Modern football

Modern footb every(prenominal) game game game game blue conception to globularisationThe aim of this paper is the processes what has led football to globularisation and question how these processes manifest in the innovational football. That essey will introduce reader to ball-shapedisation in general, early diffusion and exploitation petty(a)d on Therborns 6 wave model, contemporary model of globalisation, as well as execution of participants, commercialization of global football, global football in sponsorship, advertising and the media. Althought you sight let answers on the questions like How media affect to the football? What was earlier and after(prenominal) entering TV companies much(prenominal) as BSkyB and ITV to the football? football whose farinaceous is it at present? Evaluetion a series of global processes and their effects on football globally as well as establishment of global organisation organisations and global tournaments. All of that with facts and evidence, analysis and reserch you bay window find below in that essey.We live in an age of globalization. The term globalisation evokes many responses some(prenominal) positive and negative. What exactly is globalisation, who are the main players and what are its economic, kindly, heathen and environmental impacts? Globalisation has developed forth for a long term of social processes. As pointed out by Guilianotti and Robertson (2004) the recent history of football in particular, can serve both as an illustration and as an distinction of the extent of trans study interconnectedness. football is something much cock-a-hoopger, rather than blue or even a way of life. This distinct reflexion of inconsistent guideencies of the modern font public with all its pleasures and grieves. football game represent not geographical zones simply social classes and political ideas. Unlike baseball or tennis football bears cargo of century hatred and historical biases. It is s ports with real rates. It is capable to release ruling modes and to generate liberation movements.Early diffusion and historical developmentfootballs international diffusion occurred during the advanced-fangled 19th century. The contemporary history of the worlds favored game spans much than than than 100 years. It all began in 1863 in England, when rugby football football and association football branched off on their diametric courses and the football Association in England was formed becoming the sports tally 1 establishment body. Football, following the path of modern industrialism, spread from England to europium (Duke 1995), labor union the States (Waldstein and Wagg 1995) and South America (Guttmann 1994), and eventually the African continent (Stuart 1995). Accounts of the diffusion of the game to different parts of the world underline the intrinsic interrelation amid football and industrial globalisation. As more and more regions became integrated into the em ergent capitalist global economy (Pohl 1989) the empty practice of football interchangeable in its rules and nationalized in its consumes on fourth dimension and quadriceps femoris continue the cultural kindred to the changing processes of industrial payoff. Robinson observes, for example, that global elites, regardless of their nationality, increasely tend to share similar lifestyles and interact through expanding net progress tos of the transnational state. globalization is in this way unifying the world into a single mode of production and a single global system and bringing about the integrating of different countries and regions into a radical global economy and society. But the untried global capitalism is rife with contradictions, such as the growing open frame between the global rich and the global poor, concludes Robinson. (W.I. Robinson 2004). Globalizations are not new phenomena. At least six historical waves, beginning with the spread of world religions, ma y be identified. An attempt is made to systematize the effects of globalizations on different world regions and social actors. Issues of g everyplacenance are raised, focusing on states and norms. Accroding to the Therborns six wave model in the first wave we can see first people migration of nation, the kindred situation we can find in football industry. As Wagg stated, football seems to belong to of all timeyone and, on the other, the game rather like the land in the enclosure movements of the seventeenth and 18th centuries has been taken from the people and used for profit. In this later formulation, then, the nation of British footballs social and political history, from the Second domain of a function War to the turn of twenty-first century, is founded in ideas of social exclusion. (Wagg 2004). The contemporary modelNowadays football is the roughly commonplace and highly globalised sport on the planet, Mr Blatter also said the global football market, by Fifas calculat ions, was one of over one one thousand thousand people. gibe to the Delloite report the European football market alone was deserving 14.6 jillion Euro in 2008. Englands postmortem league clubs now pay their sensations over a billion in wages, it has been revealed.The colossal bill equivalent to 1.2 zillion pounds per player emerged as figures were issued for the season before the current one concludes.Roman Abramovichs Chelsea paid out the most in wages 172 million pounds. Runners-up Manchester unify had a profit bill of 121 million pounds. Third-placed Arsenal forked out 101 million pounds, followed by Liverpool, whose players earned 90 million pounds, according to football pay analysts Deloitte. These football clubs are now identified as a global brands, for example Manchester United fan base is 75 million people around the world. The contemporary model is also marked by a series of global migrations, at the moment in the side post-mortem examination fusion playing about 50% of foreighn players, but in 1992 at that place was just 11 registred players from overseas. Media and commercialisation of global footballAlong with the engineering of the industrial revolution that produced the s aggroupboats, railroads, and mass transit that moved people to leisure events, the rapidly evolving technology of mass media brought the drama and the exticement of sporting events to the people. The mass media, more than anything else were responsible for promoting organized sport from a relatively minor fraction of culture into a full-blown social institution. (Lever and Wheeler 1993126).By the time television system first appeared on the scene in the mid to late 1930s the patterns of mobile privatisations were already established. television system was part of a indorsement generation of mass media that reinforced the structures of decentralised, private and suburban life. As Silversone argues, the space for television had been created by a social and cu ltural fabric already prepared. This social and cultural fabric was in turn an expression of the ever more central role of rationalised mass aspiration in capitalist societies. Thus the social, cultural and economic premises of the bear of television were be with those of the rise of modern football. These standardized practices of mass consumption reflected in the rise of television and radio were epitomised in the economic regime of Fordism. Regular Fordist work and leisure patterns led to the manifestation of the weekend as place of consumption for the Victorian wage-earner, combining both social identity and privacy (Cross 1997120). The establishment of half-Saturdays had been a cruicial premise for the rise of professional football in Englang. Now, the panoptic leisure time of the Fordist weekend became the focal point of the consumption of intercede sports. This is underlined by the rise os Saturday afternoon sports magazines on American and British television (Goldlust 19 87Whannel 1991). Fordism, suburbanization and mass consumption thus constituted a trilateral whereby both television and football were soon firmly integrated into the all day life of millions of viever. Television incorporated the stable and cyclical sports calendar into its schedules and thus reproduced and reinforced the temporal organisation of Fordist leisure practices. In the modern football, for example, Premiership clubs are being bought at a time when the income of each of the leagues 20 teams is set to soar following a recent record-busting overseas television rights deal. Booming demand from Asia and the Middle East has allowed the league to tie up contracts worth 625 million for sending rights for the next three seasons, boosting overall media income to 2.725 billion 60 percent above previous levels. (Delloite football industry report). some(prenominal) Leagues (such as the french, German and English leagues) sacrifice recently renegociated broadcast contracts and h ave secured significant revenues for their clubs for a number of years. In Spain, Superclubs like palpable capital of Spain and Barcelona have one by one negociated broadcast contracts. The Premier League is the most popular and the most lucrative domestic football league. The sports goods industry is dominatd by Nike, Adidas and football kit wars regularly occur at the World Cup and in the leading national leagues. The major TV leagues are in Europe the big five and the lesser five or six. Football has travel a significant content filler in the age of new TV technology satellite, cable digital, telephony and internet. As Rupert Murdoch referred to it a banging ram for opening a new markets (Cashmore 200364). Alongside this are the stars and star clubs who benefit from almost constant commercial and media exposure especcially, but not only, Beckham, Ronaldo, Real Madrid, and Manchester United. These players and clubs are representative of a new trend in the international fin ancing of football. After the colapse of the football bubble economy in 2001, clubs have tried to explore new income sources by expanding their customer base worldwide. In particular, the economically vibrant East Asian regions has been a advantageous destination for marketing managers and promotion tours. As Shimizu points out that David Backhams two visits to lacquer in summer of 2003 were mainly commercial promoting endoresments for TBS (beauty salons), Meiji Seika (confectionery), Castrol (oil) and Vodafone (mobile phones) in June and his new team Real Madrid in August. According to a report by the boasts Business Group at Deloitte, one reason most steer clubs have continued to see revenue increases and post strong internet is that they have lucrative multi-year publicise and sponsorship deals that have not been affected by the recession. BSkyB and Setanta pay out roughly $1.8 billion a year for Premier League rights. Arsenal, Liverpool and Schalke 04 have multi-year deal s with Emirates, Carlsberg and Gazprom that pay these clubs over $15 million a season. More than half of the 20 clubs with the highest revenue signed current equal sponsors within the last two years. The deals are good through 2013, on average, protecting teams biggest source of sponsorship revenue (along with stadium-naming rights). On the broadcast side, German, English and the blanket Spanish clubs all have deals in place through 2014, with French rights due for renegotiation in 2012 and Italy set to return to centrally sold rights in 2010. At the turn of the twentieth century, centralized, urban leisure started to compete with more decentralized forms of consumption aided by the rise of new technologies such as the telegraph and railways (Ingham and Beamish 1993). young communication technologies helped to establish the national dimension of sport by enabling sports results to be communicated instantly over long distances. Radio reporting was immediate and, crucually, nationa l rather than local. When Preston North End won the FA Cup in 1938, many listeners in Britain could for the first time follow the event on their radio sets simultaneously. Thus mass communication crucially contributed to the social and territorial diffusion of football. Sports has become more commercialised in the past twenty-five years. Equally it is almost passee to say that contemporary football is big business. In 1994 Sepp Blatter claimed that football was bringing in US$163 billion annually, more than General Motors could study marketing cars (cited in Smith 1997144). Elsewhere the commercial development of football, and especially the economic aspect of the World Cup, has been assesed in great detail (Guilianotti 1999). When Bourdieu argued that television has acted as the Trojan horse for the introduction of the commercial logic into football he was only partly accurate since commercial interests have always been present in sport. The development and growth of the global media was one of the main reasons of commercialisation of football as well as people who have money and time to spend and invest for a long time perioud. Television sport throughout the world is dominated by football. There is football and then the rest sports. FIFAs empire has grown accordingly. Several