivering unique value for customers). "The Internet affects operational effectiveness and strategic positioning in very different ways. It makes it harder for companies to sustain operational advantages, but it opens new opportunities for achieving or strengthening a distinctive strategic positioning." Although the Internet is a powerful tool for enhancing operational effectiveness, these enhancements alone are not likely to be sustained because of copying by rivals. This state of affairs elevates the importance of defining for the firm a unique value proposition. Internet technology can be a complement to successful strategy, but it is not sufficient. "Frequently, in fact, Internet applications address activities that, while necessary, are not decisive in competition, such as informing customers, processing transactions, and procuring inputs. Critical corporate assets—skilled personnel, proprietary product technology, efficient logistical systems—remain intact, and they are often strong enough to preserve existing competitive advantages."
The business has nearly 75,000 employees and clients in more than 70 countries, speaking more than 35 languages, from 85 sites across North America, Europe, the Middle East, India and Asia (most notably in the India and the Philippines), the Pacific, and Latin America.
Convergys provides support to companies like General Motors and Comcast.
orter identified the five forces model of competitive strategy. He identified the five forces as:
The threat of new entrants and the appearance of new competitors
The degree of rivalry among existing competitors in the market
The bargaining power of buyers
The bargaining power of suppliers
The threat of substitute products or services which could shrink the market
The strength of each of these forces varies from industry to industry, but
taken together they determine long-term profitability. They help shape the process firms can charge, the costs they must pay for resources and the level of investment that will be needed to compete. The threat of new entrants limits market share and profit; powerful buyers or suppliers, using their superior bargaining power, can drive down prices or push costs up, eroding margins and so on (Witzel 2003). The five factors affect the strategy of the organization. It is important to analyze and study these five forces to be able to craft a successful strategy. To be successful, the organization must respond effectively to the pressures of these five forces.
Competitive Forces Analysis for Stobo Castle
Threat of New Entrants
The spa industry is now becoming more competitive. Different spas with different concepts and themes are entering the market. The threat of new entrants for Stobo Castle is high as new spas are being developed and built. These new spas are likely to become competitors. There are many hotels in Scotland that are adding spa facilities.
Degree of Rivalry among Competitors
The competition in the spa industry is becoming stiffer. The degree of competition is considered high among competitors. The existing competitors of Stobo Castle are spas within Scotland’s leading resort hotels such as Turnberry, Gleneagles and the Sheraton in Edinburgh. Among the direct competitors of Stobo Castle are the spa facilities at Peebles Hydro and MacDonald Hotel at Cardona.
Bargaining Power of Buyers
More and more people are becoming health conscious. The fact that spas are increasing in number in Scotland means that the market is growing. As the market grows, different markets are becoming more accessible. Consumers have more choices. Different spas offer almost the same services as Stobo Castle. The bargaining power of the consumers is considered strong.
Bargaining Power of Suppliers
The impact of the suppliers to Stobo Castle is very minimal.
Threat of Substitute Products
Other forms of wellness and health spas are also sprouting. For example, spas are now being built inside hotels. This could shrink the market for Stobo Castle.
Marketing Research Plan
Stobo Castle is one of the premiere spas in Scotland. The spa attracts numerous guests. Since its opening, Stobo Castle has attracted has attracted wealthy customers. The current aim of the spa is to attract a more diverse customer, aiming at customers with modest incomes.
Research Problem and Objectives
The aim of the marketing research is to identify the customer needs in B2B and B2C markets. Specifically the marketing research aims to answer the following questions:
1. How can Stobo Castle attract the B2B market?
2. How can Stobo Castle attract the B2C market?
3. What are the characteristics of the B2B and B2C markets?
4. What marketing tools and strategies should be used in order to attract these markets?
Research Brief
The aim of the marketing research is for the Stobo Castle to attract more visitors. Through the marketing research the management aims to discover ways of communicating and attracting the B2B and B2C markets. In order to gather the needed information, the marketing team will use both secondary and primary data. The secondary data will come from existing researches and information about B2B and B2C markets. The marketing team will investigate by examining secondary data. The secondary data will provide a starting point for research and offer the advantages of low cost and ready availability.
In order to increase the reliability of the secondary data, the researcher will collect primary data. In order to discover how visitors and target markets feel about the topic in question, the researcher will conduct a series of data-gathering procedures.
cus strategy is that a firm is better able to serve a limited segment more efficiently than competitors can serve a broader range of customers. Firms using a focus strategy simply apply a cost leader or differentiation strategy to a segment of the larger market. Firms may thus be able to differentiate themselves based on meeting customer needs, or they may be able to achieve lower costs within limited markets. Focus strategies are most effective when customers have distinctive preferences or specialized needs.
