An Investigation In Rolls Royce Group Marketing Assignment

Rolls-Royce Group
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Introduction
History and Background
The history of Rolls-Royce Group begins in the year 1884 when its founder F H Royce opened a workshop which was involved in the manufacture of electric cranes and dynamos. In the year 1904 Royce was able to manufacture a wide selection of cars which Charles Stewart Rolls wanted to sell and they therefore established a separate business with Royce. As a corporate owner the company was incorporated in the year 1906 and took the name Rolls- Royce limited. The company went into voluntary liquidation in 1971 after it was unable to meet its financial responsibilities. The company’s business and assets were bought by the government and is present in this day and age and conducts it businesses under the name of Rolls-Royce Plc.
Over the years the company has been able to venture in to different fields where they have products that have worn the trust of clients.
Market Position
Rolls-Royce Plc is actively involved in four global marketplaces which are Marine, Energy, defense aerospace and civil aerospace. Through largely investing in technology and capacity the company has been able to create products that receive recognition by a majority of the customers in all the sectors. The fact the gains of the company have been increasing year in year out is a clear indication that their wide range of products have been accepted in to the market. The company has over 37,000 employees from which 22,000 thousand hail from the UK.
Products and Services
Rolls-Royce Group has a number of products that it manufactures including combat jets, transporters, Trainers, helicopters, tactical aircraft and UAV. The company is the second largest provider of defense aero-engine products and services in the world. There are 16,000 engines from the company in the service of 160 clients in 130 countries. In the marine industry their products have also dominated the market with 70% of the world’s marine forces and more than 30,000 commercial vessels use their equipments in all parts of the world. Rolls-Royce has also been working tirelessly in providing complete service packages for managing engines all through their life cycle. Since they are the initial manufacturer of the equipments they are able to combine a number of factors together which include their knowledge and expertise in order to deliver services that create the actual value for their client’s money.
An External Analysis of the UK
The most appropriate way to analyze the external analysis of the UK where the company operates is through the Pestle analysis and the Porters five factors analysis. The pestle analysis focuses mostly on the political, legal, economic, social, technological and environmental factors.
Political Factors
For the political factors include political instability, tax policies, trade policies, trade restrictions, tariffs and trade laws. The UK is one place in the world where people experience political stability and it is therefore a good environment for conducting business. When there is instability the cost of doing business may be increased by the government pushing investors away.
Economical Factors
Operating in the UK for Rolls-Royce is an advantage because the UK is one of the countries that have very strong economic position. It has the 5fifth highest GDP in the world and second in Europe position one being taken by Germany. Having a large population is one of the economic factors that promote growth of businesses because it allows even the small businesses profitable.
Social Factors
The social factors in UK can either affect the business positively or negatively. There are very many free services being offered by the government. Although it helps the citizens it also increases the levels of dependency and therefore will slow the growth of the economy.
Technological Factor s
Operating in a country like the UK where they more advanced economically is an advantage for Rolls- Royce because they can be able to access high-quality technology. They work effortlessly to come up with very innovative skills. There is also a lot of competition amongst companies found in the country and therefore stimulating growth as far as the levels of technology are concerned.
Legal Factors
The legal factors play a very crucial role in determining how the particular business takes place and the profits they are going to make. There are some countries which have very strict rules of doing business for foreign investors which is a factor that pushes them away from investing in those countries.
Environmental Factors
Although the environmental factors do affect business as much there factors that can change how business is carried out and they include the availability of non-renewable products such as natural gas or oil. The demand for these two essential goods is very high.
Porter’s Five Forces Analysis
Rolls-Royce Group has changed its way of doing business by adopting the Porters Five Forces Analysis in order to increase the performance of the company. The Porters Five Forces Analysis has given them a better understanding of the competition within the business.
Threat to new entry
One thing that is not known to many is that gaining entrance into the aero-engine sector is very difficult. The sector is one that requires wide range of knowledge in the aero-engine designs combined with huge amounts of money required for research and development which many new companies cannot afford. As a new entry being able to earn the trust of clients also poses a great challenge. Rolls- Royce is one name in that sector that the customers recognize, they have been designing new engines which have been tested and found worth by the air authorities.
Competitive Rivalry
In aero-engine industry no manufacturer that has been able to dominate the industry and it is due to this there is a lot of competition rivalry is fuelled. Over the years each manufacturer has been on the forefront trying to increase their volumes as well as the market share.
Threat of Substitution
The threat to have substitutes in the aero-engine industry is minor. The fact that there are very many barriers that hinders new entries in to industry reduces the substitutes. Big aero-engine companies such as Rolls-Royce dominate the industry and they have gained the trust of customers over the years.
Buy Power
Although the number of potential buyers in the aero-engine sector is low the power of buyers has been increasing greatly in the recent times. They have been left with the role of determining the prices of engines in the market. For airlines to purchase a particular aircraft or engine type they mainly look at reduced prices. They will opt for the prices that much lower and the product of high quality.
Supplier Power
In the aero-engine industry the power of suppliers is limited or low because there are very many...