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Pestle Analysis In Latin America

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Expanding into Latin America New markets for any company can be anywhere in the world and since this world every day is becoming more globalized every single company around the world is targeting moving into new places and being able to expand their horizons around the world. Latin America is a region that is becoming more and more approachable to companies from around the world. It provides with a fast variety of raw materials and labor possibilities for them to exploit. Before any organization moves into a new market it must first evaluate it and scan its possibilities in order to determine the best option for it. The following is a description of this process and the best options that the company selling high quality distance measuring technology …show more content…

One of the most commonly used is the PESTLE Analysis which is based on the investigation of the political, economic, social, technological, legal, and ecological factors that surround the country. The analysis aim is to evaluate the aspects that could directly affect the company during its time in a foreign country since these are the factors that could come into play that some may not consider before. This is important because a better understanding of the country’s environment (including political, economic, and cultural aspects) the greater the probability of the product being a success and there is a less risk involved. Yet this among the other aspects previously mentioned form part of a much larger process that the company must …show more content…

What is normally suggested is that if a firm is producing, manufacturing or reselling goods that they usually export since it is the easiest and least risky method. The risk that occurs if this type of strategy is used is that the firm depends on the company that will be exporting to and their customers in order for their product to be known. Yet other strategies include a joint-venture, licensing and franchising, foreign direct investment, and strategic alliances which even though they have more risk than just exporting they are more likely to be used than full ownership. These strategies give the firm the opportunity to still have some control, at different levels, of how the product will be managed in the foreign country. An example of this is Kia Motors direct investment in Slovakia in 2004 or Volkswagen’s joint-venture with Skoda for a period of time in 1991. IKEA uses franchises in order to reach other markets in which it does not have stores yet to take advance of the local knowledge and expand their brand. The company must also decide based on the market what is the best strategy in order to reach the customer and not just the strategy that will help it enter the country. The author Cunningham (1986) identified five strategies in order to enter a new market: • Technical innovation strategy – for products which are perceived and demonstrable superior as seen by the customer. • Product adaptation

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In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.

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Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).

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Peruvian gastronomy Questions & answers With diego muñoz P: What makes Peruvian gastronomy unique? DM: Several aspects make Peru’s gastronomy unique. Among the most significant, there is the richness of its history that involves immigration waves and civilization shocks, and the exuberance of its biodiversity, which is directly related to the climate’s diversity and to its geography, benefiting from the Pacific, the Amazon, and from Lake Titicaca. Nowadays, Peruvian gastronomy is considered one of the great cuisines of the world, because it harmonizes tradition and history with modernity and innovation, along with different cultural influences, like the Inca, the Spanish, the African, the Chinese, the Japanese, the English and the Italian.

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A thorough and comprehensive analysis of the market is required to arrive at a decision. The company should design strategies that should specifically deal with both developed and emerging markets. As the project deals with the entry strategy of Ikea in an emerging market like India, numerous issues and factors have to be taken into consideration for the smooth entry and sustainable growth. India, as a country is diverse in nature in terms of culture, political environment etc. It also has several limitations in terms of technology and infrastructure.

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A PESTLE analysis is a tool used by companies to track the environment they’re operating in or are planning to launch a new project, product or service. PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating on a certain idea/plan (Pestle Analysis, 2015). Below, you can find the PESTLE analysis I have performed for Starbucks.

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In order to be succeed on international market, it’s very important point to define the international strategy. If to define the international strategy: an international strategy is when a company hires a strategy through which its goods and services are sold out of its local market. Enlarging into international markets allows potential opportunities to companies. Let’s see the IKEA’s international strategy in the following Figure 1. IKEA has expanded from a small, family-owned home furniture corporation into a global retailer within 385 stores in 48 countries, during its 72-year history.

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Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and

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. STUDY OF ENVIRONMENTAL FACTORS a. PEST Analysis: i. Political: L 'Oreal faced issues in the dermatology branch led by Galderma due to new legislations governing drugs. The EU law affects L 'Oreal and restricts their use of certain kinds of carcinogenic chemicals, such as Phthalates. L 'Oreal is obligated to produce safe products that do not contain any harmful substances.

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They need to create an image and show that their doing the right thing like Coca-Cola, for example, should use their image and its reputation to help people and not necessary with the purpose to gain some profit. They should familiarize with the culture and specific be familiar with the way this countries do business so no one could be offended in any way. Focus them more on showing respect for their new venture markets in knowing their culture, language, and customs or way of doing business. This companies need to help those countries develop and doing and reducing any conflicts that could raise other conflicts that interfere with the production and distribution of their products. Need to be more social responsible and outsource any ways to produce their product without affecting the environment and resources of the countries they are thinking on going into

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Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

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2.0 PESTEL ANALYSIS
A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives. 2.1 Political Local political factor has a less significant impact on Starbucks Singapore due to strong political stability in Singapore. Singapore is consistently ranked as the lowest political risk country in Asia since 2002 (Corrupt Practices Investigation Bureau, 2015). However, the political stability in the global market is highly important as Starbucks coffee is certified as an ethically traded coffee.

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PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.

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Resource seeking - Put simply, a company may find it cheaper to produce its product in a foreign subsidiary- for the purpose of selling it either at home or in foreign markets. The foreign facility may be able to obtain superior or less costly access to the inputs of production (land, labor, capital and natural resources) than at home. Strategic asset seeking - Firms may seek to invest in other companies abroad to help build strategic assets, such as distribution networks or new technology. This may involve the establishment of partnerships with other existing foreign firms that specialize in certain aspects of

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Introduction Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Question 1:

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