Ninja Van Logistics and Supply Chain Company Strategic Marketing Report Hello, I need help with 2 big parts of my assignment.The details of it are in the ‘

Ninja Van Logistics and Supply Chain Company Strategic Marketing Report Hello, I need help with 2 big parts of my assignment.The details of it are in the ‘Assignment details’ docx, please read it through and follow it step by step. I’ve also attached a sample work that can be use as reference because it was said to scored HD so please look through it.***Please use the company that’s been given in the word docx. Thank you so much. Company chosen: NinjaVan (Singapore company)
https://www.ninjavan.co/en-sg
Competitors: FedEx and DHL
https://www.fedex.com/en-us/home.html
https://www.dhl.com/en.html
– Please do not choose any other companies, use the one stated
above.
– Have at least 6 academic references
1. Company Background and current corporate directions (800 words)
A convenient way to investigate how a company’s past strategy and structure
affect it in the present is to chart the critical incidents in its history – that is, the
events that were the most unusual or the most essential for its development into
the company it is today. Some of the events have to do with its founding, its
initial products, how it makes new-product market decisions, and how it
developed and chose functional competencies to pursue. Its entry into new
businesses and shifts in its main lines of business are also important milestones
to consider You should also identify the company’s current mission and goals
and detail the line(s) of business (organisational chart) the company has. It is
important to analyse the relationship among these businesses. Do they trade or
exchange resources? Are there gains to be achieved from synergy?
Alternatively, is the company just running a portfolio of investments?
Understanding broader corporate goals and intentions is extremely important
because it can influence your decisions later in the strategic planning process.
When you have finished background and corporate direction analysis,
summarise your key findings in a paragraph or two before proceeding to the
next section.
2. Analyse the external environment (1400 words)
You now need to identify opportunities and threats by examining the (C)ontext,
(C)ompetitors and (C)ustomers. The main concepts and theories that we use in
this section are a PESTLE analysis, Porter’s five force analysis, competitor
analysis, strategic group maps and the industry lifecycle model. For the
customer analysis you will be interested in things like the size of the market,
how the market is segmented and the profitability of the segments. You also
need to know why the customers buy the products or services and what factors
influence their decisions. After you have collected and analysed all this
information you can summarise it in a list of opportunities and threats. Tip:
Make sure you include current and credible information from our databases and
industry reports. Do not just put your findings into tables and move on.
Critically evaluate your findings and convince us that you have identified all
potential opportunities and threats. Before proceeding to the next section,
summarise the insights you gained from doing this analysis in two or three
paragraphs.
1. Company Background
1.1 History and Development
Scanteak, which was founded in 1974, was initially known as Hawaii Interior Decoration and
started out as a furniture distributor (Singapore Furniture Industries Council 2017). Over a period
of several years, with good business foresight and the accumulation of in-depth knowledge of
customer preferences, the Scanteak brand was officially launched in 1988 that positioned itself to
be a furniture retailer of producing quality teak furniture (Singapore Furniture Industries Council
2017).
Despite the oil crisis in the late 1970s and owing a huge debt of a few millions, the founders did
not opt to wind down the company. After several trips to trade fairs in Europe where the founders
were exposed to the minimalistic Scandinavian furniture (Sek 2018), the Scanteak brand was
established in 1988.
Scanteak’s mission is to focus on the product it offers and the people it serves, by creating quality
teak furniture that is long-lasting, and exudes the natural beauty of teak, accompanied by simple
and functional designs (Scanteak 2019). As a brand that prides itself on the quality of teak used
in its furniture products, Scanteak began to source for sustainable and certified teak wood from
Indonesia in 2016 (Sek 2018).
Over the years, Scanteak has won multiple awards and established a strong brand name in the
Singapore furniture industry. Scanteak has expanded to other foreign markets including Brunei,
Taiwan, Japan, USA, Canada and Germany, with about 150 stores across all markets, and a
revenue of about $100million as of 2017 (Shiao 2018). Today, Scanteak is entering new business
areas, such as ScanKomfort which is a new premium mattress brand from Germany, with store
presence in both Singapore and Taiwan (Shiao 2018).
Major developments such as the creation of different brands require gathering knowledge,
conducting research and development, executing branding and marketing activities, which are
always carried out Singapore, but new brands are always first introduced in Taiwan (Shiao 2018).
