It is known in Singapore and Thailand the market share of ASCII is low but still one of the leading brands. This paper mainly focuses on ASCII and Sean countries development and growth and how it impacts the bunnies by entering their market. But this paper mainly focuses on major countries Like Singapore and Thailand they are the emerging market and high business prospects PEST analysis Is used for understanding the growth or decline of the market this paper focus on PEST analysis of Singapore,and Thailand but main focus is Singapore.
PEST Consist of Political, Economic, Social and Technological. Singapore is well known for its grasping culture. People push themselves in quest for ACS. (Cars, cards and country clubs,) Singapore thrive themselves to excel even at young age even with the amount of stress people have Singapore Is known as the happiest countries In Salsa ports from BBC news.
Political Factors Political Climate in Singapore is stable, Being considered centralized the political culture is down-to-earth, rational,and based on the rules of laws, Where as Thailand has a democratic form of government with king as the state head, Thailand is a sovereign free to conduct Internal and external affairs without pressure or control from other countries-Government plans the policies for the country and plans for the development of the nation. Being positive the government believes to think for the future.
Although Singapore refer to the current ruling party PAP (People's Action Party) as 'Pay and Pay, it is the PAP's governance and policy decisions that have contributed to Singapore political stability, social harmony and economic prosperity. Infrastructure and conditions for Investment, Including ensuring the rule of law, were Economic Factors Singapore boasts of a competitive, corruption-free, open business environment. The Port of Singapore is one of the busiest in the world as the country focuses on electronics and chemical exports to richer industrialized nations.
However, over the years, Singapore has diversified its economy and today it has become a research amp; development hub, bio-medical hub, banking and finance center and in recent times the health-care destination of Asia. Today, Singapore is a knowledge-based economy and attracts multinational investments. Its open trade policies, social stability, world-class infrastructure and international communication links, are some of the reasons why foreign investors flock its shores.
This is despite the fact that land and labor costs have risen sharply and employers have to pay a sizable portion of their employees' salary to their Central Provident Funds. Besides Thailand strong classical system and stable government it also has a suitable structure and foundation for contributing to the economic development. Moreover it has embraced free trade system and promoted international trade and investment . Since the export-oriented Economy depends on the stability of world economy Thai government also focus on developing infuriates .
Singapore is the second most competitive economy in the world according to the World Economic Forum's 'Global Competitiveness Report 2011-2012. According to the Heritage Foundation's '2012 Index of Economic Freedom' Singapore is the second freest economy in the world. The country is also known for its low tax regime. In Singapore, personal income tax rates start from 0% and are capped at 20% for residents while non-residents are taxed at a flat rate of 15%. The corporate income tax rate in Singapore is approximately 8. 5% for profits up to S $300,000 and a flat above $300,000.
The main goal is to developed and create valuable knowledge base that can be adopted and can extant for local benefits and the level of Research and Development activities to drive forward the economies through efficient use of research network and resources Strengths ASCII has established it self as a Inch brand in Sportswear industry as it is only focused in running shoes. Marketing and Innovation play a key role for ASCII many within the firm and the Research and Development is the heart for Innovativeness and are the key for raising the market share in Sean market.
ASCII also sponsors many international teams and major events both internationally and Local ASCII has a strong brand image in Japan and American continent. Weekends Because of divergent regional strategy brand communication to the customer is not consistent, Store formats is regional based. They do not have a Non Unified procurement source. Customer's perception about Acacias as a Non-laconic brand. Lacking presence on web. ASCII should focus only running shoes and its accessories associated with running shoes like Apparels etc.
ASCII main weakness is to create awareness in countries where sports is not a culture, Its marketing strategies is divided by regions where as competition strategy is global strategy. Opportunities ASCII main opportunities is to increase awareness in emerging countries and build awareness, Integrate e-business into the business model and create more online web service to make customers more comfortable and aware of ASCII. ASCII should do sponsoring events both international and local. Threats Major threats for ASCII are that their are many compositors in the market which moment in sports shoe and use global strategies. Monitors threat is high as most of them are global and ASCII need to adapt to global strategy to compete with other markets. ASCII will have to compete with competitors to sustain in the market. Competitors also make counterfeit shoes; they need to dado and strategies according to their needs. Competitors analysis Mike and Addis both companies produce identical product lines of the sporting footwear, appear and equipment. There selling and branding strategy are very different Addis store offers fairly traditional sporting goods and store layout.
However Mike takes an alternative approach. Their communication strategy also differs. Mike always offers a fully integrated communication to the customer thereby improving the customer awareness on the complete range of products. Mike also creates a narrative around its products which increases the brand value and awareness. Daisy's strategy of devoting a distinct identity for each sport for smart and effective. Both Mike and Daisy's provide customers with simpler more conclusive experience that is loud and clear.
But the market share for ASCII competitors are higher the data is show below. Source: (http://www. Slideshows. Et/ravi9579654571 [sport-shoe-industry) The above diagramed which is represented in a pie chart form shows ASCII market share globally along with its competitors like Mike which has 31% of market share and Addis has 16% followed by Rebook,Puma and other shoe manufacturing brands. For Acacias to improve its market share in Asia and globally it has to increase its brand awareness and change its strategies so that ASCII can maintain its brand and name so as to compete' n the market.
In conclusion ASCII when entering into the new market or Sean counties it should change its target market or go according to the customer deeds ASCII needs to chance the way it is in local market for it to become a more popular brand all over. Moving into the new market is not easy it has to take into consideration the environmental factors like PEST which looks into each aspect of Sean countries and the culture and behavior of people also the technology available in those countries since Japan is highly developed and advanced technology .
