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MARKETING STRATEGY
Situation of 2013 has arrived, along with the strategic marketing, new policies from the
government, the industry has been transmitted, expectations for the real estate business with
feasibility year. by his remarks Trinh Dinh Dung Construction Minister commented as follows:
"Certainly the market will improve," but also conflicting views as he Troy Girffiths, deputy executive
director of Savills Vietnam Nam) he said, "the real estate market in 2013 continued difficult -
According to our forecasts, the real estate market in 2013 continued difficulties. In Hanoi alone,
rising supply approximately 60,000 apartments from 110 projects, villa market continued to fall, villa
land continues to decline”. Therefore, an organization has to be realistic when considering market
strategies. Organizations resources are scarce and spreading resources too thin can be fatal.
Understanding which market has the most potential will allow your business to exploit and gain a
sustainable competitive advantage.
1. Explain each strategic dimension with appropriate examples. Explain the usefulness of each
strategy for different types of products and services. (There are five strategic dimensions)
The marketing function provides important feedback for strategic planning in a company. To
make a strategic planning for each organization, Strategists should be focusing many the factors such
as: the company’s mission, objectives and goals, designing the business portfolio, growth and
functional planning. Then To be able to outline the marketing process and the development of the
marketing mix and also marketing strategies for competitive advantage with a support from the
electronic business in relation to strategic planning and marketing.
To dimensions to market strategies we should be justified by a viable market and
development of strategy must be tied in to the target market, also demistion for market strategies deal
with the markets to be served and market strategies must be validated with financial goals
1.1 Market-scope strategy
Real estate market has existed in many different market segments for each company there are
many ways to develop their own a Market scope strategy and the strategy also make sure deals with
the coverage of the market. We will consider each of the market segments through a number of real
estate strategic company has been made.
For some examples:
+ Design and Manufacturing Corporation (D&M): high growth potential; market domination;
and absence of a manufacturer to supply large retailers. These conclusions to enter the dishwasher
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market and to concentrate his efforts on a single segment (national retailers). The company has
emerged as the largest producer of dish-washer in the world with over 36 percent of the US market.
+ Tampax (Procter & Gamble purchased this business in 1997) could not afford to compete
head-on with these major brands. Starting from a premise that had great appeal for the young user,
that internal protection offers greater freedom of action, Tampax concentrated on reaching young
women. Single market strategy has proved to be highly beneficial.
+ Noxell Corporation (a division of Procter & Gamble), in the competitive field of cosmetics,
marketer of the popular Noxzema and Cover Girl brands of makeup and skin cream, found success in
a single of the $15-billion cosmetics industry that its rivals disclaim: the mass market. Noxell’s
products are aimed primarily at teenagers and evoke the image of fresh-faced natural beauty. Widely
distributed and heavily advertised, Noxell’s brands are easily recognizable by their low price.
1.1.1 Single Market
According the summary by slide of (PGDBM 339) BIM Bangalore as follow:
- To avoid confrontation with large competitors.
- Better gains from a single segment.
- Create exclusivity for brand.
- Work with lower cost of sales distribution and collection.
- Seeking a segment that is too small, too risky or to unappealing.
1.1.2 Multi Market
- Segment comfort is important
- Avoid companies that serve the entire market
- Either sells different products in different segments or selling the same product in different
Segments.
- For some example:
o Crown Cork and Seal Company, Crowning Achievement, Forbes (29 October 1990): metal cans,
bottle caps, closures, and filling machinery for beer and soft drink cans. Crown Cork and Seal, as
a matter of strategy, decided to concentrate on two segments: cans for such “hard-to-hold”
products as beer and soft drinks and aerosol containers. Its new strategy paid off. The company
outperformed its competitors both in sales growth and in return on sales in the 1980s and 1990s.
The industry is characterized by a really dynamic environment: technological breakthroughs, new
concepts of packaging, new materials, and threats of self-manufacture by large users are common.
o Toyota Motor Corporation introduced its Lexus line of cars in 1989. The car was directed toward
luxury car buyers who traditionally had looked to BMW and Mercedes-Benz. Toyota entered a
different segment with different product.
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o North Face, Inc., the leader in high-performance outdoor clothing, decided to broaden its market
base by extending the business to the casual sportswear market. The company plans to increase
the number of stores selling North Face after 2001 from 1,500 specialty stores up to 4,000
retailers.
1.1.3 Total Market
- Evolves over a number of years of operation.
- Coupled to market and segment growth.
- Create new segments and control from the beginning.
- Highly risky approach and needs strong financial resources.
In short, under a market-scope strategy, a company may either choose to segment the market
or to pursue a single-market strategy. Market-scope strategy thus specifically amounts to:
(a) Identification of the bases for forming market segments or establishing criteria for segmentation,
and (b) Choosing to serve a single market, several distinct markets, or the entire market.
When we talk for word ""real estate", we have a common vision that is real estate or other
fixed assets of great value to real estate phrases and segmented into many forms such apartment
segment include segment apartment, middle segment and the budget segment, villas and townhouses,
Land that in response to each strategy that each company can participate in order to develop the most
effective ways by the capacity of each company. Evidence for segment group customers of BCCI
company as follows: (from the website of BCCI)
Group customer investment: accounting for 60% of the total number of potential customers.
- Characteristics: always looking for ospportunities to invest in the project profitability, market
sensitive information; create customer groups shifted investors, causing the market price increases.
- Requirements: Oriented projects in the areas of development, the ability to sell quickly, the
prestige of the owner.
- Customer security groups: Accounting for 40% of the total number of potential customers.
- Features: Purchase money accumulated over the years, limited affordability, slow buying decision,
there are many search operations, selection, many participants decided to buy.
- Requirement: Complete legal, appropriate price, social facilities such as schools, hospitals,
markets, convenient payment methods.
At this strategy we also seeking changes in market scope to make sure our strategy can
Change drivers – environment, customer preferences etc. Market is a moving target and market
strategy needs to align with change in business strategy.
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- For example:
o General Motors: Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac has traditionally directed its
effort to securing an entire market, along with a variety of small trucks, the company attempts to
compete in all conceivable segments.
o Coca-Cola: That is a company has Coca-Cola, Diet Coke, Tab, Sprite… to satisfy different
drinking tastes. It also has a brand of orange juice, Minute Maid, for the segment of consumers
who drink juice rather than carbonated beverages.
1.2 Market-geography-strategy
When the organization build the market geography strategy, the must know and understand
clearly for their ability with the placement of their product, they must have the test for their position
of the market then they will choose from 4 kinds in this strategy include is Local Market, Regional
Market, National Market and International Market.
One of Arthur L.Allen advice, president of Allen Systems Group: "Buy real estate in places
frequented by the rich." Indeed, when buying real estate in areas where there are many rich people
also means climate, natural beauty and the best service ... Not only that you can easily sell your
property for those who have more money and hefty profit.
- Buying real estate has advantageous geographical location: The location factor, the social
environment is more important than your property. Location is convenient for travel?
Communications and easily? The service is convenient? Fresh air or pollution? ... Are the factors
you need to consider? Buy a house with bad vantage point is better than a beautiful house is located
not favorable since the bad is still correct to be desired. If you have the financial ability to buy real
estate with a large area as it promises much higher profit margin.