A focus strategy is often appropriate for small, aggressive businesses that do not have the ability or resources to engage in a nationwide marketing effort. Such a strategy may also be appropriate if the target market is too small to support a large-scale operation. Many firms start small and expand into a national organization. For instance, Wal-Mart started in small towns in the South and Midwest. As the firm gained in market knowledge and acceptance, it expanded through-out the South, then nationally, and now internationally. Wal-Mart started with a focused cost leader strategy in its limited market, and later was able to expand beyond its initial market segment.
A firm following the focus strategy concentrates on meeting the specialized needs of its customers. Products and services can be designed to meet the needs of buyers. One approach to focusing is to service either industrial buyers or consumers, but not both. Martin-Brower, the third-largest food distributor in the United States, serves only the eight leading fast-food chains. With its limited customer list, Martin-Brower need only stock a limited product line; its ordering procedures are adjusted to match those of its customers; and its warehouses are located so as to be convenient to customers.
Firms utilizing a focus strategy may also be better able to tailor advertising and promotional efforts to a particular market niche. Many automobile dealers advertise that they are the largest volume dealer for a specific geographic area. Other car dealers advertise that they have the highest customer satisfaction scores within their defined market or the most awards for their service department.
Firms may be able to design products specifically for a customer. Customization may range from individually designing a product for a customer to allowing customer input into the finished product. Tailor-made clothing and custom-built houses include the customer in all aspects of production, from product design to final acceptance. Key decisions are made with customer input. However, providing such individualized attention to customers may not be feasible for firms with an industry-wide orientation.
Other forms of customization simply allow the customer to select from a menu of predetermined options. Burger King advertises that its burgers are made "your way," meaning that the customer gets to select from the predetermined options of pickles, lettuce, and so on. Similarly, customers are allowed to design their own automobiles within the constraints of predetermined colors, engine sizes, interior options, and so forth.
Potential difficulties associated with a focus strategy include a narrowing of differences between the limited market and the entire industry. National firms routinely monitor the strategies of competing firms in their various submarkets. They may then copy the strategies that appear particularly successful. The national firm, in effect, allows the focused firm to develop the concept, then the national firm may emulate the strategy of the smaller firm or acquire it as a means of gaining access to its technology or processes. Emulation increases the ability of other firms to enter the market niche while reducing the cost advantages of serving the narrower market.
Market size is always a problem for firms pursing a focus strategy. The targeted market segment must be large enough to provide an acceptable return so that the business can survive. For instance, ethnic restaurants are often unsuccessful in small U.S. towns, since the population base that enjoys Japanese or Greek cuisine is too small to allow the restaurant operator to make a profit. Likewise, the demand for an expensive, upscale restaurant is usually not sufficient in a small town to make its operation economically feasible.
Another potential danger for firms pursuing a focus strategy is that competitors may find submarkets within the target market. In the past, United Parcel Service (UPS) solely dominated the package delivery segment of the delivery business. Newer competitors such as Federal Express and Roadway Package Service (RPS) have entered the package delivery business and have taken customers away from UPS. RPS contracts with independent drivers in a territory to pick up and deliver packages, while UPS pays unionized wages and benefits to its drivers. RPS started operations in 1985 with 36 package terminals. By 1999 it was a $1 billion company with 339 facilities.
GENERIC STRATEGIES
AND THE INTERNET
Porter asserts that these generic competitive strategies were not only relevant for the old economy, but are just as vital today. Indeed, he goes on to say that terms such as "old economy" and "new economy" may be misguided, and the concept of a firm's Internet operation as a stand-alone entity preclude the firm from garnering important synergies. Furthermore, the Internet may enhance a firm's opportunities for achieving or strengthening a distinctive strategic positioning. Therefore, effective strategy formulation at the business level should pay off, not in spite of the Internet, but in concert with it.
Porter describes how companies can set themselves apart in at least two ways: operational effectiveness (doing the same activities as competitors but doing them better) and strategic positioning (doing things differently and delivering unique value for customers). "The Internet affects operational effectiveness and strategic positioning in very different ways. It makes it harder for companies to sustain operational advantages, but it opens new opportunities for achieving or strengthening a distinctive strategic positioning." Although the Internet is a powerful tool for enhancing operational effectiveness, these enhancements alone are not likely to be sustained because of copying by rivals. This state of affairs elevates the importance of defining for the firm a unique value proposition. Internet technology can be a complement to successful strategy, but it is not sufficient. "Frequently, in fact, Internet applications address activities that, while necessary, are not decisive in competition, such as informing customers, processing transactions, and procuring inputs. Critical corporate assets—skilled personnel, proprietary product technology, efficient logistical systems—remain intact, and they are often strong enough to preserve existing competitive advantages."
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