JCB's mission statement should be explained clearly.

Answer:

JCB, the brand name for J.C. Bamford Excavators Limited, is a well-known British
multinational. In addition to construction equipment, this major company also produces waste
management, demolition, and agricultural equipment. According to current sources, this
organization is the biggest construction firm in the world. JCB's worldwide market position
shows the corporation's presence around the globe, and the company has plans to grow its
operations even further. When it comes to JCB's company, it is clear that China is the most
promising location for expansion and hence China is their primary target market. It is thus
important to concentrate on developing a business strategy that will allow the organization to
extend its commercial presence. Therefore, a solid business strategy aims to create that would
assist the corporation achieve a considerable rise in sales and profit. According to JCB's
current market conditions, the business strategy is based on data on market size and growth,
consumer demands, perception, and purchasing behavior.

JCB's Mission

In order to develop their company in China, JCB's current goals include reducing costs and
making big profits.

Aim: •JCB wants to generate an equitable and fair profit in the B2B and B2C marketing
service industries. Achieving this goal may be done via a combination of market penetration
and product development depending on client demand.

By offering the best customer service possible, this worldwide organization aims to become a
leading manufacturer in its target market.

•Sir Anthony Bamford has led JCB from a single plant operation in Staffordshire with a
substantial turnover of £43 million to a worldwide enterprise. More than 10,000 employees
work at 22 facilities throughout the globe, producing more than 300 distinct goods. There are
many prospective clients in rural India, and JCB's main goal is to get closer to them
(Barringer 2012).

JCB's location

Globalization has had a significant influence on the company's organizational standing in

today's competitive environment. JCB may be found in every corner of the earth, as this is
one of the top three construction equipment manufacturers in the world. More than 12,000
employees work for the corporation across four continents, and it distributes its goods in 150
countries via 2000 dealer depots. North America, Latin America, Africa, the Middle East,
Europe, India, Asia, Oceania, Scandinavia, Russia, and the Commonwealth of Independent
States may all be seen on the global map shown below. In all these sites, consumers may
purchase agricultural, construction and industrial equipment, as well as generators and other
utility items such as vibromax. Aside from that, JCB's websites provide quick access to
location-specific information on their locations (Beamish 2013).

Localization strategy has been the driving force behind the company's development of
strategies based on the needs of the local market. In this aspect, JCB has been identified to
provide the most beneficial items in the relevant countries. That's not all; the organization has
also implemented a wide range of aggressive worldwide business tactics. Several
investigations have shown that the corporation is now focusing on building a large
construction center in India. JCB is the primary supplier of earth-moving equipment in India.
The careful market entrance strategy used by JCB to build its worldwide operations is well-
known in this area.

JCB's current line of goods

Focusing on JCB, we can see that it is a major company that sells a variety of items to
students, all of which have been discussed in this article. As a result of this, they ran their
company by concentrating on engine technology and compaction equipment as well as diesel
generators, hydraulic excavators and Industrial Forklifts. The majority of the company's
income comes from selling these goods. " Backhoe loader, tracked excavators, wheeled
loads, skid steer loaders, super loaders, generators, and tele-handlers are just a few of the new
equipment that the firm has lately introduced to the market (jcb.co.uk 2016). Accordingly, it
can be said that the firm has been working hard to increase its market share, and as such, they
are concentrating their efforts on developing new machine models that meet consumer
demand. A number of the company's most popular models, including site dumpers, skid steer
loaders, telescopic handlers, and telescopic wheel loaders, have undergone certain alterations
in order to get a larger portion of the market (Cronin-Gilmore 2012).

JCB's current approach

JCB had a great year in 2007, as seen by the company's market position, which shows that it
sold more than 70,000 machines to boost its year-over-year sales by 30%. This was a growth
rate that was 18% higher than the current rate. However, it can be said that the company's
strategy of expanding its operations in new areas throughout the world was a huge success.
To do this, they have shifted their attention away from developing their dealer network and
into diversifying their product line (Wilson and Gilligan 2012). In addition, the organization
has made an effort to improve and expand the service it provides to its clients. According to
the company's financial report, the developing market might be a big source of revenue in
2007. Emerging markets including Bulgaria, Romania, Russia, Brazil, and Canada welcomed
JCM with open arms. As a result, the firm is confident enough in its market entrance
technique and marketing tactics to enter the China market.

