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Discuss about the Micro Environment Analysis Is Marketing Term.

The report has been prepared on the AECOM pty ltd. The marketing plan of the company has been prepared for the next 1 year on the basis of the micro environment, macro environment, SWOT analysis, PESTLE analysis, BCG matrix, GE matrix, market size, objective of the marketing department of the company etc. the detailed study has been performed on the AECOM pty ltd in previous two assignment to measure the marketing plan and tactic plan of the business. To conduct the marketing tactic plan, the 4p’s of the company has been evaluated as well as the critical success factor of the business has also been measured (Barney & Hesterly, 2006).

The company is an international company which offers the technical and management services in the international market. The services of the company are diverse in nature which includes the transport services, energy, technical, resources etc. the main focus of the report is on marketing plan of the business for next 3 year. For that, the current performance and position of the business and the marketing department has been measured.

On the basis of the study on previous assignment, it has been found that the competitive position of the company is quite strong. The company is known for its safety, planning and innovation. The factors would help the business to improve the performance in future as well. According to the market challengers, it has been measured that the few improvements are required in the business to enhance the marketing performance. The business is required to make few changes into the current marketing strategies to improve the performance of the business. The changes into the strategy would improve the performance of the business and the marketing objectives of the business could also be met.

Micro environment analysis is marketing term which explains about the forces and factors which affect the ability of an organization to maintain and build the successful market position and the customer relationship. It includes the factors and forces within the limits of the company that affect the company’s ability you serve the customers (Weinstein & Pohlman, 2015). The micro environment analysis study has been performed on AECOM pty ltd which is as follows:

Porter’s five forces model:

Competitive Rivalry  

The rivalry among the competitive of the company is quite higher in the industry. The main reasons behind the higher competitor rivalry is:

· Huge number of firms in the same industry

· Different varieties of services and quality services

· Huge aggressiveness in the industry

It has been measured that the AECOM pty ltd has faced huge competition in the industry. However, it has also been measured that the current position of AECOM is better (Bekaert & Hodrick, 2017).

Bargaining power of buyers

Further, the bargaining power of buyers has been measured and it has been found that the buyers bargaining power is lower because of the nature of the services as well as :

· Less suppliers in the market

· Better position of the company in the market

· Goodwill (Barr & McClellan, G. S. (2018)

It has been measured that the AECOM pty ltd has faced no threat from the buyers. It has also been measured that the current position of AECOM is better.

Bargaining power of suppliers

The bargaining power of suppliers has also been measured which is quite higher in firm. Because of lower number of professionals, the prices of the service could be manipulated. Few threats of the company are:

· Few number of suppliers

· Less availability of supply

· Huge competition among the firms (Titman, Keown & Martin, 2017).

It has been measured that the AECOM pty ltd has faced threat from the suppliers. It has also been measured that the current position of AECOM is better.

Threat of substitution

The threat from substitution is lower because of the fact that each services is different in nature and it could never be replaced:

· Less availability of substitute ‘(Borella et al, 2005)

It has been measured that the AECOM pty ltd has faced no threat from the substitute products.

Threat of new entrants

Lastly, the threat from the new entrants are as follows:

· No barriers to enter

It explains that the threat is quite higher to the firm.

BCG matrix is made by the businesses for long term strategic plan to assist the business in enhancing the overall growth and the performance of the business. On the basis of the analysis on the AECOM pty ltd, the star, cow, dog and low product of the company has been evaluated. Through the analysis, it has been measured that the main product of the business is AECOM capital, the Cow product of the company is international consultant services, the dog services of the business are AEOM TISHMAN and the question mark service of the business is AECOM hunt (Singh & Raina, 2015).

Understanding the market

AECOM capital is the main service of the business. The evaluation on the service explains that the growth rate as well as the market share of the services is quite higher in the market and continuously increasing in the market. It explains about the star services of the business and brief that the company should focus less on these services as it is already improving in the market (Sappey, 2014).

