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The current state of the US economy has an impact on REI operations in a variety of ways. For example, if the country is in a slump, this will have an impact on REI's retail operations. During such economic downturns, people's spending habits typically change, and they may reduce their purchases of products they don't necessarily need, such as a wide range of REI commodities. As a result, the corporation's sales and so overall revenue margins would be reduced. Besides, any economic crisis in the US can affect the company’s retail operations since it might cost some employees their jobs forcing them to reduce their consumption on expensive products like those sold by REI Inc. Another economic variable which can affect REI is inflation. Inflation according to Kopiyevska, (2014) is the measure of the reduction in value of a dollar. In the case of inflation in the US, the worth of the currency would decrease drastically impelling the citizens to consume the essential goods, and since REI deals in non-essential commodities, their operations would be severely affected.
Effects of the Current Global Economy on REI Retail Operations
Since Recreational Equipment Incorporated (REI) is not an international organization, their activities are not affected severely by the global economy. However, this firm cannot be deemed immune because any global economic crisis influences the entire economy of the United States. Such downturns, thus in turn pause a secondary impact on the viability of REI and, therefore, the factors mentioned in part one can have the same effect. In addition, the global economy can directly impact on the business undertakings in various other ways. For example, if REI happens to purchase merchandise from oversea countries experiencing inflation, then the firm would be compelled to upsurge the buying price of their commodities in an attempt to realize profits. The possible risk concomitant to this strategy would be the loss of some customers who might not afford to purchase REI’s products and can acquire similar goods from the firm’s competitors (Laloux, 2014).
What Types of Legal and Regulatory Forces affect REI in the US?
Just like any other business in the US, REI is influenced by the local, state, and Federal regulations and agencies. The Federal Trade Commission (FTC) plays a key role in controlling unfair competitions in the market. The strategies implemented by FTC in the US, augment the survival aptitudes of REI because they are tailored to curb unfair practices by competitors in the industry. On the other hand, the Consumer Protection Agency in America (CPA) aids in safeguarding the safety and health status of consumers. REI, for instance, has several private label brands and as such they must endeavor to ensure they are safe to circumvent huge fines and lawsuits. Some other business regulations that monitor how US-based organizations manage their businesses also influence REI since it is a consumer Cooperative (Pride, & Ferrell, 2014). The control bodies expect REI to operate and confine their administrative systems to particular benchmarks above which legal measures can be taken against the firm.
What Type of Social and Culture Trends affects REI
REI Inc. has founded its business undertakings on cultural trends. The production mechanisms implemented by the company are very environmentally friendly and responsive. The marketing approaches in this corporation are directed to a particular segment of customers who have related or similar believes and are enthusiastic to buy commodities to reinforce their mutual believes. This is an instance of Relationship Marketing, and this organization has manifested its feasibility in this stratagem. In regard to the information recorded in their websites, REI has accommodated approximately 750 volunteer occasions to aid the national society and environment. The inception of REI took place at Seattle and this city renowned as an impeccable marketplace for this category of approach. Seattle market is very communally driven and more than willing to support establishments like REI whom they share mutual believes regarding the environment.
What Type of Technology Changes affects REI?
Vicissitudes in manufacturing techniques often lead to a significant impact on the business activities. For instance, in the case similar commodities emerge cheaper from the competing firms due to high-tech improvements it results in a direct impact on REI. The firm has an obligation to grow and advance with the augmenting technology, change distributors and manufacturing, or even decrease product prices in order to compete favorably. Either way, technology has caused a threat to REI Inc. Another way through which high-tech can influence REI is simply clientless information. Who their primary purchasers are, their buying behaviors, private information, their disposable revenue and so forth… An organization which has this information readily available uses it as a guide to the marketing plans and needless to say; it has a competitive advantage over their counterpart who lacks it.
How Secondary Sources of Information can be used in developing an Integrated Marketing Plan
An integrated marketing strategy is used to promote an awareness of a corporation’s brand within the targeted market segment. During the process developing this plan, REI can make use secondary sources of information such as reports, trade associations, studies by federal agencies, and the information provided by other corporations within the industry. For instance, the firm can employ annual financial reports to generate relevant and comprehensive performance material facts. Besides, other secondary sources can be used to gather information on other important planning intricacies such as products and services that can be used to solve a particular marketing problem.
Analyze the value of secondary sources of information to business economic success
Secondary information sources are well organized, timely, and useful in a simple manner making its usage easy for decision-making. Besides, it can be easily manipulated to contend the ever-changing and ad hoc needs of management for information. For a similar level of exploration budget, a detailed investigation of secondary sources can produce a great deal more statistics than can be had by a primary data assortment exercise.
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Kopiyevska, I. (2014). Inflation - Definition, Ursachen, Arten. Hamburg: Bachelor + Master Publ.
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Laloux, F. (2014). Reinventing organizations: A guide to creating organizations inspired by the next stage of human consciousness. Brussels, Belgium: Nelson Parker, 1st edition.
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Pride, W. M., & Ferrell, O. C. (2014). Foundations of marketing. Australia: South-Western. 6th edition.
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