Identifying the major forces

Posts : 1 Join date : 2010-10-13

Thebeginning of the new century brought a series of new challenges. Thesteep decline of the stock market, with affected saving, investment,increasing unemployment, corporate scandals and the rise ofterrorism. These dramatic events where accompanied by thecontinuation of already existing longer term trends that haveintensely influenced the global landscape.

Withinthe rapidly changing global picture, the firms have to evaluate manyfactors such as the demographic, technological, legal and economicfactors. Marketers should always be cautious about the interaction ofall these factors as it leads to opportunities and threats. Thegrowth of global brands across a wide variety of industries such asfood, clothing, electronics likewise have made the producers to makewide plans with regard to the marketing and there by to search forquality and well versed groups oragencies looking for newmodels, with an aim to bring in a new trend anddifferentiation in the existing market.

Companiesand there intermediaries, customers, competitors and public alloperate in a macro environment of forces and trends that shapeopportunities and pose threats. The forces of the environment seemsto be uncontrollable, which the company must monitor and to which itmust respond. In the economic ground companies and consumers areincreasingly affected by global forces. The substantial speed ofinternational transportation, communication and financialtransactions leading to the rapid growth of world trade andinvestment have made the scenario tougher. The move toward marketeconomies in formerly socialist countries along with rapidprivatization of publicly owned companies, the rapid dissemination ofglobal lifestyles and the development of emerging markets namely inIndia,China,the Arab countries and in Latin American countries havemade the companies to have more geographical concentration.