Changes in the macro-environment factors can have a direct impact on not only the The Walt Disney Company but also can impact other players in the Entertainment - Diversified.
Its global presence means that the brand is subject to several forces. In this era of globalization, from political to economic, social and technological, there are several forces that affect the brands and their business. IKEA is also affected by these forces. The maker of home furnishing products is known for its low prices and great quality products.
To sustain a strong brand means being able to respond to the changing market dynamics faster. PESTEL is a strategic tool used to analyse the impact of these external forces on businesses and industries.
IKEA operates across more than 41 countries. The political forces are there in every nation and affect the businesses. From supply chain activities to sales, all of them are affected by the political forces. Political stability leads to economic stability and in turn it means better sales and profits.
Political instability on the other hand can disrupt the business environment.
It can also lead to supply chain disruption. In the past few years China and India have acted to lower the political barriers for the foreign brands which had led to increased presence of the international brands in these markets.
IKEA is planning to dominate the emerging Asian markets. The Red Tape is always a major worry for the foreign brands operating in these markets. Economic forces play a very special role in the business environment. The condition of the world economy decides how much profits and revenue the businesses will earn.
Several of the big brands were in pretty poor shape during the recession. People lost their jobs in very large numbers and were forced to cut down on living costs.
IKEA has managed its products prices very well. So, that helps it manage some of the pressure that arises from economic fluctuations.
Still, economic fluctuations can be detrimental to the health of the big brands. A stronger dollar makes US based brands lose their profits. Now that the economic scenario is better and the condition of employment has kept improving, the brands all over the world are enjoying better sales and higher profits.
The economic condition of a market is also an important factor that affects the pricing in particular regions and areas. Social and cultural factors too can have a deep impact on business and its profits.
Before setting foot on any of the international markets, it is important to get the local nuances right. It is important to respect the social and cultural values of the local market.
The company came under fire for Photoshopping women out of its catalogue in Saudi Arabia and for removing a lesbian couple from its magazine in Russia. Moreover, social trends and other factors can have a deep impact on sales.Facebook Shop Facebook Messenger Amazon eBay Enterprise Pricing Blog Resources.
Guides Shopify Academy Podcasts How to conduct a SWOT analysis. A SWOT analysis is far from scientific. There’s no objective way of measuring how well you do one. It relies on your ability to observe and recall internal and external factors that can impact.
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PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles. We will write a custom sample essay on PESTLE analysis specifically for you for only $ $/page. Order now SWOT and PESTLE ; A Pestle Analysis of Mining Industry ; . PESTLE Analysis of a Cinema The benefit of a PESTLE analysis is that it allows you to complete a basic audit on an organisations position in relation to the macro environment It can then go to influence a number of business decisions within the organisation.
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It also enables consumers to shop quickly and avoid.