Wilko's Competitive Market Expansion

The assignment requires an in-depth evaluation of Wilko's business strategy and competitive market expansion, using PEST analysis to identify external factors that may impact the company's performance. The document includes a detailed examination of political, economic, social, and technological (PEST) factors affecting the home ware retail industry, as well as suggestions for strategies to maintain standards in a competitive market.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
For expanding business in international market, owner of the firm have to do analysis of
that market in which they want to increase their business. For doing evaluation of market they
can use micro and macro environment factors so that they can make correct judgement (Bianchi
and Mathews, 2016). The present report is based on Wilko which is a high street chain and sells
home wares as well as household goods. In 2014, company having turnover is approx. £m 1530.
In the below mentioned report, discussion based on micro and macro analysis of home ware
retail market of India.
TASK
To do analysis of international market, micro and macro factors needs to be analysed
properly and also in a proper manner so that they become successful in expanding their business.
Business environment is a term of marketing and also refers to factors along with forces which
having a adverse effect on the firm's ability so that they can build relationship among consumers.
Micro environment factors are small factors within Wilko that affect its ability to serve its
consumers and these are the elements which can be controlled by management of firm
(Armstrong and et. al., 2015). These factors does not affect all the enterprise in industry in same
way as size, capacity as well as strategies which they are following are different. Different
factors are:
 Competitors: These are the person who sell same products and services as Wilko is
selling and on the basis of that competition increases in competitive market. If company
wants to expand there business in India then there are different competitors like Inter
IKEA Group, Bed Bath & Beyond Inc.
 Customers: These are important person of the firm. The sales of Wilko depends on these
and this only be done when they are providing best and qualitative products to them. This
will aid in generating more and more revenue. The staff members of the business entity
have to do research that what type of merchandise they want and according to that they
have to provide products as well as services which will assist in generating more revenue.
 Suppliers: These are also a important part of Wilko as these are individual person who
provide material as well as labour to do manufacturing of products and services
(Morschett, Schramm-Klein and Zentes, 2015). They have to adopt a purchase policy
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which assist in providing bargaining power to the business entity. Suppliers are those
who can control success of business when power can hold. Buyer is not critical to the
business of suppliers and the product or resources which is given by supplier is a core and
essential part of buyer's finished goods or business.
 Market intermediaries: Market intermediaries are individual person which helps Wilko in
promoting, selling as well as distributing goods and services to service users. These are
the middlemen which involves wholesalers, retailers along with agents, distributing
agencies, financial institutions etc. Wilko has to review their performance on a constant
basis of both middlemen and other person. The managers of firm have to use appropriate
marketing channels so that they cannot face any issues in reaping success. The
manufacturer have to make correct as well as relevant judgement to adopt cost effective
method of intermediaries so that they can attract large number of consumers and on the
basis of that they can generate more revenue (Christodoulides, Cadogan and Veloutsou,
2015).
 General public: These are person which refers to people as a whole in country. It is a
group which having a actual and potential interest that having a impact on ability of the
firm to accomplish goals and objectives. If Wilko want to expand their business in the
Indian market then they having a duty to satisfy the people which will assist in attaining
growth. Along with this it will aid in creating goodwill in competitive market among
public and also assist in getting a favourable response for business entity (MARKETING
THEORIES – PESTEL ANALYSIS, 2017). In modern time or business, it has been
assumed that public having a important role as well as their presence in micro
environment.
Macro environment factors are external elements and they can not be control. Along with
this it having a influence on decision making of the business entity as it affects the performance
as well as strategies (Bianchi and Mathews, 2016). For doing evaluation of macro environment,
employees of Wilko can use PEST analysis.
 Political: There are many political and legal factors which affect home ware retail
industry. Future political determinations which helps in enhancement of revenue and that
having a impact in policies and schemes which are followed by them in industry. If
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company wants to expand business then they have to supply their fiscal services. It assist
in enhancing revenue which will impact their profitableness.
 Economic: These are factors which includes incidents as well as state of affairs which
affect home-ware retail industry. It can be concentrated with different classes which
includes consumer disbursement as well as disposable income, rising prices, involvement
rates, unemployment etc. The main factor which affect industry is revenue enhancement.
 Social: The factors includes demographics, lifestyle, population tendencies etc. having a
affect in the industry. While purchasing home ware products, older people spend less
amount on purchasing different items than younger people as their earning source is
pension which is very less for them to expense for these items. In present time, younger
people having extra demands which helps in increasing online business (Morschett,
Schramm-Klein and Zentes, 2015).
 Technological: In selling home ware products in retail market, updated technology should
be used. If employees of Wilko make changes in their technology then this will affect and
change industry in different classes which includes consumers, environment, cost,
distribution etc. By adopting adopted technology they can increase and organise
operations which will assist in generating more and more revenue.
CONCLUSION
After summing the report, it has been interpreted that they have to use PEST analysis
which will help in attaining success in competitive market. Proper evaluation needs to be done so
that they can make correct judgement that owner of Wilko should expand business in
competitive market. The staff members have to use appropriate strategies which will assist in
maintaining standards in competitive market.
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REFERENCES
Books and journals
Armstrong, G and et. al., 2015. Marketing: an introduction. Pearson Education.
Bianchi, C. and Mathews, S., 2016. Internet marketing and export market growth in Chile.
Journal of Business Research. 69(2). pp.426-434.
Christodoulides, G., Cadogan, J. W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review. 32(3/4). pp.307-328.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management.
Springer.
Online
MARKETING THEORIES – PESTEL ANALYSIS. 2017. [Online]. Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis>. [Accessed on 26th June 2017].
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