MKT1003 Lesson 2 A.

Three Levels of Planning Mitsubishi 7 business segments, have various objectives such as diversifying business models Aims to shift business planning process to a future pull approach Strong focus on Asian Market want to identify potential growth options outside the current scope In this case, SWOT analysis can be used to help analyze their situation. For example, reviewing and understanding their opportunities and threats would allow decision making regarding expansions and diversification to be clearer because SWOT analysis (when you list and categorize the O and T) concentrates on issues that potentially have the most impact. However, the relevancy of SWOT analysis can be questioned as well. Given the many different business segments and difference in the nature of the industries present, it would not be sufficient for Mitsubishi to say, look into the threats that are present in Asia (when considering expansion). SWOT analysis may cause them to classify factors into the categories that do not fit. Market-product focus and goal setting (2nd level of planning) Many different business segments allows for market segmentation. For example, the living essentials group caters to a range of consumers, from healthcare to food and textiles. By identifying the respective consumers, this level of planning will better facilitate their decision on which products to produce. Marketing Programme (3rd level of planning) 4Ps B. SWOT Analysis Build on strength: Make use of wide outreach to promote new product lines within shopping malls. Correct a weakness: Consider competitors from similar industries when understanding needs and wants from consumers to draw greater consumer demand. Create products on the lower-end for support during hard economic times/explore more options on more pressing health issues Exploit an opportunity: Avoid a threat: Provide lower-end goods but with distinctive quality and innovation to differentiate product from imitators and yet still reasonably priced in the market/economy. Strengths
Household name in Asia, reputable for products that enhances well being. Large network of outlets across geographical markets. Regular updates/introduction of new products (3 products in a year- uSoffe Petit, uDivine, Usoffe) -> Flexible to changes in market Strong strategic alliance with shopping mall owners like CapitaLand (invite the group to set up outlets whenever there are new malls)

Weaknesses
Tendency to be small-minded (Think they lack direct peer competition due to unique business, but should consider industries like the spa\slimming indusries as competitors to) Susceptible to downturns in economic cycles as they are not considered as essential health products Susceptible to changes in consumer tastes.

SWOT ANALYSIS

Opportunities
Strategically headquartered in Singapore; key trading and financial centre, favourable for investors. High buying power; Singapore is 17th wealthiest in the world. Growing emphasis on health and personal well being

Threats
Slowdown in Asian economies, may lower purchasing power (especially since it is a normal good) Subjected to market competition, increasing number of imitation product.

C. Ansoff Framework Market penetration, product development, market development, diversification strategies Diversification: No, SIA invests in related services, rather than to diversify outside the aviation industry Market Penetration: Selling same service to existing customers to increase sales: Singapore girls Market development: Existing service to new market - Scoot/ targeting Taiwan because of absence of low cost carrier Product development: New services to existing markets - KrisWorld entertainment, first to introduce renown chefs to develop inflight meals