"Take to the neighboring cities tend to develop. Then buy the land at the main traffic routes.
That's where the real land price is calculated based on the area, not the amount of surface area "is the
heart advice of Douglas Baumwall, a commercial broker with the voice of Collins & Collins
Investments. Depend of the placement of the product and also the demand of social we can building a
Market geography strategy how to giảm the Weakness Increase the strength and then better
management of the market risk. A company should be use this strategy as a strategic variable in
shaping market strategy. Many Businesses started locally and gradually expanded nationally or even
internationally. Geographic expansion becomes an attractive choice when seeking growth.
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1.3 Market entry strategy
Before choosing a market entry strategy takes the time to evaluate your business and its
strengths and weaknesses. And we should be answering the following questions:
- How is business conducted in your industry sector and in the target market?
- What are experience does your company have?
- How much finance do you have available?
- How much after sales support or service is needed?
- What level of resource commitment are you prepared to make?
- What is your current level of ability to increase capacity?
- What entry option is best suited to your product or service?
So know that, this strategy Refers here to the timing of entering the market. Basically, there
are three options from a company can choose: (a) be the first in the market, (b) be among the early
entrants, or (c) be a laggard.
However, the current real estate business can be the absolute cost advantage compared to
those who enter the contest. The absolute cost advantage so born from the invention, as the owner of
a particular technology or human resources, master raw materials as well as the experience to get a
lower cost. If the current Enterprise absolute cost advantages, from those threats will be reduced.
Brand loyalty: brand loyalty will make it difficult for newcomers to enter the contest to take over the
market share of existing enterprises; reduce the threat of entry of potential competitors.
Economies of scale: When the cost advantage in the industry are significant, those who enter
the forced to enter the small-scale and cost-miss advantage, or to accept the risk to enter the large-
scale and large capital expense. More risks can come up with the grand scale that is when supply
increases will reduce product prices, causing intense retaliation of existing enterprises. Thus, when
the current business gets economies of scale, threatening to enter the contest is reduced.
Switching costs: If switching costs are high, customers will be restraining the current enterprise
product, even if the product of the newcomers better.
Retaliation: The Enterprise penetrate a sector, it is necessary to anticipate the response actions of the
enterprises in the industry. Predict the speed and intensity of the current opponent's retaliation will be
able to deter the competitors wishing to enter the industry. The retaliation will be powerful when
existing enterprises in sectors of fixed assets less likely to switch, with significant resources, or slow-
growing industry.
Barriers to entry and competition: If the current Enterprise has built loyalty to their products,
with the absolute cost advantage over potential competitors, there are economies of scale and those
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who benefit from high switching costs, or institutional protection;, the risk of entry of potential
competitors will be reduced significantly. When the risk is low, the current enterprise may require a
higher price and get greater benefits than when the opponent. Obviously, the enterprise should pursue
appropriate strategies to increase barriers to entry.
o Example: Kinder-Care Learning Centers, Apple, Nokia, Royal Crown.
o Early entry strategy.
o Example: Samsung Galaxy, I- pad.
o Laggard entry strategy.
1.4 Market-commitment strategy
The market-commitment strategy refers to the degree of involvement that a company seeks in
a particular market. It is widely held that not all customers are equally important to a company. Under
this strategy, a company strives to make varying commitments to different customer segments. The
commitment can be in the form of financial or managerial resources or both. Presumably, results
from any venture will be commensurate with the commitment made, which explains the importance
of the commitment strategy.
For building Market commitment strategy, an organization must deal with the degree of
involvement thought three level such as Strong commitment strategy, Average commitment strategy
and Light commitment strategy. At three this level, we should be get the High stakes in the market
also requires attacking back competition then Proactive in improving products or we just stand for
Focus on maintenance of status quo (market share, price, customers happy) to pass to a Light
commitment strategy with an Applicable if there is a limited interest in the market, if the market is
stagnant or potential is limited or is overcrowded.
With the aim of diversifying industries, product diversification and trade development
investment real estate business as the core and the same with tokens resources available as strong
financial potential, abundant human resources ...SUDICO constantly evolving, has attracted a team of
experienced staff with professional qualifications and technical skills; always learn and improve
knowledge through co-operation, joint ventures with work at home and abroad, a pioneer in the field
of application of the scientific and technical advances to SUDICO committed to providing our
customers with products and services with high quality and most convenient way to meet the needs of
customers in order to contribute to the development of the country.
SUDICO committed efforts, comprehensive investment all material and spiritual resources to
provide the product works in urban areas, industrial zones and tourism to ensure quality, meet the
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requirements use, in accordance with the requirements of improving the landscape architecture and
urban living environment, work environment and social community (source: website of Sudico)
o Example: anti-caries toothpaste, company with a strong commitment to the market should refuse
to be content with the way things are, it should foresee its own obsolescence by developing new
products, customer services, channels of distribution, and cost-cutting processes. The nature of a
company's commitment to a market may, of course, change with time. The strong commitment to
a market can be highly rewarding in terms of achieving growth, market share, and profitability.
The commitment made to a market should be based on the company's resources, strengths, and
willingness to take risks to live up to this commitment.
1.5 Market-dilution strategy
In many situations a company may find reducing a part of the business strategically more
useful than expanding. In this strategy, organization should be careful with their action, they should
be considering some the factor such as: Customer referral –selling substitute, maintain customer
goodwill, get cash for reinvestment, closing unprofitable point of sale. Restoring balance,
optimization of resources.
Since early 2011, the real estate market in two major economic centers of Hanoi and Ho Chi
Minh City consecutive up-down movement’s abnormalities. But especially in Ho Chi Minh City in
2012 witnessed a sharp decline in transactions and slowing of housing prices. So, this year the real
estate industry will be the most difficult.Many businesses will be "gnashing of teeth" to bear, in many
ways can overcome difficulties such as joint ventures call for...
o Example: retail stores, outlets
2. Provide an evaluation on how each strategy would be suitable or unsuitable for your
selected product or service.
Apply the analysis of the situation of the Vietnamese real estate market, especially the real
estate market in the two biggest cities of Hanoi and Ho Chi Minh City.
2.1 Industry environment analysis
The key to competitive strategy is to consider Enterprises in relation relation to the operation
of the enterprise environment. The mission of the strategy is to analyze and judge the competitive
forces in the industry environment to identify opportunities and threats to your business. To clear
competitive pressures of the industry, we need to apply the five forces model of M. Porter a professor
at Harvard Business Administration, was to provide a framework to help managers recognize the
opportunities and threats that enterprises face in an industry (Michael Porter, Competitive Stratery,
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New York : Freepress, 1980). Framework of the Michael Porter called the five competitive forces
model, is shown in the following diagram:
Figure 1: The five competitive forces model of Michael Porter
Michael Porter pointed out that the stronger the force, the more limited the ability of existing
businesses to increase prices and profits higher. According to Porter's model, a strong competitive
force can be viewed as a threat, because it would reduce profits. The strength of the five competitive
forces can change over time, as industry conditions change. The task set for the administrators to be
aware of the opportunities and risks that the change of five competitive forces will bring, thereby
developing adaptation strategies. Moreover, it is the ability for an enterprise, through the strategic
choice, shifting the power of one or more forces into competitive advantage for themselves.
