Strategic Marketing



Strategic Marketing

Introduction

The organization that is being discussed here is Domestic Furniture Ltd. It is one of the finest furniture manufacturers in the United Kingdom. The organization sells a vast range of consumer furniture ranging from dining to living room. The vast experience that the company has in the business enables them to take competitive advantage by providing quality product at an affordable price. Along with this value addition, domestic furniture possess expertise in provide speedy services.

Situational Analysis

PEST Analysis

PEST analysis refers to factors including Political, Economic, Social and Technological. It is one of the useful tools for understanding the market trends in terms of growth or decline. PEST analysis helps in defining the position of a business and providing the potential direction to the business. In the following section we discuss the factors of PEST.

Political Factors

Although, research indicates that there is a decreasing trend by the support authority of the local timber market in the United Kingdom but, the political influence has led the stability to this sector (Aaker, 2009, p. 137). Two of the important political factors that has led the stability of business in general and to the timber sector in specific, include the extension of European Union and the war against terrorism. Additionally, flexible taxation policy is another important factor that has contributed to this factor.

Economic Factors

Economic factors also play a vital role in defining the market position. Inflation is one of the key indicators of the economy and in the United Kingdom, due to low unemployment; inflation is not an issue which results in high purchasing power and high spending ability. Hence, this results in the increase of furniture demand (Boddewyn, 2006, p. 75).

Social Factors

Online buying and online marketing of commodities serves as the important social factors in the United Kingdom. In the UK, 29.8 million people have access to the internet which supports the online buying and marketing trend (Bilen, 2002, p. 67). The United Kingdom is a developed country where internet and television is present in almost every house. At the same time, there is a high trend of meeting people at their home which has resulted in the increase in demand for furniture.

Technological Factors

Technological changes have played an important role in the field of standardization. Technological changes have positively affected the working patterns of all the businesses in the United Kingdom, including the furniture business (Berkowitz, 2006, p. 40). The changes that have occurred in the course of doing business include internationalization of production, increase in production level, standards and regulations for quality. These changes have also given rise to market competition as well.

SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities and Treats. Following are the SWOT for Domestic furniture Ltd.

Strengths:

Economic stability provides brighter opportunities for business

Developed infrastructure

The staff and labor is specialized and skilled at Domestic Furniture Ltd.

The organization has products from competitors in terms of performance

The commitment level of management acts a useful strength

Opportunities:

The market has potential to grow because the regional, domestic and international factors are favorable

The demand for ...