McLaren Automotive Marketing Strategies Management Essay

McLaren Automotive Marketing Strategies
Name
Institution of Affiliation
McLaren Automotive Marketing Strategies
The McLaren company is a British automotive manufacturer based at the McLaren Technology Center in Woking, Surrey. McLaren cars were founded in 1985. The main product of the company is supercars, which are produced in-house in designated production facilities. As part of its growth strategies, the company has experienced both horizontal and vertical diversification over the years to exploit its corporate expertise and resource utilization. The company has employed various entry modes while entering the market, such as business partnership, direct exportation into the market, and licensing. This paper entails the market growth strategies utilized by McLaren within the Chinese context. The product served by the company also requires various CSR strategies to be implemented. The McLaren enterprise's adoption of different marketing expansion practices and CSR strategies for their growth and stature in China and globally.
Growth Strategies
McLaren should withstand constant growth and changes to retain its brand position in China. McLaren has applied diversification strategies by establishing its automotive businesses, as it has broadened its product development over the years to sustain and improve its position in the Chinese industry. This approach fits well the market since China has more opportunities for companies that invest in the automotive industry. The strategy will enable the company to establish its business, as it has been diversified over the years to sustain and maintain its brand position. Originating from a Woking-based McLaren Formula one car in 1966, The McLaren Group already boasts six different companies, including McLaren Racing, McLaren Automotive, McLaren Electronics Systems (MES), McLaren Applied Technologies (MAT), McLaren Marketing, and Absolute Taste. In its formative years, McLaren Company came up with several cars—a sports car, hill climbing, Formula Two, and Formula 5000, all sold to customers. McLaren contracted with Trojan to build the customers' version of several race cars. In 1992, McLaren ventured into the mass car market by offering a slightly changed version of its original formula one car. Later they developed the Mercedes-Benz SLR McLaren, in collaboration with Mercedes (William, 2009).
Diversification led to the company's ability to improve from an estimated net asset of approximately £16m to £338million between 2012 to 2018, the highest value in the period of deliberation (Statista, 2020). The strategy also requires a firm to have new skills and new techniques, which will lead to organizational restructuring that represents a variant business from the previous one. Consequently, the company has created sensory devices and advanced race telemetry for formula one teams (McLaren,2013). McLaren ought to venture into cross-sector diversification through entering into the market and advertising business since it has already entered into the event management and hospitality industry, which qualifies them for cross-sector divergence. These franchises have shared the same value chain as McLaren's racing business, in a manner they both cater to the internal demand of the company and its customers. McLaren should continue with its unrelated diversification as the company can deal entirely with different chain values in terms of production, suppliers, and customers CITATION Cha10 \l 1033 (Charles, Bamford, & West, 2010). The company should also apply market penetration strategies by uniquely positioning itself as an exclusive brand in the market. This strategy should aim at increasing market share in the existing market by improving sales and relatively lowering prices. McLaren adopts a market development strategy to sell its current products to the untapped market. McLaren has to also utilize the new market by entering into partnerships with various suppliers such as BMW, Ford, and Mercedes, which can be achieved through market research and development for other Chinese industries in line with their product. This ensures that in high competition within the current market, the company can opt for other new businesses for a higher profit. Moreover, the company should adopt this strategy in case of a new product in the market CITATION Shu19 \l 1033 (Shuttle, 2019). McLaren should appropriate a product development strategy by expanding its product line or add new features to the existing product to attract more customers and profit. The firm must add new products as older ones become outdated since technology continues to change rapidly. Otherwise, customers may prefer using a new technology of a competitor company. They should also use this strategy to set themselves apart from key competitors. CITATION Wri16 \l 1033 (WritePass, 2016). However, for customers to pay attention, the company must be more innovative.
Appropriate Ethical Strategies
The McLaren Group strives to achieve perfect harmony between the Triple line; people, profits, and the planet, in China. The company adopts standards that comply with sust...