Market Strategy Analysis
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MARKET STRATEGY
ANALYSIS
4/30/201
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Study on US
Economy 714 MBA 505
Global Economics Ravi Kumar
Polavarapu
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Contents
Table of contents ……………………………………………………………………………… ..Error! Bookmark not defined.
Abstract ……………………………………………………………………………………………. Error! Bookmark not defined.
Introduction ………………………………………………………………………………………. Error! Bookmark not defined.
Cultural Analysis ………………………………………………………………………………. Error! Bookmark not defined.
Political Intelligence…………………………………………………………………………………………………………………………………6
Market Intelligence ……………………………………………………………………………. Error! Bookmark not defined.
Product intelligence …………………………………………………………………………… Error! Bookmark not defined.
Ethical framework ……………………………………………………………………………… Error! Bookmark not defined.
Economic Analysis ……………………………………………………………………………. Error! Bookmark not defined.
Core economic data and trends …………………………………………………….. Error! Bookmark not defined.
Policy-Cross Analysis ……………………………………………………………………. Error! Bookmark not defined.
Exchange Rate Analysis …………………………………………………………………. Error! Bookmark not defined.
Final analysis ……………………………………………………………………………………. Error! Bookmark not defined.
Conclusion ……………………………………………………………………………………….. Error! Bookmark not defined.
Reference …………………………………………………………………………………………. Error! Bookmark not defined.
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Abstract
Paper focuses on economic and market study on the US and factors which could influence my
market strategy in introduction of Business Analytics product into the US market. Business
Analytics and Enterprise Software industry has grown progressively due to favorable demand
conditions due to high private business investments in the technology industry with support from
the government. It is a $40.2bn revenue generating industry, alone in the US. There is a constant
demand for change in technologies based on ever changing business dynamics and needs gives me
an opportunity to introduce my product. The US has abundant natural resources, a well-developed
infrastructure, and high productivity. It is the world’s ninth-highest per capita GDP (nominal) and
tenth-highest per capita GDP (PPP) as of 2013. For most of the Americans, business deal or
contract is more important than the personal relationship. Meeting agendas are common and
typically followed quite carefully. Final decisions are usually made from the top down although
group consensus is valued. Government stability is analyzed based on internal and external balance
of the US, staggering 75% of Americans believe that corruption is wide spread throughout the
government, it’s an ongoing issue. The US is a capitalist economy, unemployment rate is on a
decline, currently at 4.7% and Inflation on a slightest raise, currently hovering at 2.7%. GDP and
stock market is on the raise, alongside increased government spending exceeding the revenue
collected though taxes and other sources, budget deficit is at 3.2%. Unemployment rate by gender,
race and age is scrutinized. Trade agreements between the US and other nations influence on the
economy, role of WTO in the US economic growth, trade barriers and other factors influence in
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ease of doing business. Competitor companies for my product is IBM, Microsoft SAP etc. The
market segment I am aiming at is small, medium and large size businesses.
Summary Table
Inflation
2.7%
Unemployment Rate
4.7%
Real GDP
18,569.1 Billions
Stock Market Performance
21115.55 Points
Budget Deficit
3.2%
Trade Deficit
43.6 billion
Exchange Rates
100.5200
Wage Levels
21.86 USD/Hour
Inequality in Income, education, assets
11.4(Bottom) – 14.8(Top)
Imports
2.425 Trillions
Exports
1.625 Trillions
Exchange Rate of USD vs INR
$1.00 = Rs 64.00
Business Analytics and Enterprise Software industry Growth
40.2bn Revenue
Introduction:
My paper is focuses on United States Economy. United States is predominantly a capitalist
economy and considered as world’s largest economy. I conducted economic analysis on the United
States to understand the overall economy, as I intend to introduce a new product in the market.
The product I plan to introduce is “Business analytics software”. My research is concentrated on
areas such as, external and internal balances of the United States. Unemployment rates in the US,
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inflation, GDP and per capita levels. Fiscal policy, government spending, Tax policies, Political
landscape, Business regulatory environment, welfare, Budget deficit, latest and historical
monetary policies, culture and ethnicities along demographic transformation. Disparities in income
levels among different demographics, US trade deficit, Exchange rate with Indian rupee etc.
Ethical Framework: After the tech revolution and scoring high growth in information technology
industry in India there is significant positive improvement in ethical practices in conducting
business, especially due to globalization