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UNIT mkt3601 Marketing Strategy CODE TITLE | NAME OF STUDENT HETTIARACHCHI DILHAN (FAMILY NAME FIRST NAME) | STUDENT ID NO.GODRD21 10367342 | NAME OF LECTURER Mr Sanjika Perera | DUE DATE6/12/2014 | Topic of assignmentPROJECT ( TWOS FRAMEWORK) | Group or tutorial (if applicable) | CourseBachelor of Business | CAMPUSacbt | I certify that the attached assignment is my own work and that any material drawn from other sources has been acknowledged.This work has not previously been submitted for assessment in any other unit or course.Copyright in assignments remains my property. I grant permission to the University to make copies of assignments for assessment, review and/or record keeping purposes. I note that the University reserves the right to check my assignment for plagiarism. Should the reproduction of all or part of an assignment be required by the University for any purpose other than those mentioned above, appropriate authorisation will be sought from me on the relevant form. | OFFICE USE ONLY | If handing in an assignment in a paper or other physical form, sign here to indicate that you have read this form, filled it in completely and that you certify as above. Signature Date | | OR, if submitting this paper electronically as per instructions for the unit, place an ‘X’ in the box below to indicate that you have read this form and filled it in completely and that you certify as above. Please include this page in/with your submission. Any electronic responses to this submission will be sent to your ECU email address. Agreement Date 06.12.2014 | |

PROJECT
PESTLE+C ANALYSIS & TWOS FRAMEWORK

Unit – Marketing Strategy
Unit Code – MKT3601
Lecturer – Mr Sanjika Perera

DIlhan Hettiarachchi (GODRD21 / 10367342)

Contents 1) DIMO Lanka diesel & motor engineering PLC 3 2) PESTLE+C analysis 3 1. Political factors 3 2. Economical factors 4 3. Social factors 4 4. Technological factors 4 5. Legal factors 5 6. Environmental factors 5 7. Competitive forces 5 3) SWOT analysis 6 4) TWOS Framework 7 1) SO Strategy 8 2) WO Strategy 9 3) ST Strategies 9 4) WT strategies 9 5) Conclusion 9 6) Bibliography 10

