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UBS Case Solution
Posted by Adam Hudson on Dec-20-2017 

1. INTRODUCTION OF UBS CASE SOLUTION

The Harvard business review has published the UBS Case Study. Like all HBR case studies, the UBS Case is designed
and drafted in a manner to allow the reader to experience a real-world problem and solve it accordingly. The case study,
like other HBR case studies, will help the reader and students develop a broader, and a clearer understanding of the
business world and dynamics.
The UBS Case is based on a current managerial and strategic problem being faced by the organization, which must be
solved tactfully to allow progression, as well as maintain a competitive position. This paper is written to facilitate the
case solution for the UBS Case Study.
The case solution for the UBS Case Study first identifies the central issue that is elaborated on throughout the case. The
case solution then analyses the case through relevant strategic models and tools including the SWOT Analysis, Porter
Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix
analysis, and the Marketing Mix analysis. This analysis is to help in the identification of a feasible strategy and solution
for the UBS Case Study. Alternative solutions are also proposed in the case solution, primarily because alternative
solutions often act as contingency plans.

2. PROBLEM IDENTIFICATION
2.1. Harvard business school case studies
All case studies published by the Harvard business review comprise of a central problem that is faced by the
protagonist. This problem mostly holds implications for managerial and strategic directions of the company. For readers
and students of HBR case studies, it is critical to identify the problem that the UBS faces. This problem is usually hinted
towards in the introduction of the case and develops along the way.

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2.2. Solving HBS case studies
As a result, for solving the UBS case, it is essential to read the case study thoroughly. The identification of the problem
correctly is vital for undergoing the analysis rightly, and for developing relevant solutions for the UBS Case Study. It is
also essential to identify all the appropriate parties that are being impacted by the problem as well as the decision. The
correct problem identification will ensure that all the solutions developed during the case analysis of the UBS Case
Study are applicable and pragmatic.

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis is needed for the UBS Case Study to make sure that it actively, and proactively
responds to the macro-environment. The macro environment or the external environment for the UBS Case includes
those factors which are not in control of the business or the company directly. As a result:

 The UBS cannot influence these factors in its favour, and in contrast, these factors directly affect the operations
and workings of the company.
 As a result, UBS must make sure to continually assess and review the external environment to make sure that it
responds to external factors, and take them into account, during strategic decisions, and strategy devising.
Businesses like UBS make use of strategic model tools continually to make sure that they are aware of the external
environment.
 These include tools like the pestle analysis and Porter’s five force model, as well as strategic group analysis and
pentagonal analysis, to name a few.
The external analysis for the UBS Case Study will assess and will apply the strategic models and tools to review the
business environment for the company.PESTEL Analysis

3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business. This is seen through the UBS Case
Study.

3.1.1.1. Policy Makings

 Policymakers for the UBS Case are in all likelihood to intervene in the business surroundings.
 Commercial restrictions and political stability are additionally integral factors that will determine the success or
failure of UBS.

3.1.1.2. Taxation

 Tax policy will influence the cost of doing business for UBS.
 An increase in organization taxation (on business profits) has a similar impact as an expansion in expenses.
 Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will likewise
influence the bottom line of the business.

3.1.1.3. Government Support

 The government helps organizations in two primary ways: monetary help and regulatory.
 UBS can use government assistance and grants for purposes of growing the business, advancement, exporting,
and innovative work.
 UBS can also be impacted by when Governments modify regulations and laws.

3.1.1.4. Political Stability

 Lack of political stability in a country impacts business tasks. Political stability is particularly essential for the
organizations which work globally, such as UBS.
 A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general issue in
nature. These disturb business tasks for UBS.
 Purchasing political risk insurance is a way for UBS to oversee political hazard. Organizations that have
worldwide activities utilise such as insurance to lessen their risk presentation.
 The soundness of a political framework can influence the attractiveness of a specific nearby market for UBS.

3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can influence UBS in several ways.

3.1.2.1. GDP

 Economic components have the most evident effect on the profitability and overall appeal of UBS.
 Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional perspective on
the economic factors that may influence UBS.
 Higher GDP leads to higher disposable income and hence higher sales for UBS.

3.1.2.2. Inflation

 Higher inflation will disintegrate the purchasing power of the consumer and the shopper
 Higher inflation will also harm the costs of raw materials and other inputs that are utilised by UBS.

3.1.2.3. Interest Rates

 Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items and
administrations provided by UBS.
 Higher interest rates hurt the disposable cash of consumers.

3.1.2.4. Unemployment Rate

 A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and will harm
UBS ’s position.
 The high unemployment rate will lead to lower sales for UBS and impact its overall profitability and revenues.

3.1.2.5. How can the UBS decrease the risk of economic instability?

 UBS can work towards building economies of scale

 Maintaining business costs and controlling the final price of the product can also help UBS fight economic
instability
 UBS can also work towards building a sustainably managed workforce

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3.1.3. Social
Social influences will stem from social components of the macro environment. Under the PESTEL Analysis, they can
influence UBS in several ways:

3.1.3.1. Social patterns and consumer behaviour

 Social patterns affect work trends and patterns and are directly related to the behaviours of consumers.
 Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind, structure, and
volume of interest for an item or service.

3.1.3.2. Social patterns and changing consumer needs

 The checking of social patterns will enable UBS to reposition its items or administrations to meet the changing
desires and needs of consumers.

3.1.3.3. Social trends in education

 Social trends of higher education have allowed firms like UBS to have access to a pool of higher skilled talent –
but at the same time, also face a more criticising consumer base.
 Higher education has also made consumers more aware of different product offerings by companies like UBS.
 consumers are also more educated and knowledgeable of different substitutes of a product, as well as become
more readily available at different touchpoints.

3.1.3.4. Social patterns make companies more consumer-centric

 Companies like UBS are expected to become more consumer-centric than product-centric.
 Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of
psychographics and lifestyles to understand the consumer more.

3.1.3.5. How can UBS use social aspects for growth?

 Use consumer-centric means of segmentation and targeting.

 Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence consumers.
 Make products more accessible at different touch points common to target consumers socially.

3.1.4. Technological
The technological factors can influence UBS in several ways:

3.1.4.1. Innovation

 The quick pace of technological change at UBS may be driven through innovation.
 Business leadership at UBS tries to push the limits of present limitations.

3.1.4.2. The advent of the internet and online retailing

 The expansion of the Internet and online business has discarded many intermediaries. UBS can communicate
and retail directly to the consumers now, or through modern intermediaries such as eBay as well, for example.
 UBS may also use current social networks to retail and use e-commerce to boost sales.

3.1.4.3. Social media and business growth

 UBS can make use of social media to interact and reach with consumers
 Social media can also be used to reach the target market audience more effectively
 Social media is cost-effective and strategically more influential for UBS

3.1.4.4. Improved value chain network

 For UBS, technological innovation can be utilised to build on competitive advantage through several different
ways.
 UBS can incorporate less expensive production, improved access to clients, improved marketing, improvement
in product quality, and increased levels of business intelligence than the competition.

3.1.4.5. Managing technology and the future for UBS

 To flourish in a business world that is quick paced and receptive to innovative change, UBS must stay cautious.
 It must be always be updated on any technological developments in the business and industry.
 UBS should weary of how the company are probably going to influence its future attractiveness and profitability.

3.1.5. Environmental
For UBS, the environmental aspects of the PESTEL analysis may include:

3.1.5.1. Environmental stability and business standards

 UBS may be expected to incorporate maintainability standards into their business methodologies and to help
resource allocation choices.
 UBS may also be subject to environmental laws – which will impact and guide its operations to become more
environmentally friendly.

3.1.5.2. Environmental stability and budget allocation

 Leadership in the UBS must measure the connection between natural activities and budgetary execution.
 UBS also strategically decides and assesses if the organization have been estimating the monetary effect of
natural and social activities.

3.1.5.3. Environmental sustainability

 UBS also distinguishes and differentiates explicit zones of concern and impediments to the coordination of
environmental sustainability into corporate performance and strategy
 UBS also gives explicit direction concerning how organizations can push toward a superior reconciliation of
ecological and social activities in their basic leadership procedures and tasks.

