Introduction
Operating and managing a young business franchise often requires an understanding of a wide pool of business knowledge such as business management, opportunity identification, and business expansion (Ommani, 2011). Young businesses will have the opportunity to occupy new market spaces and new business locations only if they consider evaluating their potential business areas. Most of the American young businesses fail to consider undertaking feasibility assessments of their anticipated business locations before they make their ultimate decisions to invest (Ommani, 2011).
When young enterprises ignore evaluating their anticipated investment areas, they often find themselves encountering financial losses due to their poor investment choices. This is because their financial stability, their market attractiveness, their marketing strategies, and their management capabilities often determine their survival in the identified new business locations (Goi, 2009). This essay analyses various business management and marketing elements of an American technical consultation company, the Vextec Corporation, to determine its feasibility in the Dubai engineering market.
Part 1: The Marketing Mix of Vextec Corporation
Perhaps one of the youngest modern companies that seem to come up with unique marketing approaches is the Vextec Corporation, which has recently attracted a lot of commercial attention (Tyson & Mathews, 2009). In marketing of its exceptional consultation services, Vextec has been very keen about mix marketing. According to Goi (2009), marketing mix is a tactical business marketing approach that utilizes the 4Ps paradigm of marketing.
The 4Ps include a business place (business location), price (product pricing strategies), product (product designing methods), and promotion (advertising plans). In the Vextec Corporation, using an effective marketing mix is a considerable factor in the daily operations. One of the foremost determinants of market penetration and market dominance is the idea of selecting a strategic business place or location. Goi (2009) explains that locating businesses in strategic locations, allows firms to enjoy the adequate customer traffics and the available business opportunities that the business environments present.
Vextec Corporation is a company that has recognized the essence of strategic business positioning. Vextec chose their strategic location in a technology city known as Bentwood, where airline technology, computer technology and other business technologies have been on great demand during the 21st century (Vextec Corporation, 2011). In Vextec, the U.S government and private clients enjoy the compelling services within the strategically positioned service centers. In the 4Ps marketing model, product pricing is another strategic marketing mix technique that firms can employ in their marketing plans.
In Vextec, the company has focused on diversifying the services, while charging very friendly prices for each of the services offered (Vextec Corporation, 2015). The powerful technical support that comes from their propriety software at affordable local and commercial prices has made Vextec to be among the most promising business consultancy companies (Vextec Corporation, 2015). Vextec uses a service-based pricing strategy where each consultation service varies in price depending on the intensity of the skills and resources used.
In the marketing mix, business product is another business element, where the idea of innovation comes to apply. Vextec ventured into the business of offering a unique consultation services that involves providing companies with the opportunity to know the reliability and life cycle of their products (Vextec Corporation, 2011). The exceptional Vextec software, “allows clients to optimize their product design and manufacturing processes too achieve the desired product durability and life, while at the same time reducing product development time and cost” (Vextec Corporation, 2015, para. 4).
This unique innovation in the consultation service industry has rekindled the hopes of many failing companies by providing capital investment solutions and by reducing the financial losses incurred from useless productions. In Vextec, a large pool of virtual networks and social media platforms are providing modern marketing solutions needed for the promotion of the Vextec consultation services (Tryon & Mathew, 2009). Vextec’s online marketing that comes via modern media has made it a success.
Review of the Company’s History, Management & Royal Structure, and Sales
The company began in the year 2000, but become operational in the year 2009, when demand for technical solutions in the engineering firms augmented. The engineers targeted the automobile industry, the electronic industry, the aerospace industry, the energy industry and the medical device manufacturing industries, where constant technical failures have historically occurred (Vextec Corporation, 2011). These technical machine failures have caused loss of lives, loss of money, and loss of companies’ reputations in the highly competitive business environments.
The management team consists of a blend of different experts from different ethnicities. Sir Robert Tryon stands out as an exceptional Chief Executive Officer (C.E.O), who graduated from the Vanderbilt University. Before joining the Vextec management team, Sir Robert Tryon earned management accolades and gained experience from giant automotive and aerospace industries (Vextec Corporation, 2015). He knew about the technical downfalls of the machines in the General Motors Company, in the Persyst Development Group, and in the Ford Aerospace Company.
