Appendix B: PEST Analysis of the US and Germany
1. Political and Legal Factors
Country Analysis
The US The country established a stable political environment and effective judicial system (Datamonitor, 2010, p. 12). It has evident influence over policy making and negotiations of trade agreements (Datamonitor, 2010. p. 14). According to National Defense Authorization Act, the US military would buy 250,000 pairs of American-made athletic shoes annually (Platzer, 2016, p. 2).
Germany Germany is a democratic republic country operating under the Grundgesetz. It is the member of the G8, the G20, NATO, OECD and European Union, being one of the major political and economic leaders in the world (Slideshare, 2012, p. 4).
2. Economic Factors
Country Analysis …show more content…
The world’s largest producer for quality sports shoes and apparel
2. Listed among 50 most innovative corporation and differentiated by strong R&D
3. Successful global business strategy with strong brand loyalty
4. Effective management of suppliers globally
5. Wide range of product lines and launched new products in collaboration with companies e.g. Apple
6. Heavily investment in advertising and marketing activities with leading international sports teams and events
7. Effective sales and distribution channels all over the world 1. Bad reputation of working environment and employee welfare
2. Overseas manufacturing all over the world
3. High product price compared to other famous sports brands
4. Decreasing market share in the US
Opportunities Threats
1. Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit
2. Expansion into emerging markets
3. Increased customer demand for innovative products 1. Competitive footwear …show more content…
Moreover, the Porter’s five generic building blocks helped me define the competitive advantages of the company. By using PEST analysis and Geert Hofstede model, the business ecosystem of America and Germany were analyzed. I also used SWOT to analyze the strengths and weaknesses of the company and its competitors, and developed 4Ps marketing mix strategy based on the analysis of the company, customers and
1. Political and Legal Factors
Country Analysis
The US The country established a stable political environment and effective judicial system (Datamonitor, 2010, p. 12). It has evident influence over policy making and negotiations of trade agreements (Datamonitor, 2010. p. 14). According to National Defense Authorization Act, the US military would buy 250,000 pairs of American-made athletic shoes annually (Platzer, 2016, p. 2).
Germany Germany is a democratic republic country operating under the Grundgesetz. It is the member of the G8, the G20, NATO, OECD and European Union, being one of the major political and economic leaders in the world (Slideshare, 2012, p. 4).
2. Economic Factors
Country Analysis …show more content…
The world’s largest producer for quality sports shoes and apparel
2. Listed among 50 most innovative corporation and differentiated by strong R&D
3. Successful global business strategy with strong brand loyalty
4. Effective management of suppliers globally
5. Wide range of product lines and launched new products in collaboration with companies e.g. Apple
6. Heavily investment in advertising and marketing activities with leading international sports teams and events
7. Effective sales and distribution channels all over the world 1. Bad reputation of working environment and employee welfare
2. Overseas manufacturing all over the world
3. High product price compared to other famous sports brands
4. Decreasing market share in the US
Opportunities Threats
1. Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit
2. Expansion into emerging markets
3. Increased customer demand for innovative products 1. Competitive footwear …show more content…
Moreover, the Porter’s five generic building blocks helped me define the competitive advantages of the company. By using PEST analysis and Geert Hofstede model, the business ecosystem of America and Germany were analyzed. I also used SWOT to analyze the strengths and weaknesses of the company and its competitors, and developed 4Ps marketing mix strategy based on the analysis of the company, customers and