Further, the AECOM international consultant service is the also one of the important services of the business. The evaluation on the service explains that the growth rate off the services is lower but the market share of the services is quite higher in the market and continuously increasing in the market. It explains about the COW services of the business and brief that the company should focus more on these services as the growth rate is becoming lower.

AECOM TISHMAN services of the business have been evaluated future. The evaluation on the service explains that the growth rate as well as the market share of the services is quite lower in the market and continuously reducing in the market. It explains about the dog services of the business and brief that the company should focus more so that the market share of the service could also be improved (Sheth & Sisodia, 2015).

AECOM HUNT services of the business have been evaluated future. The evaluation on the service explains that the growth rate of the service is higher but the market share of the services is quite higher in the market. It explains about the question mark services of the business and brief that the company should divest the amount from the services so that the position of the business could be improved.

GE matrix is made by the businesses for long term strategic plan to assist the business in enhancing the overall growth and the performance of the business. On the basis of the analysis on the AECOM pty ltd, the different services and the products of the business has been measured on the basis of the harvest, divest, hold, grow, and invest etc factors (Gupta, 2013).

Push Growth

Maximize the investment

Search for the segments which would growth

Keep other position

Defined global market share

Balance investment to define the shares

Segmentation to find the leadership

Reinforce the strength

Specialization

Focus on increasing segment

Selective investment

Minimum investment

Harvest and keep ready to divest

Divest unhealthy items

Specialization

Think of acquisition

Search for niche market

Specialization

Think of divestment

Search for niche market

Support management

Attack competitors on each of the product (Armstrong et al, 2015)

Macro environment analysis is marketing term which explains about the forces and factors which affect the ability of an industry to maintain and build the successful market position and better relationship (Fraser, 2010). It includes the factors and forces which are out of the limits of the company and affect the industry ability to serve the customers. The macro environment analysis study has been performed on AECOM pty ltd and it has been found that the Demographic position of the company is quite better. Company is not required to make the changes into the strategies and other factors. Further, the economical position has been analyzed and it has been found that the identification of economic shift would help the business to maintain the performance.

Microenvironment analysis

In addition, the study has been done on technological factors and it has been measured that the significant resources of CRM and the digital marketing platforms has helped the business and would help in near future to manage the performance of the business.

On the basis of the evaluation on the market size of the business, it has been measured that the market share of the business is 4% which is estimated to be improved by 9% by the end of 3rd year from now. The company has targeted to achieve 12% market share by 2021. However, it has been studied that the current trend is changing in the market due to which the business is required to improve the services and launch new services in the market so that the goal of the business could be met (Kotler, 2015). It has also been found that the goodwill of the company is better which would help the business to improve the position.

Further, SWOT analysis of the company has been done to measure the factors which are required to be change. The SWOT factors of the business are as follows:

Strength

Manpower and technology

Organizational safety

Risk management strategies

Goodwill

Diversified business

Weakness

CSF issues

Market challengers are higher

Lack of professionals

Opportunity

New market to tap

Technology advancement

New professionals

Market level

Better macro environment

Threat

Competition level

Labour shortage

No future strategies

Sudden changes into the environment

(Pearce, Robinson & Subramanian, 2000)

On the basis of the study on various articles and the company, it has been found that the company is known for its safety, planning and innovation. The factors would help the business to improve the performance in future as well. According to the market challengers, it has been measured that the few improvements are required in the business to enhance the marketing performance. The business is required to respond to the market demands and the requirements to meet the demand and the market share of the business (Porter, 2008). The changes into the structure and the ability of the business would improve the overall performance of the business.

The main consumers of the business are other businesses which are seeking to have some services and advise from the business about the investment, legal issues etc. the buying behaviour of the customers of the business is quite better. There is no negotiation about the services of the company. The overall position of the company is quite better. The decision process about the product and services of the business are made by the top level management of the business and explains that it lead to the customers to buy more services from the company as the business of the company is business to business (Porter & Advantage, 1985). The main issues of these type businesses are lower interaction in the market, difficult to target the customers etc.