2.2 Competitive pressure from existing competitors
The first force of five competitive forces of M. Porter is the size of the current
competitiveness of enterprises of the real estate market. If the weaker competitors, real estate
enterprises have the opportunity to raise prices and make more profit. Conversely, when the strong
current competitors, price competition is negligible, and all price competition led to the injury.
Therefore, strengthening the team competition between enterprises in the industry to create powerful
threat with profitability. Competition among real estate enterprises in an industry often include
content such as: industry competitive structure, actual needs of the industry and the barriers to
leaving.
Competitive structure: Competitive industry structure based on the data and the ability to
distribute products of real estate enterprises in the industry. Different competitive structure of
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different applications to compete. The structure of the dispersion varies from industry to industry
sector focus.
Distribution industry includes a large number of small-sized real estate enterprises to medium,
no companies in dominant positions. Distribution sector often have low barriers to entry and the
primary products of a kind little difference. The low entry barriers will facilitate the entry, whenever
the high demand and benefit high nhuat. Normally, the line joining the distribution industry during
the booming demand, creating a potential excess capacity. Thus, distributed industry structure brings
threat than an opportunity for real estate enterprises.
Concentrated sector is dominated by a small number of large real estate enterprises
(oligopolistic) or in extreme cases only a real estate enterprise (proprietary). The nature and extent of
competition in the industry focus is difficult to anticipate. Clear, in focus, the rivalry between the real
estate business and the possibility of war creates major threat. When the price war is a threat, the real
estate enterprises tend to move to compete on other factors such as: advertising, promotion, brand
positioning, functional design and product quality. This type of competition is trying to make a
difference for the real estate enterprise products compared to competitors. However, this strategy
depends on the ability to cause the difference in the product.
Industry demand status: Status of an industry is another determinant of competitive
intensity in the sector. The growth in demand from customers or increase existing customer shopping
soften competition. Conversely, a decrease in demand will push the contention stronger, because at
that time the real estate enterprises have tried to struggle to maintain revenue and market share. Thus,
reducing the need to create a major threat, because this increases the level of competition between the
existing real estate business in the industry. In addition, the slow growth in demand may also arise
threat to the real estate business in the industry.
Barriers to leaving: Barriers to leaving a serious threat to the industry plummeted.
Removable barriers are economic, strategic and relationship to keep real estate business head. If the
high barriers to leaving the real estate business can be restraining a non-profit industry. Other
common barriers include:
- Invest in some sectors that can not change the use or can not be resold.
- Direct costs for leaving the high branches. The real estate enterprises often do not leave the industry
that the direct costs when leave is relatively high (relocation costs and other administrative
procedures, etc.)
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- The relationship between strategic business unit strategies aside. This is also a barrier to leave a
business.
- The value of leadership, relationships, history, industry or local community, can make real estate
enterprises do not want to leave their original sector.
- Cost of social change: The risk of social conflict and training costs.
2.3 The risk from potential competitors
The second force needs analysis is to judge the real estate business will become potential
competitors, potential competitors are the current real estate business is not the same competitive
sector, but can competitiveness if they choose and decide to join the industry. This is a threat to the
current real estate business. The current real estate enterprise in trying to prevent them from potential
rivals to the industry, as more and more real estate enterprises in the fierce competition. The ease and
difficulty to entry of potential competitors depends largely on barriers to entry. Its contents often
include.
The absolute cost advantages: The current real estate enterprises can have the absolute cost
advantage compared to those who enter the contest. The absolute cost advantage so born from the
invention, as the owner of a particular technology or human resources, master raw materials as well
as the experience to get a lower cost. If the current real estate enterprises have absolute cost
advantages, from those threats will be reduced.
Brand loyalty: brand loyalty is only the buyer preference for the product of the current real
estate business. Every business real estate can generate loyalty mark by continuous advertising brand
and the name of the Enterprise real estate, copyright protection of the product, product improvement
through the R & D, emphasis on product quality, and after-sales service. Brand loyalty will make it
difficult for newcomers to enter the contest to take over the market share of the current real estate
enterprises; reduce the threat of entry of potential competitors.
Economies of scale: The scale of the economic situation also known as the economic ladder.
The cost of production, distribution, sales, advertising, services, research will decrease with the
increase in sales, or in other words, the number of production and sales increased, the cost of a single
reduced products. When the cost advantage in the industry are significant, those who enter the be
forced to enter the small-scale and cost-miss advantage, or to accept the risk to enter the large-scale
and take large capital costs. More risks can come up with the grand scale, that is when supply
increases will reduce product prices, causing intense retaliation of the current real estate business.
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Thus, when the present real estate enterprises have economies of scale, threatening to enter the
contest is reduced.
Switching costs: The costs appeared a time when customers want to switch their purchases to
another supplier. The switching costs may be related to the cost of procurement of equipment, staff
training costs, even the consumption of spirits when to end a relationship. If switching costs are high,
customers will be restraining the product of the current real estate business, even if the product of the
newcomers better.
Government regulations: Historically, government regulation has created a large barriers to
entry in many industries. Through licensing or large special requirements, the Government can
control the entry into an industry, such as the regulations on the pharmaceutical business and banks.
Governments often restrict entry to the public sector, by the requirement to provide quality services to
the people and needs to do it.
Retaliation: The real estate enterprises to penetrate an industry, need to anticipate the
response actions of the real estate business in the industry. Predict the speed and intensity of the
current opponent's retaliation will be able to deter the competitors wishing to enter the industry.
Retaliation will be intense when the current real estate enterprises in sectors of fixed assets less likely
to switch, with significant resources, or slow-growing industry.
Barriers to entry and competition: If the current real estate enterprises have built loyalty to
their products, with the absolute cost advantage over potential competitors, taking into account
economic economic scale and those who benefit from high switching costs, or institutional
protection, the risk of entry of potential competitors will be reduced significantly. When the risk is
low, the current real estate enterprises may require a higher price and get greater benefits than when
the opponent. Obviously, the real estate enterprises of interest to pursue appropriate strategies to
increase barriers to entry.
2.4 The power of buyers
Third force in Porter's five forces is the bargaining power of buyers. The buyer of a real estate
enterprise may be the final user (end-user), may be the real estate enterprises to distribute its products
to final users, or the wholesale and retail. The buyer can be viewed as a competitive threat when they
are in a position to force the real estate enterprises to reduce prices or demand for high quality and
better service. In contrast, when the main buyers, real estate enterprises will have the opportunity to
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raise prices and earn greater profits. Buyers may request the real estate business or not depending on
their relative power with the real estate business.
According to Porter's most powerful buyers in the following cases:
- When the offer is made by many industry Real estate enterprises small and buyers are few and
large. This case allows buyers dominated the real estate business offers.
- When buyers make large volume purchases. In that case the buyer could use to their advantage to
buy as a bargaining advantage for the reduced price is not reasonable.
- When the industry depends on the buyer, because a large percentage of their total orders.
- When the buyer can switch between real estate enterprises to provide low cost, stimulate the
companies against each other to lead to lower prices.
- When the economic characteristics of the buyer is procured from some of the company at the same
time.
- When the buyer can use threats of supply when they are capable of vertical integration, they use
this ability as a tool to lead to lower prices.
2.5 The power of suppliers
Fourth force in Porter's five forces model is the bargaining power of suppliers. The supply
pressure can be regarded as a threat when they are able to increase input prices or reduce the quality
of the products and services they provide, so that reduces the profitability of the real estate business.