3.1.5.4. Environmental sustainability and business growth

 UBS may use environmental issues to adjust financial, natural and social performance.
 Concerns towards the environment will enhance the business image for UBS.
 Environmental sustainability within business goals and strategy will also reflect corporate responsibility on the
part of UBS.
 3.1.5.5. Environmental sustainability and improved consumer relations

 Consumers will be more inclined towards the use of environmentally sustainable products.
 Environmental sustainability in operations works towards improving the bottom line and overall profitability for
the business of UBS.
 Improvement of cost management and operations will be observed in the business as well.

3.1.6. Legal
Legal components can influence UBS directly, and can likewise influence the instruments through which an organization
buys its stock or connects with the client. The UBS should be mindful, for example, of the following legal aspects:

3.1.6.1. Labour law

 Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
 These include identifying with the work of people.
 Labour laws include aspects of minimum working age, least time-based compensation, etc.
 UBS must be mindful of these laws in routine business tasks such as hiring, for example.

3.1.6.2. Discrimination law

 Under the discrimination law, UBS must ensure to avoid episodes of unequal or uncalled for treatment based on
an individual's age, inability, sex, national source, race, religion, and sexual orientation.
 UBS should train its human resource management team in ensuring that there is no:
 Unequal hiring
 Discrimination in recruitment
 Internal discrimination in talent management
 Bias in training opportunities
 Unfair compensation systems
 Prejudiced promotions and succession management

3.1.6.3. Health and safety laws:

 Under this, UBS is required to give a protected work environment to their workers.
 Working environment security and wellbeing laws build up guidelines intended to dispense with individual
wounds and injuries from happening in the work environment.
 all operations of UBS should be designed to physically and emotionally safeguard and protect the employees
and the labour force employed

3.2. Porter’s five forces

 The five forces identified in Porter's model can effect UBS ’s ability to serve its clients and make a profit.
 A change in any of the five forces may regularly require a business unit from UBS to reassess the market place
given the general change in industry data and dynamics. The general industry appeal and attractiveness.
 UBS should apply and centre their skills, plan of action or business models to accomplish profits above the
business average. This may be done in multiple ways, each distinguished in their application to the forces individually
as is elaborated below:

3.2.1. The threat of new entrants

3.2.1.1. Market and industry share
 New entrants to an industry bring new potential and a choice to increase the market share and overall share of
the pie that puts pressure on price, costs, and the investment price essential to compete.
 For UBS, particularly while new entrants are diversifying from different markets into the chief industry, they will
be able to leverage existing talents and cash flows to shake up the opposition.

3.2.1.2. Limitation on earning expectation and capability of firms in an industry

 The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit capability for UBS.
 While the threat of new entreaty is high, UBS should maintain their prices or increase funding and investment to
discourage new competition.

3.2.1.3. The risk to new entrants because of high entry barriers

 The risk of entry in an industry depends upon on the peak of entry barriers and limitations that are a blessing for
players such as UBS and on the response that new entrants can count on from existing players.
 If entry barriers are low and novices count on little retaliation from the entrenched competition, the chance of
entry is high, and profitability for UBS will be moderated.
 It is the danger of entry, not whether the entry of new players takes place that holds down profitability.

3.2.1.4. Some barriers to entry for new entrants in favour of UBS :

 Capital requirements: a strong barrier to entry as new entrants will require strong financial and resource
cushioning for operations to take off and be sustained.
 Economies of scale: a strong barrier to entry as existing players in the industry operate with high economies of
scale, which new entrants will take time to achieve.
 Product differentiation: the strong barrier of entry if products within the industry have high levels of differentiation
on which they operate and approach customers.
 Access to distribution: a standard barrier to entry since new entrants will have equal access to the retailers and
distributing agents within the industry.
 Customer loyalty to established brands: a strong barrier to entry since customer loyalties and perceptions are
emotionally built and strongly enforced as long as the brand continues to deliver on its core promise and quality.

3.2.1.5. What can UBS do to face this challenge?

 Build and invest in marketing to distinctly establish a point of differentiation in customer perception as well as
strengthen customer loyalty.
 Invest in research and development to make sure that it continues to have competitive differentiation from other
players at all times.
 Focus on building economies of scale in production and sales.

3.2.2. The threat of substitute products or services

3.2.2.1. Substitute form

 There are always different alternatives or substitutes for various products that lead an industry.
 These substitutes may be direct or indirect– the direct substitutes are the same category products. produced by
different players; indirect substitutes are the ones from different product categories that can replace the product for
UBS.

3.2.2.2. Switching cost to substitutes for consumers

 Switching costs for direct substitutes is not very high for consumers.
 The per-unit-volume prices may be higher or lower.
 This makes the threat of substitute high.

3.2.2.3. Substitute and product benefit

 Alternatives to the product or substitutes may not be able to provide the same benefits
 May often lead to additional costs incurred.
 Switching costs towards alternatives becomes higher, and consumers may not switch to substitutes.
 This, in turn, will make the threat of substitutes low.

3.2.2.4. Substitutes and consumer behaviour

 From the point of view of the consumer, there are some differences between the ways different products of the
same or similar category are used, but many consumption decisions are a matter of personal taste - this makes
products vulnerable to the threat of other substitutes.
 Overall, the threat of substitutes is assessed to be moderately high.

3.2.2.5. How can UBS combat the threat from substitute products?

 Focus on delivering consistently high quality.

 Focus on maintaining strong consumer relationships.
 Integrate strategic marketing to form an emotional connection with the consumers and strengthen consumer
loyalty.
 Invest in pop up stores owned by the company to stock the UBS brand exclusively, and integrate it with brand
characteristics and personality to attract consumers.

3.2.3. Bargaining Power of Buyers

3.2.3.1. Who is the buyer?

 The buyer for UBS is not necessarily the group that consumes the product – but rather refers to the group of
customers that purchases the product from UBS to either distribute further, retail it, or even consume it.
 Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end consumers, are
the core buyers for UBS that make up the market’s volume.
 Supermarkets and hypermarkets, along with many food chains that are concentrated, which increases the buyer
power.
 Products are stocked with buyers and retailers by UBS based on consumer demand.

3.2.3.2. Buyer power and costs

 UBS will not experience switching costs for switching buyers.

 Multiple product offerings by buyers also increase buyer power.

3.2.3.3. Retail product differentiation

 Products offered by retailers are differentiated based on several characteristics – not only reliant upon product
characteristics but also consumer segment characteristics. Because of this, retailers are expected to offer a wide range
of the same product category. This works towards negating and weakening the overall buyer power.
 Buyer power is assessed to be moderate to high.

3.2.3.4. What can UBS do to ensure risks against high buyer power?
 UBS can focus on differentiating its product and increasing its demand with the end consumers through different
marketing tactics, this will increase the demand of the product with different buyers, and will work towards moderating
buyer power.
 UBS should employ economies of scale to manage costs of production. If it offers products at moderate prices to
buyers, it will again be able to attract a large number of buyers for its product, and in this way, will be able to break off
the high bargaining power.

3.2.4. Bargaining Power of Suppliers

3.2.4.1. Who is the supplier?

 Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw materials and inputs
used for the business.

3.2.4.2. Sources of production for UBS

 The main sources for production are the following:

 Supplies from vendors – sourcing from independent suppliers.
 Own manufactured equipment and resources: this model is practised by companies that are well integrated
backwards and forwards.

3.2.4.3. Independent suppliers

 For UBS, there are numerous independent suppliers within the industry, and all comprise of a few pretty small
operations that lead to weakened overall supplier power.
 Independent sellers and suppliers, however, can locate different opportunities and invest in alternative markets –
which can be a challenge for UBS.

3.2.4.4. Supply quality and business dynamics

 Suppliers can integrate forward into the decision making and business dynamics themselves as well.
 Also, to the buyers, the quality of the supplies and the raw materials is of utmost importance.
 However, in an industry with a high number of suppliers, UBS can switch to different suppliers at any time
without experiencing any costs of the business.
 Overall bargaining power of suppliers is assessed to be moderate.

3.2.4.5. How can UBS deal with the challenge?

 Get contracts with multiple suppliers and get resources and raw materials from them accordingly.
 Invest in manufacturer controlled production facility to maintain consistency in quality.

3.2.5. Competitive Rivalry among Existing Firms.

3.2.5.1. Nature of fragmentation

 The market is highly fragmented, which makes it more competitive.

 The market is never too concentrated, and as a result, it has players of varying size of operation – from very
small to big players.

3.2.5.2. Brand management

 Producers have begun to make use of brand management techniques and contemporary merchandising by
launching bold brands, label designs and marketing campaigns to become more identifiable to the public.

