This report highlighted the impact of environmental factors on the expansion of the firm Elkie and Ark in the USA. The operations other than the host country creates challenge and opportunities for the company with environmental factors directly impacting business operations with tax structure, favorable technological advancement. Elkie and Ark can take advantage of labor, materials, and improve production facilities. As a change in location for expansion firms should use marketing, product differentiation. The use of try and buy model as opposed to direct sale on the e-commerce portal would made a distinctive impact on the use of linen and market bag. The diverse environment and stronghold of technology provided an opportunity for the company in designing its marketing decisions for growth and market share. The report addressed government programs as an enterprise can use a soft landing program for centralized resources and mentoring programs.
Table of Contents
Ethics and CSR..
Marketing mix for the USA..
Elkie & Ark is an organic linen company based out of Australia. The company was established in the year 2016 and focus on the ethical, sustainable product (Elkie& Ark, 2020). The firm is known for its sustainability, CSR practice and company is in operations in organic linen caters to the luxurious brand. The USA is one of the largest economies in the world has the potential for expansion in geographical and technological leverage for the company depending on the analysis. The expansion of the market will require a change in marketing and environmental promotional aspects in influence with environmental analysis. The USA has been ranked sixth in ease of doing business this adds to the attraction of the location for investment (Doing business, 2020). The category segmentation and brad advertising have to be monitored.
The purchase through the bundled product will be central to new market expansion. The product category through the existing range on organic clothing as tough competition form ethical organization in the USA that is brand conscious and prefers a brand with existing market composition over emerging players. The brand will have an edge in the ethical and luxury segment with its tie-up with the UN as part of the Aim2flourish program (Eike& Ark, 2020). The company country sources from firms in Australia and outsource material from Belgium, India among few. The bath and linen market in the USA is its growth stage and is expected to grow at a CAGR of 7% on-demand in organic bed and linen (Statista, 2020). This report highlights the environmental analysis concerning expansion in the United States.
PESTLE is a marketing tool used to analyze the key factors (Political, Economic, Sociological, Technological, Legal, and Environment) that influence an industry. The external factors of the USA help to determine the firm's business and strategic operation concerning the macro environment.
Political Factors-. The current political climate is stable with recent challenges with racial discrimination and trade war between the USA and other countries. The country is a member of the development council and is accused of interventionism by various parts of the country. The USA is a good investment for foreign companies and provides infrastructural support in expansion (Manufacturing government, 2020). The tax policies of the government are varied with taxes paid in the country origin that can lower the profitability and influence expansion of the brand in the country (Lexis Nexis, 2020). As a part of large democracy, the external group exerts pressure on the government. The operations of the firm influence business operations as being pressure groups. The government role is significant in the business operations and incentive program. The government is stable with 4 years term as standards measure and the current regime is following the same pattern. The assessment of risk requires General stability risk, ownership, transfer risk, and operating risk. Assessing operations of expansion will require the business planning team to use Delphi technology to share opinions and use the first-hand appraisal to measure operation feasibility and regulations (Wasieleski, 2018). Textile and apparel have federal labeling and must comply with the requirements of textile. The exchange rate is considered dominant. The localization of operations will contribute to Elkie &Ark to develop supplier relationships in the country.
Culture- Cultural comparison -
Trade and tariff measures with changing laws towards foreign associations can be a negative influence and the implementation of internet access can reduce the overall gross margin of the product. The highly skilled workforce for training and development that can lead to workforce development and automation support that is gradual in other country but very high in the USA (Simon, 2019). The current inflation rate is low in the USA and the new stream can be developed with enabling profitability and adjacent product segment. As store marketing is direct competition for business prospects enhancing the digital channel and exiting base for the USA will be a challenge. E-commerce accelerates payment for brand building and e-retailing options. Digital marketing can foster store sales and channel delivery. Technology can create a new digitalization channel for the supply chain cycle and digital prototyping with productivity and improving the in-store experience. .Cultural pattern regarding the shift to organic linen for other sustainable products with rising conscious consumers. Attitude and shared belief for customer service, religion, and lifestyle trends for a credit available for raw material cost.
