Rolls-Royce is an international company that leads in a transportation system including air, roads, and sea. This company operates in various market sectors namely civic aerospace, defence aerospace, marine, and energy. Rolls-Royce has been receiving high sales revenues for the last three years because of its implementation of Johnson et al. (2017) strategic management process (Osys, 2013). This company has announced an order book that could not go below PS62.2 billion and this offers a clear visibility of its future operations. Rolls-Royce is regarded as the only company which has made a reasonable profit and managed good environmental impacts during hard market conditions (Rolls-Royce, 2011). It achieves these through the use of investment and innovation strategy.
This company is facing several external environmental challenges such as globalization, technology, labour, and economy. The country is experiencing fiscal imbalances, Euro Zone and political issues which this company cannot be confident on. These factors are still affecting the market condition for this company (Rolls-Royce, 2010). Although there are weaknesses and uncertainty in the external environment, this company still is capable of experiencing steady growth and favorable economic impacts. This company is still making necessary efforts to ensure that the business is stable and is capable of achieving what it requires in future.
Roll-Royce is an international organization with more than 8000 associate companies that operate in its supply chain (Rolls-Royce, 2011). These associate companies are allocated in 70 different countries. These companies provide employment opportunities and also they pay taxes to respective countries thus it is capable of improving the economic condition of these countries. Roll-Royce understands that for it to be competitive, it must form a strategic alliance with other companies and people across the globe. This strategy ensures that it penetrates various markets and also understand the marketing technique of those countries (Osys, 2013). The benefits of this strategy make the company predict that it will double its production capacity in the next five years. For it to achieve this, it must ensure that it invests in new facilities which include starting a new plant in Crosspointe Virginia, USA, and Seletar, Singapore. This company has a belief that even though it is highly affected by inflation, new investment opportunities will make it become more efficient and have focused on cost performance and cash conversion (Rolls-Royce, 2011). It is announced that before the end of 2018, this company will open more than 25000 jobs and release more than $1.5 billion to the economy of Singapore. Roll -Royce has been part of the partnership with Singapore for many years and it has not altered its presence from that time. This therefore that it is using a market penetration strategy to ensure that it taps a larger market. The research conducted before this company invest in Singapore showed that it involves activities that improve the economic condition of Singapore. This shows that Roll-Royce has a positive impact on the most important areas of the economy such as skill enhancement and adoption of new technology. Despite all the challenges it experiences it is still determined to be part of Singapore airline.
Roll-Royce also uses joint venture strategy to grow further. It works with Singapore airline SAESL and IECO. This is part of the globalization which allows different companies to work together to achieve common objectives (Rolls-Royce, 2010). This company invests in various companies using joint venture initiatives. This includes the one it forms with firm Pratt & Whitney and because it has been competing with Roll-Royce for a long time, it reduces this kind of competition through joint venture because they become together to achieve a common goal (Secretary of the state, 2016). To ensure that they produce next-generation aircraft, it forms a partnership with other companies. This also helps it maintain good leadership in the whole industry and also collaborate with other companies located in different countries to expand the global market.
The UK government also supported businesses through the effective management of economic issues (Osys, 2013). This is produced in the Secretary of State report and it indicates that the Government of UK understands the maters of manufacturers because it is very important for its prosperity. It critically explains the strategy the Government uses to support these kinds of business organizations to meet their full potential (The Telegraph, 2009). According to the report of Telegraph, (2009) showed that the state is now awake enough to recognize the importance of manufacturing industry. This is because they buy shares of companies in this industry to ensure they have sufficient capital to support their operations (Department for Business Innovation & Skills, (2012). The government of UK received shares worth PS150m from the Government in which Rolls-Royce re-invest in other factories in the UK to create more jobs for UK citizens. As a result, the investment that this company has done covered the sales gap which was there when most people invest in the service industry. Rolls-Royce also invests in research and development heavily especially in technology (Rolls-Royce, 2011). It invests more than PS40m in research and development projects which includes SAMULET II with the aim of increasing productivity and also to meet the demand of the globe.
