https://research-methodology.net Necessary knowledge to conduct a business research Sun, 18 Feb 2024 01:44:22 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-ansoff-matrix/ Sun, 18 Feb 2024 01:44:22 +0000 https://research-methodology.net/?p=77519 BYD Ansoff Matrix is a marketing planning model that helps the electric automaker to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses.  These are market penetration, product development, market development and diversification. Ansoff Growth Matrix Within the scope of Ansoff Matrix, BYD uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets and BYD uses this strategy extensively. The company offers EVs at competitive price points, particularly catering to budget-conscious consumers. This attracts new customers and makes EVs more accessible in price-sensitive markets like China. Moreover, the EV giant offers special discounts and promotional packages for specific customer segments, such as first-time buyers, government fleets, or ride-sharing companies. Such moves incentivize purchase and boost sales within defined target groups. 2. Product development. This involves developing new products to sell to existing markets. Product development sits at the heart of BYD’s long-term success, not just as a growth strategy but as a core pillar of their competitive advantage. The company consistently expands its EV portfolio developing new models across various segments (cars, buses, trucks) alongside enhancing existing models with improved range, performance, and features. Furthermore, BYD invests heavily in R&D for autonomous driving, battery improvements, intelligent connected vehicles, and alternative energy solutions like hydrogen fuel cells. 3. Market development. Market development strategy is associated with finding new markets for existing products and it is also a key growth strategy for BYD. Starting to produce EVs in 2003, BYD today sells EVs to more than 400 cities in over 70 countries and regions across the six continents of the world.[1] The company is expected to further intensify its focus on international market development strategy. 4. Diversification. Diversification involves developing new products to…]]> https://research-methodology.net/a-brief-overview-of-byd-business-strategy/ Sat, 17 Feb 2024 05:24:44 +0000 https://research-methodology.net/?p=77499 BYD business strategy consists of the following three pillars: 1. Cost leadership. Cost efficiency compared to its main competitor, Tesla is one of the key competitive advantages for BYD. Cost leadership has been a crucial component of BYD’s success, helping them establish themselves as a competitive contender in the EV market. BYD is able to maintain cost leadership business strategy in the global marketplace due to a number of factors such as lower cost of human resources in China, the extensive support by Chinese government to EV makers and an extensive vertical integration.     Competitive pricing makes BYD’s EVs accessible to a wider range of consumers, particularly in cost-sensitive markets. This can drive market share gains and boost overall sales. Moreover, efficient cost management helps BYD maintain healthy profit margins even with lower prices, enhancing financial stability and fuelling further investments. 2. Extensive vertical integration. The electric automaker produces the majority of its spare parts in-house. For example, for BYD Dolphin only tyres and windows are delivered by suppliers and all other components are produced by the company itself. Vertical integration to such an extent allows the EV behemoth to maintain its cost leadership business strategy along with reducing the dependence on external vendors for spare parts. Moreover, controlling critical components minimizes dependence on external suppliers, mitigating risks of disruptions and shortages. Vertical integration also creates unique capabilities and intellectual property, setting BYD apart from competitors and bolstering brand differentiation. 3. Accelerated pace of new model development. While it takes about four years for an average automaker to develop a new car from scratch to design, for BYD it takes only 18 months. The electric automaker has adapted an accelerated pace of new model development to reflect changes in customer tastes and preferences as a cornerstone of its business…]]> https://research-methodology.net/marriott-ecosystem-a-brief-overview/ Sat, 28 Oct 2023 02:56:51 +0000 https://research-methodology.net/?p=76012 Key Components of Marriott ecosystem include the following: – Properties. Marriott has a portfolio of over 8,000 hotels in 138 countries and territories. This includes a variety of brands, from luxury to budget-friendly, to meet the needs of all types of travellers. – Loyalty programs. The hotel chain has three loyalty programs – Marriott Bonvoy, Ritz-Carlton Rewards, and Starwood Preferred Guest. These programs offer members exclusive benefits, such as free nights, room upgrades, and early check-in and check-out. – Technology platform. The largest hotel chain in the world has a robust technology platform that powers its website, mobile app, and loyalty programs. The company also uses technology to improve the guest experience, such as with contactless check-in and mobile keys. – Partners. The company has a wide range of partners, including airlines, car rental companies, and credit card companies. These partnerships allow Marriott to offer its guests a one-stop shop for their travel needs.     