The paper “ The Lion Nathan China Business Company - Application and Implications of Marketing Strategies In China and Australia” is a meaty variant of case study on marketing. Marketing can be defined as the process of conveying the message or communicating about the value of your product or service to customers as well as potential customers for the purpose of selling that product or service (Kotler, Philip & Keller 2012). According to Kotler, Philip & Keller L. K. (2012), this process helps in earning more customers for your business. From an organizational point of view, marketing includes all the processes involving communicating the value of the product or service to customers as well as managing the customer relationships in a way that will benefit the organization together with the shareholders. Marketing also involves the selection of target markets, analysis, and segmentation, understanding the customer behaviors and providing the best service to the customers.
Kotler, Philip & Keller (2012) further argue that marketing can be approached from the customer focus-relationship marketing, from the organization or institution focus- business or industrial marketing, from the society focus- social marketing or internet or e-marketing (Kotler, Philip & Keller 2012). Marketing strategy is the process that allows an organization to concentrate its resources on optimal opportunities with the goal of increasing sales and obtaining a competitive advantage.
This includes all the activities in the field of marketing. For example, they deal with the initial location of the company or business, selection as well as evaluation of those strategies that are market-oriented that are going to contribute to the goals of the company (Kotler, Philip & Keller 2012). The lion Nathan china is among the various firms in the beer industry in China who compete in marketing various brands of locally produced beer.
The beer market is doing well due to economic growth that has continued to thrive in the country. This is coupled with fairly weak competition from other beverage sub-sectors and high consumer spending. Porter’ s model of industrial competitionPorter’ s model explains the competitive environment in which a company operates. It consists of five forces, which are intra-industry competition, bargaining power for suppliers, bargaining power of customers, substitutes, and threats brought about new entrants (Porter, 1979).
According to Porter (1979), the major reason behind a firm developing its business strategies is in order to obtain a competitive advantage over its competitor. The business will do this through responding to the five primary forces: rivalry among existing firms within an industry, the threat of substitute products/services, the bargaining power of suppliers, the bargaining power of buyers and the threat of new entrants. The Lion Nathan China business company should assess these five competitive forces in its beer industry and then try to develop the market at those points where the forces are weak (Porter 1979).
Porter (1979) further argues that the company does this by for example by choosing powerful buyers and sells to them the product that is not vulnerable to substitutes. This enables it to be least vulnerable to competitive forces as it enjoys its competitive advantage. It can also achieve a competitive advantage by altering the competitive forces for example through establishing barriers to prevent new entrants from coming into the industry through cultivating capital-intensive resources that new firms cannot easily duplicate (Porter, 1980).