The tools to be used to provide a detailed analysis of the global marketing plan?
The best tools which will provide important insights on the nature of the market include the Porter’s analysis of the market forces at play and the PESTLE analysis. The above tools will offer critical insights on the state of the furniture industry and will also enable the company to design market projections based on the insights gathered. The Porter’s analysis, developed by Michael Potter in 1980 is used to study the consumer (buyer behavior patterns), the power held by suppliers in the market, the existing barriers to entry for any new firms, the competition amongst firms selling the same product in the market and the alternative products that exist in the market. As such, this tool is critical as it analyses all the external forces at play within a market. On the other hand, the PESTLE model analysis the political, economic, socio-cultural, technological, legal and environmental issues at play within the market (Makos, 2015).
Why the PESTLE and the Porter models are the best tools to evaluate the market.
The PESTLE model and the Porter’s model are some of the best tools to study the market since they offer some of the best insights on how to study the market and determine the risk structure an organization faces in a new market. Both the above tools enable an organization to determine some of the internal and external challenges the organization will likely face in a new market. In addition, they always allow a business organization to determine their risk profile thus enabling the company’s leaders to come up with critical models to mitigate the risks observed (Dobbs, 2014).
Therefore, since the business organization seeks to extend its operations into the Italian market, the PESTLE and Porter’s model offer one of the best options of evaluating some of the weaknesses which exist in the market and how the company can utilize the weaknesses noted to their advantage. Furthermore, the above models will also allow the company to evaluate the competitiveness of other firms in the market and determine how they can align their internal operations and strategies to suit the Italian market (Mucelli, Micozzi, & Jackson, 2015). Hence, the PESTLE and Porter’s model will give the organization the leeway to study the consumer needs and align their internal operations and strategies to enhance customer loyalty.
How to utilize the above tools
The Porter analysis will provide important details on consumer behavior and supplier power. Therefore, the model will be used to study the consumer purchase behavior hence enabling the company to align their pricing techniques based on buyer behavior. Consequently, it will also allow the company to study supplier power hence enabling the company to select the best supplier in the market whose business model is aligned to the organization’s philosophy. In addition, it will also provide important details on some of the existing barriers to entry of any new firms seeking to enter the market like the taxation laws and the ease of doing business in the designated country. In addition, Porter’s model will also be used to study some of the existing barriers which might hinder the operations of the textile business and will also be used to study some of the alternative products that exist in the market and their pricing mechanisms (Dobbs, 2014).
Further, the PESTLE model will be used to study how the political and economic forces at play will affect the business operations. In addition, it will also provide an overview of the socio-cultural and technological factors at play within the market (Makos, 2015). Furthermore, the model will also be used to study some of the Legal stipulations laid out for companies entering the Italian furniture market and will also provide an overview of the environmental factors at play within the market.
References
E. Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
Makos, J. (2015). What is pest analysis and why it’s useful. PESTLE Analysis.
Mucelli, A., Micozzi, A. & Jackson, G. (2015). A case study of Italy’s Marche Region Industrial Districts: A model of transformation and change. Journal of Business Cases and Applications, 13, 1-23.