Business Management
The STEEPLE analysis of the business environment of ALTECH is part of the firm’s strategic
analysis for the average and long term.
S for Social
ALTECH is new market firm in the consumer appliances and devices market. Since the company
is still new, the firm has opted to operate within UK. For this reason, ALTECH will have to
transform many aspects of its operations according to the local situations. In simpler words,
before ALTECH goes international it will have to act locally in many aspects. Furthermore, the
company will more than once be forced to change its products to match the fast expanding
consumer tastes.
T for Technological
Over time, ALTECH will be among the world’s leading innovative firms. The firm has an
advantage of utilising the power of technology. It can propel innovation for sustainable
advantage. The objective is to always remain ahead of technological and innovation curve.
E for Economic
This factor is very important for ALTECH. The opening up of some growing market means that
the company will have to rethink the economic factor. The macroeconomic setting in which
ALTECH internationally operates is plagued with uncertainty and volatility.
E for Environmental
All enterprises affect its environment. Some have positive effect while others have negative
impact. The magnitude of effect differs as well. ALTECH should keep pollution or waste in
mind. It can as well have a positive effect upon the environment by recycling and cleaning waste.
These elements will impact the company, but they will not have a great toll on its trade and
revenue generation.
P for Political
In the UK market, the political environment is favourable to ALTECH’s operations. However,
when the company ventures into other foreign markets it will most likely encounter political
pressures, if perhaps the company selects to venture into Latin American and African countries.
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L for Legal
ALTECH has to be careful when it comes to developing its gadgets. The company should
encourage creativity on the part of engineers so as to avoid copyright patents with other leading
phone manufacturers.
E for Ethical
The figure of ethical consumers who want companies to produce products in a responsible
manner has grown recently. In such a circumstance, ALTECH should be aware of the need to
create products in manner that satisfies the ethical consumer.
Porter’s 5 Forces
Low costthis is focused in accomplishing the lowest price imaginable within the industry.
Competition is accomplished by pushing down costs. Porter asserts that all the organizations
including cost leaders have to make products analogous to others in terms of product features
and quality. In essence, there are lower restrictions to features and advantages that consumers are
willing to accept.
Differentiationthe differentiation competitive advantage endorses a product that is regarded
by the consumer to vary on a physical or non-physical product features. Dickson&Ginter (2010)
suggests that in non-physical products features might be developed by the use, experiences,
word-of- mouth campaign strategy. Physical difference is developed by the product features.
Broad targetthe expansive target scope provides for the mass market. It is normally applied
with low cost competitive advantage, for large firms providing homogenized products. Shaw
(2012) posits that it can however be applied with differentiation, providing distinguished
commodities to the mass market. Firms, which select broad target, normally utilise one
marketing mix for the business.
Narrow target Porter’s narrow target is as well known as market segmentation or niche scope.
This is appropriate for small firms with small financial muscle. Shaw& Goodrich (2012) asserts
that it can also be utilised by large organizations targeting numerous niche markets. It also
constitutes differentiating the market into small markets and targeting the firms with
commodities for that market segment. Thus, ALTECH will utilise its differentiation strategy with
its Smartphone products. This is differentiation, competitive advantage and expansive target
unified.
SWOT analysis is a technique to monitor firm’s internal and external environment, the general
assessment of strength, weaknesses, opportunities and threats (Kotler et al., 2011). When a
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company puts into consideration its strengths, and creates its strategy and using them this will
generate a competitive advantage for them.
Strength
The SMARTFOX which principal innovative features are: Facial/Optical scan for security
recognition and Anti-theft microchip integrated through GPS are the biggest strength for
ALTECH’S smartphone product. Its superior technology permits ALTECH to better meet the
consumers’ desires in a way the competitors cannot duplicate. It can be debated that innovation
cannot be categorised as one of ALTECH’S strength since the company is in its early stage. But
when we take a look at its facial/optical scan for security recognition, this product stands our
presently in the market. With its innovative features, like the capability to project 3D holograms
is strength for ALTECH.
Weakness
ALTECH’S management main concern for the first year is not about profitability, rather how to
establish and develop brand and image, represents a major weakness. The other weakness for
company is that it does not have its own operating system production.
