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Marketing case study - Essay Example

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Marketing case study

The economic down turn had a negative impact on the consumer expenditure and the resultant manufacturers selling prices. The consumer confidence and house building decreased tremendously. The kitchen furniture market reduced rapidly because of house moving. The market value also declined costing the industry more than 250 million pounds. This marketing essay seeks to discuss PEST analysis, target segments and value chain in the industry. PEST analysis PEST analysis is a crucial tool when it comes to marketing process of any organization. It involved identifying economic, technical, political and social influences on the organizational entities. The external factors include uncertainties and risks. Political factors The political or legal set up of the United Kingdom furnisher industry has an immense influence in the mode of regulation that affects the industry. The legislations that are sponsored by the government have the potential to affect the spending power of the consumers. The fiscal policies in the United Kingdom during the recession had a profound effect on the consumer choices in the furniture market (Bruhn & Georgi 2006). The political environment is composed of pressure groups, laws and state agencies that influence the furniture market. The political developments in the United Kingdom have affected all the stakeholders in the furniture industry. Studies show that the legal environment in a market can limit the operations of individuals or organizations (Lopes & Duguid 2010). Therefore, the stakeholders in the furniture industry must understand the United Kingdom’s political system and processes. This is likely to give the stakeholders an enhanced insight into the most profitable business decisions to take in the furniture industry. Government interventions in the running of timber industry affect both the long-term and short term plans of the organization (Lopes & Duguid 2010). The government of the United Kingdom monitors the timber industry to avoid depletion of the forest cover. The government has enacted special legislations that ensure that nature resources are not destroyed for private gain. The furniture market in the United Kingdom is subject to these legislations. The marketing strategy of the timber industry is affected by the government interventions. The government of the United Kingdom has informal and formal rules that play an important role in the timber industry. Some of these laws are the tax policy, environmental regulations and other trade restrictions. Research shows that political stability and tariffs affect organizational profitability (Jerrard & Hands 2008). The government is keen on the role of the forests in fighting climate change. Some of the causes of deforestation include wood extraction, expansion of infrastructure and getting more agricultural land. The government controls the logging process in order to ensure that technology does not lead to compromise in the forest cover leading to negative effects on the weather patterns. Technology has enabled the sawyers to harvest up to 4000 tons of timber in a day. Economy factors The economic risks or factors relate to regional trends in the conditions that can have profound effects on timber industry in the United Kingdom. The free market economy, the dynamic inflation rate which is under strict fiscal policies because of the recession and the slow economic growth has a negative effect on the timber and furniture company (Lopes & ...Show more


Forest Timbers Introduction Forest Timbers is a timber merchants, importers and machinists company that operate from Hereford in United Kingdom. The company specializes in the soft and hardwood from North America, Europe and Asia…
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Marketing case study essay example
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