STRATEGIC GROUP MAP
Strategic group map define as a industry that provide similar product to the same segment of the population ( Lyke 2014). With strategic group map it can help the organization to identify direct and indirect competitor beside that strategic group map also able to identify opportunities and strategic issue (strategic group map 2014).
The strategic issue to be concern in tea industry is the amount tea leaves able to produce by the country. Since amount of tea produce by each country is deferent the variables choose for the strategic group map is the “tea leave produce” will be shown on the Y axis.
For x axis the strategic group map it will be the geographical it exported to where this will show how much each country
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COMPETITOTOR ANYLISIS Competitor analysis is an external environment analysis and analysis of the strategies through which competitors in an industry create a competitive advantage (Grant et al.2014, 137). The objective of competitor analysis is to predict contender future strategies and how the contender response to an organization strategic plan (Grant et al.2014, 137). In this case we are focusing on India tea industries and main competitor for India tea industries is China, Sri Lanka and Kenya tea industries. For each competitor for India tea industries we will construct a profile, SWOT analysis and the strategies they currently use.
CHINA TEA INDUSTRIES China is the main player in the tea industries world this is because china produced 38 percent of world tea production and beside that compare to other country china also used the most land to plant tea which is 1431300 hectares of land (Xiao 2011). The location to cultivated tea is located in the southwest of china; the producing region can be divided into four parts: south of china, southwest of china, south of Yangtze and the north of Yangtze (The enjoyment 2013).
SWOT ANALYSIS
STRANGHT
- China tea industries Is the market leader on tea producer and control over 30 percent of tea market share of the world.
-There a lot of demand in China tea
-China tea industries has their own research and development institute
-China has stuffiest men power for industries growth
-China
“This was the routine of the old China trade. These were the commodities traditionally brought to China and traditionally carried away. And at the heart of the trade was tea. It came from no other place. India did not then produce any, nor Ceylon, Java, or Formosa; Japan was inaccessible; the world perforce drank China teas. Above all, the English drank them” (17).
- First in its market to brew its tea from tea leaves as opposed to artificial powders.
Saberi, H. (2010). Tea Comes to the West. In Tea:A Global History. [Adobe Digital Editions Version]. Retrieved from http://site.ebrary.com/
Tea: Tea began as a luxury drink, and then trickled down to become the beverage of the working man. The story of tea is the story of imperialism, industrialization, and world domination. According to Chinese tradition, the first cup of tea was brewed by the emperor Shen Nung. Before tea was a beverage, it was used for medicinal purposes and foodstuff. Tea became a daily drink in China around the third century A.D. As the Industrial Revolution of 18th and 19th centuries gained steam, tea provided some of the fuel. Factory workers stayed alert during long, monotonous shifts thanks to welcome tea breaks. The beverage also had unintended health benefits for rapidly growing urban areas. Chewing leaves and rubbing them on wounds were ways that tea was used for medicinal purposes.
Below is an example of a strategic group map plotted out based on the differentiating characteristics discussed in the previous section:
The origins of tea are rooted in China (Food Timeline). According to legend, the beneficial properties of tea were first discovered by the Emperor Shen Nung in the year 2737 B.C. He drank only boiled water for hygienic purposes, and one day while he drank a breeze rustled the branches of a tree and a few leaves fell into his cup. Creating the first cup of tea. It is challenging to know whether or not the emperor was real or just a part of the spiritual and cultural development of ancient China. China was not unified as an empire until the third century, so it is unlikely emperors existed back then. One thing that is known is that tea was popular in China thousands of years ago. The first written reference of tea is in the third century B.C. A famous surgeon recommended the beverage to patients to increase concentration and alertness. Tea was first written as “tu” in ancient texts. This caused a good deal of confusion because the same Chinese character was used for both tea and Chinese sow thistles. Between 206 B.C. and A.D. 220 a Han Dynasty emperor ruled that when referring to tea, the characters should be pronounced as “cha”. From here on, tracing tea’s history became easier because tea acquired its own individual character (Food Timeline).
