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Current Strategy of JCB

Discuss about the Global Business and Strategic Concepts.

J.C Bamford Excavators Limited is one of the multinational UK based companies which is genuinely named as JCB Limited. It is headquartered with ‘Rochester Staffordshire’ in the United Kingdom which manufactures the elements such as agricultural, construction, west handling and demolition. JCB is the third largest manufacture company in the world which has around 300 kinds of manufacturing into worldwide. JCB has around 22 factories within the whole Asia, North America, South America and Europe. However, the company is doing business with 150 countries into worldwide. JCB has established by Joseph Cyril Bamford in the year 1945 in United Kingdom. The company made its first vehicle with the help of war material supply by a set of rented garage which was sold for around 45 Euros then the company found the growth of success with its continuous construction. Now the company has around 12,000 employees across the country (Hillebrandt and Lansley 2016).

The report of JCB discloses the evaluation of global strategy which shows the future strategy for better growth of the company. The report highlighted the current strategy of JCB in the target market segmentation which explains the emerging marketing and the development of the business in the future market segmentation. The first backhoe loader of JCB has introduced in 1953 which was created by Derby Media and designer of advertisement ‘Leslie Smith’. The company has also launched ‘hydra-digga’ for the incorporation of excavator and major loader in 1957. The company makes best construction and agriculture with the help of this loader across the country. The company has diversification of construction and agricultural which indicates the market performance into worldwide. In 21st Century, the company is running with best construction and making revenue of around £2.75 billion over the country (Cannon 2016).

Nowadays, JCB is running successfully into worldwide market segmentation which is adopting different types of current marketing strategies for the welfare of the country. The company is developing its business into new market and increasing strengthens and network of the business. JCB has also experienced its golden year in 2007 and made a sale of 30% which is 18% more than its fiscal year. The main reason of success of JCB is the current emerging market in many countries such as Poland, Russia, Bulgaria, Brazil, India and Romania where the company is growing consistently into worldwide market segmentation (Civi 2013).

Future Strategic Alliances

JCB business is now running well into target market segmentation. BRIC is a common factor of JCB which refers to Brazil, Russia, India and China where the company is running well globally. After 1993, JCB is widely running in BRIC region. In 2014, the company’s profit was less in BRIC region in comparison to Singapore. Profit was reduced by 17% in Brazil in comparison to Singapore. Russia declined 27% whereas India was almost 15% and China was reduced by 17% profit in comparison to JCB market in Singapore. In 2015, the growth of JCB was high and made a huge amount of profit within the whole countries. Now the biggest brand of JCB is located in the UK. However, JCB business in BRIC region is impacting the external environmental strategy within the whole countries. JCB impacts external environment of the society by its construction. For this, people of the society may face some problems in getting their daily requirements because of construction. Due to this construction, people of the society are involved much with the company’s product. However, the external environment indicates the growth of business because people are involved with JCB and it is running well as well as making more profit across the country including Brazil, Russia, India and China (BRIC) (Rustogi and Washburn 2014).

Strategy of Marketing Sense: JCB adopted the strategy of market sense which has six different segments in the market such as Geographical coverage, sales support efficiency, availability of spare parts, service exchange manufacturing, high life of productivity and best value of resale. These are the current sensing marketing strategy of JCB in the market (Bricault 2012).

Rural Strategy: Now the Company is spreading into worldwide market segmentation and developing the market performance of the company. It may reach at its growth point by achieving transportation activity with more construction of the company. Construction of dams and canals are done by the help of rural strategy of the company (Elgazzar 2016).

Emerging Marketing Strategy: JCB has made turnover around £2.7 billion in the year 2012 and the earning was £365 million. A new factory of the company was established in Brazil with £63 million in the same year. In addition, JCB has announced to set up new factory in Jaipur and India with a cost of £62 million opened in 2013. JCB has maintained its marketing strategy properly in the UK, Germany, North and South America, Brazil India and China where the range of the product is considerably more across the country (Tipi 2016).