Marriott’s ecosystem is designed to provide guests with a seamless and personalized experience. For example, when a guest books a hotel room on the Marriott website, they can also book a flight and a rental car. They can also use their Marriott Bonvoy points to pay for their hotel stay, flights, and car rental. Marriott’s loyalty programs also play an important role in its ecosystem. By rewarding guests for their loyalty, Marriott encourages them to stay at Marriott hotels and use Marriott partners. This helps Marriott to build long-term relationships with its guests. The Marriott International ecosystem benefits both Marriott and its guests. For Marriott, the ecosystem helps to increase revenue and improve customer loyalty. The hotel chain is able to generate additional revenue from its partners, such as airlines and car rental companies. The company is also able to improve customer loyalty by providing guests with a seamless and personalized experience. For guests, the ecosystem provides a number of benefits such as convenience, savings…]]> https://research-methodology.net/marriott-stock-performance-analysis/ Sun, 22 Oct 2023 04:51:55 +0000 https://research-methodology.net/?p=75906 Fundamental Analysis of Marriott Stock Fundamental analysis refers to the practice of using financial activity to forecast stock prices.  The following table  illustrates main financial ratios for Marriott International:   Ratio Marriott International performance Price-to-Earnings (P/E) Marriott’s P/E ratio is currently 22.4, which is slightly above the average P/E ratio of the S&P 500 index (18.6). In other words, Marriott’s stock is currently trading at a premium to the broader market Price-to-book (P/B) Marriott’s P/B ratio is currently 3.2, which is above the average P/B ratio of the S&P 500 index (2.3). This can be interpreted as Marriott’s stock is currently trading at a premium to the broader market based on its book value. Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) Marriott’s EV/EBITDA ratio is currently 11.5, which is in line with the average EV/EBITDA ratio of the hotel industry (11.0). This suggests that Marriott’s stock is currently trading at a fair valuation relative to its peers. Debt-to-Equity Ratio   Marriott’s debt-to-equity ratio is currently 1.2, which is considered to be a healthy level of debt. In other words Marriott is well-positioned to manage its debt obligations. Return on Equity (ROE) and Return on Assets (ROA)   Marriott’s ROE and ROA are both above the average ROE and ROA of the hotel industry. This suggests that Marriott is a profitable company that is generating good returns on its equity and assets. Marriott International main financial ratios Overall, Marriott’s financial ratios suggest that the company is well-managed and financially sound.   Technical Analysis of Marriott Stock Technical analysis is the reliance of historical stock price activity to predict future price activity.   Short-term trend The short-term trend for Marriott International is neutral. The stock is currently trading in a range between USD 198.23 and USD 206.55. A…]]> https://research-methodology.net/a-brief-overview-of-marriott-business-strategy/ Sun, 22 Oct 2023 04:37:57 +0000 https://research-methodology.net/?p=75901 Marriott business strategy consists of the following 3 elements: 1. Pursuing asset-light business model. Operating in light-asset manner is one of the cornerstones of Marriott business strategy. Under this model, Marriott focuses on managing and franchising hotels, rather than owning them. This allows the hotel chain to expand rapidly and efficiently, without having to invest heavily in real estate. Light-assed strategy provides the company with a range of substantial advantages such as reduced capital investment and as a result, increased flexibility to enter into new markets and experiment with new brands. Furthermore, this strategy reduces exposure to the risk of real estate market downturns.     2. Growth through acquisitions. Marriott International has been a major user of acquisitions to fuel its growth. In 2016, it acquired Starwood Hotels & Resorts Worldwide in an USD 13.6 billion deal, which made it the world’s largest hotel company. The acquisition added nearly 1,300 hotels to Marriott’s portfolio, including brands such as Sheraton, W, and Westin. Since the Starwood acquisition, Marriott has continued to make smaller acquisitions to expand its reach into new markets and segments. For example, in 2017, it acquired Delta Hotels and Resorts, which added 38 hotels in Canada to its portfolio. In 2022, it acquired Hoteles City Express, which added 152 hotels in Mexico, Costa Rica, Colombia, and Chile. 