Opportunities
ALTECH’s product with innovative features can attract different markets. With expanding
mobile advertising industry, ALTECH can create advertising platform for its mobile device and
largely benefit from this lucrative market.
Threats
Availability of complimentary products will affect ALTECH’s capability to increase raise costs.
This may influence consumers to shift to other products. The important challenge by ALTECH
and other technology firms is the fast advancement of technology. Firms are under constant
pressure to unveil new products faster and better than their competitors. This is often difficult
when a new company want to release something new, innovative and successful (Hamper, 2013).
Marketing Mix
I. Product life cycleit is roughly almost two years since the launch of ALTECH’S
SMARTFOX and has already began its growth stage. Most successful Smartphone companies
such as iPhone publicise their products throughout their targets, to market through successful
intense advertisement. This advertisements has been witnessed nearly everywhere in the
company’s target market. ALTECH should therefore develop ways in which the knowledge of
the company’s product will be spread so that its target customers can be aware of its use. Perhaps
the SMARTBOX will start its decline period likely when the next Smartbox series will be
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released as long as their will be the same technological discoveries. This can be compared to
Smartbox and its product life cycle.
II. Product descriptionthe Smartbox is only release for ALTECH and it is designed to connect
to 4G network. ALTECH seems to have focused all their efforts into this product so as
accomplish their mission of becoming leading innovators in the UK smartphone market. They
have added features like Facial/Optical scan for security response and Anti-theft microchip
integrated through GPS. The user can also project 3D hologram to watch a film making it
appealing to individuals who are interested in technology. All these features put them above.
III. Packagingpackaging is a factor that the company needs to put into consideration to give a
unique edge over its competitors. ALTECH must come up with package designs that will make
the user feel unique. For instance, the company can go above using the standard plastic or
cardboard cases.
IV. Promotionpublicity is the most powerful tool to unveil new products and technology
ALTECH is offering. Therefore the company should use aggressive techniques in the promotion
of their flagship smartphone. For instance, ALTECH can make use of the internet technology by
creating various platforms for its products alongside contractual agreements with video networks
and social media platforms for advertising purpose.
Proposed strategy
The idea of marketing mix will play a critical role in the success of ALTECH in the smartphone
market. The company should use differentiation strategy on its price competent of Smartbox.
Pricing strategy will certainly play a critical role in ALTECH’S success in the smartphone
market. The firm must consider mixing the cost leadership with innovation as its competitive
advantage (Hamper, 2013). ALTECH is believed to offer a product at reasonable price to its
customers. The company is focused in cost-cutting measures to sustain its price low. This assists
in fighting the discount programs of other brands. It may seem hard to accomplish this ambitious
target keeping in mind the pricing strategy of ALTECH. But the company believes that it takes
time to make sure the control in the UK market share. However, ALTECH has a long way to go
in terms of getting its brand perception right in its customers mind as a brand that provides best
technology and offers its customers value for their money. As a result, the market share of the
company will go up over time. ALTECH success can as well be linked to its intense marketing
and advertising of its product to improve the attitude, convey information so that it can receive
reaction from the target market and develop awareness. Its initial advertisement must
communicate presence of ALTECH in the UK market and its potential dominance. Since the
company lacks proper brand awareness, ALTECH can use celebrity endorsement to develop its
brand awareness. In order to create promotional programs that will boost its sales further, the
company should focus in the technological supremacy. The communication strategy to be used
by ALTECH should be easily understood by its consumers.
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References
Dickson, P.R. & Ginter J.L. (2010).“Market Segmentation, Product Differentiation and
Marketing Strategy,”Journal of Marketing, 51(2), 1-10
Hamper R.(2013).The Ultimate Guide to Strategic Marketing: Real World Methods for
Developing Successful, Long-term Marketing Plans. New York, NY: Scribner.
Kotler P., Keller K. L., Brandy M., Goodman M. & Hansen T.(2011).Marketing Management,
1st edition. Cambridge: Cambridge University Press.
Porter E. M.(2008).The Five Competitive Forces That Shape Strategy.Harvard