Conversely, if the supplier is weak, this is for real estate enterprises an opportunity to push down
prices and high quality requirements. As for the buyer, the ability to provide high quality
requirements. As for the buyer, the supplier's capabilities required for real estate enterprises depend
on the relative power between them and the real estate business.
According to Porter providers have the most power when:
- Organisations providing real estate enterprises need only the few, even real estate enterprise
exclusive offers.
- Case no substitutes; real estate business does not have any other offers.
- Real estate business buy customer is not important and priorities of suppliers.
- Type of input, such as supplies of suppliers is important for many real estate enterprises.
- The provider also supplies the vertical integration strategy, ie a closed production
Threat of products and services to replace
Ultimate force in Porter's model is the threat from substitute products. The replacement
product is a product that can satisfy the needs of customers. Its characteristics are often more
dominant products were replaced by individual characteristics. The existence of these alternative
products is a powerful competitive threats, limited ability to increase the value and thus limits the
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profitability of the real estate business. Conversely, if real estate enterprises have fewer substitutes
equivalent (for the weak competitive substitutes), and other factors are normal, real estate enterprises
will have the opportunity to increase prices and increase profits. As a result, its strategy will be
designed to gain competitive advantage from this fact.
With the study of competitive forces, the real estate enterprises can develop a deep
understanding necessary to determine the attractiveness of the industry in the perspective of potential
earnings based on fully invested at or above dominant. In general, the competitive forces as strong as
reduce the potential profit for the real estate enterprise in the industry. A lack of attractive industry
with low barriers to entry, suppliers as well as buyers in a strong bargaining position, threats strong
competition from substitute products and intensity of competition in the industry. Industry
characteristics such large will make it difficult for real estate enterprises to create value and above
average income.
In summary, analysis of the business environment is extremely important for real estate
enterprises. Business environment including the macro environment and micro environment, also
known as environmental sector. The goal of the analysis is to identify opportunities and threats, on
the basis of which the rational management decisions.
Industry Analysis should have abundant real sector data, because this is the careful study and
interpretation of information from multiple data sources. Due to globalization, international markets
and competitors must be taken into account in the analysis of a real estate enterprise. In fact, studies
show that in some sectors, the international event is sometimes more important domestic events when
considering determinants of value.
Furthermore, because the development of the global market, the national borders gradually no
longer hinder industry structure limits. In fact, the shift to international markets increases the chances
of success for the new real estate business as well as real estate enterprises have set up in the field.
With the study of competitive forces, the real estate enterprises can develop a deep
understanding necessary to determine the attractiveness of the industry in the perspective of the
potential return on investment sufficient to beat. In general, the competitive forces as strong as reduce
the potential profit for the companies in the industry. An attractive industry lacks low barriers to
entry, suppliers as well as buyers in a higher position, potential threats from competition from
substitute products and intensity of competition in the industry. Features such industry will cause
great difficulty to the real estate business is creating value and above average income.
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In short, a real estate enterprise to meet the needs of the environment, its strategy will be more
effective. The main causes of increased degradation is usually environmental factors, rather than
belonging to internal factors. A real estate enterprises increasingly depends on the environment, the
more need to focus on analysis and judgment environment. A changing and uncertain environment
increasingly requires analysis and good judgment. Effective strategy must know (internal analysis)
and that the (environmental analysis).
3. Discuss the implications of your recommended marketing strategy in relation to your
selected product or service. Please clarify how your recommended marketing strategy
would result in a sustainable competitive advantage for your organization.
The marketing strategy for the real estate market in 2013 and the following years.
Understanding market has the most potential will allow your business to exploit and gain a
Sustainable competitive advantage. With a strategy I temporarily named mixed strategy, combining
from 5 Market strategy-scope strategy, Market-geography-strategy, Market entry strategy, Market-
commitment strategy and Market-dilution strategy, each company location buildings will gradually
see the identification, analysis by methods such as PEST, SWOT, M.PORTER .. to have accurate
data and give a detailed overall strategy but, obviously, has the highest accuracy that putting
businesses out of the awkward and the current environmental crisis as well as work future. So along
with the solution evaluation is correct and feasible, with the government drastically, in the
management of agencies from the central to the local level, effort, effort, self-adjustment of the real
estate business enterprise, community responsibility of credit institutions, along with the recovery of
the world economy, the stability of the domestic the macroeconomic, inflation control credit interest
rate down to a reasonable level, and especially the confidence of the people to the market.
Speaking at the seminar, Mr. Vo Tan Thanh, Director of VCCI-HCM said recently the real
estate market is the navigation extremely positive. 2011 opened up more opportunities for business
with many projects being implemented. This is a good sign, but businesses will be faced with many
difficult by the increasingly fierce competition and pressure on profits. Therefore businesses need to
equip themselves with a modern management tools to create their own competitive advantage to
bring the highest benefit to the enterprise and ERP is one of those systems.
Besides, we also spoke very strongly about the money market restructuring, restructuring
banks to help the real estate market advantage. Bank restructuring process will be a very big impact
on real estate investors; especially large businesses depend on banks. Deputy Minister of Natural
Resources and Environment Dang Hung Vo. Split apartment for construction projects and investment
for the small flat area for the new project is considered feasible solutions very high but problems.
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The real estate market are unprecedented in difficult times with the tightening of capital flows
from banks, the project plummeted, investors are staggering disorientation due to lack of funds ... is a
question headaches of the real estate business today. Finding solutions to the market, as well as find
other capital flows to "warm up" the gloomy real estate market is more business as housing for rent
presented at the conference "total solution for market Real Estate in 2012 "with the Yes flows
diversity" by Mr. Nguyen Van Hoang - General Director of the Company to manage the real estate
investment trust VREIT proposed. And marketing strategy must always follow the developments
from the Deployment of urgent solutions for real estate departments to quickly understand the
competitive advantages such as: first, is to reduce the tax collection land use, land use is now a
burden for business and need to both reduce and stretches of time for payment according to the
progress of business and not start now pay once. Second, is to remove unnecessary obstacles
technically as allowing small apartment building. Third, in the current difficult period, the State must
study the reduced VAT of struggling products. For example, for real estate VAT from 10% to 5%, for
example, the real estate business can be discounted just not damaged too heavy, softer and reduced
prices directly to customers. Capital, the State now has 58 decision established real estate investment
and development fund, which is very good and in fact need up shortly funds to support the business.
Once the real estate flourishes, will lead to many other areas start certainty the real estate market in
2013 will be improvements, creating momentum for stable growth in the next year by now we now
have a human resources training, practical experience, and the application of advanced scientific and
technical marketing people will know to build a strategic marketing mix to meet the needs of a
business marketing strategy.
REFERENCE
Books
- Strategic marketing by Andrew whalley.
- Slide Lecture strategic marketing, Dr. Dung Tran
- Slide of (PGDBM 339) BIM Bangalore
Online resources and magazines.
- The five competitive forces model of Michael Porter (Michael Porter, Competitive Stratery,
New York: Freepress, 1980).
