Analyze Mantero Seta Spa(TM)s resources, strengths, weaknesses and competences.PESTEL analysisevaluate the major external environmental drivers influencing the strategic environment of Mantero Seta Spa and the textile industry in China.
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Mantero Seta Spa Case Study Name: Ornchaporn Koosuwannapokin Student Number: 2718167 Seminar Group: 2 Unit Title: International Strategy Seminar Coordinator: Dr: Leslie Gadman LSBU Unit Coordinator: Robin John Course Title: MSc International Business Academic Year: 2008 Question 3: Analyze Mantero Seta Spa's resources, strengths, weaknesses and competences. Briefly evaluate its marketing mix. Recommend how Mantero Seta Spa could build on its strengths and competences to develop its competitive advantage. Question1: Through PESTEL analysis, evaluate the major external environmental drivers influencing the strategic environment of Mantero Seta Spa and the textile industry in China. Mantero Seta Spa's background Mantero Seta Spa is a textile company in northern Italy. It was a major player in high-class fashion accessories and garments, mainly produced from silk. They managed their company as business-to-business operation and played superior role in international textile industry more than 10 years, selling their products to brand name fashion houses around the world. However, on 2001, Mantero suffered big problems from the economic slowdown, after the terrorist's attacks, followed by SARS crisis. After that Mantero directors realized that they should rationalize their organization strategy to sustain the profit and maintain competitive advantage. They decided to find the new market and looked for a new group of the buyers, and their target was China. In Mantero's opinion, China was a very attractive market. There were several factors attracting Mantero to chose China. First of all, they already had the commercial office in China which used for dealing with the supply of silk and yarn. Another factor, China was high substantial economic growth country which affected the rising of huge amount of high income level of population.
Moreover they also distributed their product to various branches point-of-sales. Mantero had flexibility in volume of goods with ability to distribute products depending on suppliers or retailer's need. Promotion Mantero kept positioning and maintained their fabulous brand as the leader player of textile industry. They promoted and launched their product through the exhibition, fashion, show, and sponsor's events. They also offered the information to customers by posting on company's website, news and presses. Recommendations For recommendation part, I would examine the way how Mantero Seta Spa could adapts their strengths and competences to improve their competitive advantage according to Balance Scorecard concept which is divided to four main perspectives. These are financial perspective, customer perspective, internal perspective and innovation and learning perspective. Financial perspective For entering Chinese market, the company should invest in obtaining the long-term competitive advantage. For example, more investment in finishing product lines, tools and machinery to produce finished goods to sell the customers. Improve warehousing and stocking, and prompt distribution to their end customers at any time. Concentrate on the market development to learn more about the way how to do the business as B2C operation and catch the new target market in China. Customer perspective Improve customer satisfaction by emphasizes on two-way communication as listening and talking to customers. Consider to customer feedback and design products to suit each customer's preferences. Moreover, they should provide the convenience of purchase and after-sale-service to the customers. All of these could help the company to create strong relationship with customers on the long run and make customers become loyal to the company.
Besides, Mantero has supply connections in China. Mantero Seta Spa has enough tangible resources (land, machinery, finance) and intangible resources (established connections with suppliers, sales network, RD and innovation) to enter the Chinese market. It is also possesses high expertise in the industry combined with a good management team. Their weaknesses are that it is a new market and new type of operation (Business-to-Customer instead of Business-to-Business that they had used before) that is challenge. The company needs a winning strategy, which is using the strong sides with learning to improve the weak. Chinese government is making policies to attract investors, and entering WTO has made trade easier as well. Economical growing is stable and people increase spending. With the development of logistic, communication channels and other technology (using media, Internet) in China the company can easily create brand awareness with adverts. However, Mantero should pay attention more on and some relevant factors and several risks such as trading policy, transportation costs, high inflation rate, value currency changing and counterfeiting fashion product problem which could make a bad impact to their organization. They need to ensure how to protect them form these threats. Furthermore they need to learn and develop more on business -to-customer operation, to find the best choice to distribute their product directly to the customers; and to attract end-users to purchase their product by increasing their satisfaction and brand awareness. To gain the success, Mantero needs to choose the right marketing strategies by doing more research about the nature and characteristic of Chinese market as was stated in Bearden et al, (2001) "understanding culture, language, customer, and other unique aspects of international market of cultural target market is critical for marketing success".
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