2. Industry analysis: PESTLE analysis 2.1 Political Factors As a hard landscaping manufacturer, the corporation should consider recent policy requiring a certain percentage of electricity to come from renewable sources. These changes in policies require corporations to abide by rules such as UK Government’s Carbon Reduction Commitment Energy Efficiency Scheme (CRC) and Energy Saving Opportunity Scheme (ESOS) (Refrence). 2.2 Economic Factors Marshalls relies on the level of activity in the UK and international end market, therefore, economic factors are of concern to Marshalls. Although economic downturn will reduce sales and production volumes, economic conditions in the UK have continued to improve (Marshalls PLC 2014) (Can you provide the …show more content…
Building on the work with the ETI, Marshalls donates natural stone paving to the charity in a low price in order to help tackling child labour in India (Marshalls PLC 2014). And in this way, a better corporate image will be presented to public, which will increase sales and production volumes. Demographic trends may also be important. For example, if population in a city is lower that another, potential sales volume would be lower than the city with larger population. 2.4 Technological Factors Technological advancement has also empowered companies’ better performance. Marshalls have a unique national network of manufacturing and distribution sites and has a wide geographical spread, online shopping is as a platform that can drive sales growth. Because Marshalls have developed an online marketplace, where individuals can buy various products through official website that are benefit to enterprise(Can you please explain this a bit). 2.5 Legal …show more content…
There are numbers of corporations with low cost, different sizes, specialties and strategies of firms such as Tobermore, Rosts and Stockscape will affect Marshalls. Based on these, bargaining power of competitors should be the major force (Its too vague). Conclusion: 1. After analyzing how Pestle factors, legal factor is the biggest challenge because Marshalls would like to extend its global reach into as well in Asia, so first of all company should understand the legislation of Asia. 2. Also the threat of substitute products and competitors should be considered, because customer will choose products with lower price, also people today are pay more attention to environmental protection. ( This is NOT the conclusion its recommendations) Recommendation: 1. Marshalls should do research before extend its market to new countries, in order to fully understand the local competitive market situation. 2. There should find lower cost raw material to confront the exiting competitors, because their competitor can offer lower price with same products to a certain extent. Also, for the threat of substitute products, Marshalls better to establish new products and become the only manufacturer (Good
The facts are that that there are advantages and disadvantages of CNS going global with the product. The advantages are that CNS can attempt to increase its market share and not have to rely on only domestic dollars, partnerships can begin to develop between local suppliers, and they can avoid costs of domestic licensing. The disadvantages are that there are local customs that need to be considered, the lack of name recognition of the brand, there may be stronger global competition, the international company may be used to different marketing, and there may be different trade regulations. The decision for CNS to go global takes careful analysis and an international strategy.
The ability of customers finding a proxy to a particular service or product is always a threat in business. The result is often a weakened business position for a particular company. For CMG, it is no different. However, the brand that the company has built over the years offers protection to the company because of loyalty. The fact that CMG offers a healthy menu for its foods also offers little option in reason for the customer to substitute its products.
UK economy goes through difference series of pattern with booms to slumps. Every business does well in the time period of boom and most businesses collapse in the time period of slump or recession. Other economy changes that have influence on ASDA are interest rate, wage rate and inflation rate.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
In keeping with the information presented above, the threat of substitution is very high as well. Although other analysts have not seen this to be a relevant concern, the manner by which high competition and the threat of new entry exists within the grocery business demands that the strategist consider this as an existential threat. As long as the organic and whole food market is lucrative to producers and grocers, this will remain the highest threat the Whole Foods must face..
Moreover, the company’s president has emphasized the need to preserve the quality of its products as well as its reputation among customers, by not committing a large portion of their business to replica products. Essentially, the match between the market opportunities and organizational strengths is not present since the firm is not utilizing available opportunities to enhance its competitive power. For instance, one of their strength has been the quality of their supply chain, but with the rise of the mass merchandiser stores, the company has been unable to create strategies to avoid being eliminated by these stores.
Key problem 4: Company is a German-European based which is a limited market. They should increase their product distribution in different parts of the United States. Partnering up with retailers with a similar target market is suggested to make the company’s products readily available and attainable to the public.
For Caterpillar Inc. to explore new geographic markets particularly in Asia, it has to have a good strategy at the corporate level. At this level, decisions such as resource allocation, which markets to explore, and which products or services to develop are made. With regard to resource allocation, the focus needs to be on aspects such as how equipment, staffing, and cash will be distributed in the indentified markets. In addition to these, the corporate level also has the mandate or responsibility of deciding whether new services or products need to be added to the exi...
The market for natural and organic goods grew from $2.9 billion in 2001 to $5.3 billion in 2004. an 80.5 percent increasein the three-year period. In the bright side of the increased demand for organic products increases the production and the development of Whole Foods Market, as a biggest supplier but int the other side this growing can be run up against obstacle, the lack of raw materials. In my point of view it would be better for this company got ready for tense competition in the market, in wich it can lose it’s leading position.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Marshall’s is an off-priced retail store in the United States and Canada that’s owned and operated by TJX Companies. It’s a popular department store for people who
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
They point out that awareness and understanding of these causes assist companies in avoiding the growth stalls. In addition, the article demonstrates few practices that some companies use to predict and prevent the problem.
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
McDonalds also play a role especially into the goods being safe to use and being very reliable with provided instructions. This will benefit the customer's safety and hoping to be very reliable during the customer's use because its helps the business to increase it sales by keeping the existing customers and attracting new ones.