3. Focusing on bleisure travellers. Bleisure travelling, a portmanteau of “business” and “leisure”, refers to the trend of business travellers extending their trips to include leisure activities. Marriott International is increasing its focus on bleisure travellers as part of its long-term business strategy. Up to date, this new customer segment, the business traveller who wants more choices for accommodations, that new blended traveller, and younger travellers who want more space for their travels, have been mainly served by Airbnb and…]]> https://research-methodology.net/netflix-ecosystem-an-overview/ Sat, 23 Sep 2023 00:07:31 +0000 https://research-methodology.net/?p=75535 An ecosystem is a network of components (products, services and platforms) that depend on each other and fuel each other to jointly deliver greater value. Netflix ecosystem comprises the companies it owns, content producers, competitors, customers, as well as, investors. Moreover, assisting infrastructure such as AWS cloud service, data centres, trade shows, banks and postal service are also components of Netflix ecosystem. All of the entities listed above are considered elements of ecosystem, because they contribute to the survival and well-being of the ecosystem. Netflix ecosystem Development of business ecosystem can be divided into four stages[1]: 1. Pioneering stage is where ecosystem is formed. For video streaming ecosystem pioneering stage is the second half of 2000s. Netflix invented DVD rental business model and it is one of the first companies that offered online video streaming service. Hong Kong based iTV was the company that introduced online video streaming for the first time, but Netflix was the first company that perfected this business model and made it successful. 2. Expansion stage. Currently, Netflix has 231 million paid memberships in over 190 countries with offices in over 25 countries.[2] The rapid expansion of the company during the last decade caused the expansion of online streaming ecosystem in general, motivating media companies to launch their own rival streaming services such as Disney+, HBO, Hulu and others. 3. Authority stage is when an ecosystem matures. It can be argued that Netflix ecosystem is approaching its authority stage with the global marketplace becoming highly saturated with international, as well as, local on-demand media providers. The video entertainment industry is becoming ready for yet another disruption. 4. Renewal or death stage. It is hard to estimate the time when Netflix ecosystem is going to be renewed or if it is going to cease to exist altogether…]]> https://research-methodology.net/netflix-stock-performance-analysis/ Mon, 18 Sep 2023 00:29:20 +0000 https://research-methodology.net/?p=75411 Fundamental Analysis of Netflix Stock Fundamental analysis refers to the practice of using financial activity to forecast stock prices. Revenue: Netflix’s revenue has been growing steadily in recent years, reaching USD30.9 billion in 2022. Earnings per share: Netflix’s earnings per share have also been growing steadily, reaching USD9.36 in 2022. Free cash flow: Netflix’s free cash flow has been positive in recent years, reaching USD10.7 billion in 2022. Debt: Netflix has a moderate amount of debt, with a debt-to-equity ratio of 1.3. Margins: Netflix’s margins are high, with a gross margin of 73% and an operating margin of 22%. Valuation As of September 11, 2023 Netflix’s stock is trading at a price-to-earnings (P/E) ratio of 37.05. This is higher than the P/E ratio of the S&P 500, which is currently at 21.08. However, Netflix’s P/E ratio is lower than its historical average of 50.   Technical Analysis of Netflix Stock Technical analysis is the reliance of historical stock price activity to predict future price activity. As of September 11, 2023 Netflix stock (NFLX) is trading at USD442.80. The stock has been on a downward trend since January 2023, but it has been consolidating in recent weeks. The 50-day moving average is at USD432.97, and the 200-day moving average is at USD352.07. The relative strength index (RSI) is at 57.74, which is in the neutral zone. Technical indicators The moving average convergence divergence (MACD) indicator is positive, which is bullish. The MACD line is above the signal line, and the histogram is rising. The stochastic oscillator is also positive, and it is rising towards the overbought level. Support and resistance levels The nearest support level is at USD419.81, followed by USD402.99. The nearest resistance level is at USD453.45, followed by USD472.70.   Sentiment Analysis of Netflix Stock Sentiment analysis is the process of determining the emotional…]]> https://research-methodology.net/netflix-business-strategy-an-overview/ Sun, 17 Sep 2023 10:32:15 +0000 https://research-methodology.net/?p=75402 Netflix business strategy is to continuously improve its members’ experience by offering compelling content that delights them and attracts new members. Netflix pioneered subscription streaming in 2007 and retains the first mover competitive advantage in this segment. Moreover, the largest streaming service in the world is pursuing the following strategies: 1. Focusing on revenues maximization over membership growth. Internet-based technology companies such as Netflix often have to choose between growing members or revenues. On one hand, brand recognition at a broad scale requires scaling of the business. On the other hand, scaling requires massive financial investments at the same time when you cannot increase the cost. If you increase the cost, you cannot scale because people will not purchase. This is why internet-based companies such as Uber and Airbnb traded revenues for membership growth and stayed unprofitable for a long time. For Netfix, on the other hand, membership growth is important, but revenue maximization per member is their primary concern. The on-demand media provider regularly increases prices. In the latest move it eliminated its cheapest USD 9,99 add-free plan for its US-based subscribers and  the cheapest ad-free tier for new members is because USD15.49 per month in summer 2023.