Progressive Office Furniture: Marketing Environment Analysis Report

This report presents a comprehensive marketing analysis of Progressive Office Furniture, a company specializing in designing, manufacturing, and installing office furniture. The analysis begins with an executive summary outlining the study's purpose, which is to examine the micro and macro environments to identify opportunities for business market development. The introduction provides background on the company, its services, and its 25-year history. The external environment is analyzed using the DENPTC framework (Demographic, Economic, Natural, Political, Technological, and Cultural), identifying factors such as demographic trends, economic conditions, environmental concerns, political regulations, technological advancements, and cultural preferences influencing the business. The internal environment analysis explores the company's vision, mission, values, strategies, suppliers, intermediaries, publics, customers, and competitors. A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is conducted, synthesizing the internal and external findings. The report concludes that implementing a market development strategy is effective for leveraging opportunities and mitigating threats, with recommendations for future growth. The report is a response to an assignment brief for a Marketing course MKTG6002 and provides a detailed analysis of the company and its marketing environment.

Marketing
3/20/2020
Progressive Office Furniture

Marketing 1
Executive summary
Marketing in the 21st century has evolved profoundly which is a critical element of
business administration. The purpose of the study is to conduct the micro and macro analysis of
the business that is required to be selected for the expansion of the business through the business
market development. Progressive Office Furniture has been selected for the analysis that is
manufacturing, designing, as well as installing furniture for more than 25 years. The findings
show that major threat which is faced by the company is related to change in regulations,
environmental threats as there is the use of wood and rise in competitors. These are considered as
the major threats which need the attention of the company. However, this has been that there are
different opportunities also which include economic improvement, technology up-gradation,
expansion of business and many others. All these opportunities and threats are considered in the
SWOT analysis which analyses the internal and external elements of the business altogether. The
findings show that the implementation of market development strategy will be effective for
grabbing opportunities and reducing threats.

Marketing 2
Contents
Introduction......................................................................................................................................3
Analyses of External Environment..................................................................................................3
Analysis of Internal Environment....................................................................................................5
SWOT/TWOS..................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Marketing 3
Introduction
The company that has been selected is Progressive Office Furniture who is intended to
expand the business through the business market development. The progressive company have
been manufacturing, designing, as well as installing furniture for more than 25 years. It has been
found that there have a large team of specialists in the two key divisions which consist of
dealership solutions and corporate solutions. The corporate division includes all the things from
the supply and installation of the loose furniture of the office to complete key turn fit the projects
for incorporating design, management of the project, building, as well as fitment to completion
(Progressive Office, 2020). The dealership solutions offer total services majorly for the multi-
franchise organizations need programmed rollouts where they majorly design, install furniture
for some of the networks across Australia. The company has worked for more than 25 years
which makes them expand the business across the different areas outside Australia.
This assessment task requires the marketing environmental analysis that consists of both
the microenvironment as well as macro-environment. The analysis of the micro-environment
includes the scrutiny of the internal environment that facilitates the specifying the strengths and
weaknesses while macro-environmental analysis which needs the scrutiny of DENPTC
dimensions that will assist, in particular, the threats and opportunities.
Analyses of External Environment
The external environment analysis of the company includes the use of the DENPTC
framework which articulates the Demographic, Economic, Natural, Political, Technological, and

Marketing 4
Cultural environment that contributes effectively in shaping the environment for performing the
market expansion of Progressive office furniture (Baker, 2014).
Demographic: - It is set of the demographic factors like gender or ethnicity which allows the
company to determine the target market for particular products or services. In the market
expansion, there is a wide range of opportunities for the progressive office furniture to expand it
to offices that are available in-house. The in-house offices also require the furniture in a
customized manner which can be attained. Along with this, the target market includes all the
people with different age group, gender, ethnicity who wants furniture in the office (Chernev,
2018). In new markets like New Zealand, the company can expand with the same demographic
factor.
Economic: - The economic factor of the country includes the GDP, purchasing power of the
customers and other elements. The GDP of Australia was equal to 1450 billion in the year 2019
as per the official data from the World Bank which shows that there is an improvement from the
year 2018 as it was 1432.2. The rise in the GDP allows the companies to spend more amounts on
furniture and providing job opportunities to the people (Trading Economics, 2020). The high
revenue will make them expand the business for which they need furniture.
Natural: - Natural environment refers to like all living and non-living things that generally occur
naturally. It has been determined that the progressive office furniture company which include the
use of the wood for forming the furniture. The use of wood affects the natural environment and it
will be a threat to the environment (David, 2011). Thus, this will create an impact on the
progressive office furniture company working as they need to ensure that they are using different
ways of forming furniture.

