The laying of a new vertical market can prove to be a potential for the existing business if the newer market is studied carefully. Moreover, the disciplined approach and methodologies should be followed simultaneously to unlock the immense market growth opportunities (Lechner, Lorenzoni and Tundis, 2016).
It has been observed in the given case study that even though the Joint Action Solution is well established in the mining industry, Steve is having a serious concern for having a narrow client base in their existing business. Therefore, Felix who is having experience in management and mechanical engineering posed a solution to expand the business in the newer Australian market, namely aged care nursing home industry for business growth and development. Also, by employing appropriate market and business approaches and investing in research and market analysis, can prove to have profitable impact in the chosen vertical (Dhebar, 2016).
In this case study, the few assumptions are made to pose a possible solution for the newer business vertical. It is assumed that there is access to capital required to set up a new office with all the technical requirements in the area having larger target consumers of the new vertical. Secondly, it is assumed that a skilled workforce will be employed at less cost to meet the deadlines. Also, it is assumed that the technology is feasible and demanded by the consumers in the required market segment. Moreover, it is assumed that the marketing team of the company will be able to attract maximum channel partners to grow vertical exponentially (Mihailovic, 2018).
The Joint Action Solutions is having few rivalries which is estimated to around 3-5 as per the research carried out for the new market vertical. Also, the business product solution needs to improvise more to survive in the new market vertical. Since the company is pre-equipped with high-end technological global business solutions which will have a positive impact on the target consumers in the new and existing market in a longer run. The strong establishment of the business in the mining industry makes JAS negotiate with the customers and influence the price and quality of the technology-based solution (Septifani, Mustaniroh and Rahmatri, 2019).
The major strength of the Joint Action solution is that it provides technology driven real-time, precise, and simple user interface to monitor the people closely who are working in the hazardous workplaces. Also, another strength of JAS is the trusted target market for which the existing business is proving the business solution. Using accurate technologies like machine learning and appropriate methodologies, JAS is standing out from its competitors in the existing market (Ivasechko and Dorosh, 2016). The major weakness which the existing business includes is the security and privacy issues continuously. Due to big database, the handling and management requires constant and continual updates which is acquired over the time while monitoring the target customers. Also, employing ergonomists may prove to be a threat to the existing business as the investment required in terms of time and money is still high and profits earned may become neutral in such case. Hence, as observed during the case study, JAS should wisely choose the team members for the new business verticals that are highly skilled and require less time and money simultaneously to grow exponentially. As this case study is focused on the opportunities in the new market for the existing business, according to the research carried, JAS is having a very high potential in aged care nursing home industry in Australia because Australia provides institutional long-term care for almost 20% of the population aged ≥ 80 years, and 6% of those aged ≥ 65 years. Aged care is a $20 billion+ industry in Australia, employing over 224,000 staff across more than 1,800 businesses who care for over 270,000 elderly and disabled Australians across the country (Lee, Lee and Jung, 2020).
Faced with legal reforms, increasing competition, and consumer preferences, there is a limited future for older care providers who do not fully understand their clients. Without these providers it jeopardizes the decline in poor customer experience1, weak income growth, and low employee engagement. Home-based care, many providers are still adapting to the client-led world following decades of government 'paying customers', and with the major changes identified in the 'Tune Review,' this may soon shift to such care for the elderly. Many providers have not yet collected basic customer data or used IT platforms such as CRM (customer relationship management systems) to record customer requests, feedback, and preferences, and use this information to build engagement with their customers and shape their service delivery (Hugo et al., 2017).
The number of elderly people in the community, and the proportion of elderly people with disabilities, influences industry demand. Population aged 70 and older, total government expenditure on aged care services, average weekly hours worked, the cash rate is the basic information about the industry. The Aged Care Residential Services industry mainly provides accommodation and care services for the elderly through residential aged-care facilities. Australia's aging population is a key demand determinant, driving demand for age-appropriate accommodation.
The essential deliverables of the case study are that the key industry trends are rising substantially. The threats for the new vertical are privacy and security concerns of the respective consumers. Also, competitive intelligence includes the technological advance business solution to the posed problem. Moreover, the market size of the target customers in the new industry is large. The forecast and noted trends include exponential growth in the market and the respective industry (Yu and Qian, 2018).
A new vertical business marketing plan involves introducing new products by embedding existing technology solutions; expand the existing product market for a new vertical business; installing new corporate consumer locations for the vertical; increasing sales to a particular product, market, or price range; selling (or bulk) each product; encouraging existing customers to purchase new standing products; entering into long-term contracts with desirable customers; raising prices without reducing sales figures; refining product solution; and, to improve the delivery of production / product (Septifani, Mustaniroh and Rahmatri, 2019).
This concludes that Michael could build a new vertical business in the nursing market and nursing home as suggested by Felix as it has a much larger market than expected in Australia. In addition, business in the new market is expected to grow and grow seamlessly due to its large existing customers. And, at the same time, security and privacy concerns pose a problem for the company in the new market but with timely measures and continuous product updates, can eliminate the unwanted threat. Joint Action Solutions must develop new strategies and marketing strategies as it highlights the prominence of its business competitors and longevity in business markets.
Dhebar, A. 2016. Bringing new high-technology products to market: Six perils awaiting marketers. Business Horizons, 59(6), pp.713–722.
Hugo, C., Isenring, E., Sinclair, D. and Agarwal, E. 2017. What does it cost to feed aged care residents in Australia? Nutrition & Dietetics, [online] 75(1), pp.6–10. Available at: https://onlinelibrary.wiley.com/doi/pdf/10.1111/1747-0080.12368.
Ivasechko, O. and Dorosh, L. 2016. SWOT-analysis of Ukraine’s energy security. Humanitarian vision, 2(2), pp.24–30.
Lechner, C., Lorenzoni, G. and Tundis, E. 2016. Vertical disintegration of production and the rise of market for brands. Journal of Business Venturing Insights, 6, pp.1–6.
Lee, J., Lee, S.-J. and Jung, K. 2020. Balanced SWOT: Revisiting SWOT Analysis through Failure Management and Success Management. SSRN Electronic Journal.
Mihailovic, J. 2018. The Future of mobile operators - New business models. Management:Journal of Sustainable Business and Management Solutions in Emerging Economies.
Nicholson, G., Skelton, R. and Tarr, J.-A. 2018. An Exploratory Study of Regulatory Failure in the Australian Home Mortgage Market. Journal of Consumer Affairs, 53(1), pp.126–166.
Septifani, R., Mustaniroh, S.A. and Rahmatri, D. 2019. Consumer Satisfaction Analysis Towards Chocolate-Based Product Using Importance Performance Analysis and Customer Satisfaction Index Method. Journal of Management, Economics, and Industrial Organization, pp.48–65.
Soldić-Aleksić, J., Chroneos Krasavac, B. and Karamata, E. 2019. Business analytics: new concepts and trends. Management:Journal of Sustainable Business and Management Solutions in Emerging Economies.
Yu, P. and Qian, S. 2018. Developing a theoretical model and questionnaire survey instrument to measure the success of electronic health records in residential aged care. PLOS ONE, 13(1), p.e0190749.
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