Burhanogullari and its Competitive Environment
Market competition has become the order of the day. Every business is exposed to stiff market competition with the primary aim of having control of the entire market. In the journey to success, companies are faced with various challenges that hinder their smooth development and growth. If the business tries to increase its market share, other businesses also struggle to get a portion of the market. However, smart companies survive and lead in the hunt for the larger share of the market. Burhanogullari, shoe care company, is destined to achieving its mission and vision as it strives to survive in the competitive world market.
Burhanogullari and its Competitive Environment
About Burhanogullari
Burhanogullari has been in operation since 1975. The company that majors in the production of shoe care products import the raw material that it uses in the production of the shoe polish and other related products. The company is based in Turkey in a Beylikduzu society (Kim & Ko, 2014). The company operates in more than 55 countries across the world. However, the company is not alone in the business and has been faced with stiff competition from the other international companies such as Kiwi. Kiwi, for instance, has enjoyed a monopoly in the global market, making the world market extremely difficult to penetrate by newcomers.
The primary mission of the organization is to satisfy the demand of its customers and make a profit (Kim & Ko, 2014). Companies involved in the production of goods and services have an obligation to be environmentally conscious and ensure that they add value to the environment at every level of output (Jansen 2001). Both the consumer and the produces require a clean environment for effective production and living. Therefore, any activity that interferes with this environment is not allowed by the business. Don't use plagiarised sources.Get your custom essay just from $11/page
Real success is achieved where there are difficulties. Every successful business must have passed through numerous challenges. However, these challenges are not meant to harm the company but to make them stronger (Jafari et al. 2016). For a business to overcome the problem and achieve its objectives, it will need robust strategies in place to be able to achieve the set goals. Alongside the strategy are the core values that the business has to the follower for the approach to work effectively. One and the most important value is customer care. Customers are rational beings with the ability to make choices based on change and the ability of a new product to satisfy their needs than the previous one (Jiayin & Bo 2012). The company product should, therefore, aim at making a difference in the customers’ taste and preference (Hongmin 2004). If a new customer comes into the market, he or she will compare the available product by making a random purchase (Kim & Ko, 2014). The shoe product that will bring a convincing satisfaction will carry the day and have the customer loyal to it in both the short and long run.
Competitive Environment
Other firms in Europe give stiff competition in the market. Also, north America consists of big companies that are engaged in the production of shoe care products. Burhanogullari should have known its customers as the priority to any other activity (Macdonald 1991). It should understand its customers better than anyone else in the market; one business has identified its loyal customers. It should learn to keep these customers under its care and ensure they remain loyal. Getting customer may not be a big deal but maintaining them within the product chain (Jafari et al. 2016). Consumers have the characteristics of looking for their satisfaction from the variety of products in the market (Jansen 2001). Every new consumer will move around the market, trying to find the best shoe product that will fit their demand (Kim & Ko, 2014). During this time, the business takes the advantage and win the consumer with a quality product. Once a consumer identifies with a particular seller, he or she will develop loyalty and continue as a regular customer.
Decision Making Process
Decision-making process starts when a business immediately realizes the need to change its operation techniques in a competitive environment. The company will rely on strategy formulation to fit in the competitive market. It will initiate its strategies based on business values and ethics. By offering great product and services to the consumers, the business will not only be making huge sales but increases its market share in the competitive market (Jiayin & Bo 2012). However, these clients may not just come directly to business but will have first to have information about the products in the market. It is the role of the company now to initiate a strategy to attract clients to service (Kim & Ko, 2014). Customers will only approach products that they have enough information about. It is the trait of the customers to move to the point of information where they at least have some information about a product in the market.
To have customers come for shoe care products, the business should consider conducting product promotion. Product promotion can be done through advertising. Advertisement can be done through various channels that capture a good number of consumers (Jiayin & Bo 2012). Most of the shoe consumers are middle-aged people who are also active in social media. Social media is the place to find most of the youths. Taking advantage of this, the company will consider advertising through the platform to make new consumers know of its products.
Branding
One key marketing strategy that the business should consider is branding. Branding talks for the industry as it gives a brief description of the value of the company. Branding consists of the name and logo of the business (Jiayin & Bo 2012). From the logo, a consumer will have the opportunity to analyze the product and make the decision based on the description quality on the logo (Jiayin & Bo 2012). From the emblem, one can make a judgement on the quality and the content of the product (Jafari et al. 2016). For instance, alcohol drink with the lion logo convince the consumer of the mighty power of lion that exists on the bottle. Therefore, branding is a crucial feature that should be considered when making an advertisement. Branding determines the value that a business has in the market. Branding set the company apart from its competitors. Consumers will consider a brand from the rest following the quality attached to the brand that the consumer feed attached (Hongmin 2004). Using a celebrity on a brand adds value to the brand. It will also tell about the business DNA that help the consumer choose the content of their demand. The business staff are identified with the brand and get motivated.
Website Technology
Globalization has changed the way people behave with the Internet. Today before one could ask about a product, he or she will move to the Internet to check on various websites to know about product availability. Website advertisement will enable the business monitor and weigh its strength in the market as it checks the number of people who visit its website daily compared to other companies in the same market (Lovelock & Gummesson 2002). As people visit the site, they get to learn more about a product and make a decision as more information is provided about the product.
