Environmental Factors that affect Global and Domestic Marketing Decisions
Every company global or domestic has external factors that exist that eventually have an effect on the company’s operations. Some of these external factors can be controlled but a larger portion is uncontrollable and yet they can be managed and or influenced by the company. These specific factors make up the marketing environment in which a company has environmental factors that influence the company’s decisions. In this paper, the author will explore the domestic and global environmental factors that could have an impact on FedEx’s marketing decision. The five environmental factors that the author will be discussing are social, economical, technological, competitive, and regulatory.
These five environmental factors are discussed at great length in the book entitled Marketing 8th Edition written by Roger A. Kerin, Steven W. Hartley, Eric N. Berkowitz, and William Rudelius. The writers define social forces as "the demographic characteristics of the population and its values" (Kerin & Berkowitz, Hartley & Rudelius, 2006, p. 74). Some of these demographic characteristics can include gender differences, buying patterns of consumers, culture, attitudes, and diversity. Economical factors are defined by the writers as anything that "pertains to the income, expenditures, and resources that affect the cost of running a business and household" (Kerin & Berkowitz, Hartley & Rudelius, 2006, p. 80). The writers also discussed technological factors as "inventions or innovations from applied science or engineering research" (Kerin & Berkowitz, Hartley & Rudelius, 2006, p. 83). The fourth environmental factor that is discussed in by the writers is competition, which refers to "the alternative firms that could provide a product to satisfy a specific market’s needs" (Kerin & Berkowitz, Hartley & Rudelius, 2006, p. 85). A company has to consider its present and future competitors when they are designing a marketing strategy. The final environmental factors that can affect FedEx are regulations. According to the textbook, regulations consist of “restrictions state and federal laws place on business with regard to the conduct of its activities” (Kerin & Berkowitz, Hartley & Rudelius, 2006, p. 87).
FedEx has become one of the finest logistics companies in the transport industry and globally. There is an enormous force that ultimately drives this company into having a competitive advantage. This competitive advantage consists of a combination of the company’s website, Information Technology infrastructure and software. The Information Technology infrastructure that FedEx has developed has become the company’s backbone when it comes to communicating between the numerous operations departments. FedEx has a philosophy about competition both collectively and independently and when this philosophy is coupled with their IT infrastructure the sky is the limit for them.