Company Analysis Essay on Foleo Group Limited: Growth Strategy

Published: 2021-07-01
759 words
3 pages
7 min to read
Harvey Mudd College
Type of paper: 
Research proposal
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Foleo Group Limiteds Foleo Skills unit has ensured that the company enjoys a lucrative market within an Australian economy that is rapidly growing. One such achievement produced by the unit has resulted to a soaring number of entrepreneurs. However, the Foleo Skills unit intends to increase the number of necessary services offered by the business to the public. The unit can be considered as a marketing research unit where project-based consultations are performed. Foleo Skills Unit has therefore planned to implement a strategy towards ensuring that the company achieves market penetration. The plan is also aimed at ensuring that the prices of the services and goods consider the customers budgets. The strategy is a promotional one that is about advertisement integration, personal selling, relation with the public, internet and direct marketing, and also provision of marketing section for the plan. The market that is targeted ranges from those in the corporate towers and other businesses. Since Foleo Skills Unit is the pride of the companys analytical ability, high quality standards, value-added service, and the ability to adapt the company intends to offer its clients with the appropriate planning tools and information. Foleo Group Limited has been in the line of consultancy because it believes in efficiency understands the problems clients face and how to solve them through marketing research. Also, the company doesnt only intend to sell or market its service but to also customize information before market and sell it.

Porters 5- Forces Model

PFF analysis is a framework that is used to determine the level of competition within an industry. From an organization's industrial economics, five elements are derived determining the competitive intensity and attraction of a corporation. In this context, appeal refers to the profitability of the firm. According to Porter, these five factors are the microenvironment affecting the capability to serve customers and make a profit at the same time.

Competition with Foleo Group Limited (Strong Force)

Foleo Group Limited happens to face very strife force of competition in Australia since the market of delivering consultancy services is already saturated in the country. In this case, the corporation's rivalry regarding competition is based on external factors including:

High number of such consultancy companies in Australia

Great aggressiveness of the firms providing consultancy services in the country

Low cost of switching production

Consumers of Foleo Group Limiteds consultancy services also happen to experience low switching costs meaning that they have the ability to experience low switching costs.

Bargaining Power of Foleo Group Limiteds Customers (Strong force)

External factors that lead to such strong bargaining forces from the buyers include:

Low costs of switching

Large number of providers

High availability of substitutes.

Since the changes from one consultancy firm to another within the country are easy, clients can impose demands on the corporation. There are also other corporations that can substitute Foleo Group Limited in the offering of consultancy services leading to the urgency of the firm to formulate strategies that can increase the loyalty of the customers.

Bargaining Power of the consultants of Foleo Group Limited (Weak Force)

The weak bargaining force of the consultants of is based on:

Large number of suppliers

Reduced forward vertical integration

High overall supply

There is a large number of consultants attached to Foleo Group Limited which weakens the effect of sole consultants. The consultants, therefore, do not control the distribution network linked with Foleo Group Limited. This force is, therefore, a minuscule issue to the Foleo Group Limited in Australia.

Force of Substitutes (Strong)

This force of substitution is a major concern to the Foleo Group Limited in Australia. External factors that increase the threat of change include:

High substitute availability

Low switching costs

Increased performance-to-cost ratio

The market of Australia has very many alternative consultancy services to Foleo Group Limited fast food products. These alternative corporations and firms are competitive regarding the level of quality of goods they offer. These substitute businesses are therefore a major concern that Foleo Group Limited must address.

Threat of New Entrants (moderate Force)

New firms getting into the market have an average effect on a well established corporate like Foleo Group Limited. This consistent threat is based on the following external factors.

Low switching cost

Moderate cost of capital

High cost of developing brands

The average cost of capital is required by small starting firms to establish themselves. On the contrary, it is quite expensive to develop a strong brand that could match Foleo Group Limited brand in Australia. This element of five forces analysis proves that the entrance of new firms into the market is the moderate issue of consideration by the Foleo Group Limited.


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