ToolsCorp Corporation strategic initiative to break into the global marketplace

Operating Principles 

ToolsCorp Corporation strategic initiative to break into the global marketplace will be guided by the following key operating principles to get things done. Similarly, the principles influence the culture as well as the values of the company. The principles create an organizational-wide awareness and focus of a long-term big picture objective. The principles will help the company create a unique version of the business strategy. The company employees are accountable for enhancing their potential each day. The goals can only be achieved if they are focused on their responsibilities and everyone should participate to achieve their potential. The company will strive to present solutions that are common and custom to the needs of the customers. 

Planning activities, quality management efforts as well as the review processes focus on the key business processes and improvements for the feasibility of the implementation activity. They are also integrated and synchronized in the core business operations to ensure that the direction of the company is reflected in its operational action plans. They will also ensure that there is consistency and are equivalent in the projects of the company. The planning, quality, and review process are monitored regularly and evidence base. The company will engage in consultation to improve the quality, planning and review process. It will also focus on accountability and ensure that the efforts are consistently supported. 

Preliminary Market Analysis 

ToolsCorp Corporation builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. There are established companies that offer similar products in an effort to meet increased demand and realize growth in their market share and revenues. There is a substantial domestic and global market for the company’s products that attracts new companies. The market is of high value to the marketers providing them with an opportunity to offer their products. The products are targeted at the middle class and hind end customers who are willing to spend more on quality. The level of competition is high but there are few barriers to entry and exit. 

The company will segment the market based on the income and level of education. Similarly, the market will be divided into regions including the domestic market, Europe, Asia Pacific, America, and others. The focus of the company is new homeowners, corporate and retail outlets like Walmart and target. It is expected that the domestic market will continue growing at an average growth rate of 11% in the next five years before reducing to 8.5% which is expected to prevail in the foreseeable future. Growth in the market will drive the revenues and profits of the company leading to high returns for the investors. The external market is expected to grow at 10% with emerging economies reporting higher growth. The different market segments have a high number of valued customers which will drive such growth. 

The market need is driven by a growing middle class and wealthy customers who are willing to purchase quality products. The company will also avail spares and parts in the different markets. Similarly, it will strive to ensure that there is consistency in its operations and communication in the global environment. The company will focus on enhancing the customer experience to build loyalty and a strong brand that can overcome competition in the industry. 

The level of competition is high but established companies are generalist and have not targeted their market appropriately. Similarly, some of the competitors lack an elaborate supply chain losing their connection with their customers and perform poorly in building loyal customers. Established companies have also invested heavily in old machinery and equipment which are expensive to operate and maintain. It is difficult for such companies to realize high profits given that they are incurring a high operational cost. Some of the products manufactured by competition are not fuel efficient and the customers will be willing to identify high performing products that are fuel efficient and less prone to defects. Some of the competitors do not offer after sales service which customers are looking for in some of the products like lawn and furniture mowers. 

There are few barriers to entry into the industry. The major barriers are heavy capital investment and technological advancement. There are few legal and regulatory requirements for the company in the domestic market. However, some countries have restrictions that protect their companies from external completion. ToolCorp should, therefore, identify restrictions in the different markets and adhere to their legal frameworks. The company can easily access resources for its manufacturing activities. Similarly, it can establish proprietary networks with the distribution channels to ensure that its products reach the market and also information flows back from the consumers to the company. Similarly, the growing market and spending ability of the customers is an incentive for companies to produce and sell products. The company will require high investment for marketing activities and to create awareness for its products. 

Additional Materials 

ToolCorp Corporation efforts in the global strategic initiatives require a dynamic organization that is adaptive to the changes in the market. The company should consider resource requirements for its international operations including the employees, capital, and distribution of the products. The leadership must establish an organizational culture and structure that allows responsiveness, creativity, and teamwork. The strategic direction of the company should determine the influence of culture and how the company can optimize on the cultural differences. It is desirable that the global operations must consider the diversity of the customers and employees in its advertising to ensure that the content of such adverts is sensitive to the cultural differences. The company must be willing to change its operations depending on the response of the market.