Next, during the lecture, I have learnt about how the social environment can also affect businesses. The social environment includes population demographics, income distribution, culture, lifestyle changes, purchasing behavior and social mobility. Different countries have different culture and lifestyle. Therefore, before entering a foreign market, a manager must analyze the culture, language and lifestyle there. With that, the goods or service will be able to enter the new market smoothly. There are a few examples that shows how important this factor is. Firstly, Durex, a condom manufacturing company did not succeed in penetrating the market in India as the people there do not believe in population control. This has caused losses for Durex. Secondly, Disneyland in France was not capable to attract many customers as the lifestyle there is more to enjoying life and doing things in a slow manner. The rides in Disneyland such as roller coasters do not attract many people. To overcome this problem, Disneyland has changed its roller coasters into roller coasters that are very slow. After the change, Disneyland sales increased and realized their mistake in entering the market in France.
To sum things up, a manager must know issues as such to prevent the company from facing such problems that will cause losses to the company. Knowing customer lifestyle and behavior also can allow you to increase sales and reputation of the company.
Quote of the day:
"If the plan doesn't work, change the plan but never the goal".
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