3.2.5.3. Diversification

 Purchasers and buyers have a wide range of products to choose from, with relatively low switching costs. These
factors tend to intensify rivalry.
 Though players in the industry may off niche or premium products, they also continue to operate in the mass
markets at large, which again leads to high competition.

3.2.5.4. High business costs

 The high fixed cost and the high bargaining power of the buyers, which can lead to the lowering of the prices
from manufacturers add to the highly competitive nature of the industry.
 The overall rivalry is assessed to be high.

3.2.5.5. How can UBS combat rivalry and competitive forces of the industry?

 Focus on research and development to identify market niche as well as to be able to add differentiating factors t
its products. This will increase its shield against influence from competitive forces and their actions.
 Build a strong and loyal consumer base by focusing on quality and marketing strategies.
 Focus on capturing new markets – in the same region as well as new regions to avoid saturation of resources in
one market only.

3.3. Pentagonal analysis

3.3.1. The threat of new entrants
3.3.1.1. Restriction into industry

 The ease of entry into the industry is restricted.

 There are high barriers to entry.
 These are government policies, consumer loyalty, brand differentiation etc.

3.3.1.2. Switching costs for consumers

 The high number of direct and indirect alternatives available also make UBS vulnerable to the high threat of
substitutes.
 Low to negligible switching costs experienced on the part of the consumers and buyers.

3.3.1.3. Profitability

 New entrants are attracted to the industry because of high profitability.

 If there are high barriers to industry, the industry will continue to maintain high profitability
 Low barriers to entry will result in a lower average of industry profits.
 Lower entry barriers will also lead to higher operational costs because it will increase the intensity of competition
within the industry.

3.3.2. The threat of substitute products/services

3.3.2.1. Increased competition
 High threat of substitutes.
 This is because of higher competition.
 The higher competition leads to imitation of products and systems.
 This imitation makes substitute products similar to each other – as much as possible.

3.3.2.2. The offering of similar benefits

 Consumers readily adopt alternative and substitute products.

 They offer similar benefits.
 They have similar functional benefits and features.

3.3.2.3. Low costs of switching

 Consumers often experience a low cost of switching between substitute products.

 Low switching costs are also developed because competition often produces at lower operational costs.
 Low switching cost results in lower overall product prices for the consumer.
 Industry players, therefore, also start competing on aspects of price.

3.3.3. Bargaining power of buyers

3.3.3.1. Market fragmentation

 The industry in which UBS operates is highly fragmented.

 It has numerous local and international players.
 It is not very likely for players in the industry to integrate forward into on-trade or retail businesses.
 This results in the players experiencing high bargaining power of the buyers from the market.

3.3.3.2. The concentration of retailing agents

 It also results in a high concentration of individual retailing agents.

 Retailing is also done through hypermarkets and supermarkets.

3.3.4. Bargaining power of suppliers

3.3.4.1. Backward integration by producers

 Backward integration from producers is more commonly observed and seen,

 Many players in the industry have their own production facilities for raw materials as well.
 The industry has seen a large number of players needing to outsource resources and raw materials.

3.3.4.2. Outsourcing raw materials

 This outsourcing is done by third-party manufacturers.

 A large number of suppliers present lowers the bargaining power of suppliers.
 Players in the industry have low switching costs between suppliers.
 Suppliers usually are contracted by producers.
 Producers may change suppliers frequently.

3.3.5. Industry rivalry

3.3.5.1. Intensity of competition
 There are strong competition and rivalry in the industry.
 There is a high number of players.
 All players provide similar products.
 Switching costs for consumers is low, which increases competition.

3.3.5.2. Differentiation

 Platers try to differentiate products on different aspects.

 Functional aspects and appeals for all products across the industry remain the same.
 Competitors and players use emotional appeals, and modern brand management techniques for differentiation.
 Industry players try to gain consumer loyalty by developing strong emotional bonds and ties.

 Figure 1 Pentagonal analysis for UBS

3.4. Placement of the business along the industry life cycle

3.4.1. Identifying where UBS is on the Industry Life Cycle Curve
Identification of the place and placement on the industry lifecycle is important as it will help UBS make important
decisions and strategies for the future.

3.4.1.1. Strategic decision making

 Expansionary plans and investment decisions.

 Decide on various marketing strategies and tactics for targeting different consumer segments to establish and
establish the product.
 Selection of new geographic regions for expansion and exploration of new consumer bases.

3.4.1.2. Budget allocation

 Resources and alternative routes for future growth and establishment.

 Exploration of different diversification options.

Error! Filename not specified. Figure 2 PLC Placement along the Industry Lifecycle curve

3.4.2. Introductory stage

3.4.2.1. Firm strength

 The industry is in the infancy stage.

 Firms are generally small, entrepreneurial and compact during this stage.
 UBS will be focused on research and development during this phase.

3.4.2.2. Financial Position

 Looking for investment and funds for growth.

3.4.2.3. Nature of product

 Products offered during this stage re doubtful as success and life of the product is unproven and not known.
 UBS will use a focused strategy during this phase to emphasise the uniqueness of the product.
 The product or the brand will have a small market of consumers – known largely as early adopters
 Marketing strategies adopted by the company will focus on generating awareness of the product and therefore,
will largely use a functional appeal.

3.4.3. Growth stage

3.4.3.1. Financial position

 UBS will require high capital during this stage.

 UBS will need investment and funds for launching strategic marketing campaigns.
 Funds will also be required for fuelling physical growth of the company in the form of investment in equipment
and property to facilitate growth.

3.4.3.2. Growth factors

 Companies may increasingly encourage economies of scale because of standardisation experienced during this
stage.
 Consumer feedback from the introductory phase will be incorporated, and research and development will be
conducted to make appropriate changes in the product design and offering.
 Success in this stage for UBS will lead to growing demand, which in turn will fuel sales demand.

3.4.3.3. Nature of Product

 Products in this stage have high growth and high market share.
 There is also increasing competition and rivalry in the market – new entrants will enter and compete looking at
the success of products during this stage.

3.4.4. Maturity stage

3.4.4.1. Sales and growth

 UBS will experience slowing growth during this stage of the industry life cycle.
 Sales will be expanding, and earning will be growing – however, the rate will be slower than the growth stage.
 Competition from late entrants will be present, and obvious during this stage – who will all try to fight for UBS ’s
share of the market.

3.4.4.2. Strategic Marketing

 The marketing strategies must now focus on building loyalty.

 Marketing tactics must be strong and should focus on the uniqueness of the product. Increasingly emotional
appeals may be used.

3.4.4.3. Firm size

 Firm size is generally larger and is more dominant over players if successful- compared to growth stage.
 Innovations continue but are stable and not radical.

3.4.5. Decline stage

3.4.5.1. Industry changes

 New technological changes and upgrades may make an industry obsolete.

  Players within an industry may also fall back and lose on market share if they do not keep up with innovations,
and investment in research and development.

3.4.5.2. Sales and Competition

 Sales during this phase are decreasing at a high rate.

 Competing players also exit the industry because of the changes and low demand.

3.4.5.3. Surviving in the decline cycle

 UBS may also experience mergers and acquisitions during this phase.
 Diversifications are also most common during this phase as a means of survival.

3.5. Strategic Group Analysis

3.5.1. UBS and strategic group formation
 The strategic group analysis will look at an industry’s players' situations in focused conditions and scenarios.
 It will assess different players competing with UBS through the basic strategic factors that will decide an
organization's profitability, similar to how the profitability will also be impacted and influenced by the competitive nature
of the industry.
 The strategic group analysis will describe the procedures of every single noteworthy competitor of UBS along
different strategic dimensions.
 These dimensions of comparison differentiate players into strategic groupings and must be selected as the basis
of comparison by taking into account industry structure, productivity factors, and the venture issues being tended to.

3.5.2. Different aspects of strategic grouping

Key strategic groupings of players within an industry can be made based on numerous different aspects, such as:

 Specialization
 Brand identification
 Push versus pull strategies
 Channel determination
 Product quality
 Technological position
 Vertical joining
 cost position
 Service
 Price strategy
 Financial or working influence
 Parent organization relationship
 Government relationship

Despite the various aspects available for comparison of competing players, it is often important to differentiate strategic
groupings of players of aspects of how they compete with each other, and on aspects of where they compete as well

3.5.3. Procedure for strategic group analysis for UBS

1. Collect results of the player’s analysis.
2. Determine aspects of comparison for strategic groupings.
 Distinguish the players and pick the most important aspects that separate the players into strategic
groups comparing to the issues being tended to.
  Dimensions may include price strategy and product quality.
3. Group the players: position UBS and rivals along with the matrix.
4. Evaluate group mobility and direction. Assess the key purpose of individual organizations competing with UBS,
similar to assessing industry patterns and barriers to entry/exit to be able to decide potential developments inside and
between groupings.