Leagues (such as the French, German and English leagues) have recently renegociated broadcast contracts and have secured significant revenues for their clubs for a number of years. In Spain, Superclubs like Real Madrid and Barcelona have individually negociated broadcast contracts. The Premier League is the most popular and the most lucrative domestic football league. The most significant process which helped to increase global commercialisation of football, is development of a global media profile. Because just after big TV deals football became a billion game just because of media football players can earn millions pounds. For example, in Britain, since 1992 rights fees have incre ased enormously from 191.5 millions pounds to 1 billion 700 millions pounds, and every year the amount of money coming from the TV rights is growing up. As Delloite financial specialists argued that the outcome of the Premier League broadcast rights negociations and the values achieved is likely to be a key number one wood in determining the ranking of English clubs in the Money League in future seasons. Money led to foreighn playersThe globalisation of football has been marked by a considerable increase in the recruitment of orthogonal players throughout various leagues. But not only a players are abject around the world, in June, Manchester City became the eighth current Premiership club to be taken over by foreign investors. Aston Villa, Chelsea, Fulham, Liverpool, Manchester United, Portsmouth and West Ham United are also owned by foreign businessmen. As Giovani Trapattoni argued Really, in that respect has been a globalisation of football, and my view is that it has been go od for the game. If you look at football in Europe especially, the standard is now very high. A hardening of money has come into the game in these leagues and it has been used to combine all these different cultures in some exceptional teams. According to figures released by the Brazilian Football Confederation (CBF), no fewer than 857 players left the countrys sunny shores for foreign leagues in 2004. Though just short of the previous years record, the number is further proof that Brazils dream academy is alive and well. Answer on tthe question why foreighn players migrate around the world, is simply money. But in some cases money ist a first means when player make a decision where to move, a good example can be Russia, salaries in Russian Premier League are on the same level like in Big Five leagues in Europe. So when player make a choice where to move Spain or Russia for equivalent amount of money, his choice usually will be Spain. The major factor to make this decision is cul tural engagement and geographical reasons. Conclusions Diminishing contrasts and increasing varieties?The worlds richest clubs are prospering despite the global recession. The financial crisis has yet to climb up the worlds most worthful football teams. Forbes Magazines calculations shows the top 25 teams are now worth, on average, $597 million, 8% more than the previous year. The outcome of the Premier League broadcast rights negociations and the values achieved is likely to be a key driver in determining the ranking of English clubs in the Money League in future seasons.These clubs posted operating income (in the sense of earnings before interest, taxes, depreciation and amortization) of $42 million during the 2007-2008 season, 20% more than the top 25 clubs earned the previous year. There are now five clubs (Manchester United, Real Madrid, Arsenal, Bayern Munich and Liverpool) worth at least $1 billion. Only the National Football League (American Football) has more billion-dolla r teams (19). With its capitalistic bent, European soccer rewards the best-performing clubs with higher broadcasting revenue, the magazine said in a report Thursday. Leading the guidance is the worlds most valuable sports franchise English Premier League champions Manchester United, worth $1.87 billion.Indeed, Forbes reports Manchester United posted $160 million in operating income, with its stadium, senescent Trafford, pulling in more than $200 million in book and concession revenue last season.Spains Real Madrid ranked as the second most valuable at $1.35 billion, followed by another English club, Arsenal at $1.2 billion, Germanys Bayern Munich at $1.11 billion, and Englands Liverpool at $1 billion, according to Forbes. By comparison, the most valuable Major League Baseball team is the New York Yankees, worth an estimated $1.3 billion as of last April, while the most valuable National Football League team is the Dallas Cowboys, valued at $1.6 billion last September, according t o Forbes. Burnished by that relative stability and by the sports growing popularity throughout China and Southeast Asia, big-ticket investors have continued to pour money into Englands Premier league, the magazine points out, noting the sale last cliff of Englands Manchester City to Sheikh Mansour Bin Zayed Al Nahyan for nearly $385 million.The value of European football is still there, said sports banker Robert J. Tilliss, founder of Inner Circle Sports. The demand from broadcasters and sponsors has continued to rise.ReferencesGlobalisationArmstrong, G., Giulianotti, R. (1997). Entering the Field New Perspectives on World Football. Oxford Berg.Armstrong, G., Giulianotti, R. (2001). Fear and Loathing in World Football. Oxford Berg.Armstrong, G., Mitchell, J. (2008). Global and Local Football Politics and Europeanisation on the Fringes of the EU. capital of the United Kingdom Routledge.Back, L., Crabbe, T., Solomon, J (2001). The Changing Face of Football Racism, Identity and Mu lticulture in the English pole. Oxford Berg.Cashmore, E. (2000). Making Sense of Sports. London Routledge.Coakley, J. (2003). Sport in Society Issues and Controversies. Boston McGraw Hill.Coakley J., Dunning E. (2000). Handbook of Sports Studies. London Sage.Conn, D. (1997). The Football Business. Edinburgh Mainstream Publishing.Dobson, S., Goddard, J. (2006). The political economy of Football. Cambridge Cambridge University Press.Dunning, E. Maguire, J., Pearton, R. (1993). The Sports Process. Champaign Human Kinetics. Dunning, E., Murphy, P., Williams, J. (1988). The Roots of Football Hooliganism. London Routledge.Dunning, E., Rojek, C. (1993). Sport and unoccupied in the Civilising Process. Toronto University of Toronto Press.Finn, G., Giulianotti, R. (2000). Football Culture Local Contests, Global Visits. London Cass.Giulianotti, R. (1999). Football A Sociology of the Global Game. Cambridge Polity.Giulianotti, R., Williams, J. (1994). Games without Frontiers Football, I dentity and Modernity. Aldershot Arena.Guillianotti, R., Robertson, R. (2009). Globalization Football. London Sage.Hargreaves, J. (1994). Sporting Females. London Routledge.Holt, R. (1993). Sport and the British. Oxford Oxford University Press.Horne, J., Tomlinson, A., Whannel, G. (1999). Understanding Sport. London Spon.Houlihan, B. (2003). Sport Society A student Introduction. London Sage.Lanfranchi, P., Taylor, M. (2001). Moving with the Ball. Oxford Berg.Maguire, J. Jarvie, G. Mansfield, L., Bradley, J. (2002). Sport Worlds. Leeds Human Kinetics.Maguire, J. (1999). Global Sport. Cambridge Polity Press.Miller, T., Lawrence., McKay., Rowe. (2001). Globalization and Sport. London Sage.Murphy, P., Williams, J., Dunning, E. (1990). Football on Trial Spectator Violence and the organic evolution of World Football. London Routledge.Murray, B. (1996). The Worlds Game A History of Soccer. Illinois University of Illinois Press.Polley, M. (1998). Moving the Goalposts A History of Sport and Society Since 1945. London Routledge.Russell, D. (1997). Football and the English. Leeds Carnegie Press.Sandvoss, C. (2008). A Game of Two Halves Football, Television and Globalization. London Routledge.Walvin, J. (1994). The Peoples Game A History of Football Revisited. Edinburgh Mainstream Publishing.

Below-the-Line Vs Viral Marketing

Be grim-the-Line Vs Viral MarketingMarketing has played a eventful role in condescension mastery for decades and is ultimately concerned with the insertion and retention of customers who with the purchasing of mathematical convergences yield profits for companies. It has been suggested that the appeal of attracting sweet customers is much eminent than brinytaining real ones and thus firms seek to induce up expeditious and potent retention systems for customers apply a trade salmagundi. opus the under-the- debate promotional mystify has established itself as a major atom of administering mixes refer adequate to the rapid schooling of new technologies and globalisation an divisioner(a)(prenominal) selling constellation, viral trade, has garnered broad attention, (Lanman, 2003). The reason for this attention is that companies shed exhibit their success with minimum selling budgets in generating millions of profits in using this tool. The Inter case Direct Marketing Network measured the commit of divers(prenominal) merchandise techniques and it found that 84% of firms utilise approximately form of down the stairs the line market (North, 1995). In this way the response of distribution of crossways and culture butt end be measured immediately. How everlastingly both organisations and individuals have been pillow slip to an unprecedented rate of change in the way they pursue and ar involved in disdain and commercial opportunities in the 21st vitamin C making the case for an expanded role for viral market ever much than compelling, (Kalakota, 1999).These characteristics include the internationalisation and globalisation of job and the resultant glowing competition from these trends which has buildd new self-propelleds within selling structures for whole companies, (Chesher Kaura, 1999). oneness of the most strategic needs for business infixprisees currently is the need to satisfy increasingly demanding customers who expect immediate responses to their requests both for goods and readying. The role of viral merchandising in conflict such a need has continued to increase with the refinement of use and users of the Internet. Graham (1999) argues that viral merchandising refers to strategies that ar absorbed by the people that interact with the heart and souls and wherefore manoeuver them on. Therefore the name viral selling is a good deal linked with the Internet because it digests a wide hunt down of free channels such as telecommunicate, networksite and chatting rooms in which to possess initial piths. Addition solelyy merchandising is not solely around natural things but deals with check offs, experiences and acts of communication which arouse be defined as branded, (Moore, 2003).The choice of appropriate selling model and because to a large bound is associated with prep are pinch of consumers on the part of organisations. save consumer behaviour is m ingled thus each market model has its own favours and disadvantages in influencing these behaviours. As a result an efficient merchandising mix should meet break customer requirements in affirm for the comp whatever(prenominal) to succeed in the market and at the same time the usage of any marketing mix schema will be constrained by the corporate imaginations and business structures which can be deployed to generate opportunities. Therefore this paper will critic tout ensembley compare viral with below the line marketing models and aim to survey the brilliance of matching marketing strategies with business structure and characteristics of product through an analysis of unendingly quicks usage of viral marketing.Below-the-Line Vs Viral MarketingAn substantial perspective in marketing philosophy is the distinction between qualification and in effect(p)ness, (Anonymous, 1989). therefore a comparative analysis of below-the-line marketing models and viral marketing ones can be conducted using these twin elements as frameworks. The essential residual between efficiency and effectiveness is that the former is concerned primarily with embody and the latter is customer focused in boundarys of retention and coevals capacities. This framework a homogeneous corresponds with an sympathy ground on the core run around of marketing which is to satisfy customer needs in a paying way by matching go or products with likeences.While preceding(prenominal) and below-the-line promotion has established itself as a major technique in communication with customers new challenges facing marketing managers have led to the development of new marketing techniques. Generally speaking in a higher place-the-line refers to the usage of all the main publicise media such as TV campaigns and magazine advertisements whereas below-the-line activities are to a greater extent focused on translating attitudes into sales such as with in investment firm advertisements. Her e as salubrious as habitual transaction become a bouncy part in the communication process, (Wilmshurst, 1994). til now Tauber (1974) argues that a customer orientated marketing strategy easily discourages innovation within organisations such as with the RD process. This is because companies prefer following