Marco Case Study
1. What marco level forces may lead to the opening of the Lego in the Chinese market? Is political stability important to the toys industry? (20 marks)
Macro level forces, also known as macroenvironment is the major external and uncontrollable factors that influence an organization’s decision making. It can bring significant impact on the marketing campaigns and brand reputation in the long run. Therefore, every aspect in macro level forces must be considered in-depth when deciding process and strategy.
The reasons that lead to the opening of the Lego in China is due to China is the world’s second largest economy. Every foreign companies are interested in opening manufacturing plant in China because China is one of the fastest growing consumer …show more content…
What are the critical factors that will influence a consumer’s ability to purchase Lego toys? Recommend segmentation strategies for Lego for the Chinese market. (20 marks)
The factors that will influence a consumers’ ability to purchase Lego toys include gauging demand. If the demand for the products is generated through marketing activities which would lead to increase in prices which affect the consumers purchasing decision not to purchase the products due to the product become expensive.
Besides that, sales and distribution challenges can be a factor influence consumer’s purchasing power as well. In the developing country, consumers are largely rural and highly scattered, so it will be challenging to attract consumer to purchase the products. Chinese consumer who live in rural area will not interest or realize the existence of the modern toy.
Other than economic aspect, product itself can influence consumers’ purchasing power such as company’s brand. If the product is low-priced version, the consumer will have bad perception on the product like low quality or will not last long (Keen, …show more content…
Based on World Health Organization studies, it says that there are 7 million people die due to expose excessive polluted air on previous year (Mosbergen, 2015). This has shown how dangerous can polluted air affect to human being and lead to the government control the penetration of foreign companies strictly to avoid mass of opening plantation which can create more air pollution. Thus, Lego must focus much on sustainability then only they can open manufacturing plant in
Macro level forces, also known as macroenvironment is the major external and uncontrollable factors that influence an organization’s decision making. It can bring significant impact on the marketing campaigns and brand reputation in the long run. Therefore, every aspect in macro level forces must be considered in-depth when deciding process and strategy.
The reasons that lead to the opening of the Lego in China is due to China is the world’s second largest economy. Every foreign companies are interested in opening manufacturing plant in China because China is one of the fastest growing consumer …show more content…
What are the critical factors that will influence a consumer’s ability to purchase Lego toys? Recommend segmentation strategies for Lego for the Chinese market. (20 marks)
The factors that will influence a consumers’ ability to purchase Lego toys include gauging demand. If the demand for the products is generated through marketing activities which would lead to increase in prices which affect the consumers purchasing decision not to purchase the products due to the product become expensive.
Besides that, sales and distribution challenges can be a factor influence consumer’s purchasing power as well. In the developing country, consumers are largely rural and highly scattered, so it will be challenging to attract consumer to purchase the products. Chinese consumer who live in rural area will not interest or realize the existence of the modern toy.
Other than economic aspect, product itself can influence consumers’ purchasing power such as company’s brand. If the product is low-priced version, the consumer will have bad perception on the product like low quality or will not last long (Keen, …show more content…
Based on World Health Organization studies, it says that there are 7 million people die due to expose excessive polluted air on previous year (Mosbergen, 2015). This has shown how dangerous can polluted air affect to human being and lead to the government control the penetration of foreign companies strictly to avoid mass of opening plantation which can create more air pollution. Thus, Lego must focus much on sustainability then only they can open manufacturing plant in