Analysis of the Attractiveness of Egypt Market for Trilite

Company Overview

Global marketing is defined as the process of adjusting the marketing strategies of a company to adapt to the conditions of other countries (Hollsen, 2016). Of course, global marketing is more than selling a product or service globally. It is the full process of planning, creating, positioning, and promoting a product in a global market. Big businesses usually have offices abroad for countries they market to. Currently, with the proliferation of the internet, even small businesses can reach consumers anywhere in the world. If a business chooses not to extend internationally, it can face domestic competition from international companies that are extending their international presence. The presence of this competition almost makes it a requirement for many businesses to have an international presence.

This report provides an analysis of the of the attractiveness of Egypt for Trilite to consider in entering the country to sell its product. Section 2 provides an over of Trilite. The macro-environmental analysis of Egypt is then examines in section 3 using the PESTLE framework. Section 4 provides an analysis of the garment retailing industry of Egypt using Porter’s five forces followed by a competitor analysis in the garment retailing industry of Egypt. A market analysis is then provided in section 5. Section 6 provides an internal environmental analysis of Trilite to identify its strengths and weaknesses followed by a brief discussion of marketing strategy in section 7. ETC

1.     Company Overview
2.    Macro-environmental analysis using PESTLE
The business environment is increasingly becoming more turbulent due to globalisation and radical changes taking place in the macro-environment. These changes are creating uncertainties, threats and opportunities to businesses. To survive in such a turbulent environment, businesses have to scan their macro-environment to identify the threats and opportunities and to respond to them effectively. An analytical tool that is widely used for this purpose is PESTLE which stands for political, economic, social, technological, legal and ecologigical.

Political stability, peace in the country, Free and fair elections, rule of law, independence of the judiciary and the police, level of corruption, trade restrictions or free trade Economic- Economic growth, GDP, Fiscal policy, Monetary policy, level of inflation, level of unemployment Social-population size, gender distribution, birth rate, income level, level of education, cultural values, factors influencing consumer behaviour.

Technological- technological developments related to supporting businesses, telephone, electricity supply, internet connectivity, logistic facilities, marketing facilities Legal- legislations related  to  businesses, employment laws, consumer protection laws, Health and safety laws Ecological- Legislations related to protection of the natural environment, Recycling of wastes, Concern for reduction in carbon footprint to address the problem of global warming change, legal requirements for using alternative sources of energy, Reduction of noise, air and water pollutions, protection of plants and animals from any harm.

Macro-environmental analysis using PESTLE

3.    Micro-environmental analysis using Porter’s five forces 
The micro-environment refers to the industry in which a business operates. To compete effectively, a business has to scan its industry regularly to identify changes taking place and to respond to them. Porter’s five forces is a widely used tool to analyse an industry. The purpose is to assess the attractiveness of the industry- its profitability – to assess the attractiveness Profitability) of the industry of your allocated company in the country allocated.

1.Bargaining power of suppliers- If they are few and concentrated in a region- Bargaining power is high- industry not attractive
2. Bargaining power of buyers ( customers)- If they are  few and are concentrated their bargaining power is high. Industry is therefore, not attractive
3. Threat of new entrants- If entry barriers are high- threat of new entrants is low. On the other hand, if  entry barriers are low threat of new entrants is high
4.Threat of substitutes- If there are several substitutes , the threat is high
5. Rivalry among competitors- if new products are rapidly coming into the market, if there is aggressive marketing campaigns, if there is price war- then the rivalry is high
5. Competitor analysis – Who are the competitors, domestic or foreign, are they small, medium or large enterprises, Their market position: market leader, challenger, followers, market share, unique selling proposition, competitive advantage, brands,, core competence, strategic resources, strategic capabilities, competitive strategy
6.Market analysis- customer needs, market size, growth potential, market trends,  key success factors: eg strong brand positioning, high level of customer satisfaction, customer loyalty, etc distributional channels, customer service etc 
7.    Internal environmental analysis of the company