- Information at some the seminar
Phan Thi Mai Phuong, ID: 2444702 Page 15 of 15

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MARKETING STRATEGY content

  • 1. MARKETING STRATEGY Situation of 2013 has arrived, along with the strategic marketing, new policies from the government, the industry has been transmitted, expectations for the real estate business with feasibility year. by his remarks Trinh Dinh Dung Construction Minister commented as follows: "Certainly the market will improve," but also conflicting views as he Troy Girffiths, deputy executive director of Savills Vietnam Nam) he said, "the real estate market in 2013 continued difficult - According to our forecasts, the real estate market in 2013 continued difficulties. In Hanoi alone, rising supply approximately 60,000 apartments from 110 projects, villa market continued to fall, villa land continues to decline”. Therefore, an organization has to be realistic when considering market strategies. Organizations resources are scarce and spreading resources too thin can be fatal. Understanding which market has the most potential will allow your business to exploit and gain a sustainable competitive advantage. 1. Explain each strategic dimension with appropriate examples. Explain the usefulness of each strategy for different types of products and services. (There are five strategic dimensions) The marketing function provides important feedback for strategic planning in a company. To make a strategic planning for each organization, Strategists should be focusing many the factors such as: the company’s mission, objectives and goals, designing the business portfolio, growth and functional planning. Then To be able to outline the marketing process and the development of the marketing mix and also marketing strategies for competitive advantage with a support from the electronic business in relation to strategic planning and marketing. To dimensions to market strategies we should be justified by a viable market and development of strategy must be tied in to the target market, also demistion for market strategies deal with the markets to be served and market strategies must be validated with financial goals 1.1 Market-scope strategy Real estate market has existed in many different market segments for each company there are many ways to develop their own a Market scope strategy and the strategy also make sure deals with the coverage of the market. We will consider each of the market segments through a number of real estate strategic company has been made. For some examples: + Design and Manufacturing Corporation (D&M): high growth potential; market domination; and absence of a manufacturer to supply large retailers. These conclusions to enter the dishwasher Phan Thi Mai Phuong, ID: 2444702 Page 1 of 15
  • 2. market and to concentrate his efforts on a single segment (national retailers). The company has emerged as the largest producer of dish-washer in the world with over 36 percent of the US market. + Tampax (Procter & Gamble purchased this business in 1997) could not afford to compete head-on with these major brands. Starting from a premise that had great appeal for the young user, that internal protection offers greater freedom of action, Tampax concentrated on reaching young women. Single market strategy has proved to be highly beneficial. + Noxell Corporation (a division of Procter & Gamble), in the competitive field of cosmetics, marketer of the popular Noxzema and Cover Girl brands of makeup and skin cream, found success in a single of the $15-billion cosmetics industry that its rivals disclaim: the mass market. Noxell’s products are aimed primarily at teenagers and evoke the image of fresh-faced natural beauty. Widely distributed and heavily advertised, Noxell’s brands are easily recognizable by their low price. 1.1.1 Single Market According the summary by slide of (PGDBM 339) BIM Bangalore as follow: - To avoid confrontation with large competitors. - Better gains from a single segment. - Create exclusivity for brand. - Work with lower cost of sales distribution and collection. - Seeking a segment that is too small, too risky or to unappealing. 1.1.2 Multi Market - Segment comfort is important - Avoid companies that serve the entire market - Either sells different products in different segments or selling the same product in different Segments. - For some example: o Crown Cork and Seal Company, Crowning Achievement, Forbes (29 October 1990): metal cans, bottle caps, closures, and filling machinery for beer and soft drink cans. Crown Cork and Seal, as a matter of strategy, decided to concentrate on two segments: cans for such “hard-to-hold” products as beer and soft drinks and aerosol containers. Its new strategy paid off. The company outperformed its competitors both in sales growth and in return on sales in the 1980s and 1990s. The industry is characterized by a really dynamic environment: technological breakthroughs, new concepts of packaging, new materials, and threats of self-manufacture by large users are common. o Toyota Motor Corporation introduced its Lexus line of cars in 1989. The car was directed toward luxury car buyers who traditionally had looked to BMW and Mercedes-Benz. Toyota entered a different segment with different product. Phan Thi Mai Phuong, ID: 2444702 Page 2 of 15
  • 3. o North Face, Inc., the leader in high-performance outdoor clothing, decided to broaden its market base by extending the business to the casual sportswear market. The company plans to increase the number of stores selling North Face after 2001 from 1,500 specialty stores up to 4,000 retailers. 1.1.3 Total Market - Evolves over a number of years of operation. - Coupled to market and segment growth. - Create new segments and control from the beginning. - Highly risky approach and needs strong financial resources. In short, under a market-scope strategy, a company may either choose to segment the market or to pursue a single-market strategy. Market-scope strategy thus specifically amounts to: (a) Identification of the bases for forming market segments or establishing criteria for segmentation, and (b) Choosing to serve a single market, several distinct markets, or the entire market. When we talk for word ""real estate", we have a common vision that is real estate or other fixed assets of great value to real estate phrases and segmented into many forms such apartment segment include segment apartment, middle segment and the budget segment, villas and townhouses, Land that in response to each strategy that each company can participate in order to develop the most effective ways by the capacity of each company. Evidence for segment group customers of BCCI company as follows: (from the website of BCCI) Group customer investment: accounting for 60% of the total number of potential customers. - Characteristics: always looking for ospportunities to invest in the project profitability, market sensitive information; create customer groups shifted investors, causing the market price increases. - Requirements: Oriented projects in the areas of development, the ability to sell quickly, the prestige of the owner. - Customer security groups: Accounting for 40% of the total number of potential customers. - Features: Purchase money accumulated over the years, limited affordability, slow buying decision, there are many search operations, selection, many participants decided to buy. - Requirement: Complete legal, appropriate price, social facilities such as schools, hospitals, markets, convenient payment methods. At this strategy we also seeking changes in market scope to make sure our strategy can Change drivers – environment, customer preferences etc. Market is a moving target and market strategy needs to align with change in business strategy. Phan Thi Mai Phuong, ID: 2444702 Page 3 of 15
  • 4. - For example: o General Motors: Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac has traditionally directed its effort to securing an entire market, along with a variety of small trucks, the company attempts to compete in all conceivable segments. o Coca-Cola: That is a company has Coca-Cola, Diet Coke, Tab, Sprite… to satisfy different drinking tastes. It also has a brand of orange juice, Minute Maid, for the segment of consumers who drink juice rather than carbonated beverages. 1.2 Market-geography-strategy When the organization build the market geography strategy, the must know and understand clearly for their ability with the placement of their product, they must have the test for their position of the market then they will choose from 4 kinds in this strategy include is Local Market, Regional Market, National Market and International Market. One of Arthur L.Allen advice, president of Allen Systems Group: "Buy real estate in places frequented by the rich." Indeed, when buying real estate in areas where there are many rich people also means climate, natural beauty and the best service ... Not only that you can easily sell your property for those who have more money and hefty profit. - Buying real estate has advantageous geographical location: The location factor, the social environment is more important than your property. Location is convenient for travel? Communications and easily? The service is convenient? Fresh air or pollution? ... Are the factors you need to consider? Buy a house with bad vantage point is better than a beautiful house is located not favorable since the bad is still correct to be desired. If you have the financial ability to buy real estate with a large area as it promises much higher profit margin. "Take to the neighboring cities tend to develop. Then buy the land at the main traffic routes. That's where the real land price is calculated based on the area, not the amount of surface area "is the heart advice of Douglas Baumwall, a commercial broker with the voice of Collins & Collins Investments. Depend of the placement of the product and also the demand of social we can building a Market geography strategy how to giảm the Weakness Increase the strength and then better management of the market risk. A company should be use this strategy as a strategic variable in shaping market strategy. Many Businesses started locally and gradually expanded nationally or even internationally. Geographic expansion becomes an attractive choice when seeking growth. Phan Thi Mai Phuong, ID: 2444702 Page 4 of 15