Marketing 5
Political: - The political factors are required to be considered when it comes to the rules and
regulations that are followed by the company (Dawson, 2014). Progressive Office Furniture
Company needs to abide by all the rules and regulations. It has been determined that currently
there is stability in the market of Australia but the regulations might change which is a threat.
This leads to the opportunities for the companies and also for expanding the business in the
nearby area of Australia that is New Zealand.
Technological: - The change or up-gradation in the technology is necessary to adhere to the
company. Progressive Office Furniture Company makes use of the technology for their work
which is the design as well as offers the plans with the 3D renders for the project. The
technology installation services are provided by the company which add value to the
infrastructure of the office furniture but still, there is limited use of the technology (Progressive
Office, 2020). It has been determined that there are wide opportunities in the market for the
company and they can make use of more opportunities while expanding the same in the market
of New Zealand.
Cultural: - The cultural environmental is considered a set of beliefs, customs, practices and
many other found common to everyone present within the population. In the Australian culture,
employees want the proper furniture and facilities at the workplace as it offers them high comfort
at the workplace. The good work will lead to the change in the beliefs, customs, and practices of
employees. There is a wide range of opportunities for the company in the market as culture
makes the companies form a good infrastructure (Dawson, 2014). Thus, this means that the
company has a wide range of opportunities not only in the Australia market but will be there in
the New Zealand market if they will expand their business.

Marketing 6
Analysis of Internal Environment
In the internal analysis, there is an exploration of the company’s competency, cost
position as well as the competitive validity in the marketplace (Wooldridge & Cowden, 2020).
The progressive office furniture company is willing to expand their business in the market for
which they need to analyse their internal environment which includes the different elements that
are considered and specified below: -
Company: - The vision of the company is to become the specialist in the design, supply, as well
as the installation of the commercial furniture and fit-outs to the government, education sector,
and different commercial sector that requires the good furniture. The mission is to be innovative
and progressive family business which is dedicated to offer the maximum level of the service as
well as quality to the clients (Progressive Office, 2020). Also, the value that is offered by the
company is to majorly focus on the personalised service and work with the customers to form the
productive as well as the motivating workplaces. The internal strategy of the company is to
provide the service within Melbourne, Geelong, Ballarat, Bendigo, Regional Victoria from more
than 25 years. Progressive Office Furniture Company is considered as part of the global alliances
of the companies through which they can remain more updated with international trends.
Suppliers: - Progressive office Furniture Company has the strong relationship with the suppliers
across Australia which allows them to source the raw material that includes the quality wood,
other stainless steel devices (generally remains expensive) that are used whole finishing the
furniture and many others. It has been found that the expansion of the business makes the
company to form contact with the different suppliers and to improve the contact in a new market
that is New Zealand and other areas (Frynas and Mellahi, 2015). However, this has been

Marketing 7
determined that due to the rise in environmental concern there is a high possibility that the
suppliers might not provide the proper response for the supply of the wood in the market.
Intermediaries: - The intermediaries are the people who are in between the agreement and they
work as the mediator. Progressive Office Furniture Company is working for the 25 years due to
which they have a strong image in the market which remains easy to get the work. However, it
has been determined that to get the contact the company has the intermediate that helps them to
get a maximum number of orders. The intermediaries are the one who also gets the benefits of
the agreement and leads to the profit for the company (Grant, 2016). In the market expansion,
these intermediaries will help the company to get maximum support in getting a contract for
corporate furniture’s.
Publics: - The terms publics over here referred to as the people who are working along with the
company. These people are employees, manager, and volunteers who contribute to attain the
goals. There are a wide number of employees who are working with the company and it is more
than 150 employees. These employees of the company are expected to grow in numbers.
Customers: - The customers are vital for the survival of any business and this same applies to
the Progressive office Furniture Company. The company has some of the trusted clients which
include Telstra, KIA, Coca-Cola, RMIT University and many others. All these clients get the
work of the furniture done from the company which helps them to ensure that they are getting
quality work. Also, this shows that the company can manage the big clients which help them to
work in the New Zealand market effectively (Wilson and Gilligan, 2012). However, when the
customers find any company that is giving a better option than they will shift.