Product Diversification

With recognition of the decreasing economical conditions across the globe, managers of JCB intend on maintaining positions and incur no losses. In addition to creating job opportunities the company greatly enhances the need for a strong hold strategy in the organizational structure. Among the several types of expansion and growth enhancing policies, the heavy equipment company largely focuses on developing strategic alliance management (Hubbard 2016). JCB also faces some lack of technology in outside country which shows the bad effect on the company’s success. The process of strategic alliance will help the company to emphasize service quality, project completion and also information sharing

Furthermore, in order to implement better technologies and focus on innovation, JCB managers also develop positive binding with certain competitors and similar types of business firms. Strategic alliances with companies like Caterpillar, L&T Case and TELCON effectively contribute towards raising performance bars. With a downfall in the economic situations, JCB sets success parameters and conveys its goals and responsibilities among the several alliance groups. One of the most important concerns that are highlighted by the firm is creation on job opportunities which can only be possible through cooperative initiatives (Grinberg 2016).

The system of product diversification in the JCB group forms one of the most important internal aspects of the company. Further, the developing of innovative and modernized commodities is highly emphasized by the management of the firm. Additionally, the product diversification model is an active response strategy to the arising negativity in the business economy. Despite of several types product inclusions of the enterprise, supervisors actively involved in developing variations (Kärnä 2016). Some of the most beneficial alterations are as follows:

Excavators: The 360 degree machines were developed by the managers. Further, the firm introduced a completely new commodity of JS460 with a more increased sustaining capability. In addition to new paintjob activities, the 360 degree excavators ranged from JS130W to JS200W. In order to ensure a better functioning of the diversification process managers tend towards an extensive use of the triple articulated boom and monoboom (Junnonen 2016).

Wheeled Loaders: One of the advanced diversification of JCB was the development of wheeled loaders. The 6 tonne hydraulics was further increased to withstand to a 25 tonne force with a use of 4 to 6 diesel cylinders (Johnes 2013).

Tractors: With a capability of running at an average speed and a suspension quality, production of tractors increased profitability levels. Further, a capability of increasing the carriage and height factors will lead to an increment in value chain of the firm (Kärnä 2016).

Military Vehicles: Further, an introduction of the highly sustainable, handling and digging loads include the JCB HMEE that proves to a beneficial competitive factor.

JCB Diesel Max: With a power of 750 bhp capability, the innovation of the machinery as a land speed record vehicle excessively adds as a positive factor in product diversification process (Junnonen 2016).

JCB Vibro Max: The launch of the compaction equipment also leads to a increase in profitability levels of JCB (Kärnä and Kärnä 2016).

JCB has different types of competitors in the market where it faces various types of competitions and survives the strong competitive environment in the market. In this part, the company makes analysis with its rival companies and maintains a strategy for the sustainable growth in the market. There are some rival companies of JCB which are discussed bellow;

Terex Vectra: It is Merger Company of USA based Terex Corporation and UK based Vectra Limited with a ratio of 70:30 which is one of the largest manufacturing equipment companies in the world. Terex Vectra is the toughest competitor with JCB in according to its diesel equipment because it is also growing into current target market segmentation (Kuo 2013).

TELCON: Basically, TELCON is considered as the TATA Indian Company merged with Hitachi Construction Machinery Co. Limited with a partnership ratio of 60:40 into worldwide. It is one of the rival companies with JCB because the production of the company is also high across the country. At the time of competition, both the companies become very competitive in the current market segmentation. It also covers its products under JCB when the market becomes very competitive and the production is high (Turner and Mellor 2016).

Clayton Equipment Ltd: In the competitive analysis, Clayton Equipment of UK is the most challenging company for JCB. At the time of competition, both the companies increase their production and demand of construction in order to make the companies more profitable. CEL is a locomotive construction company which specifically makes mining operation of underground projects (Burgess and Davies 2016).

Managers emphasize on breaking down the market into several target segments to be able to direct the business towards a path of success. The process of developing sub sections not only helps the company to effectively divide the distribution of goods in a much more organized manner, but also contributes in enhancing the management system as a whole. With a recognition of growth opportunities in the market based on the firm`s market analysis model, managers segregate the market structure into the following different levels (Jones 2016).

Plant Hirers: This particular segment involves single machine providers who supply the backhoe on a rental basis. An increase in the demand patterns for backhoes has greatly helped in the expansion and also proved to be viable in relation to the high rent rates (Boughton 2016).

Backhoe growths of JCB

Figure 1: Backhoe growths of JCB

Source: (

Contractors: Private contractors who recognize the machines as a utility device and primarily use them for carrying out several operations are included in this sector.