New pattern and political outlook with the president, R&D positively impacts and communication. Licensing and technological awareness for lifestyle and cultural engagement with society. The country is segmented on the cultural dimension of Aboriginal and non-Aboriginal. American –African. The white segment is considered richer and the wage gap between them is part of the cultural difference among the product sold. The use of modern lifestyle, wear is more appreciated with ease to rinse, and supreme quality. The population is largely working population and high-end business. The online purchase behavior and shopping patter has shown consumer purchase through click and pay higher in consumers. The racial divide between the communities and aspirations for quality products has given rise to a rise in bedsheets, and organic line industry growth. Brand marketing plays a critical role in consumer purchase and increasing outreach of the consumer. The competitive market and product offering with distinctive feature benefits the firm in marketing and promotion. The purchase pattern by the direct biller, discount pattern, and subscription model can influence the shift from existing marketing plyers to Arkie.
Focus on environmentalism to promote organic products in this segment. Creating awareness through a sustainable model and partnership for societal benefits. Employing fair conduct and employability practice as per Work standard in the USA for transparency and ethical shopping this has been consumed for linen with consumer's purchase to the brand that supports a good cause and pays extra for quality ad sustainable products. Brand loyalty can be developed through existing product image as – Sustainable, ethical luxury. The sourcing of eco-friendly practices will add credibility and build loyalty and transparency. The market scope for the industry is diverse with ethical sourcing for luxury wear (Her Mag, 2017).
The availability and use of technology are more diverse and aggressive in the USA as a comparison to Australia. The USA is a high-income country and is the old economy with adaptability with its legal structure and large income group that is ideal for luxury linen and organic product expansion in the country. Creating a sustainable network in the USA firm has to develop business competency among local supplier networks and using personal branding and website optimization for brand building in the USA for marketing.
Bruce N. &Rao, R. (2017).A dynamic model of advertising: The effect of creative advertising message content and targeting on engagement. Journal of Marketing Research, 54(2), 202-215
Doing Business. (2020). Economic Profile USA. Retrieved from https://www.doingbusiness.org/content/dam/doingBusiness/country/u/united-states/USA.pdf
Elkie & Ark. (2020). Our Story. Retrieved from https://www.elkieark.com/collections/organic-bed-linen
Henisz J, W. (2017). Corporate Diplomacy: Building Reputations and Relationships with External Stakeholders. NY, USA: Routledge
HER Mag. (2017). Founder Interview. Retrieved from https://hermag.co/elkie-ark-annethrelfall/
Kim, C.W. Mauborgne, R. (2015).Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Harvard publishing house
Lexis, N. (2020). Macro environmental analysis. Retrieved from https://internationalsales.lexisnexis.com/glossary/compliance/pestel-risk-monitoring
Lynch. (2019). Strategic management. Person education is limited. UK publishing
Manufacturing government. (2020). Program. Retrieved from https://www.manufacturing.gov/programs
Marjis, J., Huelleman, W., (2019). Economics and business environment. Taylor and Francis: USA
Motohashi, K. (2015). Global business strategy – Multinational corporations venturing into an emerging market. Springer publication
Select the USA. (2020). Why invest in the USA. Retrieved from https://www.selectusa.gov/why-invest
Simon, H., Fassnacht, M. (2019). Pricing Management strategy, analysis, decision, and implementation. Springer publication: USA
Statista. (2020). Size of the bed linen and bedspread market in the United States from 2013 to 2020. Retrieved from https://www.statista.com/statistics/791774/us-bed-linen-and-bed-spread-market-size/
Wasieleski, M., Weber, J. (2018). Corporate social responsibility. Emerald publishing house: USA
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help
Proofreading and Editing$9.00Per Page
Consultation with Expert$35.00Per Hour
Live Session 1-on-1$40.00Per 30 min.
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....