Due to the recent trend in the economy which has provided business owners with uncertainty and diminished confidence, it is more essential than ever for Environmentalism to be aware of the economic environment and implement strategies to combat a changing market. In August this year economic conditions in Australia were better than had been expected a few months prior with consumer spending noted for its resilience. This established confidence that the economy had recovered to a degree and that the severe threat to the Australian economy had abated.
In the coming months consumer spending will most likely slow somewhat with growth likely to occur in 2010 (Reserve The impact of the uncertain economy will invariably reduce consumer spending and shift the wide target market for microwave ovens to a more condensed target market so therefore the company will need to provide manufacturing strategies to keep reduction costs down so that a price attractive product can be offered to the market place. It will take effective marketing to ensure that the microwave oven is perceived as a necessity in these down times rather than a luxury item.
The natural environment consists of the natural resources needed by companies to produce products or alternatively natural resources that are affected by marketing activities (Kettle, Brown, Adam, Burton & Armstrong, 2007). Environmentalism needs to be conscious of steel prices which soared almost 50 percent in 2008 and could rise even higher as the cost of raw materials continues to climb ND global demand shows little sign of abating.
Steel suppliers have been steadily raising prices to benefit from a strong market after years of decline in the industry and also to pass along to customers the spiraling costs of iron ore and scrap metal, which are two major components for making steel (Stunned, 2008). Even though the manufacture of microwave ovens uses a larger quantity of stainless steel a small quantity of steel is used so if the trend of drastically increased steel prices continues the company will need to be aware of what is occurring in the natural environment as this could effect the overall pricing strategy for the microwave oven.
Environmentalism has an opportunity to attract a large target market. However as the search indicates, there is a substantial amount spent annually on research and development into new products which will ultimately create competition. There is an opportunity for the company to stay ahead of competitors by implementing a strong focus on research and development into the marketing plan however the threat exists of losing the competitive pricing edge if too much is invested in this area.