3.5.4. How will strategic group planning help UBS

For UBS, strategic group analysis is important because it will:

3.5.4.1. Strategic industry dynamics

 Help in reviewing the strategic dynamics and shifts in the industry.

 Identify the closest competition and competing players for the business; help in assessing the strategic direction
of these competing players; and lastly, aid in developing strategies to stay ahead of the competition.

3.5.4.2. Assessment of market position

 The strategic group analysis is also important for UBS because it will assist in analysing the current market
position of players, as well as help in assessing future strategic moves and directions of the competition in the market.
 Assists in evaluating and identifying different underlying factors that will influence the company’s profitability.
 Makes use of standard comparison aspects between different players in an industry to group them as per
strategic directions as well as strategic dimensions.

3.5.4.3. Identification of barriers to entry in an industry

 Different strategic dimensions along the matrix of strategic groupings are often characterized by barriers to entry
and exit along the strategic groups’ dimensions, as well as by mobility barriers.
 These barriers make it difficult for companies to move along, and in between different strategic dimensions –
often forcing it to stay in place with the same competition.

3.6. Scenario planning

Scenario planning for UBS ’s strategic direction will take form through speculation and contingency form – methods
used by the military for strategic planning and direction.

3.6.1. UBS ’s Utilization of Scenario planning

For UBS, scenario planning comprises of making suppositions of what's to come, of what will be and how the business
condition will adapt, fluctuate, change, and respond to the future conditions, and changes in the futuristic strategic
planning.

3.6.1.1.1. Identify the driving forces of the business:

 Changes in the macro environment

 Changes in technology
 Changes in the economic trade system
 Changes in production methods
 Changes in consumer demands and tastes
 changes in technology and economy

3.6.1.1.2. Identify basic vulnerabilities:

 After UBS has identified the possible uncertainties of the macro environment, UBS should decide on any two
only. These can be:
 Changes in technological advancements and developments. These changes can be in the form that the
industry has progressed to install more modern and contemporary technological developments.
 Changes in consumer demands and needs.
 These two uncertainties of the future are those that will have the largest impact and influence on the business.

3.6.1.1.3. Develop a scope of conceivable situations:

 UBS will now be able to place these two uncertainties along a matrix.
 Depending on the intensity and direction of the uncertainties and vulnerabilities, the business will be able to
chalk out four possible scenarios as probable plans of action for the future. For UBS, these can be:
 Install new technology, or update current technology to be on par with new technology.
 Do market research.
 Engage in innovative marketing to influence consumers.
 Change vertical and backward integrated systems to ensure in-house or out-house production of
technology to stay ahead of the competition.

3.6.1.1.4. Discuss the suggestions:

 Each scenario should be discussed in detail.

 Possible strategic direction and responses for each scenario should be developed.
 Realignment of business goals and direction, as well as a mission during each scenario, should also be done to
ensure future resilience.

4. ANALYSIS OF RESOURCES AND COMPETENCES

 This inner analysis and assessment of UBS decide the centre skills based on the resource based view (RBV) of
the premium company.
 Utilizing its core capabilities and capacities, UBS can maintain a competitive distinction, and leadership over
other local as well as international players in the industry.
 In the VRIN analysis and assessment, UBS makes use of its core capacities to strengthen its worth and the to
continue to deliver the promise of consistent quality and taste to consumers – as well as guarantee futuristic and long
term gains in the industry.

The following section presents a brief analysis of the VRIN strategic tool as it is applied to UBS and its impact on the
strategic direction.

4.1. VRIN analysis

4.1.1. Valuable

4.1.1.1. International distribution network

The company has an international distribution system with agents and contracts in countries across the world. This
helps the company in making sure that its products are widely available and easily accessible to all consumers.

4.1.1.2. Experience in expansion to other countries

The experience of expansion to other countries directly as well as indirectly has allowed the company to gain exposure
and experience in international business, culture and trades.
4.1.1.3. Marketing skills
The company has a unique blend of marketing skills, which allows it to reach consumers directly through various
channels, in a creative way. This is a valuable resource for the company as it allows the company to ward off potential
competition.

4.1.1.4. Market research

The company invests in market research regularly, which allows it to stay updated with market trends, consumer needs,
demands, as well as the changes that take place in different markets and consumer groups. This is also valuable as it
then allows UBS to make changes in product and service offering accordingly.

4.1.2. Rare

4.1.2.1. Use of progressive technology

The company makes use of progressive technology and invests in new technology to help it make the business more
effective and efficient. This is important for maintaining competitive differentiation. The technology used by the company
also allows lower chances of human error and increases precision.

4.1.2.2. Use of progressive harvesting methods

The company makes use of modern as well as new and innovative means of cropping and harvesting as well. The
means of production are important for a business to maintain cost efficiency. This allows lower levels of spoilt raw
materials and enhances the quality as well as the feel of the final product. Also, it allows the company to maintain the
product quality in-house, and maintain consistency in the raw material.

4.1.2.3. Efficient use of economies of scale in production

The company’s effective and efficient use of resources has allowed it to maintain economies of scale. The company
uses economies of scale as a rare resource available to maintain costs, enhance production, and increase sales – all
the while maintaining a high focus on premium quality and consistency of taste.

4.1.2.4. The uniqueness of product portfolio

The company has a unique and diversified portfolio. This has allowed it to penetrate different consumer groups. And
maintain income from different streams. Into urn, that gives a strong financial cushioning to the business.

4.1.3. Inimitable

4.1.3.1. Human resource management

The company has taken part in exemplified human resource management in all its function – from recruitment to training
of talent management. This has allowed the company to develop an inimitable resource that is aligned with the
organizational goals, and mission, and which is synonymous to the organization itself.

4.1.3.2. R&d - new product development

The company’s continued investment in r&d allows it to generate ideas for new products, as well as test these new
products in limited market settings. This allows the company to assess the viability of new ideas, as well as generate
feedback for improvement where needed. This is an inimitable resource for the company because it has become part of
the company’s system and culture.
4.1.3.3. Innovation
The innovation at UBS is an inimitable resource that allows the company to stay ahead of the competition as well as
maintain high leadership in the industry by having the first mover advantage in its product portfolio continuously.

4.1.3.4. Organizational culture

The organizational culture at UBS is supportive and innovative. Employees share information freely. The organizational
hierarchy is flatter, which makes leadership and follower relation smooth and easy. This organizational culture and its
aspects cannot be imitated by competition.

4.1.3.5. Cost control

The company has employed progressive means of controlling costs and maintaining economies of scale. In this way,
prices of the products are maintained and controlled, and very few cost increases are passed to the consumers. This
allows the product to be easily affordable by the company’s target audience.

4.1.4. Non-substitutable

4.1.4.1. Brand recognition

The brand value and brand recognition enjoyed by UBS is a non-substitutable resource. The high brand recognition
across different consumer group’s in different countries allows the brand to enjoy high consumer ship, high sales, and a
unique bond with the consumers. This cannot be imitated at all by the competition as the brand recognition and
resonance has been built over the years through hard work and quality deliverance.

4.1.4.2. Brand equity

The UBS enjoys high brand equity. This has been developed through the different stages presented by Keller in his
model for brand equity. The high brand equity also reflects a high emotional appeal that UBS has for the consumers.

4.1.4.3. Emotional affiliation with consumers

This means that the brand fulfils not only functional but also emotional and psychological needs of the consumers.
Again, this is an inimitable resource which the company has developed because of its honest and trusted relationship
with the clients over some time.

4.2. VRIO ANALYSIS

4.2.1. Strong global presence

4.2.1.1. Valuable
Having a strong worldwide presence is significantly valuable for an organization attempting to expand its size, deals,
and piece of the overall industry. It is a competitive and sustainable method to acquire incomes from new and existing
buyers.