customers tastes rather than creating new demands negateing then any risks associated with novel and groundbreaking product development. This can be seen as a negative bring on produce for the whole industry in the long term. then viral marketing is argued to be an innovation in marketing which has emerged since 1996 utilising email at first as a global marketing network, (Jurvetson, 2000). The pattern of viral marketing is one which is base on word of express and its first uses were conceptualised in terms of it being web-establish word of mouth marketing. attendant further technological development and globalisation viral marketing as such seeks to distinguish ad vantage of rapid multiplication to explode ace passs to thousands at low exist as hearty as several(prenominal) opposite complex marketing goals at the mature stage. Viral marketing is a method which allows small businesses to grow quickly through the cattle ranching of their marketing message like virus and avoid consequently major accounting entry barriers to the market and exclusionary techniques of competitors, (Jurvetson, 2000). as yet because of the nature of the Internet Dibb, Simkin and Vancini (1996) show up out that all forms of word of mouth to a large extent depend on intangible assets such as brand image, trust and public relations in ordinate to be self-made. In this sense a flourishing viral marketing strategy needs to bourgeon advantage of other resources to build up brand image and kinds with customers.In summation several(predicate) marketing mixes rely on different characteristics of products and industries, organisational competition as well as upcountry resources including material resources, intangible assets and human resources. Therefore understanding the advantages and disadvantages of each model is vital in helping marketers, whatever their scene of action of business, carry out effective marketing practices.Business StructureAn effective implementation of a marketing strategy relies on getting nonionised for the work and the route a conjunction chooses depends on a mannequin of meanss. However the first step for any type of association is understanding consumer behaviour. This understanding allows a follow to position their products or service in effect in relation to the preferences of its target customers. However any customers purchasing conclusiveness process is a complex one thus it is useful to underpin in mind whatsoever chance upon influences on these decisions. First of all the development of technology peculiarly the Internet has changed both buyers and companies behaviour in various ways. For example research has indicated that the scale of the e-commerce market will drop $7.3 trillion in 2004, from $145 billion in 1999 reflecting its growing importance as fashion of doing business, (Suh Han, 2003). As a result it is vital that companies wreak the Internet on with other marketing tools such as leave marketing or in store sales to achieve promotional goals time viral in order to create new opportunities for growth in the future.In addition to advertising below-the-line practices play an increasingly important role in communicating and building close relationships with customers. For example metalworker and Taylor (2004) argue that each element of the marketing mix communicates so that some major advertising campaigns need to be back up by public relations activities and besides at the same time be supported for example by launch leaflets. Combining these elements maximizes the effect of promotions and advertising campaigns for companies. Kitchen monitor (1991) claim that public relations is a growth area for companies because it is an effective way to generate cocksure word of mouth for a come withs products. A further consideration to take into account when firms look at strategic decisions about marketing techniques is the cultural and social effects on consumer behaviour. Web establish deliin truth though can be say to circumvent some of these problems by allowing for easy tailoring to specific contexts due to the absence of any necessity for bodily places to conduct marketing trading operations.Marketing researchers encourage the use of an integrated marketing mix as it is believed to be sufficient to create militant advantages and boost sales and profits whilst saving time, money and avoids some of the stresses involved in implementing marketing plans, (Harrison, 1995 Smith Taylor, 2004). From this perspective both below-the-line and viral marketing models should utilise different communication tools in relation to customers and ontogeny productive relationships with them. For this reason there are key gains of an integrated marketing address yet there are excessively obstacles due to hold in resources in terms of financial, time and power constituents. In this case inefficiency mogul occur due to interior(a) competition or unbalanced ration of resources addressed due to over emphasis on one marketing tool. It can be strongly argued that a web-based viral marketing approach could balance conflicts among different departments as well as with suppliers simply because it seeks to take advantage of others resources in assisting with the delivery of the troupes marketing message, (Wilson, 1999). In considering these two approaches to marketing this work utilises a 4P framework as an analytical guide to their several(prenominal) strengths and weaknesses. carrefour It is intelligible that no matter what kind of marketing model companies choose the ultimate goal is to sell a product (service) to cus tomers at a war-ridden worth. However the product purchasing decision involves choices regarding brand names, guarantees, packaging and services which accompany the product. Reports suggest that expenditure on below the line marketing in Europe has grown rapidly in recent years due to intense competition, (European Marketing Pocket Book, 2000). so one of the most important goals for advertising campaigns is effective positioning of products. Ogilvys (1983) sawing machine is for a business to never sell to a stranger which means it is important to understand the target audience and their purchasing behaviour and alike build long term relationships with them. Companies therefore choose different tools in order to segment customers and then position their products in order to sell the right thing to the right people.Below the line marketing strategies often attempt sales people to communicate with customers face to face. This allows an organisation to gain learning about custome rs deeper feelings about products rather than the more im mortalal learning gathered by web-based questionnaires. Also when companies adopt a viral marketing strategy customers are not able to touch the product or in other words they see tangible assets only envisioned on web pages. This means then that trust plays a major role in delivering the product message to consumers. This is why viral marketing firms use a strategy of giving away free product samples to customers. This is in order to build up trust in the company and brand and then utilise these customers through word of mouth to spread the product message further. Holt (2004) highlights trust as the essential lubricant of web-based business operating successfully with note products being a critical factor for success in building up trust.Price Price is always used by buyers as an indicator of quality in that higher(prenominal) impairment tends to send a different message compared to lower pricing. The clog for companie s is even is hitting the sweet spot in terms of price and quality. Therefore high price product firms prefer adopting differentiation strategies in order to maintain competitive advantages. A typical feature of below-the-line promotions though is an element of price war and price cutting in order to initially entice customers. This has the effect of increasing direct costs to the business and reduces the gross profit accordingly so that sales people have to work harder to earn the same amount as before the price cut. In short letter to below-the-line promotions companies with viral marketing models benefit from the lower cost of not having physical stores, sales people and/or expensive advertising campaigns on TV, radio or magazine and other expensive media forms. As a result viral marketing firms often offer duplicate discounts to attract customers and it is suggested that one of the most important reasons for people purchasing online are the lower prices compared to traditional retail stores, (Reedy Schullo, 2004). Reedy and Schullo (2004) in addition argue as a result that it is vital electronic resources be integrated into marketing mix by both traditional offline as well as online retailers.However an important point worth highlighting is that of strategic versus tactical pricing. Strategic pricing refers to long term pricing which depends on how the company intends to position itself in relation to customers. An example of below-the-line marketing are the practices of the supermarket Tesco which has build a reputation for low prices or the lowest pricing in the town in which it operates. In this case its pricing strategy seeks to generate a competitive advantage while Marks Spenser in contrast utilises an image of pause quality food at a higher pricing level in order to differentiate itself and thus avoid a price war with Tescos. Additionally although viral marketing models benefit from lower costs and be able to offer more competitive pricing pr oducts like health- link up tablets firms tend to not be able to exploit a strong brand name for quality and effectiveness. Rather it is the low pricing which initially attracts customers. Therefore the importance of word of mouth is much more pronounced for the continued success of viral based marketing firms.Promotion As mentioned before researchers and economists have argue that the cost of attracting a new customer is five times that of maintaining an existing one, (Jobber, 2001). Companies attempt then to keep customers satisfaction level high and encourage them to get more products through the creation of brand loyalty. Below the line marketing forms by using direct promotion and a human sales fierceness to build a close relationship with customers can be said to do this more efficiently. Examples can be seen from fashion brands like YSL and Christian Dior which deliver their brand images using highly trained and skilled force out creating strong connections in the minds of customers between brand image and products and form a foundation for brand loyalty. However the cost of sales people as well as training investment is a balancing factor while viral marketing on the other hand is able to take advantage of free internet sources by using tools like email or low cost advertising presences such as banner ads on websites.It is also interesting to note that below the line marketing can be viewed as pushing instruction to consumers whether it takes the form of communication from sales assistants or leaflets in magazines and so on. In doing so companies attempt to communicate with customers by explaining and giving detailed product or service information to them. In contrast viral marketing can be seen as an information pulling tool which seeks to spread sentiency of the product through popularisation. However marketing emails need to provide great value for readers such as through being more entertaining, spicy or compelling in order that viral marke ting message be more effectively taken up by readers, (Reed, 2005). A common inducement often used by companies is to pay those readers who pass on the message to others or can prove products bought have been through so on their recommendations. This can be problematic though due to fraud or other criminal activities. Related to this is the problem of protective covering features emerging in the use of the Internet whereby viral mail is hardened as virus mail or junk mail (or spam) and thus the marketing message may be blocked from reaching its intend audience through the workings of such things as email filters. diffusion Brownlie and Saren (1992) argue that the concept of marketing has assumed many of the features of an ideology of faith which dominates the decisions of many organisations. In other words they believe companies must not only take into account giving customers what they need but also focus on the integration of these demands into other core business functions. Th is entails then the balancing of the satisfaction of consumers with the performance of other company requirements. Therefore it is particularly important for companies which adopt below-the-line strategies to choose an effective distribution channel which satisfies customers demands efficiently as well as other business participants such as suppliers and retailers. Likewise it is important for suppliers to have a physical in-store presence while manufacturers must show more interest in the basics of selling and displaying in store. In this case a well trained and actuate sales team plays a critical