Morrison's International Marketing Strategy & South Africa Market Entry

Morrison's South Africa Expansion & Marketing Strategy Analysis

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Introduction of Morrison's International Marketing Strategy & South Africa Market Entry

The case company which is Morrison's marketing concept is discussed in the report. The report aims to critically analyse the marketing area of the company. The marketing analysis provides a qualitative and quantitative position of the company in the consumer and competitive market. This evaluation shows the company's existing customers, its position in the current competitive market, and its risk while entering into a new market and country. The internal and external analysis of the company helps to find out the market potentiality of the company.

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Company background

Morrison is a privately owned supermarket chain that provides different types of groceries product to its customers. The company originated from the UK with headquarters in Bradford, England. The company places its position as the fifth largest supermarket chain in the UK(Morrisons, 2022). Products that are offered by the company are petrol, food and drinks, magazines, clothing, books, homeware, and florist. The company was founded by William Morrison in the year 1899. Currently, Morrison has 497 supermarket stores across Wales, England, Scotland, and Gibraltar.

The company employed around 110000 employees extracted from the recent study as well as served approximately 11 million customers every week. Morrison's turnover estimated each year is around £17,536 million. The company currently operates in a store format in which the company's supermarkets have to produce in the market street. Morrison also opens the convenience of Morrison's daily stores, online retailing through its company's website, starts vertical integration of its supermarket stores, and at last, it also provides home delivery services to its customers since June 2020. The company also take an order from its customers through various websites such as online titan Amazon, and c-store specialist McColl's.

Morrison's International Marketing Strategy

Figure 1:Morrison store

(Source: Morrisons, 2022)

Analysis of the target market

To effectively analyse the external environment of Morrison the best suitable model is PESTLE analysis. Several macro-level problemsinfluence both Morrison and its rivals badly(Leyva Vázquez, et. al. 2018).The primaryreview of a macro-level impact is the PESTLE approach, which might be helpful to classify future evolvingtendencies in politics, economics, society, technology, law, and the environment.

South Africa is considered a target country for the case company. In the given political and economic analysis of the target country, some points also highlight the comparison of a company’s affected political and economic to its entering targeting country.

Political factors - These factors include all the state rules and industry standards.Morrison has a strong presence in the country in which it is currently operating. To confirm long-term existence company must deliberate the following including elements of political influences. In all zones of a nation, South Africa supports foreign direct investment (FDI). In South Africa, employees are given essential protections. South Africa is the parliamentary republic with a president presencetogether head of the state or head of the government. By fostering equal opening or fair action in workplace, Employment Equity Act of 1998 (EEA) seeks to attain equality in a workplace (Rolison, et. al. 2018). If Morrisons disregards the laws of the host nations, it risks expensive legal action.South African political situation is frequently clouded through violence, corruption, political prejudice, misconduct, or popular protests. As the growth of South Africa as the tourism end point, its political party tends to help it through wealth of animals, natural beauty, wonderful coastlines, and wonderful beaches with penguins, whale viewing or vibrant coral ridges (Bengtsson-Palme, et. al. 2018).

Uncertainty- Uncertainty in political environment denotesoccurrence of changes in government regulations and rules(Zickgraf, 2019). Numerous policy variationsmovethe business presentation or create decision-making furtherinspiring due to the usualinsecurity. Morrison’s must ensure work environment security, Operative compliance along with employment laws which canaid the business in consolidating its manager brand image. 

Transparency Morrison’sarepresently facing numerousproblems due to dishonestyor absence of transparency. This non-existence of transparency is mostlyrelated to predominant political instability or uncertainty.

Trade policies Corporategrowthjudgment of the case companymust also reflectusual trade rules, or managing must wish the areas with flexible and free trade contracts. Though entering diverse nations, Morrison’s management necessities to study laws associated to refunds, discounts, credit terms, quality, misleading advertisement, or maximum pricing(Vilariño, et. al. 2018).

Economic factors - South Africa is 42nd largest nation in world in terms of the nominal GDP. GDP stands bynearly 282B USD.South Africa has the system of mixed nation in the place.  A chosen company should increase an in-depth accepting of these elements to expect short term or long term commercialdevelopment in a selected sector.There are some huge encounters South Africa experiencing today. The public health system is in bad shape, or unemployment is high. Poor or insufficient organisation often strangles social mobility or economic growth (Knickmeyer, 2020). Morrison’s need to carefully accomplish social variables meanwhile many enormously effective commercial administrations have failed as they failed to familiarise to a socio-cultural context.Technologically furthermostindustrialisedcountries in Africa is South Africa. It have made importantdevelopments in the mobile software, security software, or online banking to improve its economic conditions (The International Trade Administration, 2020). Many foreign IT or social networking businesses previously has companies functioning in South Africa (Tsai, et. al. 2019). To preserve its long-term viability, Morrison’s must research and foresee both current and emerging technological developments.

