Global marketing management Essay Example | Topics and Well Written Essays - 3000 words - 1

Global marketing management - Essay Example For example, PESTLE doesn’t measure the impact of information, demographics and ethics variables in the macro-environment. Importance of PESTLE can only be realized if it is applied for practical purposes otherwise the model might be viewed as another management utopia. For example, suppose a multinational company X of Europe wants to expand business in a Latin American country but they do not have any knowledge about the environment of the country. The multinational company X can face six different challenges such as, 1- P- unstable political environment which can disrupt their operation in the country or even create confusion regarding entry strategy, 2- E- poor economic growth of the country might result lack of purchasing parity of consumers which negatively affect the demand for the product of company X, 3- S- lack of understanding of socio-cultural context of the country can create problem for the company X to design effective product-marketing strategy and 4- T- lack of technological growth and infrastructural support in the country can hamper the potentiality of internationalization strategy of X. Kaufmann and Van Witteloostuijn (2012) stated that companies can use PEST instead of PESTLE to measure global business environment in those cases where environment and legal proceedings play very little role. Research scholars such as Porter & Siggelkow (2008) and Heijltjes & Van Witteloostuijn (2003) stated that international companies should try to understand the global business opportunities in terms of both macro and micro environmental context. Ghemawat (2004 & 2007) pointed out that ignoring market need while developing globalization strategy is probably the greatest mistake that can be committed by an international company....Another important thing is that there is hardly any difference exists between Indonesia, Malaysia and Singapore when it comes to culture and demographic aspect hence following growth strategy in Singapore and Malaysia will h elp IKEA to design product mix in accordance to demand of Indonesian customers. Taking help of the research York of Ying (2005), it can be said that IKEA should design products as per seasonal and communal requirement. For example, offering green shaded furniture during Ramjan and Eid al-Fitr would definitely help IKEA to attract Muslim customers. On the other hand, the company should increase the size of the furniture in order to attract family customers in the country. IKEA should offer the assembling and transportation facilities with its furniture products in order to target wealthy Chinese family customers. Recalibration of forward and backward integration of the logistics and supply chain activities will definitely decrease value chain operation cost for IKEA. Decrease in value chain cost would help IKEA to follow competitive pricing strategy in order to penetrate in Indonesian furniture market.