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J.C.Bamford (JCB) Eco Report

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Free «J.C.Bamford (JCB) Eco Report» Essay Sample


J.C.Bamford (JCB) is a major construction equipment manufacturing company, with over 10000 employees. It is distributed all over the continents The company started from a small beginning as a building agricultural tipping trailers firm, to the current global manufacturing company. This company has advances over time in the diversification of their products, market and opening of new manufacturing firms internationally. The company has 22 plants in four continents, with over 750 dealers worldwide (Armstrong 2003).  In a period of 67 years, this company has advanced from Uttoxeter to the major global brands   because of the renowned spirit of the company. This company has close to 10000 employees, who are working to fulfill the mission of this company through innovation. The company is focused on the  pushing the boundaries on research  and development , within the areas of sustainability , where the energy costs and the emissions  being a vital considerable factor in the current market. Most of the customers will require the need for the reinvention of their businesses to meet the current building standards and the emission legislations (Mascull 2010).

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Company’s Principal Products/Services

J.C.Bamford (JCB) is a major construction equipment manufacturing company. It produces diversified equipments used in the Agricultural, defense and the construction industries. The company has opened new World Parts Centre inRocester, Brazil and in India as the biggest defense contractors, yet it has sold their 150 4CXMs to the British Army (Pederson, 2007). The company has also purchased German firm Vibroman Compaction Equipment, used in their plants in china and Prkins power unit, in addition to the excellent car powered engines, which takes the world’s landscape record for a diesel-powered car.

Main Competitors

The major competitors of JCB are Caterpillar, L&T, Mahindra and Telcon (TATA).  Telcon is a registered subsidiary company of the TATA motors. It holds 60% of the total shares, and the Hitachi Construction and Machinery Company (Tombros & Dewhurst 1988) hold the rest of the shares. The company started the construction equipments in the 1960s, as a division of TELCO. In the 1980s, it entered a technical collaboration with the HCM Japan for manufacturing of the art hydraulic systems. On the other hand, L&T Case Company is an equal joint business venture between L&T and the CNH, a global navigation company (Peng 2009). It also manufactures road-building equipments such as the loader backhoes and the vibratory compactors (Gordon 2010)). Furthermore, TEREX Vectra Equipments is one of the major competitors of the JCB. It is a joint venture between TEREX Corporation in the USA and the Vectra Limited in the UK. Caterpillar Company Inc. is also one of the major competitors of the JCB Company. This company is the world’s leading manufacturer of construction and mining equipments. It is also the leader in producer of diesel and natural gas engines as well as industrial gas turbines, in addition to the financial services (Lewis 2010).

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Why the Company’s Products and Services Preferred by the Customers

This company has developed efficient marketing strategies as compared to the competitors.  The company has invented new marketing strategies, which are focused on tapping the rural market. For example, it has a focus on tapping the vast rural market in India Company’s subsidiary (JCBIndia), which has chalked out Bharat strategy. This new strategy will give the company a 15% growth. It has also increased the sale outlets within the country. The company has also developed new products to capture the rural market.  For instance, this company has developed a 2DX machine, with a smaller form of its flagship products backhoe loader. Furthermore, the company has plant hirers, with single machines and provides rent for their machines on an hourly basis. The other segments, which have place JCB at a competitive place in the market, include the institutional buyers, the Agricultural and Industrial application. However, the dominant section   in the market segment that has attracted many customers is the plant hirers. The plant business model involves a strategy for short-term usage of the machine charged on hourly basis and in a long-term basis with its charges configured monthly.

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The Main Opportunities and Threats to the Company’s Business (Pest Analysis on the Company)

PEST analysis involves the evaluation of the political, economic, social and technological influences on a particular business. It is also crucial to carry out pest analysis to ascertain the position of their competitors, and to ensure that there is a ready market for the export of their products (Kushal, et al. 2010). Political influence of a country plays a major role in the demand of goods and services. For example, factors such as political instabilities, war, and corruption have negative influences on the demand of goods and services. The consumer depends on their confidence in the products. It is also advisable to apply accreditation under the different countries and the national regulations. This improves the consumers’ confidence on the product. In addition, economic changes affect the level of inflation, associated with the general booms and slumps of the economy (Emmerson 2002).  The economic changes affect the interest rate and the rates of inflation.  JCB has commissioned new plants in different locations and continents. These continents have different social status and needs, as well as tastes and lifestyles. This affects directly the changes in consumer behaviors. The changes in the consumer patterns occur over a long period. Technological changes have become imminent due to modernization of communication patterns and through the creation of the modern databases and electronic communication systems.

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The main obstacle is competition from other manufacturing companies. The equipments and the products of this company are not fast moving goods and therefore require dealers to market the products in different locations. Most of the customers lack information on the products they intend to buy in the market therefore, it is crucial to carry out market survey on the consumer needs (Seidel 2011). This will give guidelines on the consumer needs, which will guide the development of the new products and services.

Strategic Management of the Company

JCB offers its products and services using the network subsidiary and the representative offices located overseas. It also has alliances all over the world, with many dealers who help in the marketing of their products (Peng 2007). JCB Company has developed efficient marketing strategies as compared to the competitors, which has enabled it to strive in the market.  The company has invented new marketing policy, which is focused on tapping the rural market (Richardson 2012). For example, it has a focus on tapping the vast rural market in India Company’s subsidiary (JCB- India), which has chalked out Bharat strategy. JCB is actively expanding its credit facilities to guarantee business and financial institution enough payment solutions for their product. The five forces analysis evaluates the factors that determine the JCB competitive abilities in the market. Due to the current rivalry, the JCB Company faces strong competition on the market due to the many competitors. The pricing of different products has faced competition warranting for the cost of cutting down the processes and the services designed to decrease the profits margins of the company. The threats of the new entrants to the market is a factor, however due to the creation of a strong brand names for their products, it has made it difficult for the new entrants to fit to the market. Furthermore, the bargaining power of the buyers is one of the major factors. However, JCB has large number of customers, since JCB Company is strategically placed to manufacture customized equipments and services that fit their company. The other competitors also offer limited buyers choices. The company has also improved its distribution services through the opening of different distribution capabilities through opening of the retail stores in India and in different countries.

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JCB has successfully thrived through the competitive society to realize its goals in the manufacturing of construction equipment. This company enjoys advantages of wider market due to its location in different continents as it has market for its products and services using the network subsidiary and the representative offices located overseas. It is also crucial to carry out pest analysis to ascertain the position of their competitors, and to ensure that there is a ready market for the export of their products.

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