Competitor analysis is a serious part of the organization therefore; Target must identify and address all issues pertaining to the business. Target must pinpoint the tangible competitors, and substitutes, evaluate opponents’ objectives, strategies, strengths and weaknesses, and opportunities and threats, and uncover what opponents Target should take on or stand clear of. Therefore, Target must analyze the company’s economic, sociocultural, technological, political, and future.
After the Opium War, the British began to look elsewhere for their supply of tea, and they turned to India. The British rule over India allowed for an extensive supply of tea to be produced and traded, giving India the title of the world’s largest producer of
Tea was declared the National Drink of England in 1784. The eighteenth century saw the transformation of tea as an everyday necessity for the poor and working class of the British society. To meet the domestic demand at home, the British East India Company imported great volumes of tea from China. The tea import increased from an estimated 64 tons in 1711 to 6800 tons in 1791. Even heavy import tax could not deter an increasingly expanding domestic market for the Chinese tea. As tea drinking had become obsession with the British society, consumption of tea replaced home-brewed beer, gin, milk and traditional infusions of indigenous plants. This great transformation in the consumption pattern of British society led to the commodification of
For the concept of standardization of The Coffee Bean & Tea Leaf, branding and image are consistent in host markets with that of home market. Despite the expectation that cultural differences may affect the demand for their products and services the coffee shop felt that maintaining standardization was more important than adaptation. Standardization is enforced by the company on branding to ensure that the brand image and value is being perceived consistently by the customers in all markets. Adaptation has also applied to the product offering For example in its home country, the coffee shop have a limited range of food and beverage items in their outlets. However, the coffee shop had included a wider range of hot food items in Asia as Asians need to have food with their coffees. The Coffee Bean & Tea Leaf also provide both the good quality of input and output has brings a big achievement. The foundation of the coffee chop is a commitment to quality. They produce and serve only the finest coffees and teas from around the world.
The Beverage Industry in India constitutes around 230 million USD among the 65 billion USD food processing industry. The major sectors in beverage industry in India are tea and coffee which are not only sold heavily in the domestic market but are also exported to a range of leading overseas markets. Half of tea and coffee products are available in unpacked or loose form. Among the hot beverages manufactured in India, tea is the most dominant beverages that is ruling both the domestic and international market today. The supply of tea and coffee is insurmountable in the Indian beverage industry.
Knowing Chinese tea culture thoroughly is a wise way for people to explore the Chinese society and culture. As a traditional drink, it has been planted and consumed for over five thousands years. The climate of China is perfect for growing tea, which leads to large quantities and good quality of tea. According to the line diagram, “Dynamics of manufacture of tea in China, thousand tons” there were about 1,200 thousands tons of tea manufactured in 2008, which made China the biggest tea manufacture country in the world. As we can see, tea has a special position in Chinese society. Due to its popularity, Chinese tea gradually raises international interest, and leads China to be a more influential country in the
In that mapping Jaguar is my selected brand and main competitors are Mercedes and Audi. So, after reviewing that map it can be say that for this three specific brand there has same target customer. However, among those three brands Jaguar holds a moderate position that means they have sporty cars but not like the competitor. So, to get a better position jaguar has to reposition this brand. For that Jaguar have to identify competitor advantages that it do not have right now. In that mapping the market leader is Audi .That means they have different variety of sports cars and those cars are more expensive. Mercedes holds second position in that market that means they have more sports cars rather than Jaguar but not as many as Audi. However, there cars are not much expensive.
Attention getter: In the East tea has always been looked at as playing a major role in having good health, happiness, and wisdom, and it has now begun to gain more attention from researchers here in the West.
They provide a wide range of exquisite tea and all day dining TWG Tea experience to their consumers. The luxury tea and European concept are catered to all professionals around the world. TWG Tea has retail outlets and tea boutiques spanning from Asia-Pacific to the Middle East, mainly in countries such as Singapore, Japan, Hong Kong, Malaysia, Thailand, United Arab Emirates, United Kingdom, and the United States of America. TWG Tea’s sheer passion for tea has earned them an international recognition through their exclusive blends, tea patisseries and other tea infused specialties. They offer more than 800 different single estate fine harvest teas in every season and continue to surprise us with new varieties and creations of tea in collaboration with some of the world’s most renowned estates.