How Factors in the External Business Environment Influence...

Using an organisation you are familiar with; explain how factors in the external business environment influence marketing strategies and outcomes ‘Betfair betting exchange processes more than seven million transactions a day- that’s more than all European stock exchanges combined.’(Betfair, 2011) With this sentence we can observe the magnitude and growth that an online gambling company like Betfair.com has achieved. To reach this point they have dealt with many issues in their external environment and they have overcome these problems through intelligence in their marketing strategies. Marketing is ‘the management process of anticipating, identifying and satisfying customer requirements profitably’ (CIM, 2011). Almost any company has to†¦show more content†¦What Betfair says is that these restrictions are against what customers want and that they lead to market failure. As Solomon et al (2009: 60) states ‘†¦global marketers must understand more complex political issues that can affect how they do business and their potential for success’. The German example is only one of the many different legislations which Betfair have to deal with, therefore when they market their products in one specific country they have to know perfectly what kind of services are prohibited in those countries to avoid legal issues with governments and consumers. When deciding on international expansion they also need a sensitive analysis of the legislation in that country as it might not be profitable to operate there if either their gross profit tax is very high, or if many products like online casino are banned, or if betting large amounts of money are prohibited. When Betfair segment their market they might do it by geography. This is where the socio-cultural environment will affect their decisions and where a differentiated marketing strategy will be necessary in each country. In many countries gambling is illegal and in more of them it is seen as evil because people might get addicted and lose their resources via these betting companies, that is why ethics becomes a topic of great importance to BetfairShow MoreRelatedBusiness Environment Past Papers1115 Words   |  5 PagesUnit Title: Introduction to Business Guided Learning Hours: 100 Level: Level 4 Number of Credits: 12 Learning Outcome 1 The learner will: Understand the objectives of a business, what resources they need and to whom they are accountable. Assessment Criteria The learner can: 1.1 Define and show an understanding of the important business terms related to corporate objectives. 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