4.2.1.2. Rare
UBS is one of the greatest company all inclusive. Even though there are other worldwide and international chains of
competing companies, UBS has made a distinct name for its quality and offers.
4.2.1.3. Non-substitutable
For the time being, no competition of UBS could match such an enormous international presence in terms of quality and
consistency. It would require critical investment and assets to achieve this.

4.2.1.4. Organized to exploit

UBS is effectively exploiting this capacity.

4.2.2. Claim to premium products

4.2.2.1. Valuable
UBS offers numerous exceptional and fulfilling products that different contenders don't offer all the time. UBS
additionally incorporates information and detailed ingredients for its products to interest an assortment of clients.

4.2.2.2. Rare
Other competition also offers different products that are offered by UBS, which means that it is not a rare resource for
the company. This is because other players also have access to similar products and portfolios.

4.2.2.3. Inimitable
Considering other businesses and players are now using this capacity as a means of expansion and penetration, it can,
therefore, be imitated.

4.2.2.4. Organized out to exploit

By offering an assortment of choices and ceaselessly changing the portfolio through active innovation and new product
development, UBS is exploiting this resource. With plenty of alternatives, the vast majority can discover something they
like, and individuals who like to attempt new products and services every now and again can undoubtedly do as such
with UBS.

4.2.3. Upscale brand name

4.2.3.1. Valuable
The UBS brand name enables clients to enjoy and feel a bond of association with the brand. This allows consumers to
feel emotionally attached with the brand, and experience it as an extension of themselves as well. As such, this
becomes a valuable asset for the company.

4.2.3.2. Rare
UBS is a contemporary brand name that has a premium touch to it and is upscale, modern and lively. Most other
companies and competing brands don't have the quality and packaging to urge clients to engage in a way they do with
UBS .

4.2.3.3. Non-substitutable
It would be generally simple for other companies to revamp their packaging and duplicate the plan of action of UBS. In
this way, the upscale and comfortable promise of the offering by UBS could be imitated.
 4.2.3.4. Organized out to exploit
UBS is effectively using this resource and enhancing the brand and the brand promise that numerous clients altogether
appreciate. The organization is exploiting the stylish way of life that is right now present in numerous urban communities
where the brand’s products are widely appreciated and consumed.

4.3. Porter’s value chain

4.3.1. UBS: drawing value from VRIN/VRIO

 The core competencies and strengths of UBS are organizational sources and capacities that enable the
business to flourish regardless of substantial challenge and strategic difficulties in local and international markets.
 As the VRIO/VRIN analysis have shown and highlighted, the important core abilities depend on intellectual
properties and related propriety data or related technological structures.
 Different resources and abilities appeared in the VRIN/VRIO analysis and review that are non-core, and non-
central skills but that help the business and its value chain.
 UBS ’s core abilities are strong yet restricted.
 In the resource based view, this constraint presents key difficulties, as the organization wards off competing
players from local and international markets.
 The core capabilities in the VRIN/VRIO analysis assume critical jobs in UBS ’s value chain. Considering the
resource based view and Michael E. Doorman's value chain conceptualization, UBS ’s value chain gives reasonable
and tasteful products to target buyers.
 The accompanying outline shows the value chain for UBS and its situation in the bigger value arrangement of
the industry:

Error! Filename not specified. Figure 3 Value chain for UBS

4.3.2. Value framework

UBS ’s value chain is a segment of the business' value framework. The value framework is made out of different other
value chains of the speciality units of all associations included, for example, the organization's producers and the
remainder of the inventory network. In the value chain representation, UBS works directly, as well as through contracted
third parties.

4.3.3. Example from value framework for UBS

 The organization has an internal transportation system of vehicles for making deliveries to other companies that
are in business with stocking and serving UBS products – in the local markets.
 In this value chain and value framework, UBS ’s competitive advantage and abilities are distinguished through
the VRIO/VRIN assessment are huge in how the organization's procedures offer some incentive and advantage to the
consumers.

4.3.4. Value chain activities

Brief details of UBS ’s value chain are discussed in the next section:

4.3.4.1. Primary activities

4.3.4.1.1. Inbound logistics

The inbound logistics for UBS refers to producers in different designated and appointed locations by the company. Also,
it also refers to selecting the finest quality raw materials from in-house production as well as from third-party contractors.
These are transported to the storage sites after which the raw materials are used for producing different products by the
company.
4.3.4.1.2. Operations
UBS operates internationally directly or indirectly. The company has owned offshore shops, as well as stocks its
products with other shops across different countries.

4.3.4.1.3. Outbound logistics

The company has contracted agents in offshore countries and sites to manage product selling. However, a majority of
the products are sold directly to licensed sellers and shops locally as well as internationally.

4.3.4.1.4. Marketing and sales

UBS produces and invests in high quality and premium products. It also invests in a high level of customer servicing and
marketing. All its marketing activities, however, are based on strong market research and market data.

4.3.4.1.5. Service
UBS invests in customer service to develop customer loyalty and build strong relations with its clients. The company
invests in gaining and incorporating customer feedback and in solving customer queries effectively.

4.3.4.2. Support activities

4.3.4.2.1. Infrastructure
This includes different departments like management, finance, legal, etc. which are required to keep the company’s
business running.

4.3.4.2.2. Human resource management

The company’s committed and trained workforce is considered to be a valuable and an inimitable resource that has
played a vital role in the success and growth of UBS the employees of the company are motivated, professional, trained,
and work alongside the company’s mission and goals.

4.3.4.2.3. Technology development

UBS has been commended and celebrated for the use of effective technology not only production but also to make the
overall system of production and sale, as well as in house production more effective and efficient. Also, the company
also uses technology to communicate and connect with its consumers effectively.

4.3.4.2.4. Procurement
This involves purchasing the raw material for the final product. The company has appointed agents that work for the
company in different countries and regions to purchase consistently high quality raw material so that the company can
produce the finest product qualities for delivering to the consumers.

4.3.4.2.5. Bottom line

The concept of the value chain for UBS helps in understanding how value is added in each process and stage of the
value chain. It also helps to understand and separate useful activities from those that are not useful as such. This
improves the overall bottom-line of the company and increases the profit margins for the company as well.
 4.3.4.3. Virtual chain

4.3.4.3.1. Customer-centrism

 Renewed and enhanced way of engaging with consumers.

 Installation of sophisticated consumer data management systems.
 Made use of artificial intelligence to enhance the value chain.

4.3.4.3.2. Improved technological use

 Installed progressive technology for primary and support activities.

 The overall purpose is to provide a better experience to consumers.
 Allows the company to predict future market conditions, and prepare strategic contingencies accordingly.
 Allows understanding of consumer behaviour and market movements.

4.3.4.4. Generic strategies

 Managed to establish core competitive strategy in the market.

 Competes in the premium sector.
 Does not engage in competition with other cost groups.
 Worked towards improving the service of premium target groups.
 Consumers understand and perceive the brand as a high quality and premium.
 The brand is appreciated for its focused strategy and standing.
 The brand is appreciated and engaged in for its offerings.

5. INTERNAL ENVIRONMENT ANALYSIS

5.1. Porter’s Strategic Options
 Leading organizations such as UBS have obtained sustainable competitive advantage and have had the option
to achieve the strategic position.
 There can be different sources of sustainable competitive advantage for UBS. A firm can depend on innovation
to decrease its overall production costs and would then be able to pass this advantage on to its clients.
 UBS can also concentrate on making a differentiated item or administration to increase its overall share of the
pie.
 UBS can generate considerable sustainable competitive advantage utilizing these systems. This is done through
means of traditional as well as modern procedures embraced by UBS to competitive advantage hand and increase its
share of the pie.

5.1.1. Differentiation strategy

5.1.1.1. Organizational Leadership

UBS has made use of the differentiation factor to maintain higher leadership and differentiation from industry
competition. Differentiation of effective leadership may be achieved through different forms and basis.

5.1.1.2. Broad product portfolio

5.1.1.2.1. Product Quality

 Moreover, this differentiation can fluctuate from item to item, market to market and industry to industry. Generally, the
essential bases of differentiation are quality, durability, usefulness and in a few consumer loyalty, and brand image. UBS
has differentiated its items and products dependent on the quality and set a completely different, and engaging
consumer experience. Brand image

5.1.1.2.2. Brand Image

Aside from these things, it has developed a distinct and distinguished brand image which is additionally a premise of
differentiation and encourages UBS to advertise, promote and market its products and brand better than the competing
players in the local and international markets.