1) DIMO Lanka diesel & motor engineering PLC
DIMO lanka is a sri lankan well known company what consisting a good reputation over 75 years of service mainly in automobile industry in sri lankans’ hearts. Currently it spreads its businesses over 12 different sectors such as vehicles, agricultural machinery, auto components and accessories, building management systems, constriction and mining machinery, lighting solutions, engine overhaul machinery and etc.
DIMO lanka is the Sri Lanka franchisor in more than 80 international brands such as Benz, jeep, Tata, Chrysler, KOMATZU, OSRAM, BOSCH, SIEMENS, Mahindra, MRF and etc. in order to making a TWOS matrix, below PESTLE+C analysis and SWOT analysis is carrying out base on these brands and above business sectors of DIMO lanka. (Dimo, 2014)
2) PESTLE+C analysis
In today’s world, companies used to conduct PESTLE+C analysis with the idea of determining strategies for their future goals as well as just to understand the market. Through this company can get an overview of the entire situation where they are. Therefore PESTLE+C analysis can refer as a fundamental tool in market planning as well as strategizing. (Blythe, 2010)
In this report, I would like to use a PESTLE+C analysis to conduct the environmental analysis as well as the environmental scan to the company named DIMO lanka. 1. Political factors
Under this fact, it is analyzed opportunities and pressures what are coming from political institutions and also the, to what extent government policies can impact the business. Mainly government policies, Trading policies, government terms and change, wars, tourism, elections and political trends and inter countries relationships can affect to DIMO lanka. As an example, the up coming presidential election can make an influence on their businesses. If the UNP wins instead of UPFA all development projects what are currently undertaken can be stopped and as a result of that the change of government. Trading policies, government policies can be also changed.
When we consider on TATA brand, it comes from an Indian company. India is our neighbor country and there is a close relationship between Sri Lanka and India. Therefore the bond and the mutual agreement between Sri Lankan government and Indian government, DIMO lanka is being able to import TATA vehicles under low tax rate from India and sell in a cheap price at the local market.
After the war era in Sri Lanka, now there are so many development projects are on going and as a result of that there is an increase of sales mainly in TATA tippers, constrictions and mining machineries as well as “dimo batta” vehicle. 2. Economical factors
This relates to country’s economic policies, country’s economic structure as well as the level of economy can impacts the business. Basically taxation, inflation, industry growth and international exchange rate can make an impact on DIMO lanka under economical factors.
In Sri Lanka, there is a huge tax rate for luxury vehicles such as Mercedes Benz, Jeep and Chrysler more than when comparing taxes for usual vehicles such as TATA. Upper class sri lankans use Benz, Chrysler for keep their status and low level and middle level people use TATA vehicles for run their little businesses and transport purpose.
After the civil war, Sri Lanka is not a poor country anymore, it is moving towards developing country category. Therefore Sri Lankan economy is growing rapidly and GDP and per capita is relatively high actually it increased by 0.2% even in for last 6 months. Inflation rate is also not high, as at 2014 October it was 1.5% in Sri Lanka. As a result of that there can see a significant growth in every industry. Considering all these, Sri Lankan economy is sustainable and DIMO can runs their businesses competitively. 3. Social factors
These relate with the cultural aspects, beliefs and attitudes of the people. Basically demographic in Sri Lanka, company image, brands images, lifestyle trends, level of the technology what used for products and publicity can obviously affect on demand for DIMO’s products under social factors.
Vehicles are a one of source what cause for environmental pollution due to emission of noises and CO2. Especially currently Colombo and Kandy areas have affected with this polluted air and lead diseases related on breath and human skin. Other thing is consumer looks for vehicles what can give minimum damages to their lives in a road accident. Therefore according to consumers’ attitudes, they are ready to buy vehicles what are environmental friendly and quiet safe.
And also there is a significant tendency for Mercedes Benz and Chrysler vehicles in western province more than other rural areas in Sri Lanka. But demand for vehicles such as “dimo batta”, Mahindra is relatively high in those rural areas more than in the capital city. Because “dimo batta” and Mahindra products use for agricultural and transport purposes and those things mostly happen in rural areas. Other hand western province is a developed area and so many rich people are living there. So they willing to buy luxury vehicles such as Benz, Chryslers as a lifestyle trend in order to keep their status.
DIMO offers their “dimo batta” vehicle for low income families as a CSR project named “Divi sawiyata arunallak” and through this, consumers are able to buy it in a lower price. Via these projects DIMO has increased their company image as well as the publicity. 4. Technological factors
These relate with technological aspects and innovations. When considering these factors emerging or maturity of technologies, competitor technology development and communications can impact on DIMO’s businesses in certain extent.
Considering luxury vehicles such as jeep, benz and Chrysler, technologies what those brands use obviously cause for their sales. Therefore DIMO’s sales on those particular brands can be varying base on the technologies and innovations what comes with products.
DIMO can use technology in communication purpose. Today Sri Lankans are more technological oriented and their IT knowledge is 20% while literacy percentage stated at 85%. Therefore using social media can be effective to promote their services and products and it would be considerably cheap. 5. Legal factors
These relate to laws, regulations and legislations what can affect the system which DIMO lanka operates. Basically DIMO lanka has to concern on legal factors such as current legislations, future legislations, employment laws, international legislations, health and safety regulations. 6. Environmental factors
These factors relate with environmental and ecological aspects what can make an impact on the demand of DIMO sales ratio. Especially environmental regulations, ecological regulations, Impact of adverse weather and also the reduction of carbon footprint can be shown as main factors what can affect to DIMO under environmental factors.
Environmental pollution is a one of major problem what is facing by the whole world. So vehicle manufacturers should give their concern on this issue. If TATA, Benz, Chrysler, JEEP and any other vehicle brand what franchised with DIMO giving their concern to develop their vehicles transforming the technology to making an alternative energy vehicle what can reduce emission obviously it will be a comparative advantage to DIMO to hit the market.
DIMO’s sales of agricultural products such as Mahindra tractors and CLAAS harvesters can depend on Sri Lankan weather. In cultivation seasons there can be a significant increase in sale and if there is an adverse weather there can be a decrease of sales because of fall back of cultivation things. 7. Competitive forces
Here I use Porter’s five forces model what used as a simple framework in evaluating about the competitive strength of a particular business organization 1. Supplier power
All above 80 brand companies can be shown as supplier of the DIMO lanka. Therefore those international companies have the power to make an impact on DIMO through their products or they can name another authorized dealer for their brands while stopping dealing with DIMO. 2. Buyer power
When look into DIMO’s product what they are promoting, Sri Lankan buyers have no huge power to make a change in their prices. Because those are fixed prices what are made by international companies. 3. Competitive rivalry
When consider about the competition, DIMO has no competition in importing down TATA vehicles from the India. They are the one and only authorized dealer there. So if a sri lankan wants to buys a TATA brand new vehicle, he has to step towards DIMO lanka.
But when look in to other European vehicle brands such as Mercedes Benz, JEEP, Chrysler and KOMATZU, there are outside vehicle sale owners for making completion, such as “Indra traders”, “wasana” and etc. those vehicle sales import zero mileage vehicles under recondition category in a lower taxations and they sell those vehicles to the local market. Then consumers are willing to buy Benz, JEEP, Chrysler vehicles from those kinds of vehicle sales instead of coming to DIMO lanka. Because sometimes consumers can buys a brand new condition vehicle from those vehicle sales to a cheap price instead of buying a brand new vehicle from DIMO lanka to a higher price. 4. Threat of substitutions
As mentioned above, threats of substitutions can be happened by other vehicle sales. 5. Threat of new entry There can be a happen an arrival of a new company and they may take the franchise of selling DIMO’s existing brands and take the business to their hand. But long time mutual understanding between DIMO and those companies won’t let make an affect on their bonds.
3) SWOT analysis
Strengths
* Strong and qualified management * Innovative culture * Financial leverage * Asset leverage * Efficient Supply chain * Cost advantage * Authorized dealer of unique products * Brand names * Technology * Customer loyalty