Porter’s 5 forces model

On the basis of the audit and the research, it has been measured that the overall position of the company has been improved. The main issues in the audit has been measured from the task and it has been found that the total time was lesser for the research and the audit and thus the entire factors have not been evaluated as well as the forecasted growth rate of the business is quite higher than the actual market growth rate (Renz & Herman, 2016). The forecast process also not explains that how would the market share of the business would be more improved. Lastly, it has been found through audit report that still few changes are required to be done in the business.  

Key marketing objectives contains the main goal of the business due to which the planning is done and the business is planning to expand the business. On the basis of the study on the AECOM, it has been measured that the key marketing objective of the business is to improve the overall sales, build the brand awareness about the product, enhance the overall market share, improve the stakeholders relationship, enhance the customer relationship management and the revenue of the business through promoting the services in the market (Rigby, 2001).

Increase sales:

This is the main marketing objective of the business. For improving the sales of the business, better marketing mix plan is required by the business as well as various other factors must also be maintained by the management of the business.

It is essential for a business to build the awareness about the brand among the customers through setting the strategy and administration process. For building the brand awareness about the business, better promotional planning is required by the business as well as the advertisement planning must also be better.

Better improved market always helps to improve the sales and profit of the business. For growing the market share of the business, better planning about the diversification, innovation etc is required by the business.

Launching of a new product always require a special assistance as well as better planning. For launching the new product of the business, better marketing mix plan is required by the business as well as various other factors must also be maintained by the management of the business.

Improving the relationship with the stakeholders of the business is also amongst the main marketing objective of the business. For improving the relationship with the stakeholders of the business, better marketing mix plan is required by the business as well as balance scorecard and the SMART objectives could also be set by the business.

BCG and GE matrix

This is the main marketing objective of the business. For improving the overall profit of the business, better marketing mix plan is required by the business.

Improving the international communication of the business is important objectives of the business. For improving the international communication of the business, better strategies must be maintained by the management of the business.

Any particular marketing strategy requires a specific focus of the business towards the objectives of the business and the main goals of the business. The strategy of the business must be in such a way that it could offer the better direction to the management of the company to reach over the main goals of the business. The strategy must utilize the resources at their maximum so that the cost reductions could be done. The AECOM should focus on those people only who are planning to construct they home, offices, building, hotels, commercial buildings etc.

The core marketing aim of the business is to meet the objectives and the goal of the business. For that, the pricing, promotion, logistic, demand and supply etc strategies must be prepared by the business in advance to improve the performance (Pearce, Robinson & Subramanian, 2000). The main focus of the AECOM limited is on market dominance. For that, it is suggested to the business to adopt the market dominance strategies.

In this strategy, the current role and the performance of the business in current market is evaluated. The current dominant people, country, economy and the industry forces the business in the market to identify and grab the new opportunities from the market so that the basic goals and the objective of the business could be met. These strategies might result in the relationship of the business as the market leader or it focuses on the niche market rather than the overall market which would improve the position of the business. Thus, it has been measured that the AECOM limited should focus on this strategy to not only to improve the performance of the business but meet the overall gaols of the business.

Implementation is the key part of each business. Implementations play the crucial role. It explains that the planning is easier but if the implementation has not been done in the proper way than the plan could mislead from the direction. The implementation process of the AECOM has been measured in order to make a better marketing plan of the business which is as follows:

AECOM capital

Product is the finished product of the business which is offered to the customers of the business for the consumption purpose. It is a crucial part of the marketing plan. The main product of the business is project management. However, it has been measured that the project management craves the philosophy. The marketing plan explains that the business is required to follow the same plan for the better performance in the near future and in next 3 years. Currently, the business is utilizing the diverse multi-discipline core competencies to improve the position of the product in the market. It has also been measured that the business is required to introduce the new services in the market to improve the market share (Kotabe & Helsen, 2014).  The overall product performance of the business must be in such a way that the overall objective and goals of the company could be met. The strategy explains that the future performance of the market would be better and it would offer higher return to the company.