Strategy for the future

The firm has discovered that certain areas of the market may experience a downturn, which
might have a negative impact on the company's total growth. This predicament has shifted the
company's focus to China, where the potential for growth is enormous. A 17 percent drop in
JCB's market situation may be attributed to the economic slump in North America. Economic
downturns not just in North America but in Europe also imposed pressure on a corporation
whose construction was primarily related to the housing industry, according to market
conditions. Because of this, JCB will continue to pursue a worldwide standardization
approach as its current business model (Jcbexplore.com 2016).

This UK-based construction company and premier JCB maker has also designed an
aggressive India marketing strategy with the correct emphasis on accessing the vat rural
market in order to expand its business in India. According to this, the company would be able
to meet all of its needs despite declining sales and an overall sluggish economy. JCB now has
more than 400 locations in India, and most of these locations are located in metropolitan and
semi-urban regions. However, even if the industry remains stagnant, the business forecasts
that its new marketing approach would generate 15% initial growth and more than 15%
growth in the following year (Killing 2012).

Locating JCB's new and potential customers

For manufacturing companies, having a local presence is essential, and it can be said that the
company is genuinely worldwide. Based on current market conditions, they must work with
local Chinese firms like Liugong, Zoomlion, and XCMG to integrate and cooperate. Kotler et
al. (2015) claim that joint ventures are the most effective means of fostering worldwide
corporate expansion. As a result, it can be concluded that JCB's most promising entrance
point into the Chinese market is China. The rural market in India is one of the most
promising, and JCB has the ability to enter this market effectively and obtain a sizable market
share in the process. It's safe to say that the company's first year on the market will be
difficult, as it must master new skills and do a thorough market study. At the beginning of
entering the Chinese market, the corporation must depend on joint ventures as a valuable
technique of speeding up development into the new market (Morgan, Katsikeas and Vorhies
2012).

According to Barringer (2012), it makes perfect sense for a business partnership to succeed if
both parties have a clear and unifying vision for a specific business opportunity. JCB's most
cost-effective choice is to form a joint venture in China. As a result, JCB in India must grow
almost proportionally in order to reach the interior regions. The corporation also has to
produce new items in order to achieve a considerable market share. Tractors are in great
demand in rural areas, so it's important to bear this in mind. In contrast to employing a tractor
and attachments to do the same activity, this is an environmentally friendly, low-cost
alternative for modest dirt moving jobs (Morgan, Katsikeas and Vorhies 2012).

Approach to the market

According to Sun and Lee (2013), small and large enterprises alike may profit from joint
ventures, since there are several advantages to doing so. JCB must work with Liugong,
Zoomlion, or XCMG at the beginning of the process. If you want to do business with any of
these well-known Chinese companies, you'll need JCB. JCB would gain access to new
markets and distribution networks, as well as improved capabilities, as a result of the joint
venture. It would also allow JCB to share the risks and expenses with a corporate partner, as
well as get access to additional resources, such as employees, technology, and money, via
joint venture. In addition to entering China's market, the corporation must concentrate on
localization method while entering rural India's markets. Terpstra, Foley, and Sarathy (2012),
on the other hand, believe that a firm's established distribution channel may be used by
another company to sell items. When entering a foreign market, a firm may lack market
expertise, human resources, technology, and access to a specific market. In this situation, a
joint venture would be beneficial. As previously said, the corporation must cut its costs, and
entering into a joint venture is an excellent method to do it. The company's productivity and
total costs would both benefit from this. Joint ventures, on the other hand, would help the
business cut down on duplication. In other words, joint venture would be JCB's method of
entering the market (Wilson and Gilligan 2012).
Analysis of JCB's strengths, weaknesses, opportunities, and threats

Strengths

JCB has a strong brand name and an excellent reputation among its clients, which is their
greatest strength. Access to high-quality natural resources is a major advantage. They have a
better distribution network than their competitors. Construction equipment firm JCB employs
more than 10,000 workers across four continents, making it one of the world's leading
manufacturers (McKee et al. 2016). They distribute their goods in 150 countries through
1,500 dealer depots. More than 300 distinct kinds of machines may be produced by JCB
(Jcb.com 2016). It is impossible for any other company in the business to compete with their
methods of providing customer care.

Weaknesses

JCB's major vulnerability is that they are unable to secure its intellectual property. As a result
of its ability to produce more than 300 kinds of equipment, the manufacturing unit's cost
structure is extraordinarily expensive (Rapalis et al. 2016).

Opportunity

JCB has a great opportunity to grow their business because new technologies are being
introduced almost daily. The majority of nations where JCB works are reducing trade
barriers, which is good news for consumers. Customer service at JCB is renowned for its
excellence. Some customers were disappointed because of a lack of response from the
business (DeFreitas et al. 2013). Because of this, the company has the chance to improve its
customer service in the near future.