This is due to important considerations such as rental and manpower costs, which are significantly
lower in Taiwan, and the large population there made the market attractive as a testing ground
for new launches, followed by introducing these brands to more expensive markets like Singapore
and Japan (Shiao 2018).
At present, Scanteak is working on strengthening current brands, and improving its omni-channel
retailing strategy by creating more channels for customers to purchase their products, in order to
enhance customer experience (Shiao 2018).
Figure 1: Important milestones of Scanteak (Scanteak 2019)
2. External Environment
2.1 Context
2.1.1 PESTEL Analysis (Refer to Appendix 1)
Political
In general, the political scene remains low-risk and stable which is ideal for facilitating trade,
investment and economic growth. Firms can safely invest and continue operations due to
regulations set in place by government agencies which encourages healthy competition in the
market.
Economic
Positive economic growth in recent years has led to an increase in consumers’ disposable
incomes, and in turn more furniture purchases. The increase in income has had a favourable
impact on the furniture economy, having seen a significant increase in revenue over the years.
Socio-cultural
The rising trend towards sustainability and minimalism has led to a preference for durability,
aesthetic and versatility in consumers’ furniture purchases.
There is increased willingness amongst younger Singaporeans to spend more on unique furniture
that can reinforce their social image. However, some consumers remain price-conscious but do
not want to compromise on comfort and aesthetic, leading to greater willingness to opt for online
purchases even for big-ticket items like furniture. Even so, these consumers still find value in
investing in durable and unique furniture.
Technology
Companies are inclined to leverage technology to target consumers who value convenience.
There is also an increase of online furniture purchases among the younger consumers in the local
furniture industry.
To cater to consumer preferences for visualizing how furniture would fit in their homes,
Augmented Reality (AR) applications have been developed by local companies to improve
customer experiences.
Environment
Due to the reliance of other Southeast Asian countries for the supply of timber, the impact of
deforestation of such countries would greatly affect the level of wood supply for Singapore’s
furniture companies. Hence, green practices and raising awareness of environmental
sustainability are widely encouraged in Singapore.
Legal
The top 10 industries in Singapore, including the furniture industry, generating the most consumer
complaints have created pressures for the government to implement the Lemon Law to better
protect consumer interests.
The spike in consumer complaints has led to the Consumer Association of Singapore’s attempt
to educate and increase awareness and improve consumer protection measures such as
developing a mobile application for price comparison, allowing consumers to make better
informed purchasing decisions.
2.1.2 Five Forces Analysis (Refer to Appendix 2)
Competitive Rivalry (Moderate)
Due to the low switching costs for buyers and the relatively strong product differentiation of
industry members, rivalry strengthens amongst players in the industry.
However, while competitors are numerous, they are not of equal size and strength due to the
difference in duration of establishment of industry players.
Threat of New Entrants (Moderate)
The furniture industry is considered attractive due to the market’s future profitability and low
barriers to entry which may attract potential new entrants.
On the other hand, large furniture companies with high economies of scales can lower their overall
cost making it difficult for newcomers to compete and thus deter them from entering the industry.
Threat of Substitution (High)
Threat of substitution is strong due to the availability of other brands that offer similar styled
Scandinavian furniture that are relatively lower in price.
Moreover, consumers are opting to shop online due to ease of convenience and the ability to
choose from a greater variety of brands and designs. As such, this makes it easier for consumers
to switch to substitute brands.
Supplier Power (High)
Rising consumer concerns towards environmental issues has led to a preference for sustainable
sourcing of raw materials in production processes. However, albeit the high quantity of suppliers
available, only a few have certifications to prove their sustainable practice. Thus, supplier power
is high due to the highly differentiated offering by suppliers.
Buyer Power (High)
Due to the low switching costs and wide variety of choices of furniture brands that consumers can
choose from, the buyer power of consumers is high.
2.1.3 Complementors
Scanteak’s complementors include TV manufacturers, where purchasing a TV (i.e. Sony) will
most likely lead to the purchase of a TV console (i.e. Scanteak). This indicates an opportunity to
enhance sales for both products as there is direct correlation where the rise in TV sales will lead
to a rise in the sales of TV consoles. A collaborative opportunity is also created as these TV
manufacturers/retailers can collaborate with Scanteak to enhance value offerings to customers
by launching promotions such as a bundle deal that offers a discount/benefits to the user when
they purchase both products together.
