Cosmos
Give a overview of the various competitive strategies used by the various business organizations.
The “level of competition which the various business organizations face in the present times has increased significantly”(Barney 2014). This is “generally considered to be a reflection” of the “advent of globalization” and the recent “advancements in the field of technology and the various innovations” (Barney 2014). Therefore, the various business organizations often “take the help of various market analysis tools in a bid to analyze the level of competition faced by them” (Wagner and Hollenbeck 2014). Furthermore, these analysis tools often help “the various business organizations” not only to find out the “level of competition” faced by them but also to formulate as well as implement effective strategies for the “effective mitigation of the competition faced by them” and also to outrival their competitors in the business market (Wagner and Hollenbeck 2014). This particular intends to give an overview of the market analysis of three companies belonging to three different industries on the basis of their analysis on basis of three strategic tools.
The company “Cosmos” was founded in the year 1928 around 80 years by a man called “Globus Viaggi” (Cosmostours.com.au. 2018). Furthermore, it is “significant to note that the company was founded with the help of a single row boat and from then on the company took the help of the concept of merger and collaborations to become one of the largest tourism business organizations in the nation of Australia” (Cosmostours.com.au. 2018). However, the real change in the company came with the “advent of globalization and the changes in the field of technology and the recent innovations”. Moreover, the national as well as the international tourism norms have greatly contributed towards the success attained by this particular business organization. An analysis of this “particular business organization” on the framework of “Porter’s five forces” would reveal the following facts-
“Threat from new entrants”
The company “Cosmos” has been in business for almost 80 years and has a stable market in the nation of Australia (Cosmostours.com.au. 2018). Furthermore, the company provides very attractive offers to the customers and in addition to that “offers a wide range of destination choices” to the customers. On the other hand, it is very difficult for the new companies to sustain themselves in the competitive business market of the nation of Australia. Therefore, it “can be said that the company faces a very low level of threat” from the various “new entrants in the market”.
Academies Australasia Group Limited
“Threat from rivals”
The company has several rivals in the nation of Australia like “Intro Travel”, “Intrepid Travel” and others (Cosmostours.com.au. 2018). However, in order to outrival its competitors the company follows the policy of price competition and also the destination choices which it offers to the customers are very unique (Cosmostours.com.au. 2018). Therefore, it can be “said that the company faces a very low level of threat from its various existing rivals in the business market” of Australia.
“Bargaining power of the buyers”
The customers have become a very fickle in the recent times and they constantly switch from one company to another in a bid to get the best deal for themselves. This might be seen as a reflection of the increase in the number of options which are available to them. However, as already mentioned that the company under consideration here follows a policy of price competition and the deals offered by it are the best among the ones provided by the various companies in the nation of Australia (Cosmostours.com.au. 2018). Therefore, it can be said that the “bargaining power of the buyers” is very low.
“Bargaining power of the suppliers”
The various “suppliers of the company” “Cosmos” can be said to be hotels, tourist guides and others who form an integral part of their business (Cosmostours.com.au. 2018). However, it “is significant to note that the company takes the help of multiple suppliers in a bit to reduce the bargaining power of its suppliers” (Porter and Heppelmann 2015). Therefore, it can be said that the bargaining power of the various suppliers related to the company is very low.
Industry rivalry
It is true that there are many companies in the nation of Australia operational in the field of tourism. However, the kind of packages which the company “Cosmos” provides to the various customers is very enticing and therefore “it can be said that the company faces a very low level of threat from the concept of industry rivalry” (Porter and Heppelmann 2015).
