Project due Friday

REI Marketing Environment Worksheet

List the current characteristics of each environmental factor as they relate to REI.

U.S. Economy

How does the current U.S. economy affect REI retail operations?

1. The economy affects the purchasing power of the people. There has been poor economic conditions. Because of this, people have been unable to cater for recreational activities in their budget. On their part, the situation has affected REI retail such that there has been a reduction in the purchases.

2. Another economy element to consider is the loss of revenue. Without sufficient revenue, the company loses its ability to sustain its operations. Because of this, loss of revenue forces REI retail to cut down on its expenses to support its operations.

Global Economy

How does the current global economy affect REI retail operations?

1. In the aspect of global economy, exchange rates are crucial. The current exchange rates affect the costs and prices of the products. REI retail would therefore faces a fluctuation in their prices depending on the exchange rates.

2. A decrease in the global economy affects the costs and subsequently the revenue of REI retail. To enumerate, an increase in global economy results in an increase in revenue and in production.

Legal and Regulatory Environment

What types of legal and regulatory forces affect REI in the U.S.?

1. There exists laws and regulations in relation to advertising and marketing. Knowledge of such laws is crucial for REI retails. The retail company needs to understand the specific guidelines that pertain to their industries to be able to align their activities to the rules.

2. Training and the workplace environment of employees is crucial. REI retails needs to promote an environment that lies in accordance to Work place safety and health laws. Without that, the company might face adverse legal retaliation that might affect their business activities.

Socio-Cultural Forces

What types of social and culture trends affect REI?

1. The use of social media has become a predominant activity in the world today. In the same manner, REI retail should gain an understanding of the use of social media for their business activities. Such a criterion can be achieved through marketing their products online. Further, an online community can be created where customers interact and share about the company’s product.

2. Different behaviors exist for every cultural group. REI retail should understand the cultural orientation of their customers. Such an understanding assists in aligning the company’s product to suit the preferences and taste of each market segment.

Technological Forces

What type of technology changes affect REI?

1. Technological development has been rampant. REI retail needs to upgrade its activities to the latest technologies in the market. Without that, the company can face the threat of displacement in the highly competitive market.

2. Technology can also be used to conduct business activities. Particularly, technology can be integrated to allow customers to make orders and purchases online without necessarily having to visit the premises of the retail shops.