5.1.2. Focus strategy

5.1.2.1. Overall Quality of product and service

The essential premise of differentiation for UBS is quality and premium taste. It serves just premium quality products,
which enables it to charge a top notch and a premium cost. It has embraced the most astounding measures as far as
the nature of its raw materials used for producing its products. At each progression, UBS puts forth an admirable
attempt to guarantee that its product fulfils the most noteworthy quality guidelines.

5.1.2.2. Value addition at each step of the value chain

However, the account of value does not finish at getting incredible quality of raw materials. It goes more remote from
that point. A great deal of contrast originates from the readiness. UBS prepares its product diligently to draw out the
quality.

5.1.2.3. Human resource management

Rest of the credit goes to the human resource and employees at UBS. The brand carefully picks its raw materials - just
when they in ideal condition. Products are tested from each cluster in any event thrice before endorsement. This is how
UBS makes the quality that each client looks forward to, and is excited about.

5.1.3. Leadership and differentiation through cost

Porter’s traditional methodologies are methods for increasing and developing a sustainable competitive advantage for
UBS - as it was, building up the "edge" that will get the company the ideal position and differentiates it from the industry
rivals. There are two primary methods for accomplishing this inside a cost leadership methodology:

 Increasing profits by decreasing expenses, while charging industry-average prices and costs from consumers
 Increasing share of the overall industry by charging lower costs, while at the same time making a sensible profit
on every trade since UBS has controlled and reduced expenses.

The cost-based strategy and system are that – it includes UBS being the pioneer regarding cost in the industry and
market where it operates. Just being among the most minimal cost producers isn't adequate, as the company leaves
itself wide open to aggressive attacks by other producers and players in the industry. These players may undermine
UBS ’s costs and in this way hinder the company’s endeavours towards the expansion of its share of the overall market
pie.

5.1.3.1. Achieving cost differentiation

Based on this, UBS should be sure that it can accomplish and keep up the leading position before deciding on choosing
the cost leadership strategy. UBS will be able to become effective in accomplishing cost differentiation by having:

 Access to the capital expected to put resources into innovation that will cut expenses down.
 Very proficient coordination’s.
 A minimal effort base (work, materials, offices), and a method for economically cutting expenses beneath those
of different competing players.

5.1.3.2. Achieving cost leadership

However, UBS should ensure contingency for imitation by competition, as well as be prepared for competing payers to
imitate its cost-effectiveness strategy to decrease and control their costs, and increase the overall share of the pie for
their products as well. It is therefore important that UBS does not only settle for one means of cost leadership but
continually improves. This can be done through several different methods:

 Engaging and applying the Japanese technique of kaizen

 High efficiency
 High limit use
 Use of dealing capacity to arrange the least costs for generation inputs
 Lean production techniques (for example JIT)
 Effective creation process
 Effective dissemination channels

5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation

 Cost differentiation and leadership strategy for UBS will be based on the nitty-gritty.
 Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and in this manner will
help the company of UBS to reserve funds.
 Cost leadership strategy requirements regularly identify with high specialized abilities and access to capital
 The company should also resource into innovation and guarantee economies of scale.

5.2. SWOT Analysis

 UBS maintains its competitiveness as one of the best and the most premium locally and internationally through
inventive systems that use business strengths in overcoming the weaknesses present in the business inherently.
 Also, they make use of these internal strengths and weaknesses to make use of opportunities and ward off
potential threats, for example, the dangers in the business condition and market.
 These factors can be distinguished, assessed, and analysed through the strategic SWOT tool.
 The SWOT analysis and review for UBS talk about the strengths and weaknesses (internal core strategic
components) intrinsic in tasks in the business, and for the UBS organization.
 The assessment and analysis of SWOT likewise look at the opportunities and threats (external key variables)
identified with the nature of competitiveness in the market and industry, which is mostly founded based on the level and
intensity of competition and rivalry – as may be gauged through Porter's Five Forces analysis of UBS.

5.2.1. The need for SWOT because of expanded operations of UBS

 UBS is present and operational in different markets, and each of the markets poses unique yet various
difficulties in developing the business.
 UBS and its portfolio in these many markets have expanded over time and as the organization grows, more
items are added to its portfolio in addition to its pioneer product.
 With regards to the SWOT analysis model, these circumstances of multiple operations and multiple presences in
various markets make a difficult business situation where the organization needs to utilize various arrangements of
skills that match different markets.
 Core elements of different nature – both internal and external to the organization, can help increment UBS ’s
accomplishment in contending with different companies and other businesses – both locally and internationally.
 The SWOT analysis for UBS is presented below:
 5.2.2. UBS Strengths (Internal Strategic Factors)
This section of the SWOT analysis model works with the inner variables that the organization can use as competencies
and strengths to address shortcomings and ensure the business against rivalry. For this situation, UBS ‘primary qualities
are:

5.2.2.1. Strong brand image

 UBS is one of the world's most premium, well known and most famous brands.
 The organization has a developing populace of steadfast clients, which adds to the soundness of the business.

5.2.2.2. International distribution network

 In the SWOT analysis model, the global distribution network through directly owned subsidiaries, or contracts
with third-party agents further strengths UBS by supporting activities.
 For instance, the organization has a worldwide system of providers that are deliberately chosen dependent on
criteria relating to quality, for example, of raw materials as has been discussed in the value chain - primary and
supporting activities.

5.2.2.3. Strong investment in research and development, and high focus on innovation

 The focus on innovation not only keeps the company apart but also facilitates its industry leadership.
 The internal core strengths and competent variables recognized in this section of the SWOT analysis of UBS
demonstrates that the business has qualities that advance strength through expansion and a worldwide production
network.

5.2.2.4. Focus on market research

 Additionally, the organization steadily expands its business

 This is done through contracts with offshore agents and licenses. Also, the company continues to broaden its
portfolio by adding new products based on market research and consumer data.

5.2.3. UBS Weaknesses (Internal Strategic Factors)

Business weaknesses or shortcomings are recognized in this part of the SWOT analysis. Shortcomings are inward
factors that diminish or cut off business capabilities and strengths. UBS shortcomings are as per the following:

5.2.3.1. Premium prices for most portfolio products

 UBS has a premium brand image attached, and thus all its products in the portfolio are priced highly
 This expands overall revenues yet decrease the affordability of its items.
 This internal key factor is a shortcoming since it confines the organization's share of the overall industry,
particularly in territories with generally lower disposable earnings

5.2.3.2. Standard and benchmarked regulations and business procedures for all portfolio items

5.2.3.2.1. Generalization

 Likewise, this SWOT analysis highlights that generalized standards for all portfolio products may be a weakness
because it restrains the adaptability of these products and items in the business.
 5.2.3.2.2. Imitability

 What's more, numerous UBS items are imitable.

 Several items in the portfolio have been imitated by completion, and are also being provided by them at different
price points.
 Though the quality is unique to UBS, the competing players have also developed close enough, and acceptable
products.
 This business condition engages competition, as has been highlighted already.

5.2.3.3. Fighting the challenge of imitation

 The internal factors in this section of the SWOT analysis of UBS demonstrate that the business must create
qualities to diminish the unfavourable impacts of impersonation and the impact of high value focuses on the
organization's share of the overall industry in the international and local business.

5.2.4. Opportunities for UBS(External Strategic Factors)

This section of the SWOT analysis and strategic model focuses on external components that opportunities for business
development and advancement. For this situation, the key opportunities accessible to UBS are:

5.2.4.1. Green business products

 With an increased focus and awareness of health and wellness lifestyles by consumers, it is important that UBS
recognizes this as a viable business opportunity.
 Increased numbers of consumers are shifting to the green lifestyle of consuming environmentally friendly and
organic products.
 UBS should focus on the expansion of the product portfolio: inclusion of green products and environmentally
sustainable services are suggested.

5.2.4.2. Expansion in emerging markets

 UBS can expand its income streams through expansion and developing presence in emerging markets – such
as Brazil, China and India.
 This opportunity draws consideration far from the U.S. region, where the majority of the organization's incomes
are created.

5.2.4.3. Business enhancement

 Likewise noteworthy in this SWOT analysis of opportunities is the opportunity of business enhancement and
further business development.
 This can help improve the long term position of UBS.
 For instance, through higher diversification of the portfolio and the overall business, the UBS organization can
diminish its reliance on its present enterprises, and along these lines work towards improving its general income
development.