Online advertising
Advertising has gone through gradual development, from billboards to online platforms. The Internet has become the order of the day that every individual or business take a rest. Human society cannot survive today without visiting the Internet (Bejou, Keningham, & Aksoy 2013). Through these visits, google has taken advantage to create advertising platforms that various businesses visit and post their business information. Having pictures and videos on the shoe products popping up on the Internet whenever one uses the Internet allows the company to reach many internet users (Kim & Ko, 2014). Since this platform consists of many businesses advertising, the quality of the videos and pictures will make the difference. Consumers will only be attracted to striking colours and exceptional videos that are short and interesting (Johnson, 2016). The videos should demonstrate the use of the shoe and be able to demonstrate its unique quality from the rest of the other products.
Various marketing techniques can be used, but only a few can provide positive feedback to the business progress. A strategy that works best for one firm may not give the same result for another business (Jafari et al. 2016). Therefore, there is a need to provide various trials and ensure the best strategy is identified for adoption. An approach will be considered best when its return on investment is positively identified. A good strategy is one that results in profit when an investment is placed (Lovelock & Gummesson 2002). Also, a strategy that adequately considers the core values of the business will qualify approval (Thompson et al. 2005). A strategy may give a positive return, but if it violates the production policies, it will not be considered. The business has to understand policy terms such as environmental conservation and protection during production and marketing.
Business Success
From the strategies above, Burhanogullari has been able to experience a definite increase in market share following an increase in sale. The competition is controlled by cost and benefit that various firms incur in the production (Jiayin & Bo 2012). The cost incurred as the firms advertise, produce, and on other expense all affect production cost. The benefit of a firm is calculated by subtracting total production cost from the total revenue. The remaining amount is the profit gained by the firm in a given financial period (Kim & Ko, 2010). Every business will try as much as possible to maintain a positive balance to avoid loses (Jafari et al. 2016). The company mostly competes in prices by trying to lower their prices to attract customers to their products. However, every seller will maintain amount not less than the production cost to continue making a profit (Bejou, Keningham, & Aksoy 2013). The advertising cost, therefore, must be balanced with the benefit that it brings to the business in terms of return on investment.
Learning Points About Strategy
According to Jiayin & Bo (2012), the business competition involves various parties taking part in the struggle to win customer to their products and services (Swamidass et al. 2001). In the war, there is always a leader and a follower. The leader makes the first step, and the followers spontaneously study and make second and third movements. Being a leader has both positive and negative impact on business performance (Lovelock & Gummesson 2002). The leader studies the market and decides on price or any other marketing strategy. The followers, on the other hand, watches the leader make a decision and then counter it with a strategy they consider better than the leader (Bejou, Keningham, & Aksoy 2013). The competition on price and quantity in the market leaves firms with the dilemma on the price to charge after a leader has made a step (Kim & Ko, 2014). In some case, the leader may decide to charge high price leaving the followers with three options; higher, equal or a lower price (Jafari et al. 2016). All these firms rely on the reaction of the consumers to make a profit. Consumers at some time may decide to purchase commodities charged at a high price with the view that they may contain high quality (Berman & Hagan 2006). Also, another group may rush to purchase commodities of low price to meet their constrained budget.
Another thing to consider is the gradual change in the world market trend. Things continue to change with as technology advancement continues (Jiayin & Bo 2012). North America had dominated the business world with most of the production industries found in the United States of America (Lovelock & Gummesson 2002). Today, Asia is taking a positive direction and is giving Europe and North American countries stiff completion. For example, china economy has continued to improve from developing to a developed country. The Republic of China has become a threat in terms of development as compared to other developing countries (Jafari et al. 2016). This is a demonstration that there is no dominance in the market competition (Berman & Hagan 2006). Every business has the opportunity to rise above the pioneers. Given the equal opportunity, every firm can bank on its strategy to achieve the best in the market. A well-placed approach will see businesses increase their market shares in the competitive world market.
Business is not only about profit, but it also involves making a risk for long term gain. Most of the successful companies had at one time in life taken risks (Hongmin 2004). Financial analysis involves a detailed determination of cost and profit involved in the production of goods and services (Lovelock & Gummesson 2002). Any gain made at the expense of employees’ welfare should not be considered a profit is gained when resources are appropriately used to earn income in the business.
Conclusion
To summarise, business is about competition for the scars market with unlimited products. In every market, there are excess goods and services with limited buyers whom the sellers scramble to get. It is from the limited consumers that businesses are forced to compete. Each business has an equal chance to convince the consumers that it has the best quality that will satisfy the client. The competition also involves businesses set strategies that work better than other approaches. A firm with the best strategy will have the lion share of the market. The strategy involves customer satisfaction at a reasonable price. Branding has also been found as a significant factor in competition. Businesses use their brand name to remain relevant in the market, even for a more extended period. Among the competitive strategies, advertisement is the main action taken by serious business to compete. Various advertisement channels and methods can be used to achieve product promotion by Burhanogullari shoe industries. The shoe is a commodity with high demand that its competition cannot be very high compared to other commodities such as drinking water.