Threat

According to Bolz et al. (2014), customers are losing interest in company goods, which is a
major problem for companies like JCB. In addition, a slew of cheaper alternatives have hit
the market. Global corporations may potentially encounter difficulties as a result of changes
to national legislation.

JCB and Caterpillar vs. Komatsu in a Product Comparison

More than 150 nations across the world presently use JCB products. More than 300
equipment are available, including JCB's backhoe loader, which is the company's most
popular product for its flexibility (Jcb.com 2016).

Caterpillar

Caterpillar equipment is widely employed in European agriculture. In addition, a number of

nations use them as military gun tractors. Tank development in the United Kingdom was
spurred on by Caterpillar's Holt engine, which is a well-known Caterpillar product. As of
right now, the corporation sells more than 400 different items in more than 200 different
nations throughout the globe. Caterpillar's revenues were US$57 billion in 2011. (Mazumdar
2012).

Komatsu

The corporation was formed in 1917 in the city of Komatsu, which is situated in Ishikawa
prefecture. There are 182 firms in all, including 146 subsidiaries, that make up the Komatsu
Group, which includes Komatsu Ltd. Manufacturer of construction and mining equipment, it
ranks 2nd globally in terms of market share (Mazumdar 2012). However, Komatsu has a
larger market share in Japan and China than Caterpillar. D575 is the world's biggest bulldozer
manufactured by the company.

JCB's plans for the future

JCB intends to use a more aggressive marketing approach in India in the near future. Rural
markets will be their primary emphasis. After executing this marketing plan, the
organization's higher-ups anticipate to see an increase in revenues. JCB plans to extend its
footprint in tier 3 cities and villages by creating new stores and hiring new dealers as part of a
Bharat strategy. JCB expects a 15% increase in growth from the Bharat strategy, according to
the company's management.

The process of reducing costs and increasing profitability

In today's business environment, every company is seeking for ways to cut costs and increase
profits. A focus on reducing costs allows businesses to better use their resources, which in
turn allows them to raise revenue. When it comes to cutting costs and increasing revenues,
JCB implements a variety of strategies in this aspect. Below, we'll go through each of these
steps:

Sourcing from all across the world:

Access to foreign expertise, technology, and commercial prospects may be significantly

reduced via the usage of Global Sourcing. The organization has the ability to produce a wide
range of equipment at a reasonable cost. Furthermore, the organization has the ability to draw
on resources and expertise from throughout the world. This method will help to cut the costs
of both supply and wages (Steven et al. 2014). Another amazing feature of global sourcing is
the availability of a supplier who can serve as a substitute. Global sourcing is the most
appealing method in the modern corporate environment because of the lower cost of the
supply chain management system. JCB's worldwide sourcing base is India's urban and semi-
urban markets, according to the company. This successful Indian construction company
wants to expand into the rural Indian market.

Increasing the level of certainty:

JCB's business methods may be made more affordable with the use of market forecast.
Customer preferences and buying trends may be accurately predicted by business market
forecasting (Sarkar and Moon 2014). To avoid wasting time and money on items that aren't
popular, the firm concentrates primarily on a cost-effective production procedure. Customer
awareness of environmental issues such as pollution and depletion of natural resources, for
example, is strong in today's global marketplace. As a result, they are always on the prowl for
new ways to fuel their operations. This is why JCB has focused on producing an innovative
new generator called "Inteli-Hybrid," which has a number of amazing eco-friendly features
(jcb.co.uk 2016).

Reduce redundancy:

To minimize duplication in manufacturing or other company activity, modern-day business

organizations are primarily concerned. Duplication wastes a great deal of time and money
since every single activity has to be done twice. In today's competitive business environment,
duplication is a growing challenge to all businesses. It cuts down on both the amount of
resources wasted and the amount of time and effort required (Steven et al. 2014). JCB has a
particular advantage over its competitors because of the correct execution of decreased
duplication. Any company strategy will have a better likelihood of success if it has this
competitive advantage.

In order to save money,

Many direct cost-cutting measures are also used by the company. Most of the time, this
approach is used to reduce the amount of money wasted on non-essential processes. JCB, for
example, has inked a three-year deal with a British transportation management business in
order to lower the company's transportation costs. Supply chain costs have dropped
significantly as a result of its implementation. This specific method is quite successful in
enhancing customer service and making the company's earnings more visible (jcb.co.uk
2016).

