The paper "Innovation at FeedHenry" is a perfect example of a marketing assignment. Feedhenry faces several external environmental challenges (Cunningham & Gately, 2013). These challenges can be well analyzed using PESTEL analysis and scenario planning. PESTEL analysis looks at the political, economic, social, technological, legal and environmental factors. If an organization is able to use pestle analysis in auditing its environment, it becomes possible to gain a competitive advantage and respond to the market changes. Political FeedHenry operates in a global market that is prone to government influence. This includes being impacted by policy changes, the stability of the governments, corruption, trade control, regulation of competition, trade agreements and existing laws on intellectual property.
From the case study, it is clear that the firm had been able to benefit from the existing intellectual property laws. For example, the firm was able to initiate a spinout taking the intellectual property rights for its platform technology software (Cunningham & Gately, 2013). This can be attributed to the fact that the firm was operating in a government that had laws on intellectual rights and resolve disputes on the same.
The firm success has been based on the operating environment which is guided by government laws and regulations. Being a small technology firm, FeedHenry operations will be highly influenced by government policies. FeedHenry growth and innovation strategy which involves competing in both App and cloud industries and which is based on marketing and technology strategy. The technology strategy involves coming up with simple secure and scalable platform technology. To succeed in this strategy, FeedHenry has to be in a favorable government environment (Cunningham & Gately, 2013). The stability of the Irish government is a major driver for success in attaining innovation and growth by Feedhenry.
This is due to the fact that government instability leads to a good environment for conducting business and makes it possible to innovate. Economic The economic growth rate, inflation rates, unemployment, costs of labor, price fluctuations and fiscal policies have an impact on operations of FeedHenry (Cunningham & Gately, 2013). When the economy is performing well, the small firms are able to easily access credit and finance its operations. This is due to the fact that the economy dictates the lending and financing policies.
Monetary and fiscal policies shape the firms' performance. The economic environment has a great impact on firm performance. With a good economic environment, it is possible to attain the goals. The main drivers in the case of FeedHenry are price fluctuations, fiscal policies and monetary policies. Social-cultural Feedhenry is impacted by existing attitudes towards quality, customer service, lifestyles, population growth, age distribution, social classes, and the disposal income. This is due to the fact that the firm is required to meet the market quality requirements and also meet customer service needs.
In society, social class determines the ability to make purchases (Cunningham & Gately, 2013). Also, social class and disposable income in society have an impact on the level of penetration of technology. Technological Technological factors have a great impact on the success of small technology firms (Gawer & Cusumano, 2014). This is due to the fact that technology firms such as FeedHenry depend on existing infrastructure, technological change, incentives, laws in technology, internet infrastructure, and internet penetration. FeedHenry success in the industry is affected by the level of adoption of Apps and cloud technology.
This is all dependent on the level of technology penetration in a given demographic. The firm growth and innovation strategy is affected by the level of technology adoption and penetration in its markets (Gawer & Cusumano, 2014).