Marketing 8
Competitors: - In the present market, there is tough competition and Progressive office
Furniture Company also have the competitors who are aspen commercial interiors who are well-
known in Australia. The company has mastered the art of blending the contemporary office
solution with the new and innovative designs (Aspen Commercial Interiors, 2020). The company
has a high threat of competitors due to which they need to bring the change within strategies.
SWOT/TWOS
SWOT analysis is considered as the systematically integrates the internal as well as the
external analysis to determine that the company is a strategic fit (Rothaermel, 2015). The below
given is the Progressive office Furniture Company analysis for strengths, weaknesses,
opportunities and threats.
Internal factors
External factors
Strengths (S)
Onsite Consultations
Australia Wide Delivery
Professional Installation
High-Quality Materials and
Manufacture
Licensed trades (Progressive
Office, 2020)
Weaknesses (W)
Lack of home office furniture
facility
People management
Limited technology
Limited suppliers
Lack of promotion
Opportunities (O)
New services for
home office
Technology up-
The market development strategy is
an effective strategy that helps in
expanding the business which is
possible by giving options for the
The expansion of the business
through the market development
strategy will contribute helps in
overcoming the weaknesses.

Marketing 9
gradation
Expansion of
business
Tie up with suppliers
Marketing
new services for the home office
which will allow the company to
make use of its strengths.
Also, this market development
strategy will give the option to
attain all the opportunities to
achieve the goals of the business.
However, this has been found that
for overcoming the weakness of
people management there is a
need for proper HR and effective
recruitment as per new place.
Threats (T)
Change in regulations
Competitors
Environmental threats
Lack of customer
loyalty
Labour market
The licensed trade is conducted by
the company which shows that they
abide by the entire ethical
obligation which is the only way
out through which they can deal
with threats related to regulations
and license (Progressive Office,
2020).
The company need to adopt a
defensive strategy against their
competitors which will help them in
improving the services and offering
the maximum level of client
satisfaction.
While performing the activities it
becomes vital for the company to
adhere weakness for which they
become more focused and bring
changes in their operations.
All these changes in operations
bring the reduction in the threats.
For instance: People management
is a requirement to be managed
which is linked with the threat of
the labour market.

Marketing 10
Conclusion
At the end of the report, this can be concluded that Progressive Office Furniture is
intended to expand the business through the business market development. The report aimed to
provide an analysis of the entire situation of the business. The findings show the analysis of both
the external and internal analysis of the market for the business. The findings show that there are
maximum opportunities and few threats that are witnessed by the company which gives them a
green signal for market development. Along with this, the SWOT analysis is presented which
include the opportunities and threats that have been determined through analysis.

Marketing 11
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014). Principles of marketing. 6th edition.
Welbourne: Pearson Australia.
Aspen Commercial Interiors. (2020). About. Retrieved from: https://aspeninteriors.com.au/
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018). Strategic marketing management. Chicago:Cerebellum Press.
David, F.R. (2011). Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Dawson, J.A. (2014). The Marketing Environment (RLE Marketing). New York: Routledge.
Frynas, J.G. and Mellahi, K. (2015). Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016). Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Progressive Office. (2020). Custom Furniture Melbourne. Retrieved from:
https://www.progressiveoffice.com.au/custom-bespoke-furniture/
Progressive Office. (2020). Progressive Company Profile. Retrieved from:
https://www.progressiveoffice.com.au/about-us/
Rothaermel, F.T. (2015). Strategic management. UK: McGraw-Hill Education.

Marketing 12
Trading Economics. (2020). Australia GDP. Retrieved from:
https://tradingeconomics.com/australia/gdp
Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York: Routledge.
Wooldridge, B., & Cowden, B. (2020). Strategic Decision-Making in Business. In Oxford
Research Encyclopedia of Business and Management.