Market competition affects Jaguar severely; this is because they have many rival companies also making cars in the same league, for example luxury cars. Other companies that would be a threat to Jaguar would be Bentley, Porsche, BMW, Mercedes, Audi, Volkswagen and many more. In order for Jaguar to gain a competitive advantage they will have to ensure that they are better then the competition in every way possible. Market competition stops Jaguar in achieving some of their objectives, this will be discussed in this section of the document.
The first thing that Jaguar does it to ensure that it has good quality cars, by doing this it means that they have an advantage because the customers will be more satisfied with the company and this would lead to a better reputation. If Jaguar do this properly then it would help them achieve their aims of delivering exciting new products, the increase in the UK luxury car market because of the fact that Jaguar sales are increasing because of the better reputation and profitability because more people would be buying the cars.
However by having market competition it does put strain on some of the aims that Jaguar have. The first aim that the market competition puts stress on is keeping the overall costs to the 2004 level, this is because if Jaguar want to keep the quality as high as they can it would mean that they would have to spend a lot of money for the better quality goods this would mean having to spend more. Jaguar could overcome this by finding the best supplier that offers good quality goods for cheap.
Another aim that market competition puts strain on is their share in the UK luxury car market, this is because the other companies will also be trying to improve their cars and if they succeed in this it would mean that Jaguar would be left behind and the customers would be going to the other car companies. Another thing that Jaguar could do to ensure that they are better then all of their competitors is to offer cheaper cars. By doing this it means that customers would go to them because they do not have to pay really high prices for the cars.
By doing this it would increase their reputation and would help them meet their aim of increasing their share in the UK luxury car market. However by offering cheaper cars it would also have a negative affect on their aims, for example if they sell their cars for really cheap they will not be making a large profit like they would have been making, this means that it would be harder for them to achieve their aim of profitability.
Also Jaguar may decide to buy cheaper quality goods so that their cars are cheaper, this would have an effect on the quality of the car and this could lead to customer dissatisfaction meaning that their share in the UK luxury car market will decrease because of the bad reputation. 75% of jaguars customers go abroad and 50% of this goes to America.
The exchange rate at this time is currently very weak, this means that America would not be buying the cars as it would be more expensive for them to buy, however if some of their competition have more sales in a different country that are not effected by the exchange rate as much as America it would mean that this business will be benefiting more as they will not be losing customers like Jaguar is. Marriott: The Marriott are also affected by market competition.
The difference between jaguar’s competition and the Marriott’s competition is that Marriott is located on bath road and along this road there are lots of other hotels which all provide the same service, examples of Marriott’s competition are Sheraton Skyline, Radisson Edwardian and Park Inn. This makes it a lot harder for them as it means that they have competition which is really close so one lapse in the business could mean the loss of many customers, for example if the Marriott put there prices too high and the Radisson have a cheaper price the customers are more likely to go to that hotel because it is a lot cheaper.
In this section I will talk about how the market competition affects Marriott’s aims and objectives. The first section that I will be talking about is the price that the Marriott hotel puts on its rooms. When a customer looks at a hotel the price immediately stands out to them, this means that the Marriott have to get their price right as it could determine whether they win over their customers or not.
When doing this the Marriott need to ensure that they do not put there prices too low because it could mean that they end up not making a large profit, if this happens it would affect their objective of making a turnover of 20 million pounds. The way in which market competition affects the Marriott is because if there competition put their prices lower then it would mean that the customers would go to the cheaper hotel, this would mean that the Marriott would be losing out on customers and this would mean that they will lose out on their chance of achieving their objective of a turnover of 20 million pounds.
If the Marriott want to overcome this they will have to keep a close eye on what the other hotels are offering and what prices they are offering them at, by doing this the Marriott can adjust their pricing so that the customers still consider going to the Marriott. However this may mean that the Marriott would be making less profit because of the low prices that they are selling the room at, the way in which the Marriott can overcome this problem is by finding a cheaper supplier so that they keep their costs down which will mean that they will make more profit.
The second thing is the quality of the service that the Marriott provide their customers. This is vital in any business as they would want to provide the customer with the best possible service that they can so that the customer is as happy as they can be. For the Marriott to get the best possible customer service they will have to provide the customers with: good quality rooms, good customer service provided by the employees, range of products and facilities available at the hotel, and the help that the customers are given if they have any enquiries.
Market competition puts stress on the Marriott in various ways. The first way in which they put stress on the Marriott is if they have a wider range of facilities available at the hotel, if this happens it would mean that the customer would want to go to the opposing hotel as they provide them with more services, this would mean that the Marriott would be losing out on customers and this will affect the rate in which they achieve their objective of making a sales turnover of 20 million pounds.
The way in which the Marriott can ensure that they bring back the customers is to match the new facilities that the other hotels have but to also add more that they do not yet have, by doing this it would draw a lot more customers in and would help them achieve customer satisfaction as the customers will be happy that there are a lot of facilities, it will also help them meet their objective of making a sales turnover of 20 million pounds.
Although adding new facilities would cost them a lot of money to put in place it would bring them money in the long run because they will have more customers coming to the hotel. Impact on variation: If the market competition were to change it would affect both businesses a lot, they will then have to take out activities so that they are not affected by the variations. If the market competition was to change their prices then it would affect the business as they would also have to change their prices in order to bring the customers back to them.
For example if jaguars competition changed their prices it would mean that the customers would be going to their rival companies as they will be getting a better deal, in order for jaguar to overcome this they also need to lower their prices so that they are not affected by the price changes by their competitors. Whilst doing this they need to take into account that they do not put their cars too cheap as it could mean that they will be making a loss or hardly any profit at all.
This affects the Marriott in the same way, for example if the Marriott’s competitors lower their prices then it would mean that they would have to do the same in order for them to draw the customers in that they have lost, again they need to take into consideration how much they are lowering it by so that they do not make a loss whilst doing so. Another variation that might take place is the change in interest.
It affects jaguar as because the car market constantly changes because the change in design and the change in the way the cars work for example as time goes by cars become more sleek and also develop new ways of working to bring the customer driving it benefits, jaguar will have to take this into account and do their own research in order for them to keep up with the latest trends in car design. This also affects the Marriott because if their competitors make a change to their hotel which starts to draw more customers in then it would mean that the Marriott will be losing customers.
In order for the Marriott to overcome this they will also have to match and come up with other ways in which to draw the customers in. Another impact of variation is if another business is created. If another business is created it would affect jaguar as it means that they will have another company to compete against that will be bringing something new to the market. The way in which it affects the Marriott is because it would mean that they will again have another hotel that they will be taking customers away from them.
If another business were to start up it would affect jaguar more as in the car industry there is lots of things that new car companies can bring to the market meaning that jaguar would have to again match this, however it does not affect the Marriott as much as in the hotel industry there is not much change that can take place. Conclusion: I think that jaguar are more venerable to market competition as a whole as the car market is constantly changing because of the new designs and the new technology that is being put into them, this means that they will have to improve their cars almost constantly as new cars are released all the time.
Because of this it would mean that their costs will go up because of the money it would cost for them to do the research and also produce the new car. This affects how quick jaguar can achieve their aims and objectives. However at the Marriott hotel they will not be as affected as they just have to make minor changes such as changing the prices of their services. This means that their costs won’t change by a lot because of the minor changes that they are making.