The external environment of marketing management function is largely uncontrollable, potentially relevant to marketing decision making, and changing or constraining in nature (Cravens, Hills and Woodruff, 1987). 2. 1 . Political and Legal Environment The United States is a very low level of economic, political and financial system risk country (A. M. Best Company, 2014). It is worthy to trades in those countries with stable democratic political system and strong legal system. However, footwear industry was suffered in unreasonably high tariffs on shoes import as the introduced of Affordable Footwear Act (FAA) in 2009 has no effect.
Besides, most shoes are imported from countries without Free Trade Agreement (FAT) such as China, Indonesia and Vietnam (Greaser and Riley, 2012; SUITS, 2014; JUST, n. D. ). Moreover, although the Stop Counterfeiting in Manufactured Goods Act, Trademark Counterfeiting Act and others that legislated to fight against fake products (coverage, 2004; LOC, 2006), it’s still difficult for government to fully control. Most of the counterfeit product selling online and young people admit that they will buy if it’s cheaper and look good (Brakeman, 2013; Melee, 2012). The U. S. Government launched ‘Let’s Move!
Active Schools’, which promote healthy lifestyle to ensure kids participate physical activity in school. This can be beneficial to sportswear industry as more than 5 million of kids impacted and the government hopes to increase the number to over 25 million kids by 2018 through this initiative (Dates, 2014). Besides, the President’s Council on Fitness, Sport & Nutrition PUFFS (2013) has announced the phase two of ‘l Can Do It, You Can Do It! ‘ (ICED) to encourage children and adults with disabilities to improve health and fitness by doing physical activity and consume good nutrition.
There are also another challenge named Presidential Active Lifestyle Award (PAL+) which aimed those adults and kids who are already physically active to be even more active. Participants can earn certificate and badge when they accomplish the goal in two months (The President’s Challenge, n. D. ). 2. 2. Economic Environment The GAP of U. S was continued to increase for the past 4 years and a 3. 5% grew in third quarter 2014. A strong economy’s performance will lead to increase consumer spending, decrease unemployment and increase investment (World Bank, 2014; Harlan, 2014).
Besides, the U. S. Consumer Confidence Index rose from 89. 0 in September to a highest level 94. 5 in October since October 2007 (Madding, 2014; The Conference Board, 2014; Valediction, 2014). It is good news for a business as the evidence shows that consumer confidence is highly interrelated with consumer spending (Crouches, 2006; DSE and Branch, 2011; Loudening, 2004). Interestingly, Americans spending increased for the first time as consumer confidence rose along with economy growth (Minted, 2014).
The average annual income of teenagers between 15-17 years old was increased from $4,023 to $4,923 and spending on product bought by and for them was increased from $208. Billion to $258. 7 billion in year 2014 (Kayak, 2012; Statistic Brain, 2014). It is obviously a large market for a business as teens have huge purchasing power and most of their money spent directly on themselves without financial responsibilities (Kayak, 2012). 2. 3. Socio-cultural Environment According to Gaur (2013), factors that influence buying decision are quality, price, variety, design and visual merchandising.
Asian American stressed that the reasons they purchased designer products are quality or craftsmanship (52%), as reward (46%) and to look good (38%) (Minted, 2014). Hence, based on the survey of 2,000 nonusers, the brand loyalty dropped to 25% and factor that influence buying decisions are price (89%) and quality (82%) (Oiliness, 2012). In addition, the survey shows that outstanding visual merchandising such as color, lighting, good interiors and display will make them spend more time in store and induces impulsive buying (Heifer and Can, 2013; Gaur, 2013; Cheroot, Davies and Ward, 2003; Kim, 2013).
Nowadays, people are increasing emphasis and concern on their personal health. IRISH (2013) stated that the health club membership was grew by 10% to around 50. 2 million from year 2008-2012 and more than 58 million people went to health lube in 2012. Thus, there is a complementary increase in demand for fitness products. But somehow, in U. S. , the rates of adult obesity have increased more than doubled to 78. 6 million (34. 9%) for the past 35 years and obesity rates of children (aged 2-19) remained about the same of 12. Million (17%) for the past 10 years (CDC, 2014; State of Obesity, 2014). It means that there are millions of people putting their health at considerable risk. Kayak (2012) claims that teenagers spent their free time on sports, shopping online, watching television, visit social media and so on. Teenagers between ages 15-19 spent average 48 minutes per day engaging in leisure and sports activities (BILLS, 2014). This may be a chance for Nikkei as they targeted teenagers from the very beginning.
As determined by SC Johnson (201 1), twice as many (58%) of Americans recycle, 29% buy green products and 18% commute in environmentally friendly manner compared with 20 years ago. It is a chance for business to engage in developing and promoting CEO-friendly products and target those high environmentally conscious consumers. 2. 4. Technological Environment Technology is essential for business to improve business operations. By utilizing computed aided design (CAD), it can improve design accuracy and lower project costs. It can also decrease missing, duplicate, and inconsistent information (Leap et al, 2004).
Beside CAD, nanotechnology is also important in nacelles manufacturing. Highly efficient infrastructure can minimize materials, waste and environmental impact also enabling high rate, cost effective and repeatable production (Domains, 2005). It’s beneficial to business, economy and society. The download speed of 32 Mbps in U. S. Is higher than average of 21. 5 Mbps global broadband speeds (Kola, 2014). File and Ryan (2014) said that the percentage of household having a computer was increased from 8. 2% in 1984 to 83. 8% in 2013 and 74. 4% use internet.
The increased of internet speed and owning computer allow people to shop online, surf quicker to review those information needed and beneficial for business to promote online (FCC, 2014). From the expansion planning of Amazon to the record breaking PIP of Alabama, we can see that e-commerce trend is experiencing explosive growth and indispensable nowadays (Barr, 2013; Robinson, 2014). The numbers of online shoppers in US growth year by year and the online detail sales of $262 billion last year expected to reach $370 billion by 2017 (Forbes, 2013; Satanist, 2014).