TASK – Global Marketing – Macro and Micro Analysis
Table of Contents
Macro Analysis. 3
Political Environment 3
Economic Factors. 3
Social Environment 4
Legal Environment 4
Micro Analysis. 5
Main Competition. 5
Market Share. 6
In order to conduct business efficiently, it is important for companies to understand the external marketplace and the manner in which it will affect the overall outcome of the same. Correspondingly, macro environmental analysis is crucial towards understanding the external marketplace in which a particular business attempts to conduct its business operations. In this particular paper, focus has been on evaluating the external market of Haiti and the manner in which it will influence the overall business of the selected company i.e. Kingspan (Kingspan, 2016). The macro environment of the region is provided hereunder.
The political environment of the nation can be considered quite stable in terms of the structure of the regime of the nation. Though the country has never been able to get recognized itself globally, it will certain provide new opportunities for the business domain. However, the problem of corruption could not be ignored in Haiti, which can certainly impact the operations of the new business initiating in this part of the world (Prezi, 2013). Capitalism is the base of the national politics in Haiti and hence a manufacturing company like Kingspan might get benefit out of the same. However, the rank 188 of Haiti for starting business in this region might not be appropriate for Kingspan for conducting business in this part of the world (World Bank Group, 2016).
The economic environment of a particular region significantly influence the manner in which business are being succeeded or failed in a particular region. Economically, Haiti is not one of the most suitable places of the world in order to conduct business. The fact that third hungriest country in the world depict this particular aspect. It is also one of the poorest nation of the world. Correspondingly, the purchasing power of the customers is quite low in this particular marketplace (Global Issues, 2016). Again the fact that this particular market have abundance of low labor will also enable the business of Kingspan to operate efficiently in this particular market. Hence, the economic condition of this particular region can indeed be regarded as mixed to an extent.
The social structure of this particular region is coupled with rich cultural and ethnic heritage. People lacked a standard living owing to lack of proper growth for the economy. The region is densely populated with mostly including the poor group of people. The settlement pattern of the people is mostly rural centric. Hence, the company i.e. Kingspan will mainly seek to target the rural areas for its business (Prezi, 2013). However, the business freedom of 47.1% in this particular region can indeed work positively for Kingspan (Economic Freedom, 2016).
Technologically too the region is quite absurd in nature since a large percentage of the population is still to have proper access to electricity supply. Only 10 million people have access to electricity in this particular part of the world while a minimal number has proper access to internet. Hence, reaching a larger target customers base with digital and social media will be quite uncertain for the company i.e. Kingspan in this particular marketplace.
The legal environment of the region can be regarded as appropriate for the companies. Getting government approvals for foreign business units is relatively easy in this particular part of the world. The higher trade freedom of 72% can also be crucial for Kingspan to conduct business in this marketplace.
Micro Environment mainly refers to the internal environment which impacts the overall business. In order to conduct business efficiently in the market of Mongolia, the management of Kingspan will need to understand the internal factors of the region that can influence the business performance at large. The internal analysis of the market is provided hereunder.
One of the major internal factors that that can impact a particular business is the competition existing in the market. Kingspan is a particular company that is intending to enter into the building manufacturing industry of Mongolia. Though the company is a global leader in this industry, it will certainly face competition from the contemporaries in the market. Among the various players that is operating within the construction industry of Mongolia, Erel LLC will be the prime threat for the company. The company is one of the oldest in terms of experience operating in Mongolia. The company is highly committed towards providing quality services to the clients at a reasonable price. The company is also efficient in terms of managing the human capital towards attaining the desired goals and objectives. These aspects should be taken into consideration by Kingspan while operating and competing with Erel LLC in the market of Mongolia (EREL Group, 2016).
Again, MCS Group. is also one of the major player within the market of Mongolia. The company is involved with the execution of various government funded projects of Mongolia within the public sector. The company is claimed to have a divers set of human resource pool that is effective in meeting the desired needs of the clients. Furthermore, the company also has a considerable years of experiences of dealing with the clients of Mongolia, which is also a potential competitive edge over the other companies (MCS Group, 2016). This aspects also depicts MCS Group as a threat for Kingspan in the market of Mongolia.
The market share of both the companies and competitors of Kingspan is quite considerable in this particular marketplace. It is notable that the market share of both the company is quite high and they forms a major portion of the industry altogether. Both MCS Group and ERLC Group is among the market leaders within the construction sector of Mongolia. Though the sector is quite small in terms of its size and scale in the market of Mongolia, the ability of both the competitors could not be overlooked. In this regard, Kingspan will need to be efficient in its approach of meeting the deadlines of the clients and attain the desired level of quality from the same at large (Finkel, 2015). The company will certainly need to reflect on the quality of its operations in the other markets of the world.
EREL Group. (2016). Portfolio. [Online] Available at: http://thenewmediagroup.co/erel-group/ [Accessed April 11, 2016].
Economic Freedom. (2016). Haiti. [Online] Available at: http://www.heritage.org/index/country/haiti [Accessed April 11, 2016].
Finkel. (2015). The Economics of the Construction Industry. UK: Routledge.
Global Issues. (2016). Haiti. [Online] Available at: http://www.globalissues.org/article/141/haiti [Accessed April 11, 2016].
Kingspan. (2016). About Kingspan. [Online] Available at: http://www.kingspan.com/about-kingspan.aspx [Accessed April 11, 2016].
MCS Group. (2016). MCS Property LLC. [Online] Available at: http://mad-research.com/appendices/data-and-contacts/construction-and-development-sector-company-index/ [Accessed April 11, 2016].
Prezi. (2013). PEST Analysis Haiti. [Online] Available at: https://prezi.com/7gvmitow7jvu/untitled-prezi/ [Accessed April 11, 2016].
World Bank Group. (2016). Haiti. [Online] Available at: http://www.doingbusiness.org/data/exploreeconomies/haiti/ [Accessed April 11, 2016].