Weaknesses * Employees’ work inefficiencies * Cost structure * High debt burden

Opportunities * Financial leverage * Developing new services * Make use of the new technology * Emerging existing markets * Entering to new markets * Franchising with more international unique brands

Threats * Competition from vehicle sale owners * Volatile currency exchanging rates * Highly competitive matured markets * Government’s regulations and policies * Volatile costs * Volatile revenue * Substitute products and services

4) TWOS Framework | Strengths 1. Strong and qualified management 2. Innovative culture 3. Financial leverage 4. Asset leverage 5. Efficient supply chain 6. Cost advantage 7. Unique products 8. Brand names 9. Technology 10. Customer loyalty | Weaknesses 1. Work inefficiencies 2. High debt burden 3. Cost structure | Opportunities * Financial leverage * Developing new services * Make use of the new technology * Emerging current markets * Entre to new markets * Franchising with more international unique brands | SO Strategy Develop new services under the brand nameMake the company a conglomerate by stepping in to new business units using the brand name as well as effective and efficient management.Use financial leverage to enter in to new partnership with global vehicle brands. | WO Strategy Use financial leverage to pay off debtsUse new technology to identify and cut of additional costsUse training program for employees in order to train them with important skills, knowledge and experience. | Threats 1. Competition from other vehicle sale owners 2. Volatile currencies 3. Highly competitive matured markets 4. Government’s regulations 5. Volatile costs 6. Volatile revenue 7. Substitute products | ST Strategy Use the brand name to overcome the threats from competitors. Keep up with the customer loyalty in order to retain existing customers. Give better after service in order to increase the customer satisfaction. | WT Strategy Introduce a relatively low cost and higher quality vehicle what can give a competition with local car sales and existing products |

