International Marketing- life-blood for any business (Part III) | MBA ...

External Factors

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PEST Analysis

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PEST analysis includes the study of the factors like Political, Economic, Social and Technological happenings which invariably helps a business organisation to understand the market position, direction and potential for a business (Business Balls, n.d.).

• Political ? The political factors in a PEST analysis include political stability in the country, regulations and restrictions of international trade, regulations regarding competitions, safety laws, etc. It is the broad framework which would guide the company?s external environment. Over all, the political environment is stable at United Kingdom.
• Economic ? Economic factors include the taxation policies of the land, the inflation (or deflation as the case may be) rate, the exchange rates, the monetary policies, the confidence of the customers in the economy, the availability of sources of funds and the rate of interest and other important factors. Also for the purpose of Initial Caf?, the purchasing power of the target customers should be analysed.
• Social ? The social factors includes lifestyle, health condition, the income distribution, the education, the fashion statements, etc (PEST Analysis, n.d.).

All the factors are crucial to the decision making. Initial Caf? should be able to leverage the social factors in the United Kingdom market in its side.

• ?Technological Factors- It includes the changing way of doing business due to constant innovation in the field of technology. Initial Caf? can provide Wi-Fi internet with in its coffee stores to attract more customers. Also, it can resort to online marketing measures and use the prevailing technological factors to the fullest.

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Competitors

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According to the traditional notions, United Kingdom is a tea-loving nation. So, there is every opportunity to the Initial Caf? to position itself as the supreme caf? brand and tap the requisite market share. Few of the prevailing companies in the industry are Caf? Nero, Bar Italia, Cafe Flo, Caf? Rogue, Pelican and Pret a Manger (London Cafes, n.d.).

Initial Caf? in order to penetrate in to the British market should closely follow how these successful brands run the show and develop its core competencies on the basis of their weakness.

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Customers, Cultures and Distributions

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The customers, their cultures and the distribution channels of the marketing company are inter-related most of the times. The customers are often, if not always, dictated by their cultures. So, the onus of using the culture of the customers for the benefit of the marketing plan lies on the penetrating company. Initial Caf?, at the first place should be able to indulge with the British culture. They should not take any step which might hurt the sentiment of the nation. If the company can develop a sense of belonging among the customers, it is sure to secure a long term business. The distribution channels should be well thought of. The locations should be convenient for all segments of target customers. Initial Caf? can consider establishing its shops near the tube stations and the shopping malls.

Conclusions

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International marketing is always easier said than done. The options and variables which might look perfect in black and white, might turn out to be challenging to the core in reality. A simple mistake in assessing the cultural and psychological factors and in the analysis of PEST factors may ruin the entire organisation along its hard earned reputation.

Still, as the competition is on the rise, companies are in constant search of newer markets. Expansion of business is the key to its survival. And for the purpose, international marketing has come up as a viable option. With due importance to the feasibility study before the commencement of the project, international penetration would definitely earn glory and revenue to the firm in this era of globalisation.

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