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Essay: Analysis of Tradelight Group Limited

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  • Subject area(s): Business essays
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  • Published: 8 October 2022*
  • Last Modified: 18 September 2024
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  • Words: 1,876 (approx)
  • Number of pages: 8 (approx)

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Company Overview

Tradelight Group Limited is the official business development partner of reputed and prominent enterprises in the defense industry of the African continent, Turkey, Philippines, Rwanda, and Kenya. Established in the year of 2014, it is a multinational enterprise currently operating in two continents and four countries and comprises 18 employees. The commercial activities of the company, ranging from supplying telecommunication products to a large number of security systems, along with defense solutions for both organizations and institutions (Dalevska, 2019). The brand is deeply involved in the proper supply of security and military accessories, defense system, and types of equipment. The Company takes pride in the excellence and success it has extracted from all of its ventures for boosting its organic growth to emerge as a conglomerate company. The brand believes that success stems from its effective and efficient business philosophy that great things are achieved via harmony, mutual respect, cooperation, and great partnerships. The enterprise has come up to garner ample reputation for itself in the business of export and import by extracting the respect of a large number of trusted partners. The concurrent success of the company results from the worthy collaborations and works conducted via a partnership with reputed manufacturers coupled with the foreign trade companies (Oetzel, 2017). The company thrives on specific principles that render out services and goods along with comprehending the significance of honesty quality, reliability, which are acutely essential for both the private sector and public institutions. The goal of the organization is to support its large number of clients by rendering out to them the preferred and customized products and services within the shortest time possible, along with the supply of all sorts of processes in the arena of its activities.

Pestle Analysis

Political – In addition to Africa, the brand supplies its products and services to a large number of locations all across the globe. A large number of nations or the countries where the brand conducts its business functions demand the brand to follow all the legal regulations along with the domestic rules which often prove to be unfavorable for the profit rates of the brand (Hieu, 2019). The developing nations where the brand conducts its operations have associated higher rates of taxes on foreign goods to promote domestic production. So the higher tax rates lead to escalating operating costs, and most prominently political instability hugely sands in the way of the supply chains. In addition to this, the brand also deals with the competition owing to the local production of the substitute products (Alzoubi, 2020). Since the services and products of the brand need to build with high attention and high care and they are aligned with immense prestige, so they are not reasonably priced which contributes to the production of cheap imitations.

Economic – Economic downturns crucially affect how enterprises and nations send money. When an economic downturn comes up in the scenario, enterprises and nations prefer to purchase affordable goods which meet the basic and chief needs instead of going for luxurious goods and services. In addition to this, the enterprise gets negatively impacted by a large number of local and international brands. Owing to the concurrent situation of the pandemic, the sales rates of the brand have got considerably decreased which is eventually hampering its profit rates.

Socio-cultural – The target audience base of the enterprise bear divergent needs, demands, preferences-divergent nations, and enterprises remain in need of divergent military, security, police, safety, medical, tents ad telecom products,-so the brand takes such requirements and needs into consideration, for coming up with divergent products for the divergent markets. Moreover, the enterprise also makes effective engagement with the communities of the various nation via a large number of social activities to boost the corporate social responsibility initiatives. Also, the enterprise makes effective and efficient use of social media platforms and avenues such as Twitter, Instagram, Facebook, for framing engagement with the enterprises and the nations along with extracting necessary data and information about the customer experiences with the services and the products.

Technological – The enterprise also makes effective and efficient use of the latest technologies and advancements for advertising and promotional purposes, for attracting the target base of customers involving divergent nations, enterprises, and the police departments. For example, the live streaming of the enterprise has enabled a large number of customers to buy products and services via the concurrent online and social media platforms, and get them delivered in a convenient and hassle-free manner. The online options of purchasing have led to increased efficiency and productivity since customers from all over the globe can purchase the products and services of the brand via online platforms without the need to travel across borders. Moreover, the superfast and express delivery option of the enterprise is perceived to be the chief competitive advantage of the enterprise. Some of the modern technologies used by the firm are, technology-supported customer service coupled with automation software and market research data analytics along with product design research

Environmental – The enterprise is strategically located in Africa, the Asia Pacific, and Europe for providing out customized services and products to the target audience base in a convenient and hassle-free manner. Catastrophic situations in addition to the concurrent coronavirus pandemic situation, are standing in the way of the supply chains and the stores of the brand, and consequently, the profit margins of the enterprise are getting reduced.

