FIX MY MISTAKES MAKE IT PERFECT
sbatniji
mar.week_2.docxAsma Alsaad – 120001149 Marketing
Hind Dawoud – 120003779 week 2
Manal Albatniji – 120000569
· Write a 1 page brief addressing how these external forces might affect your business and how you will take advantage of or plan for them. Use the sub-environments listed on page 16 of your textbook and discussed on pages 17 and 18 as headings to structure your brief.
External competitors.
1. Economy.
· Inflation: increase in price of a collection of goods.
The increase of inflation increases the prices of goods
· Income levels: Average consumer earnings used to approximate national earnings.
The increase in the income will reflect on the increase the demand.
· Unemployment levels: is the number of unemployed persons divided by the aggregate labor force.
The increase of unemployment levels will reflect on the decrease the demand.
US and European economy: It has broad effect on the businesses in the other rising countries, therefore the growth of US and European economy has direct effect and control on the economy of the other regions. (E.g. the fall of the US real estate market has a great effect on the international markets, over all the world, which happened in 2013, and the worst were on 1987).
2. The demographic of your area (social and cultural).
The demographics are characteristics of human population that are used to identify the market.
· Age: The average age rates in Saudi Arabia are the teenagers (18yrs), that reflect in the market demand (e.g. electronic products).
To be successful we have to consider the teenagers and fulfill their needs.
· Race: About 30% of Saudi Arabian populations are expats, (almost 7,000,000) which will affect the diversity of market needs.
To be successful we have to target the different races in this population and satisfy their needs.
· Household structure: Single-family household reflect in future market needs of products. as for here in Saudi Arabia almost 70% of Saudi population doesn’t own single family house.
To be successful, instead of building single-family households consider building different types (e.g. apartments, duplex’s or townhouse)
3. Presence of competitors.
The presence of competitors creates diversity in the market products to attract more customers to their product therefore if you have a strategy to launch a new product. There fore your competitors aggressively reduce their profit margin to maintain their existing customer, which will negatively affect your strategy plan. (e.g. like the competition between IPhone and Samsung, or Mazola and Afia Oil, Zara and H&M)
