Macro Environment Factors
Macro Environment factors are derived from the economic and structural situation for each country. The economic condition for the region where company considers its business has strongly influenced it. These situations often reflect as being the key indicators for any economy.
One important aspect of the macro environment factors for several enterprises is mainly the political system and stability of the organization. This involves the reliability and stability of political institutions as well as their role in determining economic activities. The company is facing strong competition with others while getting engaged with the government of other countries. It has been proved that the government of UK has worked on creating various challenges for Samsung in order to enter their market and also to impact the overall European market.
The economic constancy and growth within the region have a direct and significant impact on profits. The economic stability of the region usually offers higher employment rates standards with living standards towards a rise in disposable income of their customer and researched on increasing trends that resulted in determining target market for Samsung. As a result, Samsung has widened their business to over 50 countries all around the globe. It is a fact that the company has invested a major amount in building infrastructure in each of the countries where they are currently operating their business. This led to the product more employment chances for locals, for which countries encourage multinational firms to operate and expand their business within their market.
Demographic characteristics are promising business emphases their service contribution that eventually influences the sales and creates it harder to endure within the market. Samsung has currently recognized their local R&Dcenterss in diverse markets that include Samsung Poland R&D center, Samsung Electronics China, and Samsung R&D Institute India. This has enlightened the fact that organizations are working on the strong opinion of customer demand and expectations and as a return, they can advantage from local knowledge collected from establishing R&D centers.
Companies especially the ones that have mainly expanded their product range in view of smart-phones and tablets are now likely to face facing aggressive fight within the retail industry. It is significant that the government should device such rules for promoting their customers. Even though this may have a negative influence on the business, as they might respond to dump their product with lower quality within developing countries for gaining profit. In such situations, the government needs to act smartly and efficiently. Currently, Samsung faced another patent lawsuit from Nvidia (chipmakers) against using graphics that were patented to Nvidia and Samsung has used in their products like TV devices and mobiles over a few years back.
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