Pricing has multiple layers in the construction industry. The evaluation on the current performance of the business explains that the business is following the leadership pricing strategy. The competitor’s position is quite lower than the AECOM limited in the market. The main advantage of this strategy is higher net profit. The marketing plan explains that the business is required to manage the same pricing strategy and the implementation of the pricing strategy must be in such a way that all the buyers could afford the business services in next 3 years. It has also been measured that the current strategy of the business would help the business to improve the market share (Finkler et al, 2016). The overall pricing performance of the business must be in such a way that the overall objective and goals of the company could be met. The strategy explains that the future performance of the market would be better and it would offer higher return to the company.

The business is procuring the services in worldwide. The delivery of the product starts from the planning to run till the execution of the logistic and supply chain of the business. It has been found that the main offices of the business are in that area where the professionals could easily met and they could work in peace. The marketing plan explains that the business is required to follow the same strategy for the better performance in the near future and in next 3 years. The current supply chain process of the company is quite better. It has also been measured that the new stores would also be open after evaluating all the factors in the market to improve the market share (Enz, 2010). The overall product performance of the business must be in such a way that the overall objective and goals of the company could be met. The strategy explains that the future performance of the market would be better and it would offer higher return to the company.

AECOM international consultant services

Promotion is the crucial factors which helps the business to aware the customers and the other people about the brand and the characteristics and nature of the brand. The company has various options to promote the products and services. Currently, the company is following various methods to promote the products in the market such as industry sponsorship, digital marketing campaign, tangible indicators etc. However it has been measured that the digital platform is one of the best way to promote the business. It has also been measured that the business is required to introduce the new advertisement in the market to improve the market share (David, 2011). The changes would help the business to improve the overall performance of the company. The overall promotion performance of the business must be in such a way that the overall objective and goals of the company could be met. The strategy explains that the future performance of the market would be better and it would offer higher return to the company.

Further, the tactic plan of the business has been set for next 1 year to implement all the plans and the strategies in the business to meet the short term objectives of the business. The tactical plan of business explains that the business would introduce new services in the market as well as if the company would introduce the business in the new country then the business would have to evaluate the cross culture management and the next steno would be done on the basis of that evaluation (Debrecht, 2014).

The leadership strategy would be followed by the business for the pricing level as well as it has been measured that the places of the store would also be decided by the business after measuring all the related factors (Dalken, 2014). The micro environment and macro environmental factors could also be reduced by the business through maintain the better strategies and planning about that factor which has already been discussed above.

Marketing Tactical Plan

Status key:

On track

Minor glitches that need attention but will not delay the deliverable

Major glitches that need attention and will (or most likely will) delay the deliverable

Products requirements definition (Sample)

Task

Owner

Actual Expense

1st year

2nd year

3rd year

Status

Comments

Complete the products requirement definition document

AECOM ltd

 $15,000.00

COMPLETE. Task would in progress for two years and then, finished at the end of 3rd year.

Review with product development team; gather feedback; incorporate feedback

AECOM ltd

 $  4,000.00

AECOM limited would plan a meeting on daily basis with team to manage the performance of the business.

Give document to product development for prototype development

AECOM ltd

 $  8,000.00

The business and the management are required to work as a team to manage the performance and the business objectives of the business.

Total Expense:

$27,000

Total Elapse Time:

3

Years

Dependencies on:

Marketing strategy

Dependencies for:

Pricing, Marketing communications activities

General comments:

The feedback related to the product development feedback would be positive.

The further study has been done on the budgets and the targets of the business which explains that the overall marketing budget for the next 1 year of the business is $ 50 thousand dollars which would be improved by 10% in next 2 year. It has also been measured that the budgets must be used by the business as planned so that the performance of the business could be better as well as it could offer higher returns to the business (Cheng, 2013).

