GLOBALIZATION AND INTERNATIONAL TRADE ON NATIONAL ECONOMIES
Globalization helps to create benefits towards national economies all over the world which enhances wealth distribution, enhances competition and limits military conflicts. The multinational companies create employment with better skills. Under multinational companies more business are grown. Multinational companies like PEPSICO or SONY always look to hire local advertising companies to get connected with the local people.
Countries bloom by massive exports. If a country does the export that imports with a wider margin than that country can be considered as economically stronger. However, governments had to rigid some of the laws to ensure that the multinational companies will not violate their taxations or quotes for sourced local supplies.
Micro and Macro Environment of Sony:
- Competitors: companies should ensure the satisfaction and customer value more than competitors. Sony is a multinational company so they have so many competitors in different areas. Some competitors sell Sony’s own product, they do not work with their marketing skills or their money.
- The company: The company means, it’s a combination of internal groups like research, development, financial and management. Sony has well trained managers, technical staff and financial advisors which they have maintained as a multimedia giant.
- Suppliers: Sony always maintained good relationship with their suppliers, which help them to get good and quality materials.
- Demographic Environment: Demographic factors include the study of age, gender, occupation and population etc… To maintain the population factors, Sony produces for different ages. When Sony launches a new product they will have a targeted age group.
- Economic Environment: The interest rate has an impact on the company’s growth and profitability. The decrease in unemployment has an impact on Sony’s ability to recruit new staff. The use of a new technologies may have an impact on Sony’s product development and marketing. As a result, before introducing a product, Sony must examine its pricing and quality.
- Technological Environment: The technological environment has become more solid and sensible. Because Sony is a self-contained business, it must keep a close watch on its competitors is order to stay afloat.
- Political Environment: Through government or other laws or agencies, the political environment has an impact on marketing. It provides members of the economy with personal security.
Micro and Macro Environment of Pepsi:
- Suppliers: Due to the magnitude of the market in which they operate and the enormous manufacturing that takes place at their factories, Pepsi will require a diverse set of suppliers. They’ll need components supplied on time if they’re going to be able to manufacture their item in time to fulfill demand. The entire production line will be delayed if a supplier fails to deliver the components on time. As a result, it’s critical for Pepsi to have a diverse set of reliable suppliers.
- Competitors: Pepsi’s major opponent is Coca-Cola holds 41.9 percent of the market share, while Pepsi holds 29.9 percent. This will have an impact on how Pepsi must target its product in order to complete effectively with Coco-Cola. To get an advantage over Coco-Cola, they will need to identify a unique selling point.
- Social: Pepsi has been accused by Oxfam of “grabbing land from the poor, “which is an example of a social issue affecting the company. This report has the potential to harm a company’s reputation and cause people to refuse to buy its item. Pepsi values its reputation, so how they respond to these allegations is critical, especially because they have no direct control over the reports.
- Economics Environment: Soda Stream has seen great development in areas of Europe and Asia, but has struggled to break in to the US market. PepsiCo has stated that it would continue to develop its health food and beverage portfolio under its new CEO, and has announced the $3.2 billion acquisition of Soda Stream, a marker of home water fountains. PepsiCo stated Indra Nooyi, the long-time leader in introducing its cola and snack units to natural and organic goods, will depart later this year, just weeks before the acquisition of the Israeli company. Even while it relies on Pepsi and Frito-Lays for the majority of its revenue, Rama Laguarta, the new CEO, made it plain that he feel the deal is to retain Ms. Noy’s direction, and the Ms. Noy has developed her healthy Quaker Oats segment.
- Technology: PepsiCo has unveiled its social vending system, a sophisticated network unit with full touch screen interactive vending technology that allows customers to connect with the Pepsi brand at the point of purchase. PepsiCo’s social vending system used digital technology to allow users to choose a drink for a friend and then enter the recipient’s name, cell phone number, and customized text message*. You can add a short video to your gift to make it even more personal. The gift includes a system code and instructions for redemption in any Pepsi social vending machine. When the recipient redeems their present, they have the option of thanking the original giver with a gift of their own or paying it forward by giving the drink to others.