JCB underwent a PESTEL analysis.

JCB's macro environment will be evaluated and analyzed using the PESTEL analysis tool.
Political, economic, social, environmental, and legal concerns all have an impact on JCB's
activities at the macro level.

JCB's activities are significantly impacted by political considerations. JCB is present

throughout North America, Europe, Africa, Latin America, and Oceania. As a result, each
nation has its own legislature and administration. In addition, each country has its own export
and import rules. When it comes to politics, Europe and the United States remain stable,
however the UK's recent tax rise and new legislation from the conservatives might have an
impact on the purchasing power of consumers.

Factors such as recession, inflation, GDP growth, and population increase all have the
potential to have an impact on the operations of businesses. The recession in the United
Kingdom dealt a serious blow to JCB. Despite this, the economy is only recovering slowly, as
seen by the current inflation rate of 3.4%. (Lu et al. 2015). JCB, on the other hand, has to
contend with the fact that raw materials, fuel, petrol, import and export costs vary greatly
from country to country. The price of raw resources is greater in certain nations than in
others. Construction and operating expenses in such nations are also more expensive, which
has an impact on their revenues as well. In order to keep up with the competition, the
company must raise its pricing and lose its edge.
JCB has a presence on almost every continent. Each nation has an own culture, religion, and
attitude, and these differences are reflected in the people who live there. Achieving a state of
equilibrium is difficult for the organization in order to prevent prejudice.

Factors related to technology: As a manufacturer of construction equipment, JCB is required

to enhance its technology on a regular basis. It has to be improved so that the company can
compete more effectively and hold on to its market share. JCB now has the greatest
construction equipment production technology in the world. 3CX Compact Backhoe Loader
is one of the company's newest inventions (Edwards and Love 2016). For best mobility, it is
6'3" wide and has a height of 9'. It has a 19% ore control efficiency with a 25mph hydrostatic
transmission (Jcb.com 2016).

JCB is working toward sustainable development while concentrating on implementing new

technologies and innovations in order to increase production and efficiency. Through
infrastructure and energy development, the group aims to foster economic progress.

There are a variety of rules and regulations in each country, and these laws and regulations
vary from country to country. All businesses doing business in such nations must comply
with all applicable laws, rules, and regulations, including those governing employment, labor,
and other issues (Simatupang and Sridharan 2016).

Recommendations

According to the findings of the research, JCB will need to take two important actions in the
near future in order to maintain their market share. They must initially concentrate on India's
rural areas, and then expand into other markets as a second stage. JCB should consider China
as a possible location for a future business. China is the world's biggest construction site, with
an ever-increasing number of bridges, tunnels, trains, and power plants under development.

Construction equipment manufacturers in China like Sany America and SDLG are already
battling it out for dominance. Other companies like Liugong, Zoomlin and XCMG are also in
the mix. However, the winner has yet to be declared, since these companies are still
struggling to develop distribution channels in China. JCB will be able to deal with this issue
since they will have access to a large cash cushion. Creating a local sales force in China is
essential for navigating the country's distinct business culture throughout the conciliation
process. Because the local sales staff has a greater grasp of how Chinese business and
government agencies function, it will be easier for JCB to identify significant distributors in
the Chinese market. The marketing plan for JCB in China must be developed once the
company has identified its major distributors.

Conclusions

With 400 businesses in metropolitan areas, the group is presently concentrating its efforts
there. The organization's primary goal was to expand its worldwide market share by creating
and refining new technologies. JCB, on the other hand, has been outdone by Caterpillar and
Komatsu. To put it another way, in certain countries, the corporation is losing market share.
As a result, JCB's production costs are greater than those of any other company in the field.
Caterpillar and Komatsu, on the other hand, charge lower prices for their goods as a
consequence. New markets like China are a great opportunity for JCB at this point in time.
There are some construction-equipment manufacturing firms in China, but they lack the
knowledge and technology to compete with JCB's level of expertise. As a result, JCB has to
adopt a competent market entrance strategy for China. On the other hand, they're considering
ways to develop and expand their position in the Indian market as well. JCB's upper
management is intending to expand its operations into hitherto untapped markets in rural
India.

Reference

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Cronin-Gilmore, J., 2012. Exploring marketing strategies in small businesses. Journal of Marketing
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DeFreitas, D.G., Gillett, J.W., Fink, R.L. and Cox, W., 2013. Getting lean and mean at Caterpillar
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Edwards, D.J. and Love, P.E., 2016. A case study of machinery maintenance protocols and
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