role in alter a companys in-store performance.However the costs associated with physical stores are high as well as the cost of training employees. The usage of internet based viral marketing models are able then arguably to infract integrate resources at lower cost and concomitantly allows the building of stronger trading relationship between each partner within the business network. For example viral companies conduct strategies such as allowing each customer who makes a purchase to also act as a wholesaler for the company and in doing so encourage them to use their own network of contacts to sell more products for the company and at the same time profit from their selling. Therefore it is obvious that successful viral marketing companies are those which can successfully exploit customers networks and exploit word of mouth to spread rapidly rather than make use of expensive advertising campaigns or below-the-line promotions. Smith and Taylor (2004) though point out that the place of purchase also communicates within a marketing mix which means an item purchased in Selfridges has a differently perceive value to an item purchased online. In this sense strategic branding seems particularly important for companies who rely on in-store marketing. Adding value to physical places could be used as part of a branding strategy in maintaining competitive advantage over low cost viral marketing stores. forever and a day livelihood Reports indicate that viral marketing techniques are growing in popularity in their use among corporations in the US ranging from small businesses to transnational companies, (Bulkeley, 2002). perpetually hold Product co. can be viewed as a successful example of the usage of viral marketing strategies which have contributed to its now multinational business network. According to Wilson (2000) successful viral marketing strategies refers to those which are able to take advantage of rapid multiplication in delivering the product or service message to as wide an audience as possible. In other words viral marketing is closely linked with the term and process of word-of-mouth marketing. In particular these methods have sought to take advantage of the rapid increase in internet usage and as a result web-based forms have become the most important resource for viral marketing techniques. For example forever and a day liveline ss Product has promoted itself as an international firm which seeks to exploit natural sources in producing products contributing to peoples health. The company delivers its product information through the use of a website and seeks to recruit existing customers as wholesalers for its products as well as utilising them to deliver the marketing message. These inducements psychologically are an effective means of retaining existing customers and attracting new ones.Linked to this meeting peoples emerging demand for a better quality of life in terms of high health levels is a key factor for the success of Forever Living products. As such along with financial inducements the cookery of information supporting the marketing message is a key constituent for the companys marketing strategy. For this reason the Forever Living website is designed to provide customers with clear information about its products and services as well as information on how customers can join its business model. A ccording to Solomon, Bamossy and Askegaard (2002) people spend a considerable amount of time in searching for information before they decide to purchase high price goods or opulence products. A web-based marketing model enables consumers who are interested in the products and services go to visit websites and acquire information in a cheery and flexible vogue. However these advantages are countered by the tendency for viral marketing websites to provide too much information. Reed (2005) argues that efficiency in communicating a marketing message might decrease because of excessive information. Principles of web design then become important considerations to both enhance accessibility and decrease the dangers of information overload.Marketing mix In modern marketing literature the concept of marketing is often expressed as the attainment of corporate goals through meeting and exceeding customer needs better than competitors are able to, (Jobber, 2001). Viral marketing can descri be any strategy that encourages customers to pass on a marketing message to others which creates opportunities for electric potential corporate growth, (Wilson, 2000). Viral marketing consequently as a form of marketing strategy is predicated and based on successfully understanding consumers in terms of what will satisfy them in product and service provision. However as has been mentioned consumer behaviour is both a complex and a dynamic process and therefore understanding this behaviour requires considerable amounts of information. The Internet is widely used as an effective tool in capturing a grand amount of digital data related to consumer behaviour and viral based marketing forms are in a good position to successfully make use of this data and also contribute means of throng it. However such information is largely full generalised and unspecific devoted the amount of traffic which the Internet sees in terms of purchasing decisions.Thus Jackson (2000) contends that viral marketing works best only when the key consumer interaction has relatively broad appeal to the target market. Forever Living Product successfully entices people arguably through the opportunity to lay out their own business and offering the possibility of higher income levels. It is a message therefore with near universal appeal for people. It is also a message which allows for individualised emotional investment to be made in products, in that customers will be dogmatic about a product as their interest in selling it is related to their own financial gain. However a key factor for continued success is maintaining the quality of the products as studies indicate that negative word-of-mouth images spread twice as spendthrift as positive images, (Haywood, 1991). In the case of Forever Livings aloe range of products the high quality is based on its International Aloe Science Council Seal of adulation for consistency and purity. Such external confirmations of quality add to and enha nce the companys internal messages dealing with the quality of its products.Additionally the clear return and guarantee policies offered by Forever Living also contribute to its success since recourse is minded(p) to customers should products or the process of purchasing products not meet their expectations. These are considered to be the most important factors affecting customer behaviour in buy online as they enhance significantly customer trust in the product and organisation, (Reedy Schullo, 2004). Managers with communications responsibility must try to deal with complaints as well relate satisfaction dynamically considering the ease of spreading and access to information online. Haywood (1991) believes that people- talking is the best form to communicate but Blythe (2000) argues that the website of a company is principal initial source for the content of such communication. Therefore Forever Living Products website is designed to provide full information about the products a s well as the business plan for those who want to get involved. In doing so the firm avoids considerable expense on physical stores and layout, personnel and the possibility of inefficient explanation and communication by sales person dealing with products. Providing contact points for additional customer questions also enhances the effectiveness for this model. Yet a weakness is that if initially the website is not successful in attracting customers it is flimsy they will return. In this sense the persuasive capabilities of below-the-line models with their human elements is missed.Forever Living is a multinational company which runs business in over cv countries as the words largest grower, manufacturer and distributor of aloe vera, (Forever Living Product, 2005). It is fair to say that during the internationalisation process the Internet has been vital in spreading the business rapidly and easily compared to the opening of physical stores. It has also allowed the offering of an interactional tool tailored for communicating with global consumers in their respective national contexts. Traditionally communication media follow a passive one-to-many model where a firm reaches many current and potential customers through marketing efforts however feedback from customers in such models is limited, (Hoffman Novak, 1996). Forever Living operates a model of distributed calculate that facilitates an interactive many-to-many communication tool and model. For example the website is designed to help customers build a solid stable business through professional training meetings and regular recognition of their efforts. The running of the business online minimises the physical investment indispensable and need for large product inventories but requires a motivated and efficient distribution channel. A significant advantage of this model is that full gunstock and product control is integrated into supply and distribution as all of these elements from production to sale are realised within the website. This allows for large cost savings and creates a feeling of auspices for customers and wholesale sellers in the operations of the company.As discussed in the preceding section companies using below and above the line marketing tools view human resource as an important factor in the completion of these forms of marketing strategies successfully. In a positive sense they are able to exploit a skilled custody in achieving promotional goals but negatively failure might issue from unenthusiastic sales personnel or negative sales manner in the conduct of the promotion. By using a website instead of a sales person along with already satisfied customers Forever Living minimises the risks of negative information provision and capitalises on cheap and effective positive information provision, (Wilson, 2000 Diorio, 2001). In addition to online ordering Forever Living also makes use of more traditional phone call services for those who are not able to access internet increasing its coverage. The online model also allows Forever Living circumvent the considerable entry barriers to participating in the health care market. These barriers include large investment in physical assets as well as the brand loyalty for other manufacturers or certain retailers concretely established as a result of other marketing strategies. The creative use of the website as both a marketing tool and an intangible shopping space creates competitive advantages for the firm. Although the price of Forever Living products means they are not cheap due to general features of luxury health care goods and compared to pricings and costs associated with other luxury health care products Forever Living is able to compete on very effective grounds with other retailers.Viral branding strategy over the last few years companies have increasingly moved to co-ordinated the World Wide Web into their overall marketing strategies. Viral marketing strategy in itself has changed t he way to do the business and communicate online by taking advantage of the specific contextual advantages offered by the Internet. However along with internet based marketing the emerging challenge for viral marketing companies is to build up strong brand name in order to compete with below-the-line firms as well as other web-based and offline companies, (Jobber, 2001). The first associations that enter into customers consciousness in relation to a brand name are always those associated with products or product categories, (Franzen and Bouwman, 2001). Thus with Forever Living Product they have sought to link the brand name with superior ranges of aloe vera based products. The corporate research centre creates a professional image of the company matching with images of traditional high-tech pharmaceutical industries but meshes this with an appeal to realism and back to nature images associated with its products. The key message then contains both security over the high qualities mai ntained in the products manufacture but also the manner in which it is a natural product taking advantage of green sentiments among customers.Diorio (2001) argues that one of the obstacles to viral marketing is the obstacle in identifying triggers that can motivate customers to pass along the business message. Beaven and Scotti (1990) claim that consumers develop internal scripts related to their service transactions which they recall for future purchases of that service. Hence a satisfied personalised experience is a key driver in the repeat purchase of products. The tool used by Forever Living Product in this respect is the motivation from self-owned businesses joining satisfied product use with opportunities for personal financial reward. However its branding strategy also contributes to the success of its differentiation from other companies competing in the same market. Web-based branding strategy is able to reach a large amount of customers but the difficulty remains in estab lishing trust which is the main basis for long term customer relationships using this model. Also there are ethical issues related to viral marketing such as those arising from security of investment and personal privacy in providing information online especially financial information. Trust then for Forever Living is not only related to product quality and satisfaction but about providing a completely secure packet boat for customers upon which trusting relationships can be built.Benefits of a website as an integrated marketing toolFrom an analysis of Forever Living which prefers the use of a website as the core technique and means of achieving marketing goals it is fair to say that the effective design of web sites contributes to whether it will be a success or not to a large extent. First of all the website is able to provide full information

The Advantages Of Online Banner Advertising

The Advantages Of Online Banner advertINTRODUCTIONE-commerce which is also known as electronic commerce, it is online commerce verses actual-world commerce. E-commerce contains retail obtain, investment, banking, stocks and bonds trading, gross revenue, real estate dealings, airline reservation, movie payments. It is almost e trulything you can encounter in the real world. Even personal go much(prenominal) as hair salons can advantage from e-commerce by providing a website for the sale of machine-accessible wellorganism and makeiveness goods, usually accessible to local anesthetic customers wholly.While e-commerce at once required a luxurious interface and individual security certificate, this is no wanter the situation. Virtual storefronts ar offered by a diversity of hosting assistants and great Internet occurrences much(prenominal) as eBay and Yahoo, which offer turnkey solutions to sellers with fragile or no online knowledge. Tools for running rough-and-ready e-com merce websites atomic number 18 made into the hosting servers, removing the acquire for the individual trade to reform the wheel. These tools include advantages standardised inventory and sales logs, and the world power to accept a diversity of expense choices including secure cite card transactions.The rising popularity of e-commerce is clear considering the time and both(prenominal)er involved in running from store to store, penetrating for an item in the world. It not exclusively takes valuable time and energy, unless petrol. With todays busy cities and high gas charges, shopping online every time the mood strikes even in the middle of the night, it has undeniable and unassailable benefits. Not only is it suitable to shop at a countless of sellers from the comfort of your com projecter chair solely its also a snap to find the best deal by bearing sites such as PriceGrabber examine through hundreds of vendors for you.As a result, global world businesses much cannot comp ete with their e-commerce complements, though unitary does have to watch for exagge located ecstasy payments that might disprove savings.Type of Online publicizingBanner publicizeThe initiative kind of advert ever done on the net was standard ad. A criterion can highlight a companys product/service/offer and by clicking on it the user will be taken to that companys website, where the company can create a suitable landing foliate to provide their further information. Banners spaces usually were sold by pennant views, impressions, but it is sometimes sold by click-thru, where the company pays only when the user clicks on the banner.To post a banner advert, the company can do each or all of the followinga) Banner exchangewhere another website displays the companys ad in exchange of the company displaying for themb) Pay publishersites to post the companys bannerc) Pay a banner nedeucerkto post the banner advertisement on a number of publisher sitesAdvantages of Online B anner Advertising calculate more(prenominal)(prenominal) website dealings and salesWith banner advertisement, companies can put their means in front of future customers. It also drives clicks to their website and sales from interested audiences. crowd wise productsBanner advertisements can help companies to advertise their new products because banner advertisements give them the freehandeddom to say what they want not only with text edition but also photos and animation.Build brandCompanys brand name is one of companys most important assets. By building trust with their customers, customers are more likely to purchase from them, not just once, but repeatedly. Banner advertisements allow them to get their website name and even their logo in front of their audience. make up ones mind new customersWith search engine advertising, passel have to know to saying for the companies product or name. But with banner ads, companies can put their means right in front of the people. Intr oduce themselves to new customers to win new business.Easy and cost-effectiveBanner advertising has been put within tinge of dispirited businesses by new services. Online tools now let companies make free banner advertisements and buy online advertising space quickly and easily.Disadvantages of Online Banner AdvertisingCost considerationsBanner advertisements can be rather expensive for small businesses as it whitethorn cost several thousand dollars per month to put an advertisement on a site with a high level of traffic.Creating effective bannersEven if a banner is well-placed, it will not attract the interest of surfers or generate traffic for the companies website unless it is well-designed. prompt for Improvement sizeSome banner advertisement is too small to be find while some is too big causes the banner to look very disturbing. The size should be around medium size.GraphicInsert some graphic in the banner such as animation or cartoon characters might attract the viewers eve n more.Facebook AdvertisingFacebook Advertising has grown-up in popularity and formed quite a stir when it was head introduced. of all time since the arrival of aiming advertising more exactly towards demographics such as age, sex, command and so on. And having tighter limitations on advertising quality, Facebook advertising has been a feasible traffic builder and advertising choice for minor and huge size commerce.AdvantagesTo realize target customers, connect with more than 500 billion potential customers (100 million mobile users) cannot be overlooked. There are more Google searches that are being done, the customer reach for Facebook advertising is massive and needs to be utilized.Because of its ability to divide and segment customer information, Facebook has the ability to offer increased targeting for their advertisers. If you would like to only target women, ages 20-30 with a university education that live in California, indeed you can do that. Likewise when someone chan ges status such as single, engaged or married they move into new markets, making them more attractive to target.With the ability to target locally very exact, corporations and services that are looking for local or regional clients can gain benefits from the Facebook advertising system. It is to find a successful with Local Clients.DisadvantagesPeople are utilise Facebook to talk with their friends and socialize and rarely are thinking about purchase something when they log into their Facebook account. This creates issues when firms are focusing on click through rate (2.5-5%) conversion rates.One thing that Facebook has keep to try and crack flock on is advertising campaigns that make their way into the system that are wrong and off putting to users of the system. Free give ways, rewards programs and comedy sites have continued to flood the system, giving the advertising less relevance when the consumer is viewing them.Suggestion for ImprovementGraphicInsert more graphic in the facebook advertisements such as animation or cartoon characters might attract the viewers even more.There are plenty of advertisers that complain about how long it takes to get Facebook advertising approved. So, two options are immediately obvious.Automate it. subscribe to more interns.Reaching Facebook Users Through PPC Advertisements hansdorschConclusionOnline advertising means doing advertising activities through internet network not only at local places but also worldwide. Online advertising is very effective as like a shot many people have access to internet. They can see the advertisement when they were surfing the internet.Meanwhile, normal advertising means doing advertising through media such as television, radio, newspaper, brochures and others. Television and radio advertising can be both effective and not effective. These two advertising can be effective as many people likes to watch television and listen to the radio. These two advertising can be not effective becaus e the advertisement that are broadcast may not be the advertisement that viewer or listener wish to know.Therefore online advertising is better than normal advertising and the best online advertising method is Facebook advertising. This is because nowadays, Facebook is a social network that connects to people around the world. Facebook had become very famous not only for teenagers and children but also adults. Some people may spend up to 12 hours a day just for Facebook. So by using Facebook advertising, Facebook users may be able to see the advertisements and click on it if they were interested.

The Elevator And Escalator Industry In Sri Lanka Economics Essay

The airlift And moving stairway Industry In Sri Lanka Economics EssayI am employed at ETA MELCO ENGINEERING (PTE) LTD for the past one(a) year and Im shortly subject fielding as the Human Resource Executive. My company is a full protested subsidiary of ETE MELCO raising Co. L.L.C. and has its head delegacy in Dubai, U.A.E. which belongs to the ETA wizardry GROUP OF COMPANIES. We represent Mitsubishi facelifts and escalator clauses in Sri Lanka and our activities c everyplace the securities industrying, supply, inst arrestlyation and of importtenance of all types of Mitsubishi Elevators, Escalators, Moving Walks and Vertical transportation equipment. Mitsubishi Escalators and Elevators has earned a reputation as one of the most advanced Elevator and Escalator manufactures in the world, crack firsts in technology.Let analyze in item the Elevator and Escalator Industry in Sri Lanka and the merchandise my company belongs in relation to the stinting context.About the Group CompanyETA STAR Group was established in the archaeozoic 1973 and is impressd with expertise ranging from Civil Construction to Electro Mechanical, Facilities Management and Elevator Engineering. Today the ETA STAR meeting involves in activities that cover 16 across-the-board patience verticals. Namely Construction and Engineering, Trading, Shipping, Manufacturing and Assembly, Facilities Management, Auto Mobile, Real Estate, Retail, Services, Travel and Leisure, wellness C ar, Aviation, Learning and Education, Insurance, Hospitality, Oil and Natural Gas. The group has a network of cxl entities and offices in 22 countries. As a group we go out practice session to over 72000 people. All group companies be guided through the group companys vision, Quality is our single-minded pur lawsuit in the application of new technologies. In our wide ranging diversity, we innovate continuously as we strive to provide complete satisfaction to our customers and fortuneholders. We birth em erged as one of the largest corporate houses during the last 37 age of operations achieving excellence.A look at the IndustryThe Elevator and Escalator industry in Sri Lanka is super depended on the expression industry. The verbalism industry in Sri Lanka comprises of building, highway, bridge, water supply and drainage, irrigation and land drainage, dredging and reclamation and some early(a)wise constructions. According to the annual survey carried out by construction industries, the set down value of estimated work done by all types of construction activities in Sri Lanka was Rs. 56,496 million in 2007. The building construction celestial sphere was the highest subscriber to the nitty-gritty value of work done contri aloneing 64.1%. This contribution to the building construction sector was make by the private and public sector. The second largest contributor to the total value of work done in the construction industry was the highway construction amounting to 25.2% of the total value of work done. The highest value of work done was inform from Colombo district amounting to 37.2% of the total output. Hambanthota and Kaluthara Districts contributed 11.3% and 6.2% accordingly. Jafna District reported the lowest value of work done amounting to 0.3% of the total output.A detail breakup constriction industry for the year 2007 is as follows author yearbook Survey of Construction Industries 2008To evaluate on the industry of Elevator and Escalator lets analyze the detail break up of the building construction industry.Source Annual Survey of Construction Industries 2008Elevators and Escalators ar mainly used in Sri Lanka for high and medium rise buildings that has being developed for residential apartments, hotels, shop complexes and hospital buildings. The essential for aerodynamic lift is strandd on the on a lower floor complex body part development in the above mentioned areas.Based on the interview I had with the Sales Manager he told me that the con slope for elevations and escalators pass on being 238, 243, 219 and 171 for the years 2006, 2007, 2008 and 2009 respectively. This clearly helps us to understand the sudden drop in the request for elevators was due to the economic crisis that affected the constriction industry in our plain in the mid 2008 and 2009. The estimated annual demand for elevators for the year 2010 is predicted to be 260 units. therefore far the rapid development in the northern and southern province in the country after the 30 years of civil was is contributing favorably to the elevator and escalator mart in Sri Lanka as many infra structure development programmes are presently winning place. Many of these projects are government owned. Population growth on the other hand to a fault contributes immensely to the building construction industries. Due to scare resources such as land developers are compelled to put up high rise apartment buildings and complexes. Today even in the rural sector at that place are plans to up such building. Tourist industry too positively contributes to the elevator and escalator market as we need to develop many hotels and hotel apartments to support up to the demand. Sri Lanka tourist board is presently focussinging on areas such as Trincomalee and Puthalam in order to promote Dolphin, Wale watching and Surfing. overly areas such as Hambanthota, Jaffna, Baticalo are given preference. The Health care sector too in Sri Lanka gives high priority to the elevators and this is seeing as a sector that has been having a continual growth over the last decade.Overview of the transcriptionTaking into account the initial success achieved in the U.A.E. market in the early 1980s the ETA MELCO Elevator Co. L.L.C. set up branch office in Sri Lanka in the lay down ETA MELCO ENGINEERING (PTE) LTD and 20 other countries. The Sri Lankan construction industry proved to be during very well in the early 1980s and this influenced the management to set up op erations in Sri Lanka to provide vertical transportation facilities as there was a huge demand for carrefours such as elevators, escalators and moving walks and other related products for high ascending buildings, hotels, hospitals, commercial buildings, residential apartments etc. These products are supplied by Mitsubishi Corporation.Popularly cognise as the Elevator People of Sri Lanka we have grown to be the biggest elevator specialist in the region enjoying a very high market share. We as a company are singularly focus on growth by keeping up with modern expert changes and advances. We have a fully fledge research and development team in Japan that keeps us updated with trends that suites the industry tomorrow.The phrase that brands our products, Quality in motion is not just a catchy slogan but a statement of fact. We are driven by the continual evolution of technological expediency. The professionals of our company and through out the worlds practice Quality in interco mmunicate everyday. We not only pay emphasis to operational efficiency but also safety and comfort. We are embodied by our mantra Number one for Quality to ensure we exceed out customer necessarys.The policies of Mitsubishi Electric has made all these possible while fostering the values necessary to fit in our products and activities with the environment and local communities.These will vary based on customers requirement for capacity, speed, purpose, come of persons, number of stops (floors) etc. Refer appendix for more details on our product range. marketplace ShareThe industry leader in the Sri Lankan Elevator market is ETA MELCO ENGINEERING (PTE) LTD the agent for Mitsubishi Elevators in the country. We substance Mitsubishi Elevators and Escalators under the HS code 84281010 Lifts and skip hoists. According to the import statistics details obtained from information One Company our sales team analyzed the market share for the year 2009 based on the number of units ETA ME LCO (Mitsubishi) secured as against its competitors. The data is as followsWith reference to the analysis carried out it could be said with much for certain that this industry belongs to the Oligopoly (Imperfect) Market Structure as it has a relatively fine number of large substantials. They sell differentiated products and comprise of significant gateway barriers. Thus we have a few key industry players identical Otis, Sanyo, Sigma, Dipra, Schindler, Johnson, Kone and Local Fabrications who deal with Elevators and Escalators in Sri Lanka. therefrom we export only trey types of products Elevators, Escalators and Moving Walks. We are the only local company that exports these products from Mitsubishi we have wear out access to architects, clients, contractors, government authorities and other developers due to the good name we maintain in safety, comfort, efficiency and superior quality. Nevertheless this industry is highly competitive as all the few players on amount have to meet a demand of 175 200 elevators for a year. This leads to burst competition. We have to keep a breast of the ever changing technological advances and we need to convince our customer base on the modern products and modifications demand to existing products from time to time to avoid our products being modernized or serviced by out competitor companies.Taking in to account the over all market in to consideration ETA MELCO has grown from authority to strength enjoying the highest market share in this segment when compared to its competitors. The company has to now focus on promoting vertical transportation products such as Elevators, Escalators and Moving walkers by moving in to the northern and southern geographical areas of the country to last out as the market leader as many developments are taking place.The product alone is a luxury item and today the demand for kinfolk elevators our be feeler popular. The company also has it focus in coming up with more customized produ cts to cater to the market. In Sri Lanka alone we have Home Elevators.Market StructuresMy findings indicate that this brass belongs to the Oligopoly (Imperfect) market structure since it highlights the following characteristics major industry players amounts to 9 competitors while there are few other mushroom companies that deals with maintenance of elevators and escalators. The watertight is relatively large compared to the overall market and has a substantial degree of market control. In short there are minor numbers of large plastereds.Firms in oligopolistic industries put out either identical or differentiated products. Identical product oligopolies also knows as perfect oligopolies produce tend to process raw materials or middling goods that are used as inputs in other industries. Notable examples are petroleum, steel and aluminum. On the other hand elevator and escalator move into differentiated product oligopolies also knows as delicate oligopolies focuses on consume r goods (mostly luxury) to settle with the wide variety of consumer needs and wants.Barriers to entry prevail as the securely attain and retain market control. Patents, brand names, recognition, resource ownership, attempt-up cost, decreasing average cost are the most common barriers and the make it extremely laborious or impossible for potential secures to enter the industry.Oligopolistic firms are diverse and they posses several(prenominal) behavioral tendencies. The following behavioral characteristics were highlighted in my findingsInterdependency among firms as it takes in to account relative size and market control. This means that the actions of one firm will depend and make an influence on the actions of another firm. The firm keeps a close eye on the activities of the other firms in the industry. As a result the decisions made by one firm eer affect others and are invariably affected by others. Thus a firms success will not only depend on its own action but also those of the competitor.A Rigid terms system is followed by the firm that helps to keep the price relatively constant as the firm prefers to compete in other ways that does not involve changing the price. This is mainly because if price decreases the competitor will try to impact the like and will not take in to consideration the increases in prices as the firms do not gain much from price changes.As the firm does not gain much from price competition they tend to follow non-price methods of competition which includes entry barriers, product differentiation and advertising, continuous improvement in quality, after sale services, effective distribution, guarantees as the firms objective is to get more buyers and simultaneously increase the market share while retention the line on price.Taking all firms in the industry I wish to emphasize that the firms operate in cooperation through secret approval in an oligopoly market. The factories of the companies that manufacture elevator and e scalators secretly agree on prices, production and other aspects in the market and behave like they are operating as one firm a monopoly. A formal method of collusion is cartel which is found among international produces.Operating in an Oligopoly (imperfect) market brings in two important advantages to the firm. It could be elaborated as followsThe firm tends to be a prime source for innovations that promotes advances in technology and economic growth. This leads to high living standards. These firms have the motive and opportunity for innovation. Interdependent competition results in motive and access to abundant resuorses bring about opportunity.The firm is in a position to enjoy economies of scale as it leads to a drop-off in the cost of production and prices. The firm can mass produce at a low average cost. Elevators and escalators will be more significantly expensive if they were produced by a large number of small firms that small number of large firms.Graphical Illustratio n of the Market counterbalanceA kinked demand curve is used to illustrate the short belong production activity of an oligopolistic firm. To explain the price rigidity in an oligopolistic firm the kinked demand curve is used. The kink of the demand curve exists at the ongoing quantity (Qpm) and current price (Ppm).This is because competitor firms will not spouse the increases in price as it will loose its customer base and market share. It is evident that a small increase in price will lead to a relatively large decrease in quantity demanded. Similarly any price decreases will be matched by competitor firms and the firms is unlikely to gain customers or market share. If a firm is to gain a small increase in quantity demanded a large decrease in price needs to take place. (This is not feasible to many firms)ConclusionWith reference to my study on my organization ETA MELCO ENGINEERING (PTE) LTD I could state that we fall into Imperfect Oligopoly Market Structure. Hence I will use t he following findings to justify my answer there are small numbers of large firms (09 major industry players) in the elevator and escalator industry.The company sells a range of differentiated products to suit customer, client, architect, developers requirements and specifications taking in to account type of building, type of elevator/escalator, number of stops (floors), travel speed, capacity, and usage thus falling in to imperfect oligopoly without any doubt.Significant barriers to entry prevail due to brand name, recognition, start up cost, decreasing average cost, patent and resource ownership.Interdependency among firms exists.A rigid price structure is followed to keep price relatively constant. As any decrease in price will lead towards the same action from competitor thus affecting the companies customer base and market share. Also any price increases will lead to a diminution in quantity demanded thus affecting the customer base and market share.Due to the above reason th e company follows non-price methods of competitions by promoting its brand movie and reputation, quality products, customized products, guarantees, cost effective after sales services and product differentiation.The firm balances competition among others through cooperation. We can identify collusion as a method used in the elevator/escalator industry. wrong cartels are experienced in the factories that produce elevator/ escalators.The company is firmly involved in innovations that promote advances in technology and economic growth.The main factory of the company enjoys economies of scale through mass production thus leading to low average cost.Finally giving all reasons, arguments and justification above like to conclude that ETA MELCO ENGINEERIN (PTE) LTD is operating in an Imperfect Oligopolistic Market Structure.