[1] 2.Investing in original content. Netflix is the first company to invest in original content starting with award-winning House of Cards series in 2011. This was followed by a series of quality original content such as BoJack Horseman (2020), Squid Game (2021), Kipo and The Age of Wonderbeasts (2020), Arecane (2021) and many others. Quality original content is one of the main competitive advantages for the on-demand media provider. 3. Staying focused on movies, series and documentaries. Netflix stays within its niche of movies, series and documentaries and the company is planning to continue with this strategy for the foreseeable future. The…]]> https://research-methodology.net/apple-ecosystem-closed-effective/ Thu, 06 Jul 2023 00:48:05 +0000 https://research-methodology.net/?p=13041 Ecosystem in its essence is “a biological community of interacting organisms”[1]. In technology terms, ecosystem refers to a group of devices and software that represent a single collaborative network. In other words, it is how well each product or service belonging to a company work individually and if end-users will get better experience when all of these products and services work together.  It is the question if the whole is greater than sum of all parts. Apple ecosystem is one of the main competitive advantages associated with the brand. In fact, the iPhone maker is one of the earliest technology companies globally to purposefully form an ecosystem. Third-party products are not usually compatible with Apple products and all products belonging to Apple portfolio work well with each-other. At the same time, the ecosystem of Apple is much more than just a collection of more than 2 billion active devices[2] or services that work seamlessly. Apple ecosystem integrates the following key elements: Company image of creativity that motivates customers to upgrade their devices frequently. Perception of status and effectiveness that is associated with using Apple products Efficient devices and services that perform best with other Apple products and services Apple ID is the cornerstone of the ecosystem. It is used to register all Apple devices.   Advantages of Apple Ecosystem Thanks to services such as iCloud, airplay, and airdrop, one can start a task in on one Apple device and continue it on another and there is no need to download or install anything. Moreover, Apple ecosystem offers features like AirDrop, iMessage, and FaceTime on macOS; unlocking a Mac laptop with an Apple Watch; or auto-pairing and finding lost AirPods, and the list goes on. Today, Apple ecosystem is widely considered to be the best in the industry, and arguably in…]]> https://research-methodology.net/apple-business-strategy/ Mon, 03 Jul 2023 01:10:09 +0000 http://research-methodology.net/?p=7358 Apple business strategy can be classified as product differentiation. Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality.     Apple business strategy consists of the following four elements: 1. Focus on design and functionality of products. According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage. The list of innovations introduced by Apple include, but not limited to the introduction of iPad, the first device of its kind that stored thousands of songs with a simple shuffle capabilities through songs, development Macintosh, the first computer to use a graphical user interface and the launch of iMac that “ripped up the computer design rule book, doing away with dull beige boxes and instead replacing them with fun, translucent machines in shades such as “Bondi Blue” that hinted at the aesthetic Apple would become so well-known for.”[1] The first company ever to be valued at $1 trillion systematically improves features and capabilities of its products, setting new standards for the industry at the same time. Take photos for example. Apple single-handedly advanced global photography industry with a range of innovations illustrated in table below.   Innovation Year High dynamic range imaging 2010 Panorama photos 2012 True Tone flash 2013 Optical image stabilization 2015 Dual-lens camera 2016 portrait mode 2016 portrait lighting 2017 night mode 2019 LiDar scanning 2020 Photography innovations by Apple Inc.   First mover advantage is another element of Apple competitive advantage. It has to be stated that Apple competitive advantage may be challenging to be sustained for long-term perspective. Specifically, the management may fail in terms of ensuring the addition of innovative features and capabilities in new versions of its products, thus compromising…]]> https://research-methodology.net/apple-ansoff-matrix-2/ Mon, 03 Jul 2023 00:13:49 +0000 https://research-methodology.net/?p=12998 Apple Ansoff Matrix is a marketing planning model that helps the multinational technology company to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses.  