1) SO Strategy 1. Develop new services under the brand name
Dimo is a well renowned brand name in the country. People tend to trust on their services mainly due to the reputation. However in order to retain this trust company can march towards new services. Such as financial helps to people who want to buy vehicles. Moreover Dimo can be more effective with spare parts for vehicles. People would love to take spare parts from the same company where they purchased the vehicle mainly due to the satisfaction of the company’s service. 2. Bring up corporate level strategies.
As mentioned above DIMO Sri Lanka has a very popular and trusted brand identity within the country. By using this as an advantage and strength the company can develop their opportunities such as going in to strategic businesses. One of the possibilities is financial loans, which always go hand to hand with vehicle purchasing. Another strategic business unit can be having spare parts for sale. It will be good business since people would always come back to DIMO in order to buy spare parts because they simply trust the quality.

3. Uses of financial leverage effectively
Having financial leverage is another main strength for the company, they can build up new partnership with other renowned car manufacturing companies such as ford, American muscle etc. 2) WO Strategy
One of the weaknesses of the company is that additional cost. But they have the opportunity to develop with available technology. Such as using ERP systems and SAP, DIMO can cut off extra cost and downsize the company.
In order to overcome their employee inabilities company should carry out employee training programs and management trainee programs which will enable employees to learn skills and develop the knowledge about certain aspect of vehicle business. 3) ST Strategies
One of the major threats to DIMO is their competitors. But having a popular and well trusted brand name in the country DIMO can always use it as their strategy to gain competitive advantage over its rivals.
Develop strategies to achieve customer loyalty is another important factor towards retaining customers and therefore out perform its competitors. DIMO can develop customer loyalty programs and give an outstanding service for their customers in order to retain them.
Another important step they can take is to gain competitive advantage over its rival is to have a better after service program. By that they can encourage people to buy vehicles from them showing them the quality of their services. 4) WT strategies
Introduce a relatively low cost and higher quality vehicle what can give a competition with local car sales and existing products. DIMO can do this, importing vehicles from counties like Korea. Korean cars are relatively cheap and they are worthy for money. DIMO should look to get the franchise from those Korean companies and become the authorized agent for Sri Lanka.

5) Conclusion
TOWS matrix indicates that how the company can overcome weaknesses and threats by identifying its opportunities and strengths. DIMO can easily use their strengths and grab opportunities in the environment in order to overcome their weaknesses as well as threats.

6) Bibliography
DIMO. (n.d.). Retrieved november 28, 2014, from dimolanka: http://www.dimolanka.com/
Importing a vehicle. (n.d.). Retrieved november 30, 2014, from Sri lanka custom: http://www.customs.gov.lk/importingvehicles.html
Jim Blythe, Phil Megicks. (2010). Marketing Planning - Strategy, Environment and Context. Prentice Hall.
Martoia, R. (2012, december 16). youtube. Retrieved november 25, 2014, from Strategic Planning: SWOT & TOWS Analysis: https://www.youtube.com/watch?v=H8FANR-2u2Q
Michael Baker, Susan Hart. (2007). Product Strategy and Management. Prentice Hall.
Sri Lankan inflation rate as at 2014 Retrieved November 24th, 2014 from http://www.tradingeconomics.com/sri-lanka/inflation-cpi
Whalley, A. (2011). Strategic Marketing (2nd ed.). Royal Holloway.
Wikiwealth. (n.d.). Retrieved december 2, 2014, from DIMO swot analysis: http://www.wikiwealth.com/swot-analysis:dimo
Wood, M. B. (2013). Essential Guide to Marketing Planning (third ed.).

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