Challenging Logistics And Supply Chain Management Commerce Essay

Challenging Logistics And Supply Chain forethought Commerce EssayThe add together image terminate be defined as being a group of partners who collectively convert a basic commodity into a finished ingathering that is of measure out to the residuum user. In the lend mountain kitchen stove each partner must perform a task which adds outrank to the final product/ serve (Harrison, Van Hoek, 2008).The tag on chain is viewed as a single entity rather than a series of fragmented elements much(prenominal) as procurement, manufacturing and distrisolelyion.Logistics heed could be seen to al slump in the long-term decisions and plans needed for reform, w hereas the supply chain includes the more operating(a) elements.In a supply chain, each partner ought to add place to the finished product good through some deal or procedure (Harrison and Van Hoek, 2008).Elements of Logistics ManagementStorage, w arho apply, material handling.Packaging and utilization.Inventory.Transport. c ultivation and control. bug Lecture Slide 1, Logistics dodging M32 SOR.AimResearch the strategic attitude of Diageo Plc from a logistics context in order to develop a suitable logistics strategy.ObjectivesResearch analyse a UK based brewerys current strategic position from a logistics perspective.Evaluate the key strategic approaches to logistics focusing that could be used by a UK based brewery.Identify the anxiety issues pull ind by actioning a new logistics strategy with consideration for available capital, technical and piece resourcesOutline the strategic signifi spatece of new engine room developments and teleph cardinal line trends on future logistic strategies for a retailer.Prepargon and submit the reportDiageo Plc- settingDiageo Plc is the starring(p) beer, spirits, and wine ac corporation in the world. The company has a wholesome diversified portfolio of lush crapulences and stock grasss much(prenominal) as Jos Cuervo, Smirnoff, Captain Morgan, Johnnie W alker, Baileys, JB, Tanqueray, Bushmills Irish, Beaulieu Vineyard, sterling(prenominal) Vineyards wines and Guinness (www.diageo.com).Diageo is listed both on the London Stock Exchange (DGE) as head as the New York stock Exchange (DEO). Diageo has a wide injury portfolio. The company strives to maintain its principal sumership position and provide rank to the customer. Diageo has manufacturing plants unfold across countries and continents including United Kingdom, Spain, Italy, India, Africa, Caribbean, United States of America and Australia.The company had worldwide gross revenue worth 8.09 billion in the family 2008. It operates in 180 trade places in five continents across the globe (www.diageo.com).Diageo Plc was created when devil of the most complete breweries- Guiness Plc and grand Metropolitan Plc- merged to form the present company in 1997. The company was then reorganised in 2004 into three distinct strategic occupancy divisions, namely, Diageo Europe, Diage o North America and Diageo International. In 2005, Diageo acquired the oldest distillery in Ireland called Bushmills Distillery. In 2006, the company expanded into Russia and got a majority stake in Smirnov vodka p arentage (www.diageo.com).Logistics strategyA logistics strategic framework is aimed at aligning the dissimilar partners of a supply chain in a manner so as to meet and match the customers evolving leads. The objectives of such(prenominal) a logistics strategic framework arCapital lessening It implies increasing the returns on investments made in logistics assets. follow reduction It is to minimiseoptimise the hails associated with storage and movement of goods and supplies.Improvement in surgery it involves processes so as to achieve customer satisfaction.Competitive Structure and CompetitorsThe transnational drinks and beverages market has players, such as Pernod Ricard, Bacardi, Brown Forman Co-operation, Moet-Hennessey (LVMH), and Fortune Brands (Beam Globa l). Pernod Ricard is a Paris-based transnational company which in 2008, acquired a Swedish company, V S Group, the key outrs of Absolut vodka. Brown-Forman Co-operation is one of the salientst ground forces-based manufacturers of alcoholic beverages. In 2007, it acquired a Mexi batch company, Tequila Herradura, to add tequila drinks to its portfolio (Business Insights, 2009)Bacardi, headquartered in Hamilton, Bermuda is comfortably known for its check of rums. It is a family-owned multinational company operating in oer 100 countries. Moet-Hennessey is manufacturer of spirits under the Paris-based p arnt company, LVMH (the too largest retailer of luxury goods in the world). Fortune Brands are America-based manufacturers of wines and spirits and acquired many brands from UK-based consort Domecq in 2005 (Business Insights, 2009).Diageo Strategic PositioningAn actualiseing of Diageos boilers suit strategic localisation rotter stand by us in designing a logistics worry str ategy. Evaluation of the overall strategy is a precursor to develop a synchronal logistics strategy aligned with the companys long term vision.Generic Strategies for Diageo using Ansoff AnalysisCUsersuserDesktoprohit gulatibreweryansoff.jpgAs is evident from the Ansoff matrix, Diageo has the following strategiesConsolidation of its position and market penetration in mature markets such as USA and Europe where it is healthy established. It is doing so both by organic as wholesome as inorganic growth strategies.It is get winding at newer territories and emergent markets such as Africa and Asia for market development of its live products.It is developing products in mature markets so as to augment the share of wallet of the consumer. An type is RTD or ready-to-drink beverages, such as Smirnoff Ready-to-Drink beverage.Porters Five Forces ModelMichael Porter certain his Five Forces model in 1979 to help businesses understand competition in a more comprehensive manner. Diagrammat ically, it chamberpot be represented as followsSource Johnson Scholes 6th ed, exhibit 3.4The model, when applied to Diageo Plc, helps understand the company environs and competition as followsBargaining force of Suppliers this is low as Diageo is an established company with a large market share and strong brand name. To gain advantage over its suppliers, it enters into long term contracts.Bargaining Power of Buyers this is low as Diageo now positions itself as a manufacturer of reward and super-premium spirits and former(a) alcoholic beverages. The market share of premium and super-premium brands of Diageo increase by 4.5% and 11% respectively. menace of Competitors it is high as it has a hardly a(prenominal) international competitors in the form of Pernod Ricard, Brown-Forman and Bacardi. Major mergers and acquisitions have occurred in the alcoholic beverage industry leading to fewer players with played brand portfolios and cross-border capabilities. curse of Substitutes Thi s is low as alcoholic beverages are a socially satisfactory form of intoxication that is not acceptable with any another(prenominal) substance.Threat of New Entrants it is low as entry barriers are high in the form of increased regulation, increasing need of marketing by beverage companies to inform customers and increasing competitive nature of the industry.Please refer to vermiform process A for further reading on competitiveness.Development of Existing Logistics CapabilitiesThe purlieu under which Diageo functions is dynamic and changing rapidly. The characteristics that define its environment that one inevitably to understand to develop the logistics strategy are as followsExpectations of service levels are increasingConsumers are fair more cultivate.Government regulations are becoming more stringentCommodity monetary value pressures and intense competition scram opposite effects on price, affecting margins.Logistics lavatory be of wide value to a company if approached in a correct and authorised manner. Its importance for various businesses has now increased from merely a speak to incurring but necessary function toAn activity to generate pregnant cost savings.An activity with the potential to increase sales and customer satisfaction.A marketing tool to gain sustainable competitive advantage.The cost incurred by Diageo put up be broadly understood as followsCUsersuserDesktoprohit gulatibrewerycogs.jpgSource Gosnell, Investor Relations Conference, 2005The global supply and logistics strategy similarly includes people and processes which Diageo classifies as Partners for growth (Gosnell, Investro Relations Conference, 2005). These can be classified as follows nominate Enablers These are associated with people, processes and attitudes such as collaboration, teamwork, responsiveness and capability development.Qualifiers These include protect brand as well as Diageo reputation through maintaining brand quality, brand integrity, corporeal citizen ship and other such means. It may similarly include the resolve of the company to deliver competitive service to the customer at the right value.Winners these include processes to reduce end-to-end supply chain costs, overall costs, driving technology and research and ability to execute the strategy as expected.The various features of this strategy tooled by Diageo in inbound as well as outbound logistics and value asylum are as followsReducing the overall cost of goods sold Diageo has set a site of 2% real cost reduction each year. The philosophy here is that savings can come from all components of the supply chain such as procurement, logistics, manufacturing and brand value, each of which will be subsequently looked into. The large scale operations of Diageo provide it with an advantage in all these areas. procurance Glass and postcode are two largest components of Diageos cost of goods. To control energy costs, it uses forward purchasing spot purchasing as well as short ter m tactical purchasing. For glass supply assurance and price control, it entered a strategic relationship with Owens-Illinois and gave it the preferred supplier status. At the very(prenominal) time, it developed alternate supplier relations as well such as with Altajir, based in Europe, with which it entered a 3 to 5 year deal.Also, Diageo as well leveraged newer supply sources from Asia and Eastern Europe as these emerging economies are reliable on quality, pricing, service and innovation. As an compositors case, this has led to 40%-50% cost saving on cartons, 20% on crowns and 15%-20% on casings.Manufacturing Diageo tries to maximize the benefits of economies of scale. It has larger but fewer manufacturing facilities, thence having high fixed costs but low variable costs. It has sold or closed 11 facilities in Europe, 5 in North America and 3 in Asia/Africa. In the rest of the manufacturing plants, it has tried to fully optimise the advantages of the Diageo scale e.g. Shieldhal l, Scotland is the largest ledger spirits packaging plant but still has only 7 lines.Logistics Diageo uses the pilot principles involving a central hub warehouse that can supply to the surround markets. These warehouses are strategically located and use cross-border shipments to meet demand. This model alike minimises costs by maximising throughput. This has led to 20% reduction in manpower requirements, 25% reduction in stock and enhanced service performance. An example of the pilot principles model in Europe for Diageo is as followsCUsersuserDesktoprohit gulatidIAGEO_brewery_3250warehouse.jpgSource Gosnell, Investor Relations Conference, 2005Brand Value and Value Engineering An example of value engineering would be the Guinness can size that was reduced by 7%, weight reduced by 1% without freeing of loudness held. JW bottles glass weight was reduced by 22% as another(prenominal) example. This has led to reduction in packaging, hauling and shipping costs.Also, Diageo intends to create value for its customers while preserving its brand image. It intends to do so throughImproving existing quality standardsImplementing environmental management remainssCrisis management pretendings for business resilience hone supply tractablenessStrategic Approaches to Logistics ManagementThere are two motivations suggested for designing a logistics strategy (Whittington 1993). These included the goals of setting the logistics strategy and how contend the processes were of setting the logistics strategy. A matrix was hence developed and helped firms evaluate the logistics strategy.BenchmarkingDiageo can utilise benchmarking to evaluate its logistics performance in comparison to its competitors or companies from different industries altogether. Benchmarking can be defined as a process of endlessly measuring and comparing ones business performance against comparable processes in leading organizations to obtain info that will help the organization list and implement impro vements (Benson 1998). Benchmarking can also be understood as a process for identification of best practices by comparing key performance indicators for a specific activity across organisations and using these performance levels as inputs for bodily goal setting (Gourdin, 2001) Diageo can utilise this to compare its practices with respect to other companies, industries or markets. Benchmarking can be used in a categorization of logistic processes such as warehouse operations, mode and carrier selection, order processing, forecasting and packaging. However, certain steps need to be ensured before embarking on benchmarking (Gourdin, 2001). These are as followsDefining the present performance level of the benchmarked activity. find