International Marketing - Next Plc
Added on 2019-12-03
14 Pages3959 Words152 Views
International Marketing
TABLE OF CONTENTS1.0 INTRODUCTION.....................................................................................................................12.0 Analyzing macro and micro factors that make impact on retail markets..................................13.0 Evaluation of market potential...................................................................................................24.0 Identifying two recommended market with justification ..........................................................35.0 Recommended market entry strategies for Next Plc .................................................................46.0 Recommended adaptation of marketing mix for Next Plc.........................................................57.0 CONCLUSION..........................................................................................................................78.0 REFERENCES .........................................................................................................................89.0 APPENDIX .............................................................................................................................10
1.0 INTRODUCTIONInternational marketing depicts the utilization of marketing principles across the nation ormore than one country. In similar term, international marketing is also known as globalmarketing (Czinkota and Ronkainen, 2012). This report is based upon a case scenario of NextPlc, which is a British multinational clothing, footwear and home products retailer and want toexpand the business more in international markets. This report outlines the macro and microfactors that make impact on retail markets and potential markets for international expansion ofretail business.2.0 Analyzing macro and micro factors that make impact on retail marketsThe macro and micro factors of business make huge impact on the success of retailmarket. Thereby, macro factors have been analyzed by PESTLE analysis and micro factors areanalyzed with the help of swot analysis (Atuahene-Gima, 2005). The Macro and micro factorsthat affects retail business are as follows,PESTEL analysis of retail market: It has been summarized through PESTLE analysis that sixmacro factors such as political, economic, social, technological, legal and environmental factorshighly influence the business of retail industry. The political factors of Brazil and Australia arerelated with interest rates and foreign exchange rates in the country that affects the businesspractices (Erdem, Swait and Valenzuela, 2006). Further, in changing global environmenteconomy of all country is fluctuating. The social and cultural factors of the country also highlyaffects the buyer behavior that make impact on retail markets. Moreover, before expandingbusiness in international markets the firm should analyze the technological development of thecountry because in competitive era of business retail marketing is growing through onlineshopping portals and promotional activities for communicating with more number of consumers.Similarly, environmental factors are consisted of weather and climate influence on customersbuying behaviour and legal factors such as taxation, laws, rules and regulations by thegovernment of Brazil and Australia that affects the operations of retail industry. However, It isvery important for Next Plc to analyze all these macro factors of business that make impact inretail markets (Johnson and Selnes, 2004).SWOT analysis of retail market: Retail organizations often utilize SWOT analysis for analyzingmicro factors that make impact of retail markets. With the help of Swot analysis the firm can1
easily identifies the strengths, weaknesses, opportunities and threats of the retail business. As perthe swot analysis Next Plc's current strengths are strong financial condition and access to allbank loans (Cateora, 2008). The firm can easily borrow money from markets to expand itsbusiness. Apart from this Next Plc's products are unique, trendy and as per the market demandwith economic prices that can be affordable by all customer segments. However, Next Plc'sweakness is level of competition in market and poor customer support services. Currently theretail market is full of competitors and often the retail firm has to face price wars due tocompetitors which sometimes leads to poor sales and productivity. Thereby, the firm needs toimprovise in these sectors through the current market opportunities. Next Plc has the opportunityto expand in international markets with new and improved strategies moreover the firm can alsoincrease its sales and profitability by growing operating business practices through onlineshopping portals. However, along with there are many threats for the business expansion of NextPlc Which is fluctuating economy of the country that leads to poor sales and high level ofcompetition (Katsikeas, Samiee and Theodosiou, 2006). Due to the level of competition the firmhas to compromise in product prices. Thus, all these micro factors make huge impact on retailsmarket.Market recommendations: After analyzing all these macro and micro factors of the business it isrecommended to Next Plc to consider all these factors at the time of expanding business ininternational markets. According to macro factors the Next Plc should analyze all the political,economic, social, technological, legal and environmental aspects of the global country. Becauseevery country has different policies, laws and other environmental influences that can makepositive or negative impact on the business (Berthon, Pitt, Plangger and Shapiro, 2012).However, apart from this Next Plc should also analyze its strengths, weaknesses, opportunities ininternational markets and threats of the retail market. By considering all these factors andeffective use of strengths and opportunities will help in turning weaknesses into strengths andthreats into opportunities and Next Plc will be able to expand its business in international marketeasily.Value chain: The retail value chain describes the series of actions that make business able to selltheir products in the markets. Value chain is consist of many activities such as, development ofproducts, Inventory management, distribution of products in the market and filling the store.2
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