Others: With a broad diversification of institutional buyers, civic bodies and several agro-industrial applications, the managers create a third group to not only specifically target their requirements but also increase growth levels (Davies and Jones 2016).

Market Segments of JCB

Figure 2: Market Segments of JCB

Source: (

Furthermore, the company managers also take into consideration several other variables to target the market as a whole. In terms of geographical diversification, the company differentiates among the rural and urban sectors. In response to the collapsing economical situations, it is often that supervisors exert efficiency and seek to hold onto the separate segments with a proper implication of strategies and policies. Customers can also be segregated in the following types (


Sub Section Groups


1. Break-even point

2. Long life

3. Ruggedness

4. Production priority

5. Idle time

6. Fuel efficiency


1. Generic qualifiers

2. Value added features

3. Functional elements


1. Plant hire model of business

2. Competitive pricing

3. Increased re-sale value

4. Financing abilities

Table 1: Functional Activity of JCB

Source: (

JCB is the biggest manufacturing and construction company which has the best supply chain management within the whole countries. Marketing mix of the company has maintained the establishment for new developed appearance and opportunities which helps the company to maintain efficient marketing mix within the country. There is 4 Ps concept of the company’s marketing mix which shows the overall performance of the company and also across the country. It discusses the whole strategic growth of the company and maintains integrity between the countries where the company is operating. These 4 Ps marketing mixes are Product, Price, Place and Promotion. These 4 Ps are the main ingredients of the company (Khan 2014).

Product: A product can define as the goods and services produced by the company to satisfy the needs of the people within the country. The company is producing different types of necessary product such as agricultural, construction, west handling and demolition. Every service is different in nature. Lifecycle of the product is very suitable for the people due to long term capital goods production. The company has different brands of products which are sold in the market in large quantity and people are also satisfied with the company’s products because it is running into the global market (Doan and Ngo 2015).

Price: The price refers to the value of agriculture and construction of JCB which depends on the production cost and target market segmentation within the country. The price strategy must use to enhance the market value and to find the exact the position of the product within the market. It helps in products differentiation. The company compares its prices with the other competitive company. It has considered that the company’s products are more convenient in comparison to the other company because it is the third largest construction company and produces goods as per demand in the current market segmentation (Chiem 2015).

Place: A place refers to the production and construction point of the company which indicates the exact selling point of the company’s products. The company wants to be aware with the consumer and also make production according to the consumer’s availability. Some consumers also pay money as a premium for the effective location of products in the market. The company’s products are directly related with the consumer and it has direct channels with retail business (Singh 2012).

Promotion: Promotion is very necessary to make a successful marketing mix of JCB which helps to make better performance into global market segmentation. The company makes such promotion in various ways of communication such as PR, advertising, social media, sales promotion and much more. If the market becomes perfectly competitive, it must follow some specific guidelines to promote their product into international market. There is an IMC mix plan of the company into target market segmentation. It also makes promotion by providing Email id and websites to its customers across the country (Hanson and Ham 2014).

3:4 Ps of Marketing Mix

Figure 3:4 Ps of Marketing Mix

Source: (

The system of market sensing is one of the most important and highly valued tool that is focused by the management of JCB. With an effort to analyze the prevailing strategies, the mapping tool effectively contributes towards elaborating marketing and interest characteristics. Further, with knowledge of the several dominant factors, managers tend to implement strategies that help organizations to move towards the achievement of goals and objectives. The various sectors of the market sensing map are: (Rust 2014).

The location diversity of JCB has enabled the company to build up string relations with dealers, service networks and also customers. As compared to its rivals in the backhoe sector, the firm enjoys a superior competency of relationship management across the globe. Further, the strong hold policy of the company has also let managers to expand its subsidiaries in the most developed of the world. With its headquarters in the United Kingdom, the firm has successfully expanded in parts of UK, Germany, India, China, Australia and America. In order to maintain positions in the global market, the managers actively involves in providing the people with their need goods (Elgazzar 2016).

One of the most innovative actions ever undertaken by JCB was to re-manufacture the old goods with the latest characteristics. The highly adaptive machines are able to undergo a fast change procedure which ultimately helps in increasing the value of the product. Moreover, the managers concentrate on enhancing the service exchange procedures of the firm. Unlike its competitors, JCB focuses on providing multiple lifecycles to its machines. Concerning customers, the process effectively grabs their attention and also helps in developing loyalty levels (Bricault 2012).