Retailers selling rugs and other home accessories (i.e. The Carpet Shop, Affordable Style Files)
establish a similar complementary relationship with Scanteak. This relationship is established
because purchasing Scanteak’s living room furniture (i.e. sofas, shelves) will most likely lead to
the purchase of rugs and other home accessories to decorate the interior of the house. Similarly,
sales can be enhanced for both products, since there is a direct relationship between the sales of
both products. A collaborative opportunity is also present through various sales promotions as
above.
2.1.4 Key Drivers in Industry
Changing societal concerns, attitudes, and lifestyles
Consumers’ concern for the environmental wellbeing has heightened, where their shopping
decisions can be largely influenced by the impact on the environment caused by their purchase.
Caron (2018) reported that 90% of consumers will choose eco-friendly home furnishings if they
like the style of the products and the price is within their budget, and are willing to pay up to 10
percent more for eco-friendly furnishings, including wood furniture that is certified as legal and
responsibly harvested.
Emerging new Internet capabilities and applications
The emergence of new technology such as Augmented Reality (AR) has transformed the way
consumers purchase furniture. With the newly launched AR mobile application, virtual 3D models
of the furniture will be stimulated, which enables customers to visualize how a particular piece of
furniture would fit into their homes (Heng 2019). This creates a more efficient and customized
shopping experience for consumers (Heng 2019).
Increasing globalization
Globalization has led to the entry of foreign brands in the furniture industry, such as fun, quirky
Thai brands (Zachariah 2017) that is a breath of fresh air in the local homeware and furniture
market. These brands are modern and unique, while boasting the use of traditional techniques in
craftsmanship (Zachariah 2017).
Therefore, these driving forces are collectively intensifying the competition in the furniture industry,
causing a steady rise in demand for the industry’s products, representing a healthy growth rate of
profitability within the industry.
2.2 Competitors
2.2.1 Competitors Analysis Framework
Competitors
Current Strategy
Mountain Teak
Mountain Teak is a niche player as a brand that specialises in teak furniture (Mountain Teak 2019) that
caters to a target market similar to Scanteak. It seeks to provide teak furniture at a modest price (Mountain
Teak 2019), catering to price-sensitive consumers.
Mountain Teak concentrates on providing eco-friendly furniture.In addition, they create a competitive
advantage by strictly using premium materials and VOC-free paint (Mountain Teak 2019). These would not
only appeal to the environmentally conscious group who better appreciate sustainable lifestyle choices
including the furniture they buy, but also provide a safe environment for ladies who are expecting and
children (Behura 2019). In addition, Mountain Teak provide customisation services (Singapore Home &
Decor 2019), catering to the needs of all consumers.
Mountain Teak established a stringent and sincere brand image, as seen from Mountain Teak’s strict
quality control process and its non-toxic finishing (Mountain Teak 2014).
Mountain Teak welcomes collaborations with design firms, construction companies or independent interior
designers. Other strategies include providing a showroom for event, shooting and other marketing
cooperation (Mountain Teak 2019).
Noden
Noden positions itself as a premium brand; this was derived from Noden offering only original, vintage or
antique products (Nodenhome 2019). Noden has obtained competitive advantage with its services
including personalised services such as custom sourcing. In which, Noden only accept original vintage
Scandinivian or Mid-century Furniture (Nodenhome 2019).
Competitors
Objectives
Mountain Teak
Mountain Teak strives to provide affordable furniture to its consumers (Mountain Teak 2019). it aspires to:
1.
2.
3.
Increase partnership with other complementing firms (Mountain Teak 2019)
Maintain its ecological efforts (Behura L 2019)
Spreading the ‘Green furniture’ perspective to its consumers (Behura L 2019)
Mountain Teak has done well in meeting its objectives; this can be deduced particularly by how its keeping
its wood selection environmentally-friendly and being consistent with it (Mountain Teak 2019). Its
collaborations with various firms such as Commune Home (Facebook 2019) also prove that Mountain Teak
is on the right track. Mountain Teak do not face direct pressure to improve on its performance but would
always strive to refine its services and spread their ideals of ‘Green Furniture’ (Behura L 2019).