5.2.4.4. Partnerships with different firms

5.2.4.4.1. Diversification through Partnerships

 Diversification is right now a minor strategy as can be observed from UBS ’s competitive strategy and its overall
directive strategy as well.
 The business environments likewise display the chance to enhance the organization's competencies and
strengths
 This will also increase its share of the overall industry through the association’s s with different firms. For
example, a partnership with real retailers improves dispersion.

5.2.4.4.2. Development of corporate clientele

 The company can also formulate new B2B relations and contracts with other companies and corporate entities.
 The external key factors in this section of the SWOT analysis demonstrate that UBS can improve its industry
position by building up its activities to make use of the opportunities in the international business markets.

5.2.5. Threats facing UBS(External Strategic Factors)

Threats against the UBS business are distinguished in this piece of the SWOT analysis. Threats are external
components that decrease or breaking point of business execution. In this case of UBS, the following section looks at,
and assesses threats that apply to the organization in question:

5.2.5.1. Price wars by competition

 UBS competes with a wide assortment of firms in the local as well as the international market.
 For instance, the organization competes against significant premium companies as well as against cheaper
companies that offer cheap priced items and products.
 This external but important factor in the SWOT assessment undermines UBS because such competing players
can lessen the organization's share of the overall industry by competing based on low prices and overall low costs of
production.

5.2.5.2. Increased competition

 Additionally, this SWOT assessment also analyses increased competition as a noteworthy threat against the
business.
 In light of the organization's shortcomings, the risk of imitation includes firms that attempt to duplicate the taste,
look and feel of UBS items.
 Saturated market place and industry can also lower sales of the organization and shrink its share of the overall
pie
 Increased competition can also lead to the increased cost of doing business for the organization if they bring
innovative processes, and implement novice systems to control costs

5.2.5.3. Independent players

 The industry environment and profitability are liable to invite independent developments, and small-scale
players.
 These players may not have high levels of integration and may be retailers and marketers for items produced
during backward integration.
 Strategic marketing techniques and promotional communications are expected to neutralize the impacts of these
patterns.
 This section of the SWOT analysis of UBSrecognizes external key factors that force difficulties to international
expansion and growth of the company as well as highlight market infiltration.

5.3. TOWS Matrix

TOWS analysis will allow UBS to identify and understand the strategic choices and future strategic options and
directions available to the company. The TOWS matrix and analysis will help UBS to look at various possible future and
long term situations, and ill force UBS to look at these options by questioning strategic directives such as:
 How will UBS make the most of its strengths and core competencies?
 How will UBS Circumvent its weaknesses and shortcomings?
 How will UBS capitalize on the various opportunities present in the business environment?
 How will UBS ward off, and manage the threats that are present in the external business environment?

The analysis of the SWOT and the subsequent assessment and development of the TOWS matrix will allow the UBS to
be able to identify the following answers:

 Strengths and Opportunities (SO) – How would UBS be able to utilize on its strengths to exploit the
opportunities?
 Strengths and Threats (ST) – How would UBS be able to exploit its strengths and core competencies to keep
away from genuine and potential threats?
 Weaknesses and Opportunities (WO) – How would UBS be able to capitalize on its opportunities to overcome
the weaknesses that UBS is encountering?
 Weaknesses and Threats (WT) – How would UBS be able to limit its weaknesses and evade threats?

5.3.1. TWOS matrix visual presentation

Table 1 TWOS matrix for UBS

Strengths Weakness
TWOS Matrix
 Leading premium company that  Major dependence on the market
operates internationally as the country of origin market
 Leading presence across  Despite being in operation for
countries decades, has standard procedures and
 Reasonable control over regulations for all portfolio items
production and distribution due to  Imitability possible by
backward and forward integration competition

Opportunities SO strategies WO Strategies

 New South Asian and Asia 
Pacific regions available for
expansion – emerging markets
 Acquisition of medium-sized
similar companies and shops in
developing countries
Expanding into Asia Pacific 
region and stabilizing emerging
markets by opening new stores and
developing new products
Increasing more stores outside
the country of origin, and in other
parts of the world – especially
emerging markets such as India,
China and Brazil

Threats ST strategies WT strategies

 Increased marketing from  Improving the ambience of  Increase budget for marketing
competing players, which might service, focusing on augmented communications, and strategic
affect sales negatively service levels when providing promotions and pursue a moderate
 An increasing number of products and adapting to local expansion strategy
independent producers and marketers culture.
 Increased and saturating
competition
 The TOWS Matrix is a moderately basic strategic tool used by UBS for producing key alternatives and
identifying key strategic alternatives that may be pursued by UBS.
 By utilizing it, UBS can take a look towards understanding that it can best exploit the opportunities present, while
at the same time also limit the effect of shortcomings and ensure itself against threats.

5.4. ANSOFF Matrix

 UBS has viably utilized this instrument to develop a procedure for accomplishing competitive advantage in the
industry and various markets it operates in.
 Recently, UBS has made use of the four strategies of Ansoff matric to maintain competitive advantage and
leadership position. These strategies are
 Market development
 Market penetration
 Product development
 Product penetration

The following section highlights the various strategies that may be used through the Ansoff matrix. These strategies
have been highlighted and identified through vigorous research methodologies, as well as through expert analyst data
and opinion.

5.4.1. Market development strategies

5.4.1.1. Advertising and promotion of products

 One of the most popular means of developing a market is to use marketing strategically.
 By making use of advertising and marketing communications, the company will be able to disseminate
information about its product, and the various benefits of consumption to its target market easily.
 Also, the use of social media for marketing will, at the same time allow the company to communicate directly
with the consumers, and answer their queries.

5.4.1.2. Education about product consumption.

 The company can make use of widespread marketing campaigns using traditional means as well as means of
social media to increase awareness of their product amongst the target market.
 This task of educating the markets will give the company a first-mover advantage, as well as develop important
functional appeals for the product.

5.4.2. Market penetration strategies

5.4.2.1. Geographical expansion

 The company can expand into other markets through its previous experience, as well as through partnerships
and contracts with other agents and parties.
 The company can also develop subsidiaries, as well as offer its products through franchising as well as
licensing.
 The geographical expansion is suggested into emerging economies because of the favourable income levels of
the consumers, as well as the growing infrastructure.

5.4.2.2. Increased number of retail outlets and retail presence

 The company can penetrate existing markets by offering more shops or making its product more widely
available.
 This may be done through increasing the accessibility of the product at places where the target consumers are
expected to purchase from, as well as improving the interaction of the product with consumers at different touchpoints.

5.4.2.3. Online retailing

 Another means of improving market penetration is through online retailing. UBS can stock its products on online
retailing sites locally and internationally.
 This would help the company improve sales, accessibility, as well as reach higher levels of target consumers. All
of this, in turn, would increase market penetration.
 Besides, it would also help the company maintain and control costs for UBS, and thereby help it achieve cost
leadership in the industry

5.4.3. Product development strategies

5.4.3.1. Research and development

 To be able to develop new products, the company should have a focused interest and budget sending allocated
to new product research and development.
 This research would take a basis in the consumer market and the overall market trends, to identify the gap in
consumer demands, and market availability of different products.
 The new product would then generally be aimed towards fulfilling this gap.

5.4.3.2. New product development labs

 The company should have dedicate incubation labs for the development of new products.
 This means that this development should be a focused and separate entity that should focus on the company’s
innovation.
 The company should also hire the right talent for business development and innovation to be able to achieve
targets and goals accordingly.

5.4.3.3. Market testing

 New products should follow PD cycles for testing before launching in a market.
 This will ensure that the company can fix any loopholes present in the product, as well as incorporate positive
feedback.

5.4.3.4. Strategic Marketing

 The company should also have a focused and strategic budget for marketing and communications allocated for
new product development.
 This is because the company will need to increase the appeal, as well as develop functional and emotional
appeals and characteristics of the new product.
 Communicate with the consumers to enhance sales as well as increase likeability and rate of consumption and
trial.

5.4.4. Product penetration strategies

5.4.4.1. Acquiring personally owned retail to strengthen its presence.

 One way of increasing product penetration is that the company directly manages and controls sales operation
through owned retail.
 This will give the campy leverage over communication, as well as product stocking and placement.

5.4.4.2. Diversification of portfolio

 The company can further expand its portfolio as a means of product penetration.
 The expansion of the portfolio will allow the company to reach a different and diverse target group, thereby
increasing the overall share of the pie for the company
 This will also increase UBS ’s products’ accessibility to different consumers.

