2.4.1 Marketing Analysis Tools
PEST analysis
The word PEST consists of initial letters of political, economic, social, and technological. Through it decision makers can totally understand the macro-environment. The macro-environment is so changeable and complicated that corporations can not often research it clearly. However, no one doubts that the external marketing environment is significant in the process of planning marketing strategy, because its influence on corporations’ development and existence is actually great. The analysis should offer the current situation of politics, economy, society, and technology. In other words, PEST analysis can make macro-environment show its strengths and weaknesses. Traditionally, its PE parts namely political and economic part, are the most important parts in PEST analysis, because political situation and government policies or regulations, or other industry laws are closely linked with companies’ business; economic measures, employment rate, economic growth rate, and infrastructure are also the basic factors that are surely indispensable in companies marketing strategy. However, recent years many cases happened showed businessmen that as globalization is ever increasingly developing, more and more business conflicts are mostly the social or cultural conflicts, so in this paper much more attention will be paid to social part, though political and economic factors can not ignored.
SWOT analysis
In 1957 Selznick first used his idea of matching external and internal factors so as to attain the overall and true opinion of the situation. Since then, his idea has been widely spread. Also due to Christiansen and Andrews who made the idea a scientific method, SWOT analysis was accepted by the public.
SWOT consists of the initial letters of Strengths, Weaknesses, Opportunities and Threats. This analysis contains all positive and negative factors that may influence one company’s existence. In its broad systematic view, the most important issues are how to use strengths, and how to stop the function of weaknesses, and how to catch every little opportunity, and how to try to avoid the potential threat. SWOT analysis is an acknowledged system, in which each point is absolutely equal to another one. Therefore, a company can not put too much attention to a certain issue and ignore other issues. For instance, so as to fight against the potential threats or weaknesses, a lot of attention was paid, and the outcome is the increase of cost. In other words, if money is vested in supporting strengths and using opportunities, a balanced system would occur. In this paper, SWOT analysis will be used to help companies get external and internal details about machinery market.
Porter´s Analysis of Five Forces
This type of analysis gives a better overview of a certain industry. The five factors are the environmental forces that impact a company’s ability to compete and develop and even exist in a given market. As for their strength and importance, the main competitive factors are described through this analysis. There are four main forces that impact the competition of leasing industry. They are new entrants, suppliers, buyers, substitute products. These four forces drive industry competition. That is Porter’s competitive marketing strategy( techniques for analysing industries and competitors with a new
introduction, p. 4).
Balanced Scorecard
Kaplan and Norton fist came up with this tool in 1992. Balanced Scorecard is very comprehensive in terms of key performance and long-term orientation. Its four fields namely financial, customers, business processes and learning and growth, indicate a company’s potential for success in the changeable marketing competition. If leaders of a company intend to get a clear understanding about what strategy and vision of the company, there are four fields (objectives, targets, measures and initiatives) that must be researched. Traditionally, much more attention is paid to the financial and customer fields, though the internal process and growth are also significant. The four fields often impact the company’s marketing strategy. If high technology does not exist, there is no modern business activity. For instance, the development of telecommunication and computer give a chance for international business. The use of Balance Scorecard is also widely made this way easier. We would like to point out the importance of CRM software which enables BS analysis, mainly in the customer and financial fields, but contributes also to learning how internal business processes work.
BCG (Boston Consulting Group) Matrix
BCG Matrix as a tool is often used compared with other tools, for its lots of weaknesses outweigh its strengths. First, it is not always applied to a small unit. Second, its system inside is too simple when company intends to confront the complicated marketing issues.
GE Matrix
The consulting company McKinsey & Co. first used this tool to evaluate business. The evaluated fields are industry attractiveness and industry strength. The GE Matrix is very different from the BCG Matrix, because it contains nine fields instead of four and the contents are also different. It uses industry attractiveness and industry strength to research market. Market attractiveness can be evaluated on its growth rate of market, size of market, nature of competition and its diversity, demand variability, profit margin, global opportunities, impact of technology, law and environment. There are many feathers in the factors, such as market share, management profile, quality and distribution, promotion and cost reduction. Obviously, all of these have a great influence on the company marketing strategy. However, GE Matrix has some problematic issues, for it can not solve all possibly questions. First, it ignores a fact that this tool is too subjective and it could not evaluate any factors. Second, this kind of analysis dose not present people how to operate it.
Shell Directional Policy Matrix
The last one is Shell Directional Policy Matrix. It suggests using a company´s competitive ability and prospects to evaluate sector profitability.
According to a study carried out in the UK, lots of companies try to use this decision-making method to make marketing strategy. This kind of analysis contains the following fields: growth, cash generator, phrased withdrawal and divestiture. In a word, Shell Directional Policy Matrix is another version of BCG Matrix.
2.4.1 Market of Machinery Lease
Since World War Two, contemporary leasing has obtained more and more popularity in global business. From the view of the whole world, machinery lease market, developed countries has almost controlled global machinery lease. The following will present an analysis of machinery lease market.
2.4.2 Division of Market of Machinery Lease
According to the different locations, machinery lease market can be divided into the following parts.
Oceania market
Oceania market is the most important constitution of machinery lease market. It is famous for its rich mineral reserves. Australia’s mineral resources are an important component of the nation’s wealth.
At December 2008, Australia had the world’s largest economic resources of brown coal, mineral sands. Australia's mineral resources are adequate to ensure that the mining sector continues to hold the potential to remain the most important export earning sector of the Australian economy for the foreseeable future. World economic increase in recent years, particularly in China and India, has increased demand for mineral products worldwide. In the future, mining industry will still increase at a high speed. For some years Australia has been the world’s largest exporter of black coal, iron.
Therefore, equipments which are able to offer service of mining share a large sector in machinery lease. Excavators and forklifts and bulldozers are main equipments in machinery lease. Oceania market shares more than 30 percent of global machinery lease market. For instance, in 2011 China invested 20 million dollars in this field, accounting for 45 percent of its total global investment.
America market
America market is another major market in global machinery lease market.
In North America, in order to tell the difference between the agents and leasing companies is very difficult. These two types of companies to provide the amount of daily rental of their equipment, lease equipment, transfer the lease of equipment. The third quarter of 2005, AED questionnaire was sent to engaged in earthmoving, commercial buildings, residential buildings. The survey found that in 2005 99% of the equipment agents engaged in the leasing business, in 2001 lease survey, 20% of agents said they have an independent leasing business, and in 2006 only 6% of the agents.
Sublease has been slowly accepted and practiced. 74% of the agents rented equipment to users by the leasing company. Typical agents on medium-sized equipment rental operations accounted for 13 percent of annual income, and the average ratio of all agents is 16%.
Earth-moving equipment is the most common equipment in the leased equipment, and the rental proportion of equipment are following: Skid steer loaders (68%), small excavators (67%), followed by backhoe loaders (65%), the excavator more than 100hp (60%), and roller / compactor (60%).
Africa market
In world economy, Africa is the poorest region, because of its long history of invasion by western countries. Therefore, in African countries most of them are not wealthy ones, of course except South Africa. Machinery lease in Africa market is booming since 1980’s, due to the strong desire to develop its own railroad, highway, airports and electric system, large number of projects has been built. The large-scale constructions are numerous opportunities for leasing companies. Equipments that are used to develop infrastructure are most needed in Africa lease market. |