Education industry: Academies Australasia Group Limited
The company “Academies Australasia Group Limited” is one of the largest educational companies “in the nation of Australia” and provides a range of educational services to the students of Australia (Academies.edu.au. 2018). It is “significant to note that the company” has tie ups with more than “250 qualifications across campuses in Sydney, Melbourne, Brisbane, Perth, Adelaide, Dubbo, the Gold Coast, Armidale and Singapore” and helps the students not only for their admission purposes but also for their course work as well (Academies.edu.au. 2018). An analysis of this particular company on the “Blue Ocean Strategy” would reveal the following facts-
ITOCHU Australia
The “Blue Ocean Strategy” comprises of an innovative product or service offered by a particular company or business organization which is very revolutionary and is not being offered by the other companies or the business organizations (Kim and Mauborgne 2014). Following this strategic framework the business organization “Academies Australasia Group Limited” offers not only admission help but also provides educational guidance with the course work of the students (Academies.edu.au. 2018). It is significant to note that is a service which is not offered by any other educational company in the nation of Australia. Most of the educational companies of the nation of Australia offer only admission guidance to the students and the educational guidance with the course work. Furthermore, the cost of the services offered by this particular company is very nominal in comparison to the services offered by the company (Academies.edu.au. 2018). Thus, it can be said that the company “Academies Australasia Group Limited” following the precepts of the “Blue Ocean Strategy” offers unique service to the students which are not being offered by the other educational companies in the nation of Australia and this particular strategy has helped the company to become one of the leading educational companies of the nation of Australia (Kim and Mauborgne 2014).
Agriculture Industry: ITOCHU Australia
The Australian company “ITOCHU Australia” was founded around 60 years ago and is a collaboration of the Japanese company “ITOCHU Corporation in Japan” (Itochu.com.au. 2018). The company “ITOCHU Australia” initially started “its business in Australia by buying and exporting wool” (Itochu.com.au. 2018). However, presently the business organization offers a range of services to the customers like “trading in primary and natural commodities such as iron ore and coal, grains, wood chips and foodstuffs, as well as materials such as chemical products” (Itochu.com.au. 2018). It is a reflection of this that the business organization in the last 60 years has become “one of the largest business organizations in the nation of Australia” (Itochu.com.au. 2018). An analysis of the company “ITOCHU Australia” on the “Ansof Matrix” would reveal the following facts-
It is significant to note that following the strategic framework of the tool of “Ansof Matrix” the company uses the concept of market penetration “to bring about the overall growth as well as the development of their overall business activities” (Itochu.com.au. 2018). Therefore, the company always keeps the prices of its products very low in a bid to reach out to a larger proportion of population (Hussain et al. 2013). Furthermore, the company also relies on effective promotional and distributional networks for the purposes of the promotion as well as the distribution of their products (Itochu.com.au. 2018). In addition to that, the association of the company with the Japanese company “ITOCHU Corporation” is considered to be an added advantage for the Australian company (Itochu.com.au. 2018). Furthermore, the company has entered into various collaborations with the other Australian companies like “CITIC and the CP Group” (Itochu.com.au. 2018). Moreover, the company also takes the help of the practice of “modest product refinements” for the development as well as the manufacture of their products (Itochu.com.au. 2018).
Conclusion
To conclude, it becomes apparent that the competition faced by the various business organizations in the present times has increased in an exponential manner. Therefore, most of the “business organizations in the present times often take the help of the various strategic frameworks to analyze the level of competition faced by them” and also “to devise the relevant strategies for the mitigation of the competition” faced by them. It is “significant to note that in the present times the range of strategic frameworks” available to the various business organizations are numerous and thus they take the help of the strategic framework which suits the nature of their business in the most effective manner. it is significant to note that these strategic analysis framework tools not only help the various business organizations to analyze the level of the competitions but also tells them about the various strategies which they need to follow to outrival their competitors in the business market and also tells them about the way they need to design the products or the services offered by them to the customers
References
Academies.edu.au. 2018. Academies Australasia. [online] Available at: https://www.academies.edu.au/ [Accessed 16 Apr. 2018].
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.
Cosmostours.com.au. 2018. Best Value Holiday Packages | Cosmos Tours. [online] Available at: https://www.cosmostours.com.au/ [Accessed 16 Apr. 2018].
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.
Itochu.com.au. 2018. ITOCHU Australia Ltd.. [online] Available at: https://www.itochu.com.au/profile.html [Accessed 16 Apr. 2018].
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.
Porter, M.E. and Heppelmann, J.E., 2015. How smart, connected products are transforming companies. Harvard Business Review, 93(10), pp.96-114.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive advantage. Routledge.
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