The issues important in market situations

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Business environment is very impotent to understand in the present market situation. Business environment are of two types internal and external. External comes into existent when a new business is going to be commence. For instance if somebody going to open a new store such as a groceries store he has to do some market analysis

On the area were he is going to open the store. If the owner finds out that there are many stores over there which are not make profit. By making this analysis the owner would like to find another place for starting its new store.

The internet was first started in 1960s but in 1990s it got spread through out the world many people started using internet daily in there life. And by 2005 there were over 1 billion users. When so many people using internet it made easy to form a company which sells thing through internet. eBay is formed in mid of 1990 it's a e-commerce firm which has changed the entire market in the business world. It made easy for the customer to buy thing online sitting at home. eBay had also given a big boost to the online auction industry. By introduction of new strategic initiatives by the firms the compition in the market had rapidly grown the buyers and sellers who uses ebay bargains a lot the have a great bargaining power and earn profit by sell there product. eBay has made thing easy for its customer there can getting any product at different prices. Seller can compare the price and there have lots of choice to choose from eBay has developed its business through out the world.expantion of its business is the main objective of eBay. eBay has used many strategic to grow its business worldwide. Its had used marketing, coprative, business strategics to over come its problems (Thompson & Strickland p 8.)

The main challenge of eBay was to find new customer it is easy to create a website rather than opening a retail store. A retail store can easy find new customer but for an online store it is quit difficult to do so it has to make good marketing strategic. Its educated people about it product about there benefits. Its provide securities for the online buyers. The main problem is with the hackers. And its also difficult for the online store to sell thing which the customer want to see in person and the retail store can sell thing on cash or by checks or even by money order rather than credit card. But in online buying customer don't have a chose in making payment it has to be done bye credit card only these are the various challenges faced by the online stores in the retail market

Business level strategy

Business level strategy is all about making choices for examples which market to enter. Which resource to be developed how to organise production and distribution there are many to choose from. An organisation should gain an competitive advantage in the market there have to build a long there are different way to gain a competitive advantage by provide better service to there customers providing good product and cheaper price. Wal mart decreases the costs of its product to gain competitive advantage in the market. All the people working and wall mart has the right to lower done the price of the product if there think it is more by using such strategic wall mart has gain competitive advantage. Wall mart manufactures some product which is only available at its store only and sells them at lower price. The buyer power rises has he sell is own manufacture products. It also follow a policy of everyday low price (EDLP) is policy is followed in its entire store through out the world. These results in great gain in the retail market. Cost leadership, differentiation, cost focus and differentiation focus helps in making good business level strategy. Sainsbury's is one of leading household store in British it sell many product it follow a slogan of 'Good food and low cost' it sell the good with all types of quality. Sainsbury's fuse on providing good serve to there customers (Charles wall Hill& Gareth r. Jones p 151)

Corporate level strategy

By the help of corporate level strategy we can know how we are performing in the market we can make a different between failure and success in the business environment

Corporate strategy involves many thing in it manger has to make many different choose in corporate strategy it involves many things. Corporate strategy involves in is mainly in regard to identifying different strategic options manger also thinks about the internal development of the company it help in the development of new product. Disuse about internal problem of the organisation etc. acquisition allows the organisation to enter into new product or new market acquisition helps the firms to enter in to new market very easily without any problem. Joint development or joint venture is like entering into partnership with other firm it is very useful strategy it helps the firm to do the business jointly and share the profits of the firms another popular way of doing joint business is franchising were the established firm sells the right of is products for examples Mc Donald's; body shop etc these company sell there brand name to different firm and to joint business. (Michal. A Hill, Robert E.Hoskisson. R.Dvane Ireland. P 260,263)

Marketing strategy

marketing strategy are made to attract the customers. Marketing strategy plays an important role in increasing sales of a company. Only marketing and innovation produce profit to the company. eBay biggest challenge is marketing it has to find its customers it is not an easy task for it in online store it is very difficult to do marketing but eBay has done marketing through online advertising person to person. eBay helps

Both buyers and sellers there finds there customer in the form of both buyers and sellers the main marketing is don't by the buyers and seller it self for eBay. Marketing is also a way of organising the business. Marketing strategy is made to sell the new product of the firm. Educated people about the new product of the company

There are different ways of doing marketing advertisement innovative ideas are to be made to make good marketing strategy. EBay has a good marketing strategy to over come the present problem of finding the customers for there products

SWOT analysis

SWOT analysis stands for strengths, weakness, opportunities, threats frist two are the internal factors of an organisation and other two are the external factors of the organisation. strengths are the internals factors it deals with internal factors of the organisation for examples if a company as a good marketing strategy for its new products like eBay has it. New innovative ideas for increasing the sales of the company that helps the company to make good profits and grow its business

An organisation should appoint a group that think of innovative ideas for the organisation this types of strategy will help the organisation to make innovative products also. Innovative ideas are the many source for success in the business

Locations of the business is also the internal factor of the business but eBay does not worries about the location of its business because it deal online through web sites that the main plus point for eBay is there is no need to find a place to open it stores it save lots of money for the company. But other organisation has a big problem of location there have to appoint different staff to look after different location to open stores. Quality of the product and services are also the internal factor of the organisation a company should maintain its quality and give a good service to there customers to satisfy its customers. eBay look after every product which is sold by them there does not give a chance of complain on its quality bases for every business maintaining quality should be the main objective.


