Question

I chose Target

• Identify a large company to be your mentor company to analyze and formulate its global marketing strategy.
• Under an Environmental Analysis heading
  • Construct an environmental analysis for your chosen company in the global arena and regarding the below factors:
    • Economic
    • Trade
    • Social and Cultural
    • Political, Legal, and Regulatory
• Under a General Strategy heading
  • Based on your environmental analysis, identify a country in one of the following regions for your company to expand to. If your company is already in a selected country, you will examine their global marketing strategy in that areas and formulate your own successful strategy:
    • Latin America
    • Middle East
    • Africa
  • Explain your rationale for selecting the country in one of those regions. To explain your rationale, consider the following criteria in that selected region and particularly in your selected country and analyze how these criteria impacted your decision to expand to that country
    • Demographic
    • Economic
    • Trade
    • Social factors
    • Cultural Factors
    • Legal Factors
    • Political Factors

Answer 1

The company which I choose is Amazon.

Enivornment Analysis:

1) Economic Environment: Economic environment provide both threat and opportunity to a company. Developed countries provide opportunity as they have high purchasing power. But country like China who have a high potential and technology they are considered as threat. Developed country provides economic stability to a country. Developing countries like India are providing growth opportunities as the increasing power of the economy is rising.

2) Social and Cultural Factors: Social and cultural factors plays a great role on the company. As the online shopping is increasing day by day it is a opportunity for a company but the wealth disparity is also increasing which means gap between rich and poor is also increasing it is a threat for a company. As the internet connectivity is incresing in develpong countries people are preffering online shopping more which is leading to the growth of the company.

3) Political, Legal and Regulatory: Legal Factors are providing opportunity to a company. As the relation between countries are becoming strong these are helping the online companies to grow. As the legal protection has become strong people are trusting over the online apps and it is leading to a increase in growth.

4) Trade: As the legal factors have become strong the trade between the countries are increasing and it is a opportunity for a company. Because of the legal factors the trade has become smooth and it can expect a long term growth for a company.

GENERAL STRATEG

AFRICA ( EXCEPT SOUTH AFRICA)

1) Demographic: As the countries has rising youth population then it means more and more yoth are seeing for a high business to come. They will actively participate and will provide innovative ideas for the growth of the company. It will also increase the purchasing capacity of the youth.

2) Cultural Factors: There is a huge distrust among the people. They donot believe in online shopping. It increased after the fraud which has taken place in Nigeria. they are not comfortable in storing data on clouds which is a heart of an online website. It is a huge challenge to gain trust of the people.They are not comfortable in storing money in bank store even. The government has already tried so many ideas to win the trust again but they failed. So, the company should start with Cash on Delievery to realise them that their products are safe.

3) Legal Factors: It will be easy to start online company in africa beacuse the government wants FDI to increase their GDP but it will be a little tough to gain the trust of consumers. Government will fully support the company but it is difficult to run market over there.

4) Pollitical Factors: There are non functioning of postal system which is making harder for a online company to deliver their products. For this they have to hire motorbikes which will increase the cost and will make hard to operate. There are also small fragmanted markets everywhere on foothpath, front of mansions who sells things at a very cheap price so the people prefer to buy from there only.

5) Social Factors: The country is so large that it has divided into so many languages and there are cross border payments also. It has cultural difference also which will lead to the duplication of work in a country only as they will have to make different sites for different regions which will make it difficult.

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