  • 5. 1.3 Market entry strategy Before choosing a market entry strategy takes the time to evaluate your business and its strengths and weaknesses. And we should be answering the following questions: - How is business conducted in your industry sector and in the target market? - What are experience does your company have? - How much finance do you have available? - How much after sales support or service is needed? - What level of resource commitment are you prepared to make? - What is your current level of ability to increase capacity? - What entry option is best suited to your product or service? So know that, this strategy Refers here to the timing of entering the market. Basically, there are three options from a company can choose: (a) be the first in the market, (b) be among the early entrants, or (c) be a laggard. However, the current real estate business can be the absolute cost advantage compared to those who enter the contest. The absolute cost advantage so born from the invention, as the owner of a particular technology or human resources, master raw materials as well as the experience to get a lower cost. If the current Enterprise absolute cost advantages, from those threats will be reduced. Brand loyalty: brand loyalty will make it difficult for newcomers to enter the contest to take over the market share of existing enterprises; reduce the threat of entry of potential competitors. Economies of scale: When the cost advantage in the industry are significant, those who enter the forced to enter the small-scale and cost-miss advantage, or to accept the risk to enter the large- scale and large capital expense. More risks can come up with the grand scale that is when supply increases will reduce product prices, causing intense retaliation of existing enterprises. Thus, when the current business gets economies of scale, threatening to enter the contest is reduced. Switching costs: If switching costs are high, customers will be restraining the current enterprise product, even if the product of the newcomers better. Retaliation: The Enterprise penetrate a sector, it is necessary to anticipate the response actions of the enterprises in the industry. Predict the speed and intensity of the current opponent's retaliation will be able to deter the competitors wishing to enter the industry. The retaliation will be powerful when existing enterprises in sectors of fixed assets less likely to switch, with significant resources, or slow- growing industry. Barriers to entry and competition: If the current Enterprise has built loyalty to their products, with the absolute cost advantage over potential competitors, there are economies of scale and those Phan Thi Mai Phuong, ID: 2444702 Page 5 of 15
  • 6. who benefit from high switching costs, or institutional protection;, the risk of entry of potential competitors will be reduced significantly. When the risk is low, the current enterprise may require a higher price and get greater benefits than when the opponent. Obviously, the enterprise should pursue appropriate strategies to increase barriers to entry. o Example: Kinder-Care Learning Centers, Apple, Nokia, Royal Crown. o Early entry strategy. o Example: Samsung Galaxy, I- pad. o Laggard entry strategy. 1.4 Market-commitment strategy The market-commitment strategy refers to the degree of involvement that a company seeks in a particular market. It is widely held that not all customers are equally important to a company. Under this strategy, a company strives to make varying commitments to different customer segments. The commitment can be in the form of financial or managerial resources or both. Presumably, results from any venture will be commensurate with the commitment made, which explains the importance of the commitment strategy. For building Market commitment strategy, an organization must deal with the degree of involvement thought three level such as Strong commitment strategy, Average commitment strategy and Light commitment strategy. At three this level, we should be get the High stakes in the market also requires attacking back competition then Proactive in improving products or we just stand for Focus on maintenance of status quo (market share, price, customers happy) to pass to a Light commitment strategy with an Applicable if there is a limited interest in the market, if the market is stagnant or potential is limited or is overcrowded. With the aim of diversifying industries, product diversification and trade development investment real estate business as the core and the same with tokens resources available as strong financial potential, abundant human resources ...SUDICO constantly evolving, has attracted a team of experienced staff with professional qualifications and technical skills; always learn and improve knowledge through co-operation, joint ventures with work at home and abroad, a pioneer in the field of application of the scientific and technical advances to SUDICO committed to providing our customers with products and services with high quality and most convenient way to meet the needs of customers in order to contribute to the development of the country. SUDICO committed efforts, comprehensive investment all material and spiritual resources to provide the product works in urban areas, industrial zones and tourism to ensure quality, meet the Phan Thi Mai Phuong, ID: 2444702 Page 6 of 15
  • 7. requirements use, in accordance with the requirements of improving the landscape architecture and urban living environment, work environment and social community (source: website of Sudico) o Example: anti-caries toothpaste, company with a strong commitment to the market should refuse to be content with the way things are, it should foresee its own obsolescence by developing new products, customer services, channels of distribution, and cost-cutting processes. The nature of a company's commitment to a market may, of course, change with time. The strong commitment to a market can be highly rewarding in terms of achieving growth, market share, and profitability. The commitment made to a market should be based on the company's resources, strengths, and willingness to take risks to live up to this commitment. 1.5 Market-dilution strategy In many situations a company may find reducing a part of the business strategically more useful than expanding. In this strategy, organization should be careful with their action, they should be considering some the factor such as: Customer referral –selling substitute, maintain customer goodwill, get cash for reinvestment, closing unprofitable point of sale. Restoring balance, optimization of resources. Since early 2011, the real estate market in two major economic centers of Hanoi and Ho Chi Minh City consecutive up-down movement’s abnormalities. But especially in Ho Chi Minh City in 2012 witnessed a sharp decline in transactions and slowing of housing prices. So, this year the real estate industry will be the most difficult.Many businesses will be "gnashing of teeth" to bear, in many ways can overcome difficulties such as joint ventures call for... o Example: retail stores, outlets 2. Provide an evaluation on how each strategy would be suitable or unsuitable for your selected product or service. Apply the analysis of the situation of the Vietnamese real estate market, especially the real estate market in the two biggest cities of Hanoi and Ho Chi Minh City. 2.1 Industry environment analysis The key to competitive strategy is to consider Enterprises in relation relation to the operation of the enterprise environment. The mission of the strategy is to analyze and judge the competitive forces in the industry environment to identify opportunities and threats to your business. To clear competitive pressures of the industry, we need to apply the five forces model of M. Porter a professor at Harvard Business Administration, was to provide a framework to help managers recognize the opportunities and threats that enterprises face in an industry (Michael Porter, Competitive Stratery, Phan Thi Mai Phuong, ID: 2444702 Page 7 of 15
  • 8. New York : Freepress, 1980). Framework of the Michael Porter called the five competitive forces model, is shown in the following diagram: Figure 1: The five competitive forces model of Michael Porter Michael Porter pointed out that the stronger the force, the more limited the ability of existing businesses to increase prices and profits higher. According to Porter's model, a strong competitive force can be viewed as a threat, because it would reduce profits. The strength of the five competitive forces can change over time, as industry conditions change. The task set for the administrators to be aware of the opportunities and risks that the change of five competitive forces will bring, thereby developing adaptation strategies. Moreover, it is the ability for an enterprise, through the strategic choice, shifting the power of one or more forces into competitive advantage for themselves. 2.2 Competitive pressure from existing competitors The first force of five competitive forces of M. Porter is the size of the current competitiveness of enterprises of the real estate market. If the weaker competitors, real estate enterprises have the opportunity to raise prices and make more profit. Conversely, when the strong current competitors, price competition is negligible, and all price competition led to the injury. Therefore, strengthening the team competition between enterprises in the industry to create powerful threat with profitability. Competition among real estate enterprises in an industry often include content such as: industry competitive structure, actual needs of the industry and the barriers to leaving. Competitive structure: Competitive industry structure based on the data and the ability to distribute products of real estate enterprises in the industry. Different competitive structure of Phan Thi Mai Phuong, ID: 2444702 Page 8 of 15