These are market penetration, product development, market development and diversification.  Apple Ansoff Growth Matrix Within the scope of Ansoff Matrix, Apple uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. Existing market for Apple consists of its global operations divided into five operating segments: Americas, Europe, Greater China, Japan and Rest of Asian Pacific. The tech giant operates more than 518 retail stores in 25 countries and regions.[1] Apple engages in market penetration strategy via effective application of marketing strategy.  Apple’s ecosystem of products and services also plays an instrumental role in pursuing market penetration strategy with high level of efficiency. 2. Product development. This involves developing new products to sell to existing markets. New product development in a regular manner is one of the core growth strategies pursued by Apple. Each new product or service by Apple nicely fits within its ecosystem and serves to further strengthen the company ecosystem. Moreover, the multinational technology company regularly introduces updated versions of its existing products and services and introduces totally new products.  The company’s investments on research and development for new products has increased from USD 0,78 billion in 2007 to USD 25,3 billion in 2023. 3. Market development. Market development strategy is associated with finding new markets for existing products. This strategy has been adapted as the main growth strategy by Apple. Specifically, the world’s largest IT company by revenue focuses of emerging economies in Asia as attractive markets for long-term perspective. The multinational technology company appeals to local culture and sentiment when developing marketing strategies…]]> https://research-methodology.net/apple-marketing-strategy-an-overview/ Fri, 30 Jun 2023 00:52:47 +0000 http://research-methodology.net/?p=9951 Apple marketing strategy is based on the founder Steve Jobs’s philosophy that customers do not always know what they want. Accordingly, instead of conducting marketing researches to identify customer needs and wants, the multinational technology company prefers to install innovative features and capabilities in their products, making customers to want Apple products. Under the leadership of Tim Cook since 2011 certain aspects of the business such as management style and company’s stance towards CSR have changed. However, the dismissal of marketing research remains to this day. Apple marketing strategy expresses the brand in minimalist, yet highly efficient ways. The world’s largest IT company by revenue is one of the first companies to successfully associate the brand image with being innovative, rebellious and non-conformist. Apple 7Ps of marketing is marked with a particular focus on the product element of the marketing mix and the company’s segmentation targeting and positioning initiatives are aimed at targeting users of premium products. Moreover, marketing communication mix of Apple Inc. places greater emphasis on print and media advertising and personal selling in Apple Stores and the company rarely uses sales promotions as part of its marketing strategy. Generally, Apple marketing strategy integrates the following:   1. Focusing on attractive value proposition. Apple’s value proposition is “beautiful design that works right out of the box with ever-smaller packaging”[1] The world’s largest IT company by revenue has been able to avoid price wars with competitors by emphasizing its unique value proposition in its marketing communication messages. Apple is a unique company in a way that it is a design firm, a media platform, a publishing company, a software powerhouse and a computer manufacturer – all at the same time. Such a position allows the company to communicate its value proposition to target customer segment in a cost-effective manner.…]]> https://research-methodology.net/nvidia-marketing-communication-mix/ Mon, 26 Jun 2023 00:33:25 +0000 https://research-methodology.net/?p=74402 Nvidia marketing communication mix includes the use of various communication channels to transmit the marketing message to the target customer segment. These channels are print and media advertising, sales promotions, events and experiences, public relations and direct marketing.     Nvidia Print and Media Advertising Nvidia uses print and media as an effective advertising platform systematically. Specifically, the multinational technology company runs advertising campaigns on TV and radio channels, as well as magazines and newspapers popular with their target customer segment. Additionally, Nvidia places large billboards in crowded area in large metropolitan cities. The software and fables company also uses viral marketing extensively on popular social media platforms such as Twitter, LinkedIn, and YouTube. Nvidia also uses product placement strategy by Nvidia include a science fiction movie “Blade Runner 2049” released in 2017 and Steven Spielberg film “Ready Player One” released in 2018.   