AMEC’s Earth and Environmental business provides specialist environmental, geotechnical, programme management and consultancy services to a broad range of customers in the public and private sectors, primarily in North America. Earth and Environmental operates from a regional network and is characterised by a large number of small value contracts. Price: Due to AMEC’s reputation in the market it can afford to set the price to what they like because the client knows the job which will be carried out will be to a very good standard and this is evident in their project history.
This is the reason why AMEC are chosen over its competitors because of its track record and its resource capabilities. But sometimes this isn’t the case like in the current economic climate; AMEC has to change its current strategies, such as matching the market price. Due to AMEC’s expertise in some sectors which are mentioned above they can rely on ‘Skimming’ pricing on certain services to maximise returns.
Place: ‘Place’ is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. AMEC has over 250 offices located across Europe, North America, Asia Pacific and South America. And have resource skills from across our network of offices to fit the specific needs of our customers. AMEC has a lot of international experience behind them and they cover a lot of areas and if there is a need anywhere in the world, AMEC have everything set and delivered on time, which can potentially save time and money.
Promotion: Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. AMEC have used promotion of their services to generate more work and therefore more profit. And this has mainly been through events and conferences. They also provide studies, research papers, reports and consultancy to customers, industry regulators, lending institutions and government organisations.
3.6 Marketing Mix – 4 A’s In addition to the 4 P’s AMEC needs to consider the 4 A’s, awareness, availability, affordability and acceptability. This process relates to customers and how a company can relate to them using the 4 P’s. Awareness – (Promotion) The time and money spent on promotions is to make potential clients aware of the company. AMEC not only keeps clients aware of their company but also aware of what they do.
Availability – (Place) AMEC’s clients need to be able to get in touch with them and therefore availability is essential especially because of AMEC’s large sectors. Affordability – (Price) Affordability for many clients is very important, therefore AMEC’s pricing structure needs to combine affordability with quality as some clients have budgets to adhere to. Acceptability – (Product) AMEC offers products and services where they are needed, there is no point offering a service where they is no need, for example offering renewable and green technologies in the Middle East where such issues are not even discussed unlike here in the West.
Porters 5 Forces Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization.