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Situational Analysis of International Marketing Environment - Essay Example

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Marks and Spencer is one of most established players in the retail industry with a large array of products ranging from food to apparels (Marks and Spencer, 2011). The company was established in the year 1884 by Michael Marks and since then has grown rapidly to about 600 stores in UK alone employing about 75000 individuals across the globe in diverse markets (Marks and Spencer-a, 2011). However the aspect of international expansion must be handled with caution as one of the most important mistakes made by multinational firms involves undermining the aspect of local sentiments and beliefs that can lead to disastrous consequences in terms of positioning of the brand in the new foreign markets. The company has a dedicated presence in about 40 nations across the globe. Analysis of the Marketing Environment Marketing environment plays a crucial role in any business; in this case the report would examine the marketing environment of China in which the company tends to expand its business. Country Analysis China holds considerable promise for Marks and Spencer for expanding its business as the nation holds a good position with regards to ease of doing business. According to a report published by the World Bank China ranks 79 among all the nations with regards to ease of doing business preceded only by India, Brazil and Russia among the emerging markets (IFC, 2011, p.2). In addition China is also the highest populated country of the world and its recent strides in economic growth have led to making it one of the major markets for retailers across the globe (BBC, 2011). Cities like Shanghai and Beijing score high on the list of international companies trying to expand internationally due to good market potential (CB Richard Ellis, 2011, p.3). A research study conducted to analyse the consumer behaviour states certain key trends of the Chinese consumers that includes a good growth in consumption patterns, greater sophistication of the consumers, a reduced trade up of products and brands, shift towards brand value and brand image and finally display of greater smarter purchasing trends among the consumers. In addition to this the Chinese consumers have also become more inclined towards better service and are also influenced to some extent by Western brands. This can be very well leveraged by Marks and Spencer to make a successful foray in the Chinese market. However cultural issues must be accordingly included in the business strategies as the Chinese consumers are known to be highly inclined towards their culture and hence ignoring local cultural sentiments and beliefs can lead to disastrous consequences for the organization in the Chinese market (McKinsey & Company, 2009, p.7-12). Industry and Competitor Analysis Porter’s Five Forces Model The analysis of the competitive environment for Marks and Spencer in the Chinese model can be analysed using the five forces model proposed by Michael Porter. The five forces are stated below: Bargaining Power of Buyers Bargaining Power ...Show more
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Situational analysis of international marketing environment Table of Contents Situational analysis of international marketing environment 1 Table of Contents 2 Introduction 3 Analysis of the Marketing Environment 3 Country Analysis 3 Industry and Competitor Analysis 4 Porter’s Five Forces Model 4 PESTEL 7 Customer Analysis and Positioning 9 Market Screening 9 SWOT Analysis 12 Strengths 12 Weakness 12 Opportunities 12 Threats 12 Conclusion 13 Evaluation of Frameworks 13 Recommendations 13 References 14 Introduction The era of globalisation has created a change in the business environment with business organizations expanding their businesses beyond national borders…
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