Legal – For walking along the pathway of success, the enterprise abides by all the legal regulations of all the nations where it conducts its business operations. The most prominent legal regulations which influence the activities of the enterprise are the labor laws and the employment laws. The threats of duplicate and substitute services and products, of the enterprise, are pretty high. Since the price of the services and the products of the enterprise are considerably high in comparison to the other brands providing telecommunication products to a large number of security systems, the brand needs to patent and copyright its products, so that that the exclusive rights of production coupled with the right of selling the services and products of the brand are preserved to the right of the brand only.

Porter’s five forces

Threats of the new entrants-New entrants in the field of telecommunication products to a large number of security systems, along with defense solutions pave the pathway of innovation, unique and innovating ways of customizing the products, which imposes acute pressure on the enterprise via decreasing costs, lower pricing strategy, along with providing with new value propositions to the regular and loyal base of customers. So in such a case, the brand needs to efficiently handle all such challenges to come up with efficient barriers so that the competitive edge of the brand remains intact (Drobyazko, 2019). By supplying to the customers innovative services and products along with defining the industry standards regularly and cautiously the brand will be able to stand in the way of budding up of new entrants in the functional market.

Bargaining power of the suppliers – Almost every enterprise operating in the field of telecommunication products and a large number of security systems buys their necessary raw materials from a plethora of suppliers. Suppliers who are reputed and prominent in the market tend to reduce the profit margins of the enterprise. Prominent suppliers in the field of telecommunication products to a large number of security systems effectively use their negotiation strategies for extracting higher prices from e enterprise (Kwayu, 2018). The holistic effect of the higher bargaining power of the suppliers tends to negatively impact the profit rates of the brand. So for dealing with such a situation, the enterprise needs to come up with an efficient supply chain by involving a large number of suppliers.

The bargaining power of the buyers – Customers and buyers are pretty demanding-and always bear the tendency of availing the best offerings at the lowest prices possible, which effectively puts pressure on the sales rates of the brand from the perspective of the long run. So if the customer base of the brand turns out to be relatively smaller and so powerful then the bargaining power of the customers will be pretty high and they will always look out for lucrative discounts and offers (Hacklin, 2018). So for dealing with such a situation, the enterprise needs to boost and supplement the customer base for reducing their bargaining power alongside streamlining the sales process and the production process.

Threats of the substitute products – The threats of duplicate and substitute services and products, of the enterprise are pretty high. Since the price of the services and the products of the enterprise are considerably high in comparison to the other brands providing telecommunication products to a large number of security systems, the brand needs to patent and copyright its products, so that the exclusive rights of production coupled with the right of selling the services and products of the brand are preserved to the right of the brand only (Bouwman, 2019). If the enterprise puts up efforts to come up with copyrights and patents them the issue of the substitute products will not get eliminated but will decrease to a certain extent.

Resources, Capabilities, Competencies

The brand believes that success stems from its effective and efficient business philosophy that great things are achieved via harmony, mutual respect, cooperation, and great partnerships. The enterprise has come up to garner ample reputation for itself in the business of export and import by extracting the respect of a large number of trusted partners. The company thrives on specific principles that render out services and goods along with comprehending the significance of honesty quality, reliability, which are acutely essential for both the private sector and public institutions (Subramanian, 2017). The chief capability of the organization is to support its large number of clients by rendering out to them the preferred and customized products and services within the shortest time possible, along with the supply of all sorts of processes in the arena of its activities.

The physical resources of the enterprise comprise land, materials, equipment, supplies, and most prominently facilities. The warehouses, supporting buildings, and offices, production units, of the enterprise, pave the pathway of streamlining its operation and processes to give rise to successful performances. For dealing with a situation of increasing the bargaining power of the suppliers, the enterprise has come up with an efficient and potent supply chain by involving a large number of suppliers.

The intangible resources of the enterprise comprise brand reputation, trade names, goodwill, intellectual property, and lastly customer experiences (Nyambu, 2013). The concurrent success of the company results from the worthy collaborations and works conducted via a partnership with reputed manufacturers coupled with foreign trade companies. The Company takes pride in the excellence and success it has extracted from all of its ventures for boosting its organic growth to emerge as a conglomerate company.

Via the effective and efficient geocentric approach, the enterprise recruits the most talented and wise candidates in each of the executive roles according to their expertise and ability instead of passing judgment on their nationality.

According to the latest financial report of the enterprise submitted in the year of 2013, the enterprise bears a cash resource of £4,502.00 and the enterprise bears Total-Assets of £296,669.00, and most prominently the Working-Capital is £99,558.00 (Clark, 2013).

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