Situation Analysis 2 External Analysis 4 Internal environment: 5 Key Marketing issue 5 Generation and Evaluation of Alternatives 6 Alternative 1: Do not develop Online Training Program 6 Alternative 2: offering trail online programming 7 Recommendation 7 Situation Analysis Executive Training Inc. (ETI) is a successful company providing marketing and sales training for firms based in the agribusiness industry. In the upcoming sections, we will be discussing the past, present and future forecasted performance, as well as forecasted environments affecting the firm.
ETI came into the business world in 1982, and since then, have demonstrated a history of success in the agribusiness industry. ETI has delivered training programs in specialized areas such as marketing and sales. There training consists on private and public programs, which use state of the art technology as well as customizing the presentations towards different companies and by using standard modules. Technology is one of the largest factors that keep ETI ahead of the competition. They are known for becoming the first in the field to add many product features and services to their line.
The very first year of existence, ETI had earnings of around $100,000 in revenue. However, in 1999, ETI has grown to a remarkable $1. 2 million in revenue. ETI never got discouraged nor did they give up. They continued to stay in the agribusiness industry, as well as offering a diversified product mix. ETI is not a company that goes out and looks for new customers; they rely on customer relationships and long-lasting ones. They have a number of long-term, highly satisfied customers who are very pleased with the services that the company is currently offering.
The company relies heavily on 2 programs that account for virtually over 70% of their revenues. Their two most popular programs are the Principals of Agri Marketing (PAM) and Strategic Agri Selling (SAS). Although these programs are a huge success, ETI is currently exploring options of expanding their product offerings to include some form of online training. In the near future, ETI will look for new and innovative ways to continue its remarkable growth rate through new product offerings. They are willing to do this by keeping in mind what their current marketing strategy is, and not going over board with new ideas.
As research has shown, there is no competition in agribusiness online programs, so this will make ETI have the first mover advantage. ETI can continue their growth plans, and anticipate a market that is out there, and achieve the goals that are set out. For the reason of that there is currently not a direct competition in this market, ETI really has no boundaries, and is free to be as innovative, as well as dominate as the see fit. ETI has gone through extensive research and development strategies to see whether or not online training programs for agribusiness are best suited for customers as well as for themselves.
There research consisted of information on characteristics of the individual companies, identifying the various training programs currently used by these companies, and also to gain information on how people perceived online training and whether or not they saw this as a viable alternative to more traditional methods. Although the research may be inconclusive or be incomplete, some decisions have to be made on the basis of this. External Analysis By analyzing the external environment of ETI, this section will examine the customer, conditions, competition, and channels of distribution.
We will be giving you a macro view of the industry prior to a micro look at the company. In today’s fast-paced business environment, companies are looking for ways to be as efficient as possible. Businesses are attempting to keep their employees in their offices as opposed to traveling for their training. With the advancement of technology over the past decade, most employees have access to computers at both the office and their homes as shown in Exhibit A. Target market for any online training program varies from program to program. ETI’s suggested target market consists of individuals aged 25-60.
Doing some background studies, we came up also that these individuals have some sort of post-secondary education, are in a specialty field, and are majority sales representatives. However, some middle and senior management do attend their training seminars. Online training is steadily growing, especially the demand for it. The greater part of all sales and marketing representatives has received some form of training over the course of the year. Since the training program will specialize mainly in the agribusiness atmosphere, ETI will continue to focus their main priorities on rural markets rather than urban markets.
Traditionally, all face to face training seminars have been held in a centrally located area such as a hotel or in a company training office. These sessions have usually catered to 15 to 25 participants at any given time. With our research completed, we have forecasted how we see the training program working, and what benefits everyone will get out of it. Some benefits that are very visible are that ETI offers higher cost but receive bigger rewards. ETI’s structure is that of you can have a training lesson done at home or at an office computer that has accessibility to the internet.
ETI wants to cut down of traveling costs as well as take as little time out of the daily hours of work to be excuses for training purposes. Internal environment: ETI was established in 1982 to provide marketing and sales training program for the agribusiness firm. Its entire training program conducted in face to face, classroom-type setting. ETI was very successful at the traditional way of delivery. Over the 17 years, ETI had gain a number of long-term, loyal customers in both Canada and United States.
In 1999, ETI’s revenues have grown from under $ 100,000 to $1,200,000 since the first year which indicated the company is in the growing stage of its business life cycle. For small and large agribusiness in North American, all the marketing and sales programme were custom designed and offered to client in the seed, chemical, machinery, animal health, and feed industry. Among these programme, two three-day ETI programs were most popular and generated almost 75% of the company revenue. They are “Principles of Agri Marketing and “Strategic Agri Selling”.
ETI has become the leader in its own industry, by delivering quality program to the customers. Key Marketing issue Since the first day of the business, ETI has heavily depended on computer technology in developing and presenting programs. By the inspiration of an online education program, Tom, who is the owner and president of ETI, has recognized online program delivery is a great opportunity to expand his business. Furthermore, online program delivery is vacant in the market. If ETI takes the first step, it will create the competitive advantage for the company in the future.
Generation and Evaluation of Alternatives Alternative 1: Do not develop Online Training Program The first alternative is to cancel the idea of the training program and focus on what ETI was raised on. This is going to be continuing to provide marketing and sales training for agricultural companies. ETI will remain with all training programs being conducted in face-to-face, classroom-type settings. ETI was very good at this traditional method of delivery, and had a number of long-term, highly satisfied clients. This alternative will allow the firm to continue following its current product life cycle curve.
ETI has been in the agribusiness for over 15 years. Revenues have been growing ever since its first year in business. Currently, ETI is nearing their maturity stage of the life cycle, and have gained a lot of profit on the way. In this stage, the company is forecasted to achieve high revenues and will be subject to very little risk in the near future. The advantage of maintaining status quo is that you don’t have to waste money and effort in research and development. A lot of time, effort and money will be wasting in providing answers for whether or not online training programs are the way to go.
Plus, the implementation, and getting the training program up and started is going to be time consuming and very costly. So in the short-term, not going with online training programs are the way to go, but in the long-term, it may be different. Should ETI maintain the status quo, not expanding could cause the company to lose market share to competitors who offer online training first. This could result in a huge potential loss of money, customers, and clients. Not seeing this step in agribusiness before the competitors could have a consequence of running ETI out of business.