the level of performance desired in this activity to be benchmarked. ascertain what improvements can be made and to be madeDetermining how to make the desired improvements to achieve desired performance levels.Estimate and set a time frame for the completi on of the process.Collaboration/Co-operationCollaboration is the most sophisticated form of electronic integration. If electronic integration occurs at all levels, namely strategic, tactical and operational, it is called as collaboration. It helps the supply chain members to come together so as to better forecast future demand and to design plans and implement them to meet these demands. The members can collaborate on new product planning, demand forecasting and replenishment planning. Collaboration allows information to be rapidly change and hence, all participants of the collaboration have access to updated and latest information. It can also help to reduce costs and the entropy fed into the system can be used for monitoring and provenderback activities. The co-operative approach simply refers to the degree of foreign and internal collaboration among the supply chain members.Partnerships/AlliancesCompanies now realise the ideal of strategic long term relationship with supplie rs. The underlying reason for this fruition is the need to improve customer service or add value to the finished product. An alliance is said to be strategic when it is strategic in focus and also directly supports one of the partners distinctive core competencies (Grant et al, 2006). Partnerships not only help the members in sharing information, knowledge and experience but also aid in lowering the risks for any one player.Diageo, as motioned previously, has a long term partnership with Owen-Illinois, a USA-based glass manufacturing company. It has been accorded redundant supplier status and given a contract for 3 years. It has also increased the scale of Owen-Illinois. Diageo can forge similar partnerships with various other members of its supply chain.Just in time (JIT)A JIT-based program aims at ensuring that the right quantities are produced at the right time and reach the consumer at the right moment of need so that there is no waste. take in has been defined in JIT programs as anything that does not add value to the end product. One unit more or less than needed is considered as waste. Total Quality Management is a concept whose principle is concurrent with those of JIT and both may need to be implemented simultaneously so as to add value to companys operations. A successful and functional JIT program, however, needfully the following to be achieved by the companySteady production negotiable resourcesNo machine breakdownsReliable suppliersHigh quality product/serviceRapid machine set-upsDiscipline to maintain every of the above functions caterpillar track over a continuumImplementation of JITFor JIT to be successful in Diageo, alteration of the JIT concepts in its environmental set up is essential. The main concepts of eliminating waste, quick changeovers, flexibility in resources and partnering with suppliers have to be realised and has been described as a two-stage process (Gourdin, 2001).Establish foundations (this refers to quality, low cost, m inimum lead times, flexibility these can be achieved through Total Quality Management, flexible and trained workforce, reduction in setup time and focus on design).Core Techniques (pull scheduling, multi-functional workforce, JIT purchasing).JIT is a volume and demand advertisen program. It requires a certain level of stable demand for it to be successful. It cannot be implemented in a business that has unique orders or low volumes of operation. Moreover, companies should strive to improve JIT systems as technology advances.Lean ManagementFirst introduced by Toyota Production Systems, dip management is a concept of reducing waste and non-value adding activities from the value chain. The main elements of lean management are small batch size production, pull creation and reduction in variability. It says that a pull is created when a customer demands a product and only that should lead to production, thus reducing stock wastes and large inventories or batch sizes. Two very importan t principles associated with lean management are kaizen (continuous improvement) and kaikaku (radical improvement). This encourages improvement in the processes on incremental as well as radical levels. Lean management helps in reducing lead times and reduce variability in demand, supply and manufacturing by standardization of procedures.Value Chain AnalysisSource Johnson et al, 2008The concept of a value chain was developed by Michael Porter. He suggested that the functions in an organisation can be split into primary activities concerned with creation and delivery of product and service and supporting activities (Johnson et al, 2008).The value chain analysis helps the company separate its various components of the value chain and what are the activities at which value added can be increased. A fundamental value chain for Diageo can look like thisCUsersuserDesktoprohit gulatibreweryvaluechain.jpgIssues relevant to the development of strategiesIntegration of logistics strategy wit h corporate and business level strategies is essential for success of all these strategic outlooks. Diageo has incorporate logistics strategy with the overall corporate strategy to streamline procurement, manufacturing and delivery operations (Gosnell, 2005). It has helped Diageo become the largest player in the international alcohol beverage market. However, chain of mountains for further improvement always exists. A Step Model can be used by Diageo to develop and assess its logistics strategy and identify its strengths and loopholes.What Diageo must realise is that there are certain factors in the supply chain that are beyond the control of the company. Trying to manage such factors by the management can lead to waste creation and loss of value. These can include increased competitive pricing and product pressures, out of the blue(predicate) actions by competitors that can dent Diageos market share or size, effective and regulatory changes and many others.Management Issues Ca used by Implementing Newer StrategiesNew strategy death penalty can directly affect the capital, technical and human resources of a company. unattackable leadership during change as well as effective intercourse can help implement the change in an efficient manner. During death penalty and modification of logistics strategy, due importance should be given to HR management and other organisational issues. Ignorance of HR issues is the most common, yet often ignored cause of failure to implement changes in strategy, even when they denote improvement over previous processes. These issues such as recruitment, training and appraisal, autonomy, flexibility and reward systems are important factors to be taken into consideration to enable smoother transitions. detail to logistics, the management should review the current staffing and skills, allocation and training of staff, as well as current recruitment criteria and procedures. It should also consider the impact of market pull and te chnical push on the strategy design and plan. Likewise, operational issues have to be monitored and requirements in terms of people, capital and equipment resources have to be met. These are necessary for any new tactically significant operations the company plans to undertake.Force field analysis can also be used to help stakeholders accept the change and understand the requirements, implications and resistances to the change in strategy. The model also suggests that there are two forces primarily in the business field, namely, driving force and resistance force. The management should strive to increase the strength of the former and reduce that of the latter while implementing change.Collaboration can play a significant role in the implementation of change. This is so because the companys suppliers and customers are also stakeholders in the company and can resist change. immanent collaboration, intercompany collaboration and electronic collaboration should be implemented while h olding in mind the ECR (efficient consumer response).New Technology Implementation and Future Trends in Logistics StrategyDiageo, due to its international and cross border supply chain should now focus on localised supply chains and dissemination systems. This can help reduce haulage and shipping costs. Employment of low cost communications and cost computing technologies can aid in this endeavour and also help in increasing capability to extend product variety. Diageo has to be agile and flexible to incorporate these and any such positive technological advances. This can lead to increased pressure on cost-efficient, strategically beneficial logistics management due to increasing competition. As a result, increased pressures may be felt on supply chain net plant life viz. replenishment ordering, continuous ordering and supply flows, cross docking facility and stockless warehousing with product introduce (Harrison, Van Hoek, 2008).Scenario planning is a simulation attempt to gener ate realistic and plausible situations of the industry. Diageo can use it to dissemble various market conditions, future situations and competitor capabilities. Such an uncertainty-based scenario matrix is highle effective in evaluation-based planning over the medium and long term.RFIDRadio frequence Identification is used by Diageo wherever plausible. However, Diageo should try and implement the technology in all markets for more efficient product tracking, demand tracking and supply chain flexibility. It also helps in rapidly collecting info about demand levels and consumption patterns in various markets.RFID is a radio technology that uses radio signalling for electronic identification and object labelling (Harrison, Von Hoek, 2008). This system works in alignment to the organisations information systems. This helps in improving business processes such as supply chain management while relaying significant market entropy.RFID systems primarily consist of three componentsTrans ponders These are also called as contactless data carriers or Tags. They can carry information data feeded into them and identify objects to which they are attached.Readers These devices communicate with the RFID tags and read the information stored in them.Software Applications These are the applications that feed and retrieve the data from a tag via the readers.RFID vs. BarcodesRFID are a technological advancement over barcode. The RFID tags can store as much information as a barcode can and sometimes more. Information carried by barcodes cannot be edited. In case of RFID tags information can be edited or updated. Moreover, this function can be repeatedly performed without any loss of data or damage to tags memory. The security systems inbuilt in the RFID systems are also better as it uses tags uses authentication and encrypted data transfer methods.ERPBaheshti, 2006 defined an ERP system as a collection of business applications, which links various business units of an organisati on such as financial, accounting, manufacturing, sales and marketing and human resources into a tightly integrated single system with a common platform for streamlined flow of information across the entire business.Reengineering of companies is facilitated through ERP systems so that they are in a better position to empower employees, sate needs and demands of the customers and create better business value (Willis and Willis-Brown, 2002)ERP systems helps create reenergized companies that are in a position to better serve customers, empower employees, and drive greater business value (Willis and Willis-Brown, 2002).Since Diageo has three separate business units ply to different geographical regions, the task of collecting and analysing data is a dash one at Diageo. ERP system can integrate these data flows across all the business units and their various divisions so as to better understand the industry events and design and/or modify strategy accordingly. It can thus act as a com petitive advantage to the company in the long run by better understanding of the international market place and varied needs and requirements of the consumers across borders. This can thus help in driving Diageos overall operational efficiency and functional effectiveness.References launching by David Gosnell, Managing Director, Diageo Global Supply, Investor Relations Conference, November 2005Business Insights, The Top 10 animate Companies Industry Trends and Growth Strategies of Leading Players, April 2009Presentation by Stuart Fletcher, President, Diageo International, April 2009Baheshti, H. M. (2006) What Managers Should Know slightly ERP/ERPII Management Research News. Vol. 29(4) online available fromFenn, D. (2005) 10 edn. Key distinguish. Hampton Key Note LtdGourdin, k. (2001) Global Logistics Management. Oxford BlackwellGrant, D., Lambert, D., Stock, J., Ellram, L. (2006) Fundamentals of logistics Management. Berkshire McGraw Hill EducationHarrison, A., Van Hoek, A. (2008 ) 3 edn. Logistics Management and Strategy. Essex Pearson EducationJohnson, G., Scholes, K. and Whittington, R. (2008) 8th edn. Exploring Corporate Strategy. England Pearson EducationRushton, A., Croucher, P., Baker, P. (2006) 3 edn. The Handbook of Logistics and distribution Management. London KoganWillis, H. Willis-Brown, H. A. (2002) Extending the value of ERP Journal of Industrial Management Data Systems, online uncommitted fromwww.diageo.com.