STEEPLE Analysis of Business Environment of ALTECH Order Instructions:

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STEEPLE Analysis of Business Environment of ALTECH Sample Answer

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 the 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 utilizing the power of technology. It can propel innovation for sustainable advantage. The objective is to always remain ahead of technology 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 a positive effect while others have a 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 on 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 favorable 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.

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 a manner that satisfies the ethical consumer.

Porter’s 5 Forces

Low cost-this is focused on 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.

Differentiation-the differentiation competitive advantage endorses a product that is regarded by the consumer to vary on physical or non-physical product features. Dickson&Ginter (2010) suggests that non-physical products features might be developed by the use, experiences, word-of-mouth campaign strategy. The physical difference is developed by the product features.

Broad target-the 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 the broad target, normally utilize 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 utilized 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 utilize its differentiation strategy with its Smartphone products. This is differentiation, competitive advantage and expansive target unified.

A SWOT analysis is a technique to monitor the firm’s internal and external environment, the general assessment of strength, weaknesses, opportunities, and threats (Kotler et al., 2011). When a 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

1. Product life cycle-it 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 released as long as their will be the same technological discoveries. This can be compared to Smartbox and its product life cycle.
2. Product description-the 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. Packaging-packaging 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.

1. Promotion-publicity 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.

STEEPLE Analysis of Business Environment of ALTECH 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 Business.    Retrieved 2015, 17 December:http://ieg-            sites.s3.amazonaws.com/sites/4e8476903723a8512b000181/contents/content_instance/4f            15bab63723a81f24000182/files/HBR_on_Strategy.pdf#page=25

Shaw H. E. & Goodrich K. (2012).Marketing Strategy: From the History of a Conceptual Framework, CHARM. London: Oxford University Press.