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Environmental Factors Of Marketing

Environmental Factors of Marketing
T.I
University of Phoenix
MKT 421
Harry Caldwell
06/24/2006

Environmental Factors
For a company to gain or maintain a sustainable competitive advantage, the organization must be ever vigilant, watching for changes in the business environment. The organization must also be agile enough to alter its strategies and plans when the need arises (Wikipedia, 2006). In today's business world, organizations must look at international markets for new opportunities. For a business to grow, the organization must be aware of the challenge that awaits the marketing team. What might be proper in the United States might not be acceptable in a foreign country.
Toys R Us
Toys R Us is the nation's largest retailer in a specialized field. The company operates over 500 domestic stores and 400 international stores. In the past two years, Toys R Us has opened more international units than domestic ones, a trend that it is likely to continue in the foreseeable future. The chain now operates in nearly 20 foreign countries, the most recent additions being Denmark, Sweden and Luxembourg. The nameplate also appears in Israel via a franchise agreement (Findarticles, 2006). With the organization operating in so many different markets, the importance of proper marketing takes center stage. What might be appropriate in England might not be appropriate in Japan. The difference in cultures must be observed and Toys R Us has proved that they are up to the challenge.
Any U.S. company looking abroad must start by understanding the international trade system. When selling to another country, the U.S. firm faces various trade restrictions. The most common is the tariff, which is a tax levied by a foreign government against certain imported products. The tariff may be designed either to raise revenue or to protect domestic firms. The exporter also may face a quota, which sets limits on the amount of goods the importing country will accept in certain...