The paper 'Concept of Export Business and Market Environment" is a great example of management coursework. Export business is one of the most lucrative ventures in the business world. Apart from widening one market, an export business can lead to the expansion of one’ s profit margin. However, such a venture can be risky if careful forecasting is not conducted. The purpose of this essay is to discuss key concepts in export business. They include market and business environment, market segmentation and chain distribution. In addition to this the essay dissects the likely hindrances to successful export venture and the issues an exporter must consider before initiating such a business. Concept of Business and Market Environment In marketing, the term business environment is used to define both the forces and factors that have an impact on the ability of a company to sustain a productive relationship with their customers (Cherunilam 2010).
These factors and forces fall into three levels. The first level entails the minor internal forces in the company that hamper its basic operation. The second category is called the meso environment.
The Macro environment captures wider forces in the society up to and beyond the national level that affects the operation of the business. The macro factors are major determinants and factors that ought to be taken into consideration in any export business. From the definition of a business environment, it is clear that the relationship that a company fosters with its customers is indispensable in determining the success or failure of a business (Mathur, 2008). Thus, in order to maintain a favourable and healthy relationship a business ought to evaluate the collection of factors that have an effect on the operation of a business. In order to get an insight into the business and market environment, an exporter needs to collect a series of pieces of information.
The first piece of information relates to demographic and social changes. An exporter needs to know the societal changes that are more likely to have an impact on the business. Demographic changes relate to population. An increase in the population, changes in its structure may favour or affect negatively thriving of business or purchase of given products.
For instance, a population structure that has more elderly people than the young favours demand medical services and their allied products due to the increased demand for medical services. The second factor that one needs to find out is the political changes in the country. Political changes, as they occur, have a huge influence on public spending due to taxation laws, policies and the extent to which the law protects the consumers. The third and most important factor that one needs to know is economic trends. This includes studying the economic growth rate, rise and fall of inflation and their inherent impact on consumer spending.
For instance, the economic recession of 2007 had a grave impact on economic growth. Such a recession led to the downfall of economies, a factor that consequently affected negatively the purchasing power, consumer spending, inflation, and investment. Market Segmentation and Distribution Channels In marketing, the term market segmentation refers to the process of subdividing the market in target into subcategories of countries, consumers, or businesses that share similar priorities and needs (Dibb, S. et al. , 2013). .Once the market is subdivided into such subsets; strategies are designed to oversee the implementation of the market segmentation itself.
The value of market segmentation lies in its unique ability to help the business identify potential customers and position itself for achievement.