The success of this company also depends on the use of advanced technology strategy (Rolls-Royce, 2010). Because there is a constant change in technology, Rolls-Royce uses it as a source of competition through the provision of what the competitors cannot emulate. Through the operation in the global market, it is easy for it to open job opportunities for various people. Because it has a track record of innovation and creativity and annually finances in various research projects which provide its workers with sufficient knowledge and proficiencies to compete in the global market and also develop barriers for competitors to enter the industry (Osys, 2013). Through this, it competes with very few companies thus capable of maximizing high sales revenues and profits. The only problem that this company has experienced over many years is the development of new technology which is able to reduce the effect of aircraft its ads on the surrounding through noise minimization and reduction of air pollution. It is not only required to meet the environmental laws but it must also understand that it is its duty to apply energy efficient technology that reduces the cost of airlines (Rolls-Royce, 2010). It must use the clean source of energy and try to reduce greenhouse gases that it emits into the environment. It understands that it is responsible to reduce its carbon footprint as low as possible to ensure that the World is as safe as possible and become a clean place for everybody (Secretary of the state, 2016). This increase the confidence of the people in Rolls-Royce because it is responsible for the health of the people through the creation of technology that uses a clean source of energy.
It achieves this through the introduction of the Trent 900 Engines which consumes a clean source of energy and also produces less noise and has tiled combustor which ensures that there is less emission of sound and smoke. This makes it meet the environmental regulations that the Government of most countries requires. This increases the sales of its products as they are more preferred than other (Osys, 2013). This kind of engine is suitable for twin-deck Airbus mostly used in Qatar. It is, therefore, one of the examples that this company has introduced to meet the requirement of different people.
Rolls-Royce company also uses value-based marketing strategy to help it get value for its financial resources. It designed its Airbuses in such a way that attract customers such as the use of tent 900 Engine to reduce pollution (Rolls-Royce, 2010). From that its customers are able to get value for their money because they get efficient products that can help them generate high sales revenues. It gives customers an opportunity to select Airbus of their choice and this is to add value to customers so that they can come again. Rolls-Royce gives value to its customers first and this makes it succeed, retain existing customers and attract new ones.
It also uses market leadership strategy to ensure that it is considered the best manufacturing company in the World. This position is given to companies in the industry with the highest market share (Rolls-Royce, 2011). Because it also produces the highest profit margins, it is also considered the best that can produce the best products to the people. Rolls-Royce should follow other large manufacturing companies in other countries through the exploration of the benefits that are suitable for its customers thus making it lead in the whole industry (Secretary of the state, 2016).
The strategies of this company are based on five elements which include address four global markets. It concentrates in four core businesses such as civil aerospace, defense aerospace, marine, and energy, considered as the most profitable markets where this company can perform better. It still has several things which it can do to better the global market. Because most of its revenues come from Europe and American market, it is essential to enter into other markets such as Asia and Africa (Department for Business Innovation & Skills, (2012). These parts of the World are also capable of generating high sales revenues. Rolls-Royce is likely to benefit from the use of preferential policies and affordable labor force.
The company can also invest in technology, infrastructure, and capability. This will help it to be very innovative and creative to develop a friendlier business environment that allows for the sale of its products (Rolls-Royce, 2010). In the process, Rolls-Royce can also offer high-quality services to its customers. For the development of a good global market, it should invest more in infrastructure so that the company can offer better services which can attract more customers. At the same time, Rolls-Royce should also create a competitive portfolio of its products (Secretary of the state, 2016). This is to ensure that the company has a consolidated market and also open the opportunity for the exploration of new markets.
This company also add value to its customers through the provision of product-related services (Trent 900 report, 2015). It mostly uses aftermarket services which are able to improve performance and product reliability. It should also have very many workers to ensure it produces high-quality products that meet the needs of customers. To achieve this, it moves to countries that pay workers low wages to cut the operation cost. This strategy reduces the operating cost which increases profitability (Osys, 2013). As a result, it can use this strategy to offer its products for sale at a lower price which attract more customers.
Competitive advantage is a business condition that makes the business organization operate efficiently than the competitors (Rolls-Royce, 2011). For Rolls-Royce to compete effectively, it must focus on four different factors including civil, military, and marine and energy. It must also ensure that it invests more in investment and research and development so that it can produce new products and technology (Department for Business Innovation & Skills, (2012). Its competitive advantage is focused on core markets and core technology and this was evident in the last decades. It increases the number of engines that provide power for civil jets.
Rolls-Royce also uses comp...
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