Competitive Advantage of Reckitt Benckiser †MyAssignmenthelp.com

Question: Discuss about the Competitive Advantage of Reckitt Benckiser. Answer: Introduction: Strategic planning refers to the action of forming plans or strategies to achieve predetermined market objectives like high marketing position. Strategic planning takes place at the apex level under the supervision of the apex management. The apex management forms detailed plans in order to pursue their objectives like gaining and increasing competitive advantage. Strategic planning forms an integral part of the operations of the apex management, especially in case of the multinational companies. This is because these companies have to compete internationally with other multinational companies (Dibrell, Craig Neubaum, 2014). Thus, the strategic planning requires experience and expertise of the senior managers to form strategies appropriate to match to the strategies of the competing MNCs. Thus apex management bodies develop a target plans and several alternative plans. Then they choose the most appropriate alternative which the company adopt as its strategy. The apex management of M NCs also assess the target outcomes and the outcome achieved to restructure their strategies from time to time. Strategic planning forms an integral part of the business model of the MNCs and contribute to their market competitive advantage (Mueller Naffziger, 2015). Strategic marketing are the marketing activities in which companies form marketing strategies taking into account their target profit margin and customer segments. The companies take into account several factors like customer segments, competitor strategies, market conditions and its own strengths and weaknesses while making the marketing strategies. These considerations are followed by setting of business goals(target profit margins), creating business strategies, taking into account past business records like failed strategies, making improvements on the existing strategies, if required and identification of organizational changing needs to implement the strategic marketing outcomes (Wolf Floyd, 2017). Interrelatedness of strategic planning and strategic marketing: An analysis of the strategic planning and strategic marketing show that they are related to each other. Strategic planning refers to making of strategies at the apex level to achieve specific business targets like counteracting the strategies of other MNCs in the similar fields. Strategic marketing revolves around formation of marketing strategies to counteract the marketing strategies of competitors. The companies take into account factors like the market environment, its own resources and customer segments in the process. A deeper analysis shows that strategic marketing activities take place at the apex level and form an important component of strategic planning. Faulty strategic marketing can result in losses to companies worth billions, thus affecting the revenue generation of the multinational companies. The faulty marketing decisions can also hit the market goodwill and the competitive position of the companies in the long run. Marketing activities generate revenue for the comp anies and thus form a significant part of the strategic plans. This analysis shows that strategic planning and strategic marketing are related and dependent on each other. Strategic planning on the marketing operations of the companies lead to strategic marketing operations. Strategic marketing on the other hand pave way for other important strategic planning actions like human resources and financing (Solomon et al., 2014). Reckitt Benckiser, the leading British multinational operating in the consumer goods industry combines strategic planning and strategic marketing to maintain its competitive advantage in the market. The company operates in the hygiene segment of fast moving consumer goods industry and manufactures products like Dettol, Harpic and Lysol. This means that the main products of the company are hygiene products which find usage in both business organizations and household sector. The revenue generation of the company stands on the demand for these products among the organizations and consumers. The main business organizations using hygiene products are hospitals and nursing homes. Again, the demand creation among the household sector is dependent on level of awareness prevailing among the householders regarding hygiene (Kotler, 2015). Moreover, the company has to compete with multinational FMCG companies like Unilever. This discussion clearly points out that the apex management of Reckitt Benckiser has to conduct strategic planning to form strategies on marketing its products to maintain its competitive advantage in the global market. The apex management while forming the strategic planning regarding marketing of Reckitt Benckiser products gains support from all the middle level managers like regional heads and the branch heads and down to the lower level manager. This ensures that the employees of all levels contribute to the strategic market planning with their knowledge. This involvement of employees ensure formation of strategic plans to counteract the stiff market competition and generate demand both from the business and household customers. This combined effect of the strategic planning and strategic marketing by the apex management of Reckitt Benckisers has earned the company its robust revenue generation and high competitive advantage in the market (forbes.com, 2018). References: Dibrell, C., Craig, J. B., Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance.Journal of Business Research,67(9), 2000-2007. Forbes Welcome. (2018).Forbes.com. Retrieved 22 March 2018, from https://www.forbes.com/sites/marketshare/2010/10/05/reckitt-benckiser-creating-a-game-changing-media-strategy/#384919275f2f Kotler, P. (2015).Framework for marketing management. Pearson Education India. Mueller, C. B., Naffziger, D. W. (2015). Strategic planning in small firms: Activity and process realities.Journal of Small Business Strategy,10(1), 78-85. Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., Polegato, R. (2014).Consumer behavior: Buying, having, and being(Vol. 10). Pearson. Wolf, C., Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda.Journal of Management,43(6), 1754-1788.