The pricing factor of JCB plays a key role in deciding the firm`s future in the domestic and international markets. The cost of the machines differs with the nature of the commodity. An implication of cost effective strategies is highly valued by the managers of the company. As compared to Caterpillar, TELCON and ACE the organization tries to develop high quality, cheap products. In comparison to several other aspects of the firm, the costing factor also plays an important role in developing the people1s perception of the firm (Lansley 2016).

The fuel requirement of JCB acts as the backbone of the firm. Operating in the vulnerable sector like terrain, mining, digging and operation load, the business firm has a level of energy necessity. Despite of the incurring a particular amount of cost, the company passes on fuel prices to the ultimate consumers. Further, JCB also undertakes several effective policies to develop productive engines and machines for its clients (Pease 2012).

The external environment of a business is one the most affecting aspects in the modern world. With a positive impact on the population, people tend to prefer goods produced by the company. As compared to the other factors, the managers highly emphasize on benefitting the environment to secure long term business gains. Further, the demand and supply pattern maintain an inversely proportional relationship with each other. The company increases the price of its products when demand becomes high. On the contrary, with a decrease in requirement levels the cost of the good also depreciates. Additionally, the expertise levels of the company helps the managers to facilitate a smooth flow of work in the framework. Further a rise in additional pressures, lead the taskforce to create new machine features and also undertake various highly valuable steps to impress performance levels. With a increase in the degree of competition, the managers tend to grab a large section of the market share. (Melville 2012)

The presence of highly skilled labor and trained professionals in the business structure is of great value to JCB. With an increase in innovation and growth of organizational activities, the firm arranges developmental programs for the employees. In addition to creating a transparent and clear workplace environment, education and literacy initiatives are also arranged by the managers of the firm. With an increase in expertise levels, the training schemes ensure safe handling of machinery, optimum use of resources and further maximization of performance levels (McKee 2015).

Market Sensing

Figure 4: Market Sensing

Source: ( 2016)

Import Function

Research and Development: The Company does research and find the way of development of the business into current market segmentation across the country. If market becomes competitive, it works as a perfect competition in the market (Melville 2012).

Services to Customers: The Company import of its construction and services to its other branch in the domestic country to get proper result of business into the calendar year (Pease 2012).

Work as a General Management: JCB also works as a general management to spreads its business across the country. The General Management controls the whole import performance of the company (Junnonen and Junnonen 2016).

Factors of Production: The Company has some factors of production such as capital, goods, money, machines and labor to manage the production and construction of the products in the market. It follows these factors to implement best manufacturing equipment (Melville 2012).

Business Expansion: Now the company is trying to expend their business by setting up some new strategies and techniques for the growth of business into worldwide (Shen 2016).

Economic Growth: As an export function of JCB, it increases the growth of economy of a particular country for making better construction and services into global market (Marks 2016).

Setting up New Branch: Now the company is trying to establish some new branches in different country for making more construction and services across the country (Cheng 2016).

Product Delivery and services: It provides various facilities to its origin country as well as outside country by its construction and services for making more profit and to reach the success point of the business (Pradhananga 2016).

Recommendation and Conclusion

From the above discussion it has been recommended that the report of JCB discloses the evaluation of global strategy which shows the future strategy for better growth of the company. The report highlighted the current strategy of JCB in the target market segmentation which explains the emerging marketing and the development of the business in the future market segmentation. JCB is running successfully into worldwide market segmentation which is adopting different types of current marketing strategies for the welfare of the country. Now the company is giving more focus on the firm which is rental.

JCB is now trying to improve the services of customers to make the company more profitable. As per Agency Sales Magazine, the company has value of chain business into global market segmentation which identifies the growth of business. It has been considered that the company is trying to improve its communication skills for future growth of business and to maintain the strategy of current market segmentation. Communication skill is very important to sell and to promote the construction and services of the company into worldwide. The company set up some communication skill improvement training and program for future growth of business. It has some import and export function for future growth of business across the country and maintain the strategy of target market segmentation. From the above discussion it has been concluded that the company has some factors of production such as capital, goods, money, machines and labor to manage the production and construction of the products in the market. One of the most innovative actions ever undertaken by JCB was to re-manufacture the old goods with the latest characteristics. The Company does research and find the way of development of the business into current market segmentation across the country.


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