Nvidia Sales Promotions Nvidia uses various sales promotions techniques regularly to increase its revenues. Specifically, the multinational technology company uses the following sales promotions techniques: – Seasonal sales promotions. Nvidia uses seasonal sales promotions to boost its revenues during holidays and festive seasons. Additionally, the company runs promotions during major industry events such as the Consumer Electronics Show or the Game Developers Conference. – Money off coupons. Nvidia does not offer money off coupons to end-users directly, but its distributors use this particular sales promotions technique regularly. – Free gifts. The company offers free gifts occasionally as part of its marketing strategy. For example, in 2023 Nvidia offered Marvel’s Midnight Suns Captain Marvel’sMedieval Marvel Suit free of charge to users of graphics cards GeForce GTX 10 and above. Nvidia Corporation Report contains a full analysis of Nvidia marketing communication mix and Nvidia marketing strategy in general. The report illustrates the application of the major analytical strategic…]]> https://research-methodology.net/nvidia-ecosystem-overview/ Fri, 23 Jun 2023 05:23:06 +0000 https://research-methodology.net/?p=74448 Nvidia ecosystem refers to the network of interconnected components, technologies, and partners that work together to support the company’s products and services. The following are the key elements of Nvidia ecosystem: 1. Products. The core of Nvidia’s ecosystem is its products, which include graphics cards, data centre products, and system-on-a-chip (SoC) products. These products form the foundation of the ecosystem and are used by developers, data scientists, and other users to create and innovate. 2. Developer Tools and Platforms. The company offers a range of developer tools and platforms to support the development of software and applications that leverage Nvidia’s products. These tools and platforms include CUDA, TensorRT, and the Nvidia Deep Learning Institute.     3. Partner Network. Nvidia has a broad partner network that includes hardware and software vendors, cloud providers, system integrators, and other partners. These partners help to integrate Nvidia’s products and technologies into a wide range of solutions and services, further strengthening its ecosystem. 4. AI and HPC Applications. Nvidia’s ecosystem is used to support a wide range of artificial intelligence (AI) and high-performance computing (HPC) applications. These include, but not limited to deep learning, computer vision, and scientific simulations. These applications leverage Nvidia’s products and technologies to achieve breakthrough performance and efficiency. 5. Community and Support. The multinational technology company has a strong community of users and developers who support each other through forums, user groups, and other online communities. The company also offers customer support services to help users troubleshoot issues and optimize their use of Nvidia’s products and technologies. To summarize, Nvidia ecosystem is dynamic and comprises interconnected network of products, technologies, partners, and communities that work together to support innovation and growth. By fostering a strong ecosystem, the company aims to drive innovation and accelerate the adoption of AI and HPC…]]> https://research-methodology.net/nvidia-porters-five-forces-analysis/ Thu, 22 Jun 2023 05:06:58 +0000 https://research-methodology.net/?p=74435 Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] consists of five individual forces that shape an overall extent of competition in the industry. Nvidia Porters Five Forces are illustrated in figure below: Porter’s Five Forces     Threat of new entrants in Nvidia Porter’s Five Forces Analysis Threat of new entrants into graphics processing unit (GPU) industry is low. The below are the main factors that determine the level of threat of new entrants: 1. Time of entry. GPUs are highly saturated market with dominant market players already in the business for decades. Moreover, customer loyalty towards dominant players such as Advanced Micro Devices (AMD, Intel Corporation, Qualcomm Inc., Broadcom Inc. and Arm Holdings (a subsidiary of Softbank Group) is high this fact crates entry barrier for potential market entrants. 2. Massive investments. GPU producing requires massive capital requirements of millions of dollars. It will be very challenging for potential market entrance to secure funding for producing GPUs unless they offer unique competitive advantages with the potential to disrupt the market. 3. Specialist knowledge. GPUs are highly advanced technological products. The production requires highly specialist knowledge and technological know-how. New market entrants will face substantial difficulties in terms of finding employees with specialist knowledge who will agree to join a new company in a highly saturated market.   Bargaining power of buyers in Nvidia Porter’s Five Forces Analysis The bargaining power of buyers for Nvidia products is generally insubstantial. The following considerations need to be taken into account in this regard: 1. Switching costs. Nvidia’s products are often integrated into larger systems and it is often difficult to replace these products with similar products produced by competitors due to massive costs and expertise knowledge involved. Such a situation limits buyer bargaining power with positive implications for Nvidia. 