Marketing Budget Plan

Category

Estimated
Quantity

Estimated
Cost per Unit

Estimated
Subtotal

Research

Research firm fees

2

$2,300.00

$4,600.00

Web research

1

$1,100.00

$1,100.00

Independent research

3

$300.00

$900.00

Other research

2

$250.00

$500.00

Research Costs Total

$7,100.00

Communications

Promotional brochures

5,000

$0.15

$750.00

Television

5

$4,000.00

$20,000.00

Radio

13

$350.00

$4,550.00

Web

1

$350.00

$350.00

Communications Costs Total

$25,650.00

Event

Number of attendees

50

Meal (breakfast, lunch, or dinner)

Food

$23.00

$1,150.00

Tax (10%)

$2.30

$115.00

Food and beverage gratuity (20%)

$5.06

$253.00

Meal Costs Subtotal

$1,518.00

List Services

Valet services

1

$300.00

$300.00

Commercial building '

1

$800.00

$800.00

Residential building

1

$1,200.00

$1,200.00

Government

1

$200.00

$200.00

List Service Costs Subtotal

$2,500.00

Audio/Visual Services

Basic PA system and podium

1

$0.00

$0.00

Screen

1

$0.00

$0.00

XGA data/video projector rental

1

$45.00

$45.00

Wireless mouse

1

$12.00

$12.00

Power strips

1

$0.00

$0.00

Extension cords

1

$0.00

$0.00

Lavaliere microphone

1

$0.00

$0.00

Labour and AV technicians

1

$300.00

$300.00

Tax (8.8%)

$31.42

$31.42

Audio/Visual Services Subtotal

$388.42

Additional Costs

Invitation
(printing and postage costs)

$834.00

$834.00

Time & Expense (T&E)

$600.00

$600.00

Company staff T&E

$200.00

$200.00

Customer testimonial T&E

$100.00

$100.00

Additional Costs Subtotal

$1,734.00

Giveaways

0

Giveaway #1

25

$10.00

$250.00

Giveaway #2

25

$5.00

$125.00

Giveaway Subtotal

$375.00

Event Costs Total

$6,515.42

Event Price per Person

$130.31

Promotions

Product giveaways

50

$8.00

$400.00

Product discounts

300

$3.00

$900.00

Special offers

200

$2.50

$500.00

Promotions Costs Total

$1,800.00

Advertising

Brochures (development and production)

5,000

$0.15

$750.00

Mailings

15,000

$0.04

$600.00

Postcards

15,000

$0.03

$450.00

Television

2

$600.00

$1,200.00

Radio

4

$300.00

$1,200.00

Newspapers

6

$220.00

$1,320.00

Billboards

2

$556.00

$1,112.00

Bus sides

3

$125.00

$375.00

Advertising Costs Total

$7,007.00

Public Relations

Charity events

3

$200.00

$600.00

Advertising

4

$200.00

$800.00

Employee promotions

6

$200.00

$1,200.00

Sponsorships

3

$200.00

$600.00

Public Relations Costs Total

$3,200.00

ESTIMATED MARKETING GRAND TOTAL

$51,272.42

AECOM TISHMAN

On the basis of the overall marketing plan and the tactics plan of the business, it has been found that the overall performance of the business is quite better which would be improved more in next 1 year as well as in next 3 years. The environmental analysis, firm analysis and the tactic plan of the business explains that the overall performance of the marketing plan would be better. At the end, the business plan would be compared with the actual goals and it would be recognized that what are the loose points of the business and how the overall performance of the business could be improved (Chernev, 2018). The budget and the plan of the business must be measured monthly and the comments must be add about the business performance and the position of the daily basis so that the performance and the position of the business could be improved as well as the control on the business could also be maintained in order to meet the goals and the objectives of the business.

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