Write an essay about the Strategic Management.
1) Strategic analysis
- Economic: Holding one of the prestigious positions in Southeast Asia, Indonesia can be classified as the newly emerged industrialized country. As mentioned by Adhiarna et al. (2013), Vegemite, an Australian food paste, can be easily exported to Indonesia. Since the country has extensive potentiality in economics, the government has increased funding for infrastructure. Due to its economic and financial stability, the Indonesian Government has a strong foothold in importing products from the foreign market. The upgraded financial flow also increases foreign direct investment or FDI along with portfolio flows. Darmadi (2013) also commented that Vegemite Company of Australian can undergo merging with Indonesian food paste companies to have fair trading in Indonesia. It will, therefore, contribute to the country’s economy that will help in growth and success within the country.
- Political: Collings (2014) commented that Indonesia is a politically stable country with a sustainable economic growth and stable inflation. It is even seen that investment opportunities are quite profitable in every sector, and hence, Vegemite will be occupying a commercial position in Indonesia. The politically strong Government, therefore, helps foreign investors in participating in the Indonesian market and hence exhibits strong fundamentals that help them to flourish. As opined by Wei, Samiee & Lee (2014), the Indonesian Government is highly committed towards the structural reforms. It possesses tight monetary policies that help in benefitting the overall economy of the country. Vegemite also finds it easy to cope up with the foreign policies of Indonesia and hence flourishes in a growing way. Moreover, the vibrant political structure also helps in deepening the confidence of global investors.
- Social and cultural environments: As per commented by Youn et al. (2013), social and cultural environment Indonesia is quite open. Due to the presence of many religions over there, Indonesia respects every religion and their cultural beliefs and traditions. Moreover, due to political and economic stability, people warmly greet foreign food products in the country and make them a part of their daily life. Vegemite that is made from yeast extract is a food spread for cracker biscuits, crumpets, sandwiches, and toasts. Along with this, Mail, Suparman& Santoso (2014) also mentioned that cost of Vegemite is marginal so that it can be easily made a part of every day's food habit. It's salty, bitter and malty taste but it is unique that savors the customers in adding it to vegetables as a spice additive.
- Distribution: Stead & Stead (2013) commented that in Indonesia, Vegemite has opted for direct distribution and intensive distribution system. It helped the organization in gaining a strong competitive advantage and also helps in targeting customers those are far and wide. In a case of the direct distribution system, Vegemite directly sends products to the end consumers. Here, the customers directly meet with the organization's sales department that helps in having a strong bond or relationship with the organization. Moreover, direct interaction also helps in growing a strong customer base. This distribution strategy helps in strong penetration in the market (Munizu, 2013).
- As opined by Mail, Suparman& Santoso (2014), Vegemite also follows intensive distribution system for addressing the mass market. Through this distribution system, the organization reaches out a maximum of the customers where it can target the audiences directly. It tries to cover up a maximum of the market and the target audiences. Here, the organization, Vegemite products are stocked in large amounts to a maximum of the outlets. Vegemite has stocked its products in supermarkets, gas station and drug stores where customers can easily get in touch with the products (Adhiarna et al. 2013).
- Promotion: According to the opinion of Kim, Hoskisson & Lee (2015), Vegemite has adopted social media as promotional activities. Social media platforms like Facebook, Twitter, etc. have promoted this product with its ingredients and usage to attract customers extensively. Along with nutritional values can also be used as promotional aspect for promoting this product. Hence, it helps in getting with its loyal and old customers to a more personal level. Even more, customers are also asked to share their views and feedback regarding the product by its taste, recipes added and innovative uses in different food materials (Jermias & Armitage, 2013).
- Along with this, Collings (2014) also mentioned that Vegemite also can promote its products through taking an active participation in charity. The better it will be involved in social causes, the brand value and image of the organization will increase. As a result, it will become famous among its customers, and it will help in increasing customer database. Hence, both sales volume and profit margin of Vegemite will increase accordingly. So, promotion is the most important factor for Vegemite.
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