PESTEL analysis of International Marketing

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................6
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing is define as transfer of goods and services from one country to
another. In addition to this, there are several participants involved in the process of international
marketing such as multinational companies, importers, exporters as well as service companies
(Almodóvar and Rugman, 2015). This marketing report is based on Gucci which is in a fashion
industry as well as a subsidiary company. Its headquarter is situated in three areas i.e. Florence,
Tuscany and Italy. Respective company was founded by Guccio Gucci in year 1921. along with
this, this company deals in luxury brand of fashion as well as leather product of Italian. This
country operated in approximately 500 countries across the world. This report explains about
analysis of external environment with the help of PESTEL analysis of country in which is going
to expand its business as well as SWOT analysis of country in which it is currently operating. In
addition to this, it also explains about competitive advantage with aid of Porters five force
model. Along with this, with the help of model of segmentation, targeting and positioning will
aid the company to grow and retain in the market in order to get competitive advantage.
TASK 1
In order to expand business, Gucci has opened their offline store in Maldives through
which they can attract customers which will lead them in increase their sales as well as
profitability. But before an offline store, company wants to analyse their country's external
environment so that they can formulate their plans and strategies accordingly which will not
affect their function as well as operations of organisation. Along with this, they also determine
about competitive advantage that they can get while opening store. For performing these two
activities respective company has made effective use SWOT analysis and Porters five force
model which is described below:
SWOT analysis:
With the help of SWOT analysis, respective company will be able to determine it
external environment with the aid of opportunities and threats (Baker and Hart, 2016). This
SWOT analysis is explained below:
Strength Weakness
 As the respective company has its store
worldwide. Along with this, it has strong
 Respective company does not do
market research frequently and is
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distribution network through which it is
able provide its product as well as
services to its potential customers within
the time period (Brecic and et.al., 2013).
 Respective company also has low cost
structure so that their customer can get
luxury products at affordable price.
 In addition to this, Gucci in Indonesia
has a strong bond with their dealers.
These dealers not only supplies their
products to company but also helps them
in promoting their commodities as well
as training.
 Gucci in Indonesia, has a strong
financial position due to which they are
able to earn high margin of profits.
Along with this, with these profits they
are able to gather enough revenue which
is later used in future capital
expenditure.
 Respective company has a strong
presence on social media such as
Facebook, Instagram, twitter and many
more. Due to which they are able to
reach wide range of customers.
 Gucci also has strong product platform
as it product different products which
are unique and as per the latest trend.
 Respective company has a cost
advantage when it serve its customers as
compared with other competitors.
based on the data that is collected
approximately few years back.
 Respective company also lack in their
research and development part due to
which its competitors take advantage.
 Gucci does not provide performance
appraisal to their employees for their
efforts that they have applied in order
to make their task effective. This
result in decreased morale of
employees as well as it also lead to job
dissatisfaction.
 Before making any decision,
respective company need approval by
their officials. This result in decreased
efficiency of their activities which also
consumes their times as well as
money.
 Due to remain competitive at market
place, managers of respective
company does not focus on their
workers needs and desire due to which
company is not able to retain their
potential customers.
 There are times when there work load
increases and company is not concern
about their workers (Charter and
Polonsky, 2017). This results in stress
due to which staff is not able to
perform their task effectively.
 Gucci does not have control on their
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