Situational Analysis of International or Global Marketing Environment Essay

Situational Analysis of International or Global Marketing Environment - Essay Example The company has hired more than 7000 employees for maintaining its efficient operational system. It also provides services for warehousing and engineer support which helps in maintaining stable supply chain systems and reverse logistics (Unipart Logistics, 2013d). Unipart Logistics has a wide client base in departments like retail, automotive, retail, technology, defence and aerospace (Unipart Logistics, 2013c). Unipart Logistics is a part of the Unipart Group of Companies and specializes in outsourcing logistics and delivery services. The marketing consultant of the company has decided to enter into the Brazilian markets and wants to conduct a situational analysis. The situational analysis would help in the assessment of the external force which might affect the profitability of the company. An internal analysis would be conducted to understand the company’s current strategic position and check whether it is suitable for the company to enter into foreign markets like Brazil a nd further inside. Finally, the study would conclude with recommendations which would highlight on improving the current business activities and methods before entering into Brazilian markets. Marketing Environment Analysis Political, Economic, Social and Technology Analysis Political, Economic, Social and Technology (PEST) Analysis would be conducted for identifying and understanding the external threats and opportunities faced by logistics industry in Brazil. Political Presently, the corporate tax rate of Brazil is 35 percent which is very high compared to the other developing countries (KPMG, 2013). The high corporate tax rate has limited the entry of several logistics and supply chain companies into Brazil (KPMG, 2013). The corporate tax rates of a particular country helps the logistic companies to decide upon the transportation, warehouse and delivery charges for their clients (Brazil Business, 2013b). Apart from the corporate tax rate, these companies need to also consider oth er tax reformations like Contribution Incident on Liquid Profit (CILP) (15 percent) , ICMS tax (12 percent) and ISS tax ( ranges from 2 to 5 percent ) (Brazil Business, 2013b). Economic Presently, the economic situation for logistic companies is not preferable due to the very high logistic costs allocated by the government. The logistic and supply chain companies spend 8 to 10 percent of their annual GDP which is almost double compared to the average of other developed countries (Brazil Business, 2013a). Moreover, the infrastructure is unfavourable for the development of the sector because the transport matrix developed by the government is favourable only for road transportation companies. Social The success of the logistic and supply chain companies depends upon the nature of their delivery organizations to a large extent. The success of these organizations in turn depends upon the social culture and lifestyle of the individuals. If the purchasing power of the common people increa ses, then the sales will also increase automatically and vice versa. Technological The logistic and supply chain industry is usually dependent on technology used for the movement and storage of goods within an accurate time frame (Global Logistics Media, 2013). Technology has totally