SCAD Ltd Case Study

Question 1: SWOT analysis

Strengths

  • Sole supplier of super cars in UAE
  • Strong brand portfolio
  • Strong financial position

Weaknesses

  • Continued decline in market share due to potential entrants
  • Declining operating efficiency and weak returns
  • Lack of strategic plan

Opportunities

  • Growing super cars market at 30% p.a.
  • More opportunities other countries
  • UAE economy has significantly improved

Threats

  • New entrants in the name of Jumeirah Fast Motors and Al Ameri Cars thus increased competition.
  • Increase usage in public transport.
  • Fluctuation in inflation and exchange rate.

Question 2: strategic planning

Strategic planning is a very essential aspect in the perpetuity and sustainability of an organization. They are particularly vital in helping the company take advantage of strategic opportunities as they may arise. The process involves three main things which include objective, actions and the resources. However, SCAD Ltd has no strategic planning. This is evidenced by the company’s failure to consider the eminent entry of new players in the market. The company also failed to have an exclusive deal with TVX which could help ease competition in the car industry (Kotler& Armstrong, 2010).

Question 3: Marketing Planning

This is a vital concept in the success of any organization. It is a part of strategic planning but it has a rather specific motive. Marketing planning has several stages and aims at ensuring smooth marketing of the company’s products. The company did not have a good marketing plan and thus has put the company at risk of a drop in its market share.

Question 4: porters 5 forces

Threat of substitutes

The UAE customers have a chance to use other brands of super cars that will be offered by the new entrants from June 2013. This might have a significant impact on the market share of the company.

Threats of new entrants

SCAD Ltd is faced with a threat of new entrants in the market from June 2013. However, this may not greatly affect the company since the new entrants have limited finances thus constrained promotional budget.

Bargaining power of customers

The customers have little bargaining power possibly due to lack of competition. This is evidenced by the high prices of 5 Million AED per car. The customers have not put the firm under any significant pressure.

Bargaining power of suppliers

Suppliers of raw materials and other essential components may pressurize a firm thus eroding its profitability. However, SCALD Ltd has been able to handle its operations in a smooth manner.

Competitive rivalry within an industry

The intensity of rivalry within an industry can either be in terms of price or through innovation. Competition in this sector is likely to be based on innovation of high quality super car brands.

Question 5: Boston group matrix

 

The Boston matrix has both vertical and horizontal axis where the vertical axis represents the growth rate and relative market share is depicted by the horizontal axis.  They are explained by dogs, cash cows, stars and question marks depending on cash generation from the products offered. For example, The Interaptor is the source of the cash to the company. This can be depicted as cash cow for the Boston matrix of the SCAD Ltd.

Question 6: Target marketing

Target marketing is a situation whereby the seller decides to divide the whole market to smaller and manageable target market. The process may involve positioning, segmenting and targeting. This involves critical analysis of the market possibly through market research. SCAD Ltd in UAE could possibly be a positioning orchestrated by porter’s five forces analysis.

Question 7: 4Ps

4 Ps are very important aspects in marketing and they include price, product, promotion and place. For effective marketing, a company must try to produce high quality products, sell them at the right price and place. It should also ensure that the clients are aware of the products through promotions and advertisement. SCAD Ltd has applied the 4Ps effectively thus has been successful since 2008(Kotler& Armstrong, 2010).

Question 8: 6 steps

The six steps involved in purchasing process is entailed in the human behavior. It involves recognition, search, pre-purchase, purchase consumption, post purchase and repurchase behavior. After understanding the consumer behavior then the company can effectively realize its objectives which will help increase sales.

 

Reference

Kotler, P., & Armstrong, G. (2010). Principles of marketing (13th ed., global ed.). Upper Saddle River, NJ: Pearson.

 

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