Noden
Noden desires to provide highly affordable and collectible furniture to its customers (Nodenhome 2019). It
also aims to:
1.
2.
Provide the best value for their customers (Nodenhome 2019)
Pass on the appreciation of Scandinavian furniture to its consumers (Nodenhome 2019)
Noden has been providing services such as custom sourcing and consultation (Nodenhome 2019) to have
a detailed understanding of what the consumers want and need. Hence, Noden have been doing well in
meeting its objectives by catering to specific needs and budgets of each customer. However, Noden could
do better by incorporating services such as the e-commerce to provide a platform for inquiries to be made
and to have a clearer view of the available products.
Competitors
Capabilities
Mountain Teak
Mountain Teak have consistently kept up with keeping their price range low and have provided a wide
range of furniture to their customers, ranging from office, bedroom and outdoor. They have also provided
product measurement, on the webpage, for the customers so that they would know what to expect
(Mountain Teak 2019). In addition, Mountain Teak has been actively pooling resources with various
collaborators through their website as a direct avenue of communication and invitation to partnerships with
relevant parties (Mountain Teak 2019).
Furthermore, Mountain Teak provides shipping and customisation which increase the level of convenience
for their customers (Mountain Teak’s Blog 2019). However, Mountain Teak’s lack of overseas shipping has
limited its chances of reaching out to the international market.
Mountain Teak has established a new concept: Serax, Herdmar and Mountain Living (Homeware Mountain Teak 2019). They introduced a range of homeware products such as Dinnerware. This new
approach increases the chances to cross-sell a new product category to its customers.
Noden
Noden have been sourcing for vintage or antique Scandinavian furniture unfailingly, providing products
with the finest quality in terms of its originality and age of products (Nodenhome 2019). Noden caters to
their consumers’ needs by providing international shipping and free local shipping (Nodenhome 2019).
However, Noden does not provide an online platform for customers to purchase their furniture. As such,
Noden may lose its appeal to the group of consumers who prefer making their purchases in the comfort of
their own home, especially amongst a tech-savvy generation. In terms of pricing, Noden’s products are
priced at a higher range when compared to Mountain Teak and Scanteak, which may not appeal to priceconscious consumers.
Noden has an active social media presence with platforms such as Facebook and Instagram (Facebook
2019) (Instagram 2019). This would appeal to the younger market and they would also serve as a method
to increase customer interaction and understanding their needs.
Competitors
Assumptions
Mountain Teak
Mountain Teak always striving to improve and to provide the products with the finest quality in terms of its
eco-friendly attributes and its sustainability of the products. Mountain Teak have been consistently stringent
throughout its manufacturing process of each piece of furniture. Mountain Teak seeks to provide furniture
that is timeless and would play a part in the customers’ journey. With such beliefs, Mountain Teak would
create each furniture whole-heartedly; giving its best to the consumers (Mountain Teak 2019).
Noden
Similar to Mountain Teak, Noden aspire to provide sincerity towards their customers; sharing their love for
Scandinavian teak furniture with their customers. this belief drives the team to source exquisite pieces and
with the best price for it. This would give customers an advantage of paying for the best value of the
meticulously sought piece (Nodenhome 2019).
2.2.2 Strategic Group Maps
The total market share for Singapore’s furniture industry in 2014 was SGD$6.22 billion (Singapore
Furniture Outlook 2016 2016). According to Forest Legality, it was reported that Teak Production
accounts for 1% of the annual timber demand globally. Hence, it can be assumed that the
Singapore market occupies about SGD$62.2 million revenue of teak trade (Forest Legality 2019).
The Business Times reported that Scanteak’s revenue in 2017 was SGD$100 million and their
overseas market accounts or 70% of their revenue (Shiao 2017). Hence, we can estimate that
Scanteak’s Singapore outlets has a revenue of about SGD$30 million annually; which is 48.23%
of the teak wood trade in Singapore. This would mean that Scanteak is deemed as one of the
bigger players in Singapore’s teak furniture industry as it accounts for almost half of the total
market share.
Scanteak was established in 1974 and have about 12 outlets in Singapore. As compared to Noden
who was established in 2013, and M…
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