It not only needs to look into these markets but consider changing the strategies and going global Like all market researchers say' Think Local go Global". Q What might be major obstacles and barriers in entering into the SEAN markets? Suggest some possible solutions to overcome the obstacles and barriers in entering the SEAN market. Barriers to market entry include a number of different factors industry. For example, an industry may require new entrants to make large investments in capital equipment, or existing firms may have earned strong customer loyalties that may be difficult for new entrants to overcome.
The ease of entry into an industry in Just one aspect of an industry analysis; the others include the power held by suppliers and buyers, the existing competitors and the nature of competition, and he degree to which similar products or services can act as substitutes for those provided by the industry. It is important for small business owners to understand all of these critical industry factors in order to compete effectively and make good strategic decisions. ASCII needs to consider the culture, customer loyalty and other aspects in entering the Sean market which is a major obstetrical for the company.
The ease of entry into an industry is important because it determines the likelihood that a company will face new competitors. In industries that are easy to enter, sources of competitive advantage tend to wane quickly. On the other hand, in industries that are difficult to enter, sources of competitive advantage last longer, and firms also tend to develop greater operational efficiencies because of the pressure of competition. The ease of entry into an industry depends upon two factors: the reaction of existing competitors to new entrants; and the barriers to market entry that prevail in the industry.
Existing competitors are most likely to react strongly against new entrants when there is a history of such behavior, when the competitors have invested substantial resources in the industry, and when the industry is hardhearted by slow growth. In his landmark book Competitive Strategy: Techniques for Analyzing Industries and Competitors,Michael E. Porter identified six major sources of barriers to market entry: 1. Economies of scale. Economies of scale occur when the unit cost of a product declines as production volume increases.
When existing competitors in an industry have achieved economies of scale, it acts as a barrier by forcing new entrants to either compete on a large scale or accept a cost disadvantage in order to compete on a small scale. There are also a number of other cost advantages held by existing interiors that act as barriers to market entry when they cannot be duplicated by new entrants as proprietary technology, favorable locations, government subsidies, good access to raw materials, and experience and learning curves. 2.
Product differentiation. In many markets and industries, established competitors have gained customer loyalty and brand identification through their long-standing advertising and customer service efforts. This creates a barrier to market entry by forcing new entrants to spend time and money to differentiate their products in the marketplace and overcome these loyalties. 3. Capital requirements. Another type of barrier to market entry occurs when new entrants are required to invest large financial resources in order to compete in an industry.
For example, certain industries may require capital investments in inventories or production facilities. Capital requirements form a particularly strong barrier when the capital is required for risky investments like research and development. 4. Switching costs. A switching cost refers to a one-time cost that is incurred by a buyer as a result of switching from one supplier's product to another's. Some examples of switching costs include ND redesigning products.
High switching costs form an effective entry barrier by forcing new entrants to provide potential customers with incentives to adopt their products. 5. Access to channels of distribution. In many industries, established competitors control the logical channels of distribution through long-standing relationships. In order to persuade distribution channels to accept a new product, new entrants often must provide incentives in the form of price discounts, promotions, and cooperative advertising.
Such expenditures act as a barrier by reducing the profitability of new entrants. 6. Government policy. Government policies can limit or prevent new competitors from entering industries through licensing requirements, limits on access to raw materials, pollution standards, product testing regulations, etc It is important to note that barriers to market entry can change over time, as an industry matures, or as a result of strategic decisions made by existing competitors. In addition, entry barriers should never be considered insurmountable obstacles.
Some small businesses are likely to possess the resources and skills that will allow them to overcome entry barriers more easily and cheaply than others. Low entry and exit barriers reduce the risk in entering a new market, and may make the opportunity more attractive financially," Glen L. Urban and Steven H. Star explained in their backhanded Marketing Strategy. But "in many cases, we would be better off selecting market opportunities with high entry barriers (despite the greater risk and investment required) so that we can enjoy the advantage of fewer potential entrants. Q Recommend an appropriate brand strategy for the SEAN market. Justify your answer. For a company like ASCII to enter a emerging market it needs to consider retain attributes Like what strategies to adopt and what kind of Plans to implement. To enter a emerging market like Sean market there are many factories to consider along the way and ASCII needs to consider all these in view for them to enter into the market. There are some strategies which can be considers while entering Sean markets like Indonesia, Vietnam OR Singapore.
They are Greenfield, Acquisition, and Joint ventures OVA) these three are some of the common strategies which can be used by ASCII in order attain market in new emerging countries there are others like Standardized and Adaptation methods as well. For ASCII to bulb its brand it needs to differentiate it self from its rivals, stand out from competition,lenience a consumer's purchasing decision to company favor and build loyalty boost share of company's performance.
Firms need to consider all these aspects as the try to create brand awareness in a new country. Many Sean countries use these methods to create brand awareness. So for ASCII to enter a new or emerging market it needs to take into account all these factors to create awareness. The strategy of ASCII can either associate with is Accession or Greenfield. Acquisitions is basically acquiring a manufacturing company or taking the company as a part of ASCII.
ASCII can use this method to build its market share and build awareness quickly as they have labor cost reduced, Infrastructure available, and ASCII need not worry about the whole Acquisition is the best way ASCII can go into a new market. Greenfield is starting from scratch looking into market and implementing the strategy. The best way ASCII can build its brand and enter the market is through Acquisitions and adaptation where it can adopt to the countries environment like its culture, taste, style,weather conditions and Income.
All these factors will help ASCII starting their business in the new emerging country. In Conclusion ASCII needs to consider all the aspects of the market in Asian countries and how to build brand awareness. ASCII can't enter the market easy as the strategies are different in certain countries. ASCII can use adaptation strategy to enter the market as it can use these factors and consider to start manufacturing their product. ASCII in the future can become or compete with Mike or Addis if they use the right strategy and right method to build brand awareness and improve company performances.