Discussion Post
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Discussion Post
Reflecting back to Module Two on the historical factors that contributed to change in the market segment and the current factors that you identified in your PEST analysis
The pest analysis identifies economic factors such as economic growth, exchange rate, inflation rate, and interest rates. Market change is almost inevitable in most countries, including the United States. Again, it is challenging to identify a universal factor that solely controls the market of commodities. However, the government factor seems to house all the other factors that affect market change in the United States.
First, the government policies and guidelines on a particular commodity influence its cost for substantial profits. These factors hinder the growth of the economy in different ways, which also hinders other factors. Again, the policies on external factors like social media also influence the extent of the entity’s marketing. The government is controlled in how many of the companies and other businesses market their products and services (Shabanova, Ismagilova, Salimov & Akhmadeev, 2015). Some of these policies are harsh and do not favor growth, and may lead to inflation. Further, retailers are unable to freely advertise various commodities on social media platforms like Instagram, Twitter, Facebook, among others. This is because the content may not fit all the audiences that may visit the platforms, such as contraceptives.
Secondly, political heat in the country has the liberty to create a conducive or unconducive business environment. If the ground is heated, a particular commodity’s market may change (Shtal, Buriak, Ukubassova, Amirbekuly, Toiboldinova & Tlegen, 2018).
For instance, if the atmosphere threatens customers’ lives at night, clubs and liquor selling points may face a market shift.
Thirdly, the government is mandated to create jobs for its citizens. If the jobs are not created, the purchasing capability of the buyers is limited. There is a need for the government to create job opportunities for its citizens. This leads to market change. Also, the technological advancement in the United States is the role of the government. If the technology is not updated with time, the commodities’ marketing, especially to the outside world, maybe a challenge (Monestier, 2014). Therefore, leading to market change.
What is one factor likely to cause another change in the future that may represent a market opportunity? Explain your rationale
Lastly, the economic stability of a country is solely determined by its leadership. If the leader loses the economy’s grip, inflation is likely to happen, which may significantly affect its economy in adverse ways. In a weak economy scenario, the government imposes taxes on the commodities, leading to fewer sales (change of market) since most buyers cannot afford them, especially the luxuries. Through this, the spread and flow of money get lower, affecting the market segmentation. Therefore, with a streamlined and focused government in place, negative market changes would be minimal.
Monestier, T. J. (2014). Where Is Home Depot at Home: Daimler v. Bauman and the End of
Doing Business Jurisdiction. Hastings LJ, 66, 233.
Shabanova, L., Ismagilova, G., Salimov, L., & Akhmadeev, M. (2015). PEST-Analysis and
SWOT-Analysis is an essential tool to strengthen the competitive advantages of commercial enterprises. Mediterranean Journal of Social Sciences, 6(3), 705.
Shtal, T., Buriak, M., Ukubassova, G., Amirbekuly, Y., Toiboldinova, Z., & Tlegen, T. (2018).
Methods of analysis of the external environment of business activities.