Marketing Case Study Analysis Essay Example | Topics and Well Written Essays - 2750 words

Marketing Case Study Analysis - Essay Example In this regard, a deeper understanding of what the relevance is of â€Å"marketing myopia† is can be gauged. In the analysis of this case study, Levitt (1975) suggested that the reason behind the downfall of the so-called â€Å"growing industry† is generally because of their myopic thinking culture. With this short – sighted vision of what the future of business may possibly offer, firms do collapse. It is indeed necessary to think outside the box and have a bigger picture of what is likely to happen in the industry. Also, he proposed that in order for business to thrive continuously, businesses must be customer – oriented instead of being too much occupied in developing, improving and producing goods and services. Likewise, he also suggested that marketing is needed and not just basically selling since marketing includes communicating the values that the products and services can possibly offer. This recommends that in order to avoid business failure in t he future, a proper implementation and execution of the strategies should come next to ensure the sustained business after such careful and balanced analysis and planning of the business context today and in the future. Introduction Starting a business involves risks since its success is never a guarantee. In reality, there are only slim chances of success in every business because only a few out of the total numbers of founded businesses do succeed. The U.S. Small Business Administration suggested that an estimation of over a half of the small businesses do fail within the first 5 years of their operation (Vetbiz Resource Center, 2009). There are many available print and online materials which try to explain why businesses fail. In the book entitled â€Å"Small Business Management,† Michael Ames (1983) suggested that the collapse of small businesses can be accounted by the following reasons: the entrepreneur’s lack of experience in handling business, poor inventory ma nagement, weak credit arrangement, excessive investment in fixed assets, insufficient capital to sustain the business needs, personal use of business funds, surprising growth in business as well as the poor and inconvenient location of business. On the one hand, there are two more reasons accounting to the collapse of business. According to Gustav Berle (1989) in the â€Å"Do It Yourself Business Book†, the increased competition in the market and the low sales are also reasons behind business failure. However, it is the case that businesses may have achieved a certain growth at one point in time which is followed by its collapse after. This failure of businesses, according to Theodore Levitt (1975), is not caused by the saturation in the market but mainly due to the short – sighted thinking culture of firms through having the illusion that such industries are growing. For Levitt (1975), the belief in the so – called â€Å"growth industry† should be reject ed since for him, such conviction is followed by complacency. With the belief in the â€Å"growth industry†, the businesses focus more on developing products and producing goods which they sell to the consumers. Nonetheless, these firms lose sight of what the real needs and wants are which can truly satisfy the customers. Given this, the focus of this paper mainly delves at critically analyzing the case of â€Å"

PEST(LE) Analysis Essay Example | Topics and Well Written Essays - 1500 words - 1

PEST(LE) Analysis - Essay Example In UK market, there is further scope of growth for the company. UK’s consumer market demand is well aligned with business strategies of IKEA. The company has been able to secure desirable market share due to its effective cost control strategies, continuous new product development and competitive operational procedure. IKEA is inclined towards offering low prices to customers for its wide array of innovative products. According to Allen (2006), PESTEL analysis is a strategic tool that helps to determine key drivers of change present in the business environment. The main components of this tool are political, economic, social, technological, environmental and legal factors. Political factors stands for government policy which directly impacts workplace environment, technology quality, health and safety conditions, etc. Economic conditions include interest rates, rate of economic growth and taxation charges. Social factors relate to all possible events which are affecting community and market socially (Allen, 2006). As per Das and Teng (2009), it comprises of population dynamics, cultural expectations, norms, health consciousness, etc. Technology factor states that new products or processes are developed with the support of advanced technology. This factor facilitates quality enhancement, innovation and reduction in overall costs. Legal aspect corresponds to legislative and regulatory framework tha t governs countries of operations or respective product areas. Environmental factors encompass changes in climate and weather. Environmental awareness is an area of concern for all business organizations (Das and Teng, 2009). Research methodology lays the foundation for any research study. Any study can be classified as quantitative or qualitative research study. Quantitative study deals with market related data which can be statistically analyzed. On the other hand, qualitative study is opinions or views of experts. There are two