1.    Strategy- what is the competitive strategy of the company, what is its market share, what is the competitive advantage of the company, core competence, strategic resources, strategic capabilities, etc
2.    Style- What type of management or leadership style it has: eg: autocratic, democartic, laissez-faire, supportive, transactional, transformational etc
3.    Structure- What type of organisational structure: flat or tall, Is the structure supportive of the company’s business, Does it support the strategy, does it facilitate upward and downward communication
4.    Shared values, What type of organisational culture it has: task culture or role culture. Is the culture relevant to the competitive strategy of the company
5.    Staff- what type of HR policy is available, does the policy support the continuous development of the employees, are staff provide appropriate training, Is there prospect for career development and progression
6.    Skills, Are the skills of the staff sufficient, what is the core competence, what are the strategic capabilities
7.     Systems- are the systems efficient, Are the systems dependable,  Are the management information systems supporting the activities of the organisation, re the systems contributing to cut costs and improve the quality of the product
8.    Porter’s value chain We can add value by improving quality, reduce cost ot innovation. According to Porter (1985) there are five value added activities and four support activities in an organisation.

Micro-environmental analysis using Porter’s five forces

1.    Inbound logistic- this is about receiving raw materials and parts. Cost reduction can be achieved by1. buying in bulk to obtain a high discount 2Develop strong partnership with selected suppliers to obtain favourable payment terms. 3 Use the expertise of the of the suppliers in product development, EOQ- Use Economic Order Quantity to decode on the most economical purchase orders, look for cheaper sources of supply
2.    Operations- Outsourcing or offshoring, Increase production volume to benefit from the cost advantage of economies of scale, Use Business process Engineering To eliminate inefficiencies. Use TQM to ensure product quality , use of new technology to improve quality and to reduce cost, Downsizing- eliminating unnecessary jobs, Lean manufacturing to eliminate wastes in time, resources, raw materials etc, Just in Time- zero inventory
3.     Outbound logistic’ Eliminate intermediaries along the distribution channel and sell direct, Create own distribution channel, outsourcing, share wharehousing costs
4.    Marketing and sales Use marketing strategies to position the product to achieve a sustainable competitive advantage, Sell on line , Marketing on social media being less expensive, CRM- Customer Relationship management, 
5.    Services- Provide reliable customer services, Outsource customer service to countries of low labour costs

9.    Marketing Strategy
Marketing strategy is the application of marketing techniques to achieve a sustainable competitive advantage over rival competitors in the market. Developing and executing marketing strategy is central to the practice of marketing.

Recent reports regarding the top challenges facing marketers reveal numerous questions within the domain of marketing strategy including:

(1) how to create organizational structures that better enable development of marketing strategies that help navigate and adapt to changing customer and firm needs;

(2) how to choose the optimal set of marketing strategies to drive outcomes given competing priorities and myriad internal and external stakeholders; and

(3) how to lead enterprise-wide executives in developing and implementing strategies that create greater customer centricity and engagement. As a result of its centrality to practice, marketing strategy is also a key area of business school pedagogy, pivotal in marketing theory explanations of firm performance.

10.    Attractiveness of the allocated country
Use the findings of PESTLE analysis, Porter’s five forces analysis, Competotor analysis and Market analysis of Egypt
11.    Competive strengths of the allocated company(SME). Use the findings of the intyernal analysis of Trilite
12.    Market entry strategy. 6 amrket entry strategies: export, licensing, franchising, £ types of FDI: acquisition-total ownership of subsidiary, joint venture- Partial ownership of subsidiary. Greenfield investment- purchase land construct production facilities – Total ownership of subsidiary. Provide justifications of your choice. Give reasons why you consider the other market entry strategies to be inappropriate.

13.    Market segmentation, Segment Targeting , Positioning
14.    Competitive strategy to be adopted by the allocated company, there are 5 competitive strategies: Broad cost leadership,. Focus cost leadership, Broad differentiation, Focus differentiation, Hybrid- combination of quality and low proce Reasons for your choice and reasons for rejecting the others
15.    Product strategies, Adaptation, Standardisation. Provide justification for your choice and reasons why the other one is inappropriate.

    Branding, Brand Positioning, Product packaging
16.    Pricing strategies, Skimming, Market Penetration, risks of competitors’ retaliation
17.    Promotion strategies, Direct marketing, personal selling, sales promotion, Public relations, Advertising, Sponsorship, Brand Ambassador Advertising methods- radio, television, social media, internet, company website, billboard, flyers, word of mouth etc
18.    Distribution strategies
Sole distributor, Wholesalers, retailers, direct to customers, Online sales, own distribution channel, outsourcing
19.    Marketing Action Plan
Marketing plan.