2.…]]> https://research-methodology.net/a-brief-overview-of-nvidia-business-strategy/ Sat, 17 Jun 2023 06:43:22 +0000 https://research-methodology.net/?p=74359 NVIDIA business strategy is based on a platform strategy, bringing together hardware and systems, software, algorithms and libraries, and services to create unique value for the markets it serves. The company specializes in markets in which its computing platforms can provide great acceleration for applications. These platforms include processors, interconnects, software, algorithms, systems, and services to deliver unique value. Nvidia business strategy consists of the following three main elements: 1. Benefiting from the first mover advantage. The multinational technology company has benefited from the first mover advantage numerous times to solidify its position in the market. For example, it popularized the term GPU (graphics processing unit), developed Computer Unified Device Architecture (CUDA) and invented deep learning hardware accelerators, such as the Tesla V100 and T4 GPUs. Benefiting from the fist mover advantage is the core of Nvidia business strategy. 2. Prioritizing performance of products over their costs. Nvidia follows product differentiation business strategy and accordingly focuses on superior performance of its products and services over their costs. In other words, the company’s GPUs, data centre and gaming solutions, Drive and Jetson platforms and professional graphics solutions have the most advanced functions and capabilities, but these come at an additional cost for customers. 3. Vertical integration. The company designs and manufactures its own GPUs and other hardware components through fabless manufacturing, and it develops its own software solutions to optimize performance and enable new applications. Nvidia Corporation Report contains the above analysis of Nvidia business strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Nvidia. Moreover, the report contains analyses of Nvidia leadership, organizational structure and organizational culture. The report also comprises discussions of Nvidia marketing strategy, ecosystem…]]> https://research-methodology.net/wework-ecosystem-overview/ Tue, 21 Feb 2023 04:08:27 +0000 https://research-methodology.net/?p=72651 Co-founder and former CEO Adam Neumann had a compelling vision for WeWork ecosystem. It has been noted that “Neumann has even expressed a desire to one day have entire WeWork communities, where everything from your apartment to the school your children attend is brought to you by WeWork”[1] The main components of the ecosystem as envisioned by Neumann include the following: WeGrow private school. The curriculum featuring ‘conscious entrepreneurship’, the school was actually the brand child of Adam Neumann’s wife Rebecah.  WeGrow school closed only a year later after enrolling around 100 children in 2018 for the tuition cost of up to USD 42k.[2] WeMrkt physical store.  Opened in 2010, WeMrkt physical store offered products such as Icelandic yogurt and chickpea snacks sourced from WeWork member companies. Powered by We.  A range of services that transform data to design. These services include helping clients find the right physical space, construction, custom office decor, software to manage building operations, back-end data on the efficiency of the office space, and even WeWork employees physically on-site to help with community programs.[3] HQ by WeWork.  Private and personalized headquarters for medium sized businesses. WeWork Labs. An initiative to assist early-stage start-ups with growth through education, mentorship, and an agile workspace. The program was shut down in 2022. Rise by We. A premium fitness concept presented as an ultimate wellness club. WeLive. Furnished, community-oriented shared living apartment suite rentals, offering amenities in select US metropolitan areas. Almost all of the initiatives listed above that were planned as important components as WeWork ecosystem have failed. However, it is important to note that in most cases the failure may not be an indication of flaw of respective ideas. Rather, the failure of these initiatives can be attributed to the following main two reasons: 1. Poor leadership. It is now…]]> https://research-methodology.net/wework-marketing-strategy/ Tue, 21 Feb 2023 03:44:01 +0000 https://research-methodology.net/?p=72648 WeWork marketing strategy is based on the following principles: 1. Effective use of social media marketing. The global flexible workspace provider efficiently uses social media marketing through viral marketing, localized Facebook ads appealing to the needs and wants of the local customer segment. Furthermore, there are many YouTube videos with positive customer testimonials for using WeWork co-working spaces with positive implications on the brand image. 2. Celebrity endorsement. Although the leadership style of the co-founder and former CEO Adam Neumann had proved to be devastating for the company, he was able to engage in celebrity endorsement in cost-effective manner. Celebrities such as Drake, Ashton Kutcher and Hugh Jackman were spotted in WeWork headquarters with positive implications to the brand image. The co-working giant continued with celebrity endorsement even after the departure of Neumann. 