4. Research Model:
We developed a research model for our research question which is based upon the theoretical and conceptual frameworks presented by well known Authors in their respective books. We used some concepts as our theoretical reference from On Competition by Porter, Marketing Management, and Principles of Marketing by Philip Kotler and PEST analysis and many other concepts to develop our model.
Figure 1: Research Model
In this chapter well elaborate the theoretical frame work regarding our research work. Mainly we will use Porters five forces model and PEST analysis as our basis and reference for conducting research along with some other well-known marketing strategies literature.
Firstly, well try to elaborate and throw some light on PEST analysis which is widely used in order to scan the external macro-environment in which the organization operates.
This analysis is a helpful way to understand the big picture of Political, Economic, Socio-cultural and Technological environment. By making good use of PEST analysis, it is ensured that what is going to be done is aligned positively with powerful forces of change. It helps in operating in a new country or region and helps in understanding the realities of that environment. It helps in strategy formation in a sense that these factors (Uncontrollable environmental forces) must be kept in view, which may lead to failure if ignored. The position of PEST analysis in understanding the overall picture of environment can be described by the following diagram:
3.1.1 Political and Legal Environment:
Political environment, Government agencies and pressure groups have a strong influence upon the activities of any organization in a society. Political environment strongly affects the marketing decisions. The political stability of a country has its impact on the consistency of policies of local government. Impo View More »