5.5. SAF criteria

5.5.1. How UBS can strengthen its strategic position using SAf criteria

 When UBS is deciding upon a certain strategic direction for the future, it will face challenges.
 Choosing the right strategy at the right time can be a daunting task for managers.
 It is therefore important that managers look at the strategy from aspects of its value and viability.
 The principal thing the managers of UBS will have to do is settle on a foundation by which to evaluate the
different strategic alternatives.
 They will also need to choose a viable methodology is to assess the different strategies independently.
 Strategies can be evaluated and assessed using criteria of suitability, acceptability and feasibility (SAF).
 The following section weighs different strategies and possible future directives for UBS based on the SAF
criteria.

5.5.2. Creation of a menu for high-income groups

5.5.2.1. Suitability

5.5.2.1.1. New market development

 This strategy is suitable because it will allow UBS to develop new markets by tapping into new consumer
groups.
 At the same time, it will allow the company to penetrate higher into existing markets.
 Both these possibilities can be realized because UBS invests in consumer research and has a strong financial
standing.

5.5.2.2. Acceptability

5.5.2.2.1. Alignment with organizational goals

 The strategy is acceptable because it is in line with the company’s goals and mission.
 Also, it is also in line with the internal marketing and culture of the organization.

5.5.2.2.2. Financial risk

 As such, the strategy does not pose any risk – financially and otherwise and is also palatable for stakeholder
reactions.
 Lastly, the strategy promises to give high returns. Overall, the strategy appears to be highly acceptable.
 5.5.2.3. Feasibility

5.5.2.3.1. Market research and financial cushioning

 This strategy is highly feasible.

 This is because the company already operates along with this mission, and has high levels of market research
and information regarding high-income groups.
 This information could be utilized for creating a suitable menu for high-income groups.
 At the same time, the company also has the financial power to introduce premium menu items for the higher
class – to expand its menu accordingly.

5.5.3. Creation of a healthy menu for existing target consumer groups

5.5.3.1. Suitability

5.5.3.1.1. Diversification of product portfolio

 This strategy would require a high diversification of the product portfolio.

 This is suitable because the company has the resources and the information to make strategic decisions about
diversification.

5.5.3.1.2. Innovation

 Moreover, the company also innovates regularly, which can be an added benefit for the suitability of the
strategy.

5.5.3.2. Acceptability

5.5.3.2.1. Risk of financial investment

 This strategy appears to be moderately acceptable.

 This is because it poses a risk through diversification with high levels of finances invested, the company can
never be too sure of the consumer reactions.

5.5.3.2.2. Risk of new product development

 Therefore, the risk of new product development and consumer reaction would be there.
 Also, the acceptability is also low because of stakeholder reaction – who might not all agree with the expansion
of the portfolio horizontally – i.e. The broadening of the portfolio away from the core offerings.
 Lastly, if the strategy works, it promises high returns, which make sit low to moderately acceptable.


5.5.3.3. Feasibility

5.5.3.3.1. Market research and financial cushioning

 This strategy is also feasible for the company.

 This is because of the company’s strong financial position, as well as its ability to researching into different
market trends and patterns.
 The identification of these trends and patterns is important for being able to decide which market and industry to
diversify into for the company.

5.5.4. Increasing existing advertising expenditure

5.5.4.1. Suitability

5.5.4.1.1. Focused budgeting

 This strategy is suitable because the company has high and focused budgeting for marketing and
communications.
 This would also allow UBS to withdraw from failing markets or markets that have a weak share, and gain access
to rising markets.

5.5.4.1.2. Strategic marketing

 The company will be able to exploit its research and development for strategic marketing
 UBS will also make use of existing systems and products to reach new consumer groups through marketing.

5.5.4.2. Acceptability

5.5.4.2.1. Return on investment

 The strategy is acceptable because it poses a low risk in terms of investment in strategic marketing.
 Also, it promises high returns on investment in marketing through the promise of increased awareness,
increased penetration, increased brand recall and brand recognition – all of which will translate into higher sales.
 Lastly, stakeholders will also not frown upon this strategy, which makes it more acceptable to implement.

5.5.4.3. Feasibility

5.5.4.3.1. Market research and financial cushioning

 The strategy is highly feasible because the company has a strong financial standing.
 This means that the company can afford to increases budget for marketing purposes.
 However, for the stagey to be successful, it is important that the company aces sure that all promotional
campaigns developed are in sync with consumer needs, demands and behaviour.
 This is again possible for the company because of its investment in research and development.

6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for UBS, this section will offer recommendations which will help
the company take on strategic directions that will enhance its core competencies and capabilities, as well as reduce its
chances for risks and threats? The following recommendations are thus made for UBS:

6.1. Strengthen distribution network

6.1.1. Control
This is an important strategic recommendation as it will allow higher control to the company over its products in different
markets. The company will be able to control where its products are placed, and thereby, will also be able to enhance
the accessibility and easy availability of its products.

6.1.2. Stronger relation with consumers

At the same time, the strengthening of the distribution network will allow the company to work more closely with end
consumers by being able to reach them with the same high quality of products across different markets.

6.2. Develop unique marketing tactics

6.2.1. Higher penetration
This strategic recommendation will help the company reach a higher number of consumers and penetrate deeper into
target consumer groups. Also, this strategy will allow the company to increase trial and consumption and sales of its
products.

6.2.2. Forming a partnership with consumers

Unique marketing tactics will involve new and informed strategic means of communicating with the consumers and
engaging them with the brand. One way that this can be done is by making consumer co-producers for the brand.
Another way that UBScan do this is through co-branding with other similar, yet dissimilar brands and companies to enjoy
higher market visibility amongst target consumers.

6.3. Adapt to different cultural aspects of different markets

6.3.1. Identify different consumer group characteristics
Each market and target group has distinct characteristics. This recommendation is suggested so that the company can
connect better with different target groups in different markets.

6.3.2. Adapt to and respond to characteristics

By adapting to different cultural and regional characteristics, the company will be able to present itself better to target
consumers – who would then feel a greater affinity, and more likeliness of consuming the product and the service.

6.4. Expand into new regions

6.4.1. Market expansion
Another strategic recommendation for UBSis to expand into newer regions and markets. This can be done by expanding
into new markets, firstly. This expansion will give the company exposure to new consumer groups. Increase the overall
consumption rate, as well as diversify income streams. Also, it will give the company related expansion exposure
regionally as well as internationally.

6.4.2. Product diversification

Another means of expansion is through product diversification. By adding new products, the company will be Abe to
penetrate deeper into existing markets bye exploring new consumer groups, and new target consumer groups. This will
also diversify income streams for the company, and increase its overalls hare of the market.

6.5. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at different stages, the
company will be able to maintain competitive advantage, as well as put off new players from the industry by increasing
barriers to entry. This will allow the company to maintain sustainable competitiveness over other players, as well as
maintain a possible leadership position in the local and international markets and industry.

7. References
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Haron, A., 2016. Standardized Versus Localized Strategy: The Role of Cultural Patterns in Society on Consumption and
Market Research. Journal of Accounting and Marketing, 5(1).
Hartline, M. & Ferrell, O., 2006. Marketing Strategy. Boston:MA: Cengage Learning.
Keller, L., 2006. Strategic Brand Management Process, in Perspective of Modern Brand management. s.l.:s.n.
Kotler, P., 1997. Marketing management: Analysis, planning, implementation and control. New Jersey: Prentice-Hall.
Kotler, P., 211. Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75(4), pp. 132-
135.
Kotler, P., Armstrong, G., Adam, S. & Denize, S., 2014. Principles of Marketing. Melbourne: Pearson, Australia.
Kotler, P. & Keller, K., 2009. Marketing Management. New Jersey: Prentice Hall.
Lehman, D. & Winer, R., 2005. Product Management. New Delhi: McGraw-Hill Education.
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Schivinski , B. & Dabrowski , D., 214. The Effect of Social Media Communication on Consumer Perceptions of Brands.
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Thompson, J. & Martin, F., 2010. Strategic Management: Awareness & Change. Hampshire: Cengage Learning EMEA.
Weng, X., 2002. Local Brand Strategy. Hangzhou: Zhejiang People’s Publishing House.
Wirtz, J., 2016. Winning in Service Markets: Success through People, Technology and Strategy. Singapore: World
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Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with
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