Weakness is also an internal factor of an organisation there may be many weakness of a company all the weakness comes under the internal factor of the business weakness leads the organisation downwards an organisation should identify its weakness and find a problem to solve them and over come from them, the main weakness of a company can be

Bad reputation of the organisation that effect the business for a while eBay also had the problem of bad reputation because the product sold by the seller were not good as there were shown in the website and for some case the seller didn't receive the product these were the main weakness of eBay that caused bad reputation for its business eBay had made many strategy to make good reputation for its business

Product sold sames as the other company sell but with undifferent quality also effect the business of the organisation.

Location of the business is also one of the weakness of an organisation of a firm a good location is need to run the business and make good sales location if a store is open were there is less population or were the people dose not have the buying power then the store may run with loss so chosseing a good location is very important

Selling low quality product effect the reputation of the organisation and it is a very big weakness of a firm it effect to the buiness to a larg extent so it good to sell good quality good at high price rather than selling low quality good at low prices. Because it effect the reputation of the firm and maintaining good reputation is very important to run a businesss

Not providing good serives to the customer is also one of the internal factor of the weakness of a firm provide good customer serives assintant is very important to make the customer happy so that he come back to the store

The external factors of an organisation are opportunity and threats


An developing market that can give new opportunity to the organisation to grow an d make good profitable business for example for developing new market are internet were eBay has grown its business finding new opportunity of doing business in various ways . internet has a good scope were product can be sold and buy by different people eBay has provide good market for the sellers and buyers were things can be sold and buy easily

Mergers and joint venture is also external factor for an organisation to grow and also an opportunity which helps the company to grow alone with other business organisation. Doing a joint business is good opportunity to grow its business for example KFC and MC donals do business through joint ventures and expand its business through out the world.

Moving to the international market is a nice way to expand the business globally eBy has started its business from America to the world and expand till now

Market vacated by the exit of the competitors is also good opportunity to grow in the market and expand the business


Threats are the external factors of the organisation threats effects the organisation business to a large extent there are different types of threats which effect the organisation

The main threat for an organisation is entering of a new competitor in the market eBay face comition from amzone and many online stores which effects its buiness but eBay has a different ways of doing business that helps him to gain the number one position the internet market

Price war with the competitor is also one of threat for eBay but in eBay the product sold are auctioned so it dose not make a huge different for other online stores price change very minute so the buyer can see different price at the same time of the same product it give a huge choice for buyers

Taxation is introduce in the product which sold by you is also a big threat if the government impose tax in the product sold then margin of profit also decrees and it also effect the sales of the business

If the competitors buys the good at cheeper rate or has a good relationship with the distrbutors but in eBay buyers sell there own goods sometime or the distributors sell there good directly on eBay and give commion to eBay

If the competitors have a new and innovative idea and give good serivses to the customer innovative ideas are the main threats for the organisation in the present market situation only innovative ideas can increases slaes

SWOT analysis helps to run the business successfully its helps us to know our weakness, strength, opportunities, threats of our business

Business Environment

To start a latest organisation the organisation as to used PESTLE analysis because PESTLE analysis is the bases to start a new firm it help to analysis all the aspects of the business. It covers all the external factors of the business it helps to analysis all the external factors such as new laws, tax changes, trade barriers and other government policy. Managers use PESTLE analysis to overcome this types of problems in a new and existing firm. PESTLE analysis stands for







POLITICAL FACTORS: political factors are the basic principal such as level of intercession in the economy. Good and services which are to be supplied by the government are many impact on political factors such as training of the workforces, the health factor which may effect the country and the good service of the transportation such as good roads and rail services. The originations should also follow different rules and regulation made by the government for well being of the economy and the country.

ECONOMIC FACTORS: economic factors such as interest rates, economic growth, price increases and exchange rate. Change in tax rate will effect the cost of product in a organisation if the tax rate is increased the cost of the product also rises this reduces the purchasing power of the firm. Inflation effect in the slow rises of the economic of the country

SOCIAL FACTORS : social factors demand the firm to give more work to there employees with the increases in the population the government is in the pressure to provide work to everyone. Social the company should also produce well which are not harmful to people using them. Organisation should produces good which are not harmful to the people there should protect the peoples from the harmful product organisation should test the product and then produces it in the market to sell the people

TECHNOLOGICAL FACTORS : technological factor help in the modernisation of the country producing new goods such as internet banking, high definition TVs, blue players which plays 32 GB at a time, computers games, online gambling and online internet banking make life easy for the people. Government is also spending lots of time money to improve the technology. By devolving new software a company can reduces it labour work. And the can also be done very fast and easily through out its branches aboard the world.

LEGAL FACTORS: government implement legal factors for the organisation to run the business and the economics properly this legal factor helps. Recently the government of UK as implement new legal rule for the organisation to give minimum

wages to the people. Organisation has to follow all the legal rules implement by the government. Legal rule help the government to rise the stand of living of the people. The good sold by the company there are legally bond with the terms and conditions

ENVIRONMENTAL FACTORS: the goods produces by the companies should not effect the environment of the world. The product produce should be not produce harmful gas which are dangerous for the environment of the society. Companies should take all the major steps to avoid damage to the environment. Environmental factor is very important factor to protect the world form the harmful effect. Many organisation don't care about the environment factor there just run after there profit in the product and ignore environment factors(Charles w.l Hill& Gareth r. Jones p60,63)

CONCLUSION: According to me an organisation should make use of different types of strategy to succeed in the present market. Innovative idea can only succeed the organisation. Ebay has started internet shopping and now ever company is using online shopping sit to sell there goods. Demand of the good should be produces by the firm to create a market for the product. By this way only an organisation can succeed in the market.