Inflation - An increasing inflation rate can also have the negative influence on a revenue evolution of the case firm because it reducesbuying power of the money or disappointscustomeroutlay on a goods or services. When incoming states with a large power distance, Morrison’s does finest with a categorised group or prescribed work culture.

Exchange or interest rate - Morrison’s should study exchange rate variationsnearcreatesperfectexpectations so that undesired professionor corporatepresentationconcerns could be prevented(Valente, 2022). 

Economic growth rate - A Company must review aneconomic growth rate of the countries by making globalgrowth decisions. Morrison’s should conduct wide-ranging research to increase local consumer knowledge.Morrison’s must prefer nations with well-builttechnicalorganisation, as helpful technological substructurecreates it relaxed for the company to attain its invention, assessment creation, and cost reduction goals. The case company will be able to comprehenda new product growth rate, invention life cycle measurement, or inventivestructures being commonly liked by the customers(Ahmad, et. al. 2020).

Report recommendations

Morrisons needs to extend its geographic reach because it is now only operating in a small

several locations compared to its rivals.

Morrisons needs to extend its geographic reach because it is now only operating in a small

several locations compared to its rivals.

Morrisons needs to extend its geographic reach because it is now only operating in a small

several locations compared to its rivals.

Morrison needs to expand its geographical location as its competitors are enhancing their reach with high potential in other countries. The case company also has the potential to expand its operations in other countries. It is recommended to the company that it should enter the supermarket industry in South Africa country. If the company expands its business worldwide then it will assist in achieving a more competitive advantage and position in an international market by implementing effective operations and strategies. The above PESTLE analysis of South Africa country shows that the case company should carefully enter South Africa's supermarket chain industry.

Morrison will also face Pick n Pay, SPAR group, Massmart Holdings Ltd, etc. supermarket chain competitors while entering into the retail industry of the country. It is recommended to the company that it should effectively analyse the internal and external environmental factors of a new country. The company must pay attention to its competitor's strategy which it will face in during its entrance into the South African market. It is suggested to the company that it should first pay more attention to social welfare to attract customers to the company's products and services. The case company needs to analyse its external environment to enter new markets.

To enlarge the customer base and the company's reach in the market the company should use more promotional techniques and sell its products at affordable prices to collect the customer's attention. A case company should effectively manage its operations in South Africa if it adopts new technologies timely. This is also considered that the case company should continue its home delivery services in the new country market also to bring more effective customer services to the company. As the company gives effective customer services to its customers it will gain more new customers and gain a competitive advantage also. This is also suggested to the company that it has to adapt effective customer services in the new operative market.

The company has more potential to open its stores in the various location in South Africa country. It is recommended to the chosen company that it can choose tourist spots to start its business in the new market of its target country. It is also suggested to the case company that it can focus in the rush area of the target country to open its stores. If the company will open its stores while considering the nature and culture of the country than only it will get excess in its target country. The company should effectively adopt the culture and try to reduce the barriers like language, equality, etc. from the chosen company side which will attract more customers towards the company’s services without any hesitation.

References

Ahmad, M., Jiang, P., Majeed, A., Umar, M., Khan, Z. and Muhammad, S., 2020. The dynamic impact of natural resources, technological innovations and economic growth on ecological footprint: an advanced panel data estimation. Resources Policy69, p.101817.

Bengtsson-Palme, J., Kristiansson, E. and Larsson, D.J., 2018. Environmental factors influencing the development and spread of antibiotic resistance. FEMS microbiology reviews42(1), p.fux053.

Knickmeyer, D., 2020. Social factors influencing household waste separation: A literature review on good practices to improve the recycling performance of urban areas. Journal of cleaner production245, p.118605.

Leyva Vázquez, M., Hechavarría Hernández, J.R., Batista Hernández, N., AlarcónSalvatierra, J.A. and Gómez Baryolo, O., 2018. A framework for PEST analysis based on fuzzy decision maps.

Morrisons, 2022. More Ways to Save FromMorrisons (omline). <https://groceries.morrisons.com/webshop/startWebshop.do> (accessed on 16 December 2022).

Rolison, J.J., Regev, S., Moutari, S. and Feeney, A., 2018. What are the factors that contribute to road accidents? An assessment of law enforcement views, ordinary drivers’ opinions, and road accident records. Accident Analysis & Prevention115, pp.11-24.

Tsai, J.M., Cheng, M.J., Tsai, H.H., Hung, S.W. and Chen, Y.L., 2019. Acceptance and resistance of telehealth: The perspective of dual-factor concepts in technology adoption. International Journal of Information Management49, pp.34-44.

Valente, J.P., Vasudevan, K. and Wu, T., 2022. The role of beliefs in asset prices: Evidence from exchange rates. Available at SSRN 3872077.

Vilariño, N., Louzao, M.C., Abal, P., Cagide, E., Carrera, C., Vieytes, M.R. and Botana, L.M., 2018. Human poisoning from marine toxins: Unknowns for optimal consumer protection. Toxins10(8), p.324.

Zickgraf, C., 2019. Keeping people in place: political factors of (im) mobility and climate change. Social Sciences8(8), p.228.

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