3. Focus on the product and place. Within the framework of 7Ps of marketing WeWork focuses on product and place elements of the marketing mix to a greater extend compared to other elements. The global flexible workspace provider offers workspace as a service – creatively designed, furnished, flexible and without long-term commitments. This is the unique selling proposition for WeWork. The co-working giant has a network of 756 locations worldwide, including 277 locations in the US as of December 2021. 4. Effective market segmentation and positioning. The co-working giant uses functional and multi-segment positioning techniques and targets customers mainly in urban areas in 38 countries worldwide. In terms of occupational segmentation criteria WeWork targets self-employed individuals, professionals, senior managers, executives and business owners. 5. Integrated use of marketing communication mix. The co-working and office space operator uses several marketing communication channels such as print and media advertising, sales promotions, events and experiences and public relations in integrated way to communicate marketing message to the target customer segment.…]]> https://research-methodology.net/wework-business-strategy/ Sat, 18 Feb 2023 06:20:29 +0000 https://research-methodology.net/?p=72566 WeWork business strategy is based on the following two pillars: 1. Digitalizing real estate business. Co-founder and former CEO Adam Neumann attempted to position WeWork as a tech company and this fact is one of the main reasons the company has been able to attract billions of dollars from investors. Tech startups offer potential to generate massive return on investment due to innovative nature of their customer value proposition and scalability of the business with little additional cost. The workspace provider, on the other hand, does not have the same level of scalability, because in order to create each new workspace the company has to lease new office space from property owners. Realisation of this fact by stakeholders along with fundamental leadership mistakes by Adam Neumann caused the planned IPO to fail in 2019.     The current CEO Sandeep Mathrani accepts that WeWork is a real estate company, but it also has advanced tech capabilities. The co-working giant has developed WeWork Workplace a software that allows employers manage their workers by booking conference rooms, coordinating desk usage and tracking which work spaces are used most often. Judging by the direction the global flexible workspace provider is moving we can say that WeWork pursues a business strategy of digitalizing the real estate business. 2. Offering space as a service. For centuries workspace was a product, where companies needed to purchase or lease an office. The concept space as a service developed about two decades ago changed the status quo. Space as a service offers users flexibility in terms of sizes of workspace and duration of service. Space as a service refers to living spaces as well, an area dominated by AirBnb. WeWork is a pioneer in space as a service for workspace and focusing on this concept as the core…]]> https://research-methodology.net/starbucks-ecosystem/ Sat, 08 Oct 2022 01:29:59 +0000 https://research-methodology.net/?p=69255 A company is not just a member of a single industry but it is a part of an ecosystem that crosses a wide range of industries. Despite the coffee chain being in the business for more than five decades, Starbucks ecosystem is still in the early stages of its development. When a company has an advanced ecosystem its products and services are highly compatible with each other and customers will miss out on a wide range of benefits and functionalities if they want to break out of the ecosystem. Think Apple or Microsoft.   Starbucks has not been able to develop an effective business ecosystem until now partially due to the nature of products and services the company offers. In other words, the global coffeehouse chain offers limited range of products and services it has not been successful in creating compatibility and dependence between products and services.  Recognising the importance of having an ecosystem, Starbucks came up with the idea for digital ecosystem in 2020 as part of measures to deal with COVID-19 crisis. Specifically, Seattle-based international coffee chain is attempting to create digital third place, shifting its third place – a place away from home and work value offering to a digital environment.[1] Development of an effective ecosystem comprises the following four stages – pioneering, expansion, authority, renewal or death. [2] These stages relate to Starbucks ecosystem in the following manner: 1. Pioneering stage. The initial stage is associated with the formation of ecosystem. Starbucks ecosystem at this early stage involves initiating global digital community – a community defined by collaboration, experiences, and shared ownership – all centred around Starbucks coffee. 2. Expansion stage. At this stage ecosystem extends to achieve maximum market coverage and critical mass. The world’s largest coffeehouse chain can extend its relevance to integrate art,…]]>