  • 9. different applications to compete. The structure of the dispersion varies from industry to industry sector focus. Distribution industry includes a large number of small-sized real estate enterprises to medium, no companies in dominant positions. Distribution sector often have low barriers to entry and the primary products of a kind little difference. The low entry barriers will facilitate the entry, whenever the high demand and benefit high nhuat. Normally, the line joining the distribution industry during the booming demand, creating a potential excess capacity. Thus, distributed industry structure brings threat than an opportunity for real estate enterprises. Concentrated sector is dominated by a small number of large real estate enterprises (oligopolistic) or in extreme cases only a real estate enterprise (proprietary). The nature and extent of competition in the industry focus is difficult to anticipate. Clear, in focus, the rivalry between the real estate business and the possibility of war creates major threat. When the price war is a threat, the real estate enterprises tend to move to compete on other factors such as: advertising, promotion, brand positioning, functional design and product quality. This type of competition is trying to make a difference for the real estate enterprise products compared to competitors. However, this strategy depends on the ability to cause the difference in the product. Industry demand status: Status of an industry is another determinant of competitive intensity in the sector. The growth in demand from customers or increase existing customer shopping soften competition. Conversely, a decrease in demand will push the contention stronger, because at that time the real estate enterprises have tried to struggle to maintain revenue and market share. Thus, reducing the need to create a major threat, because this increases the level of competition between the existing real estate business in the industry. In addition, the slow growth in demand may also arise threat to the real estate business in the industry. Barriers to leaving: Barriers to leaving a serious threat to the industry plummeted. Removable barriers are economic, strategic and relationship to keep real estate business head. If the high barriers to leaving the real estate business can be restraining a non-profit industry. Other common barriers include: - Invest in some sectors that can not change the use or can not be resold. - Direct costs for leaving the high branches. The real estate enterprises often do not leave the industry that the direct costs when leave is relatively high (relocation costs and other administrative procedures, etc.) Phan Thi Mai Phuong, ID: 2444702 Page 9 of 15
  • 10. - The relationship between strategic business unit strategies aside. This is also a barrier to leave a business. - The value of leadership, relationships, history, industry or local community, can make real estate enterprises do not want to leave their original sector. - Cost of social change: The risk of social conflict and training costs. 2.3 The risk from potential competitors The second force needs analysis is to judge the real estate business will become potential competitors, potential competitors are the current real estate business is not the same competitive sector, but can competitiveness if they choose and decide to join the industry. This is a threat to the current real estate business. The current real estate enterprise in trying to prevent them from potential rivals to the industry, as more and more real estate enterprises in the fierce competition. The ease and difficulty to entry of potential competitors depends largely on barriers to entry. Its contents often include. The absolute cost advantages: The current real estate enterprises can have the absolute cost advantage compared to those who enter the contest. The absolute cost advantage so born from the invention, as the owner of a particular technology or human resources, master raw materials as well as the experience to get a lower cost. If the current real estate enterprises have absolute cost advantages, from those threats will be reduced. Brand loyalty: brand loyalty is only the buyer preference for the product of the current real estate business. Every business real estate can generate loyalty mark by continuous advertising brand and the name of the Enterprise real estate, copyright protection of the product, product improvement through the R & D, emphasis on product quality, and after-sales service. Brand loyalty will make it difficult for newcomers to enter the contest to take over the market share of the current real estate enterprises; reduce the threat of entry of potential competitors. Economies of scale: The scale of the economic situation also known as the economic ladder. The cost of production, distribution, sales, advertising, services, research will decrease with the increase in sales, or in other words, the number of production and sales increased, the cost of a single reduced products. When the cost advantage in the industry are significant, those who enter the be forced to enter the small-scale and cost-miss advantage, or to accept the risk to enter the large-scale and take large capital costs. More risks can come up with the grand scale, that is when supply increases will reduce product prices, causing intense retaliation of the current real estate business. Phan Thi Mai Phuong, ID: 2444702 Page 10 of 15
  • 11. Thus, when the present real estate enterprises have economies of scale, threatening to enter the contest is reduced. Switching costs: The costs appeared a time when customers want to switch their purchases to another supplier. The switching costs may be related to the cost of procurement of equipment, staff training costs, even the consumption of spirits when to end a relationship. If switching costs are high, customers will be restraining the product of the current real estate business, even if the product of the newcomers better. Government regulations: Historically, government regulation has created a large barriers to entry in many industries. Through licensing or large special requirements, the Government can control the entry into an industry, such as the regulations on the pharmaceutical business and banks. Governments often restrict entry to the public sector, by the requirement to provide quality services to the people and needs to do it. Retaliation: The real estate enterprises to penetrate an industry, need to anticipate the response actions of the real estate business in the industry. Predict the speed and intensity of the current opponent's retaliation will be able to deter the competitors wishing to enter the industry. Retaliation will be intense when the current real estate enterprises in sectors of fixed assets less likely to switch, with significant resources, or slow-growing industry. Barriers to entry and competition: If the current real estate enterprises have built loyalty to their products, with the absolute cost advantage over potential competitors, taking into account economic economic scale and those who benefit from high switching costs, or institutional protection, the risk of entry of potential competitors will be reduced significantly. When the risk is low, the current real estate enterprises may require a higher price and get greater benefits than when the opponent. Obviously, the real estate enterprises of interest to pursue appropriate strategies to increase barriers to entry. 2.4 The power of buyers Third force in Porter's five forces is the bargaining power of buyers. The buyer of a real estate enterprise may be the final user (end-user), may be the real estate enterprises to distribute its products to final users, or the wholesale and retail. The buyer can be viewed as a competitive threat when they are in a position to force the real estate enterprises to reduce prices or demand for high quality and better service. In contrast, when the main buyers, real estate enterprises will have the opportunity to Phan Thi Mai Phuong, ID: 2444702 Page 11 of 15