Animesh Dey is an assistant C.E.O and a co-founder. He is an exceptional leader with experience in the computer, aerospace and the automotive engineering areas. The Director of Operations (D.O.O), Ashley Collier Clark, is a skillful young graduate from the Clemson University and a former Fletcher and Rowley corporate advisor. Below Ashley and Tryon is Sanjeev Kulkarni, who is a graduate technician from the University of California and the Berkeley Water A. Haas School of Business.
He acquired exceptional computer engineering and scientific expertise from the Defiance Technologies and from the Boston Scientific Corporation (Vextec Corporation, 2015). The Vextec Corporation has been doing exceptionally well in its sales and overall market performance. In its achievement testimonies, Vextec managed to secure several contracts with the government and other private business enterprises that made the company to have a net value of $8.95 Billion. On monthly basis, the company is capable of generating sales worth over $300, 000 in its services.
A SWOT analysis of Vextec
To assess whether Vextec is presently capable of performing well in the Emirati Engineering Industry, it is important to evaluate its Strengths, Weaknesses, Opportunities, and Threats. According to Ommani (2011), these four components of the SWOT model would probably determine its ability to perform in the highly competitive Emirati markets.
In terms of Strengths, Vextec Corporation has a powerful management team with abundant experience, has a good previous reputation of good performance, and has a powerful financial base that is gradually increasing (Vextec Corporation, 2015). Concerning the Weaknesses, the Vextec Company has little influence in the East markets and little exposure to these markets. Additionally, the business platforms of the Emirati engineers are still unknown. In terms of Opportunities, the Vextec Corporation has a powerful marketing team that can make it enjoy the opportunities of the free trade market in the Emirati Capital (Vextec Corporation, 2011). When it comes to Threats, several innovative software engineers in Emirati are mushrooming, thus, external competition may be inescapable in the business.
Recommendations to Vextec Corporation
- The Vextec Corporation actually needs to explore the unique opportunities presented by the growing aerospace industry, the powerful energy department, and the growing telecommunication sector in the Dubai market.
- This is because the Vextec Company has the human capital and financial capital capabilities to develop a business platform that will definitely make some considerable impact in the Emirati Engineering sector.
- The team of experts from various engineering fields is capable of transforming the engineering consultation department with unique quality assessment measures that several Emirati technicians cannot provide.
- The viable challenges are weak and may not affect the operations of Vextec since the challenges expected from the underdeveloped technicians are minor, and may not provide any substantial market influence.
Conclusion
In business, it normally challenges the young franchises to identify suitable investment destinations given their novice experience in the business environments. Vextec is one of the growing franchises whose latest innovation in the aerospace, energy, automobile, and medical devise engineering is promising exceptional solutions in the evaluation of the reliability of the engineering components.
Although the firm has a stable innovation that has attracted the attentions of different engineering firms, maneuvering in the Emirati engineering market is another challenging task because the environment is new to this form of innovation and a competition from the young technology companies from Emirati is still inescapable.
However, Vextec may eventually maneuver because the presenting competition and the challenges identifies through the SWOT analysis may not have any significant impact on the development of the Vextec Corporation. The strengths of Vextec in the management, finance, and company reputation are farfetched and capable of making the firm to triumph.
References
Goi, C. (2009). A Review of Marketing Mix: 4Ps or More?. International Journal of Marketing Studies, 1(1), 1-15.
Ommani, A. (2011). Strengths, weaknesses, opportunities, and threats (SWOT) analysis for farming system businesses management: Case of wheat farmers of Shadervan District, Shoushtar Township, Iran. African Journal of Business Management, 5(22), 9448-9454.
Tryon, R., & Matthews, R. (2011). Integrated Processing and Probabilistic Lifing Models for Super-alloy Turbine Disks.
Vextec Corporation (2011). Small-Scale Engine Testing Delivers Full-Scale Results – at a Fraction of the Cost.
Vextec Corporation (2015). About Vextec Corporation and the Propriety Software.
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