Competitive Marketing Strategy Essay Example | Topics and Well Written Essays - 1500 words

Competitive Marketing Strategy - Essay Example Mitchell and Butler focus mainly on increasing its food line and succeeded at increasing the market share. However the profit resulted from increasing market share and sales amounts are loss in the operation of the company. Diversification strategy is producing good results, but there are several segments where the group is over optimistic and produces over capacity. I believe that the diversification strategy, which is intended to receive gain from many segments, could present a future problem. Corporate strategy of expanding brand lines is proven to be working properly up to today. However, enhanced management capabilities to handle problems of strategic alliances should be developed in order to maintain cooperation and harmony among existing brands. Therefore, the key strengths for Mitchell and Butler in restaurant industry in the U.K. are its diversification strategy and segmental focus. In addition the company is also able to increase market share in certain segments. The company has realized the importance of addressing various customers' demands that I believe will help the company to sustain in today's fierce competition in restaurant business in the U.K. The company says that it will continue to evolve and develop its pubs and restaurants outlets in order to meet the needs and tastes of the British public while strengthening its position as the UK's leading managed pub operator. II.1.2 Weaknesses The major weakness of Mitchell and Butler is the inability of the company to turn the valuable brand equity of Mitchell and Butler into efficient financial performance. I think the cause of the inefficiency in the company is its unplanned diversification strategy. Compares to five major competitors as mentioned above, I can see that its competitors have ability to make profit from its operation. II.1.3 Opportunities There are several factors that influence an opportunities of a business. They include following items: 1. Customers' Confidence 2. Demographic trends 3. European Presence Concerning the issue on operator of pubs and restaurants' business, I see that Mitchell & Butler has great opportunities in providing the business since dance music based nightclubs have been around for approximately twenty years [and still become a profitable business to conduct]. II.1.4 Threats In addition to strengths, weaknesses, and opportunities; I found that Mitchell & Butler also faces potential threats as following: 1. Volatility of Demand Pub and restaurant still becomes attractive business. However, there are times when the would be a shifting from attending Mitchell & Butler-typed business to another hanging out places like cafes. 2. Strong Competition Despite being defined as specialized sector of the leisure services, the pub and restaurant industry is in direct competition with other hospitality services like hotels that also have their own pubs and restaurants. II.2 PEST II.2.1 Political PEST Analysis is a way of dividing the factors influencing businesses into four different groups. The first is Political factors. Political situations have a huge impact on business regulation. The stability of the political environment, international trade agreements, religion, cultural