Memo of Marketing Strategy
Memo 2
Like water to fish, the basic reasons that determine the development of a company is called general environment, which includes: demographic reasons, cultural trends, economic climate, legal and political condition, specific international events, and technological change. General environment can be a threat or opportunity for companies, it depends on how deeply companies understand and make use of it. When companies can know the general environment they are facing, they will change their products and services in accordance with the culture they are facing. If companies do not understand the environment very well, they will lose a large sum of money. From my perspective, the three dimensions below are most vital. As for demographic reasons, it contains the attributes of individuals in terms of age, sex, marital status, income, ethnicity and other personal characteristics that may affect consuming patterns. In order to make money, knowing the demographic features of the areas are crucial. Since the new entrant Wall Street Deli is opening a few blocks away, it is necessary for us to keep our business information as a secret. Our advantage is that we have been in this area a long time, we know exactly what our customers’ attributes. Besides, economic climate has a remarkable influence on the business. American economy is in recession now, so Hometown Deli has to think of some ways to stimulate consuming. They can do some discounts like dinner specials or buy two and get one free. Next, the technology can be beneficial to firms but also creates threats, as technological changes force the restaurant to think of new technological strategies. When people are waiting in line, the restaurant can provide some services like upgrading customers’ electronic devices system. They can also provide some competitions for customers to play games in case they got bored.
The Porter’s Five Forces Model indicates five most common threats faced by the firms in their local
Like water to fish, the basic reasons that determine the development of a company is called general environment, which includes: demographic reasons, cultural trends, economic climate, legal and political condition, specific international events, and technological change. General environment can be a threat or opportunity for companies, it depends on how deeply companies understand and make use of it. When companies can know the general environment they are facing, they will change their products and services in accordance with the culture they are facing. If companies do not understand the environment very well, they will lose a large sum of money. From my perspective, the three dimensions below are most vital. As for demographic reasons, it contains the attributes of individuals in terms of age, sex, marital status, income, ethnicity and other personal characteristics that may affect consuming patterns. In order to make money, knowing the demographic features of the areas are crucial. Since the new entrant Wall Street Deli is opening a few blocks away, it is necessary for us to keep our business information as a secret. Our advantage is that we have been in this area a long time, we know exactly what our customers’ attributes. Besides, economic climate has a remarkable influence on the business. American economy is in recession now, so Hometown Deli has to think of some ways to stimulate consuming. They can do some discounts like dinner specials or buy two and get one free. Next, the technology can be beneficial to firms but also creates threats, as technological changes force the restaurant to think of new technological strategies. When people are waiting in line, the restaurant can provide some services like upgrading customers’ electronic devices system. They can also provide some competitions for customers to play games in case they got bored.
The Porter’s Five Forces Model indicates five most common threats faced by the firms in their local