  • 12. raise prices and earn greater profits. Buyers may request the real estate business or not depending on their relative power with the real estate business. According to Porter's most powerful buyers in the following cases: - When the offer is made by many industry Real estate enterprises small and buyers are few and large. This case allows buyers dominated the real estate business offers. - When buyers make large volume purchases. In that case the buyer could use to their advantage to buy as a bargaining advantage for the reduced price is not reasonable. - When the industry depends on the buyer, because a large percentage of their total orders. - When the buyer can switch between real estate enterprises to provide low cost, stimulate the companies against each other to lead to lower prices. - When the economic characteristics of the buyer is procured from some of the company at the same time. - When the buyer can use threats of supply when they are capable of vertical integration, they use this ability as a tool to lead to lower prices. 2.5 The power of suppliers Fourth force in Porter's five forces model is the bargaining power of suppliers. The supply pressure can be regarded as a threat when they are able to increase input prices or reduce the quality of the products and services they provide, so that reduces the profitability of the real estate business. Conversely, if the supplier is weak, this is for real estate enterprises an opportunity to push down prices and high quality requirements. As for the buyer, the ability to provide high quality requirements. As for the buyer, the supplier's capabilities required for real estate enterprises depend on the relative power between them and the real estate business. According to Porter providers have the most power when: - Organisations providing real estate enterprises need only the few, even real estate enterprise exclusive offers. - Case no substitutes; real estate business does not have any other offers. - Real estate business buy customer is not important and priorities of suppliers. - Type of input, such as supplies of suppliers is important for many real estate enterprises. - The provider also supplies the vertical integration strategy, ie a closed production Threat of products and services to replace Ultimate force in Porter's model is the threat from substitute products. The replacement product is a product that can satisfy the needs of customers. Its characteristics are often more dominant products were replaced by individual characteristics. The existence of these alternative products is a powerful competitive threats, limited ability to increase the value and thus limits the Phan Thi Mai Phuong, ID: 2444702 Page 12 of 15
  • 13. profitability of the real estate business. Conversely, if real estate enterprises have fewer substitutes equivalent (for the weak competitive substitutes), and other factors are normal, real estate enterprises will have the opportunity to increase prices and increase profits. As a result, its strategy will be designed to gain competitive advantage from this fact. With the study of competitive forces, the real estate enterprises can develop a deep understanding necessary to determine the attractiveness of the industry in the perspective of potential earnings based on fully invested at or above dominant. In general, the competitive forces as strong as reduce the potential profit for the real estate enterprise in the industry. A lack of attractive industry with low barriers to entry, suppliers as well as buyers in a strong bargaining position, threats strong competition from substitute products and intensity of competition in the industry. Industry characteristics such large will make it difficult for real estate enterprises to create value and above average income. In summary, analysis of the business environment is extremely important for real estate enterprises. Business environment including the macro environment and micro environment, also known as environmental sector. The goal of the analysis is to identify opportunities and threats, on the basis of which the rational management decisions. Industry Analysis should have abundant real sector data, because this is the careful study and interpretation of information from multiple data sources. Due to globalization, international markets and competitors must be taken into account in the analysis of a real estate enterprise. In fact, studies show that in some sectors, the international event is sometimes more important domestic events when considering determinants of value. Furthermore, because the development of the global market, the national borders gradually no longer hinder industry structure limits. In fact, the shift to international markets increases the chances of success for the new real estate business as well as real estate enterprises have set up in the field. With the study of competitive forces, the real estate enterprises can develop a deep understanding necessary to determine the attractiveness of the industry in the perspective of the potential return on investment sufficient to beat. In general, the competitive forces as strong as reduce the potential profit for the companies in the industry. An attractive industry lacks low barriers to entry, suppliers as well as buyers in a higher position, potential threats from competition from substitute products and intensity of competition in the industry. Features such industry will cause great difficulty to the real estate business is creating value and above average income. Phan Thi Mai Phuong, ID: 2444702 Page 13 of 15
  • 14. In short, a real estate enterprise to meet the needs of the environment, its strategy will be more effective. The main causes of increased degradation is usually environmental factors, rather than belonging to internal factors. A real estate enterprises increasingly depends on the environment, the more need to focus on analysis and judgment environment. A changing and uncertain environment increasingly requires analysis and good judgment. Effective strategy must know (internal analysis) and that the (environmental analysis). 3. Discuss the implications of your recommended marketing strategy in relation to your selected product or service. Please clarify how your recommended marketing strategy would result in a sustainable competitive advantage for your organization. The marketing strategy for the real estate market in 2013 and the following years. Understanding market has the most potential will allow your business to exploit and gain a Sustainable competitive advantage. With a strategy I temporarily named mixed strategy, combining from 5 Market strategy-scope strategy, Market-geography-strategy, Market entry strategy, Market- commitment strategy and Market-dilution strategy, each company location buildings will gradually see the identification, analysis by methods such as PEST, SWOT, M.PORTER .. to have accurate data and give a detailed overall strategy but, obviously, has the highest accuracy that putting businesses out of the awkward and the current environmental crisis as well as work future. So along with the solution evaluation is correct and feasible, with the government drastically, in the management of agencies from the central to the local level, effort, effort, self-adjustment of the real estate business enterprise, community responsibility of credit institutions, along with the recovery of the world economy, the stability of the domestic the macroeconomic, inflation control credit interest rate down to a reasonable level, and especially the confidence of the people to the market. Speaking at the seminar, Mr. Vo Tan Thanh, Director of VCCI-HCM said recently the real estate market is the navigation extremely positive. 2011 opened up more opportunities for business with many projects being implemented. This is a good sign, but businesses will be faced with many difficult by the increasingly fierce competition and pressure on profits. Therefore businesses need to equip themselves with a modern management tools to create their own competitive advantage to bring the highest benefit to the enterprise and ERP is one of those systems. Besides, we also spoke very strongly about the money market restructuring, restructuring banks to help the real estate market advantage. Bank restructuring process will be a very big impact on real estate investors; especially large businesses depend on banks. Deputy Minister of Natural Resources and Environment Dang Hung Vo. Split apartment for construction projects and investment for the small flat area for the new project is considered feasible solutions very high but problems. Phan Thi Mai Phuong, ID: 2444702 Page 14 of 15
  • 15. The real estate market are unprecedented in difficult times with the tightening of capital flows from banks, the project plummeted, investors are staggering disorientation due to lack of funds ... is a question headaches of the real estate business today. Finding solutions to the market, as well as find other capital flows to "warm up" the gloomy real estate market is more business as housing for rent presented at the conference "total solution for market Real Estate in 2012 "with the Yes flows diversity" by Mr. Nguyen Van Hoang - General Director of the Company to manage the real estate investment trust VREIT proposed. And marketing strategy must always follow the developments from the Deployment of urgent solutions for real estate departments to quickly understand the competitive advantages such as: first, is to reduce the tax collection land use, land use is now a burden for business and need to both reduce and stretches of time for payment according to the progress of business and not start now pay once. Second, is to remove unnecessary obstacles technically as allowing small apartment building. Third, in the current difficult period, the State must study the reduced VAT of struggling products. For example, for real estate VAT from 10% to 5%, for example, the real estate business can be discounted just not damaged too heavy, softer and reduced prices directly to customers. Capital, the State now has 58 decision established real estate investment and development fund, which is very good and in fact need up shortly funds to support the business. Once the real estate flourishes, will lead to many other areas start certainty the real estate market in 2013 will be improvements, creating momentum for stable growth in the next year by now we now have a human resources training, practical experience, and the application of advanced scientific and technical marketing people will know to build a strategic marketing mix to meet the needs of a business marketing strategy. REFERENCE Books - Strategic marketing by Andrew whalley. - Slide Lecture strategic marketing, Dr. Dung Tran - Slide of (PGDBM 339) BIM Bangalore Online resources and magazines. - The five competitive forces model of Michael Porter (Michael Porter, Competitive Stratery, New York: Freepress, 1980). - Information at some the seminar Phan Thi Mai Phuong, ID: 2444702 Page 15 of 15