The paper "Strategic Reputation Management" is a wonderful example of an assignment on management. There were several factors both internal and external that affected Razorfish's rise in the market and a sudden decline. An examination of these variables is the pestle analysis. To begin with is the political factor where Razorfish as a company had to consider the environment in which they were holding their business. In a political environment that is peaceful, it is presumed that even the economy as successful as the government is cooperating with investors on economic decisions to be made for a successful market (Chaffey et al, 2000).
On the other hand, what might have contributed to a decline might be the change in the political situation that made investors quite the market and rely on other companies where their political situation was peaceful and stable. For the company to prosper in the initial stages there might have been government support where it offered incentives making it easier for the company to reach out to its customers. Economic factors are also another variable that might have lead to its prosperity in the beginning because through the economy the firm would be shaped through its behaviors.
The economy they were investing in might has had lowered taxing rates enabling the company to easily pay the internet subscription and provide it to every consumer at affordable costs, In a country that has a strong currency, Razorfish was able to compete against other competitors and even serve a larger number of people in an international environment. As a result of high income being experienced in a national context, Razorfish had the ability to boost its product's demands hence a wide market (Fillis, Johannson and Wagner, 2004).
What might have lead to its decline in the economic factor is the inflation that might have been experienced in the country of investment where there was the weakening if the currency and high-interest rates being charged on their services where the company would not handle it hence reduction in profits. Social factors are also another external factor that is attributable to its rise as with the frequent use of internet and appreciation of technology, there was much use of services from Razorfish.
New technology means employment of new ideas hence with the fresh ideas generated by young people cut on costs that would be set aside to cater to pension payments. That meant more concentration on paying for new ideas rather than paying for employee expenses. What might have lead to the decline of the company might be the concentration of employing young employees who always seek for greener pastures. This acted as a contribution to the decline as there was a high employee turnover hence people had no trust in the continuity of the company. Technological factors are one of the variables that saw the company prosper in its early stages.
This is because with it being a newly established company, many consumers shifted to their service to find out how effective they were (Bharadwaj and Soni, 2007). With a large variety of internet services, this promised Razorfish a wide market through its technology. What might have brought about to their downfall is the emergence of another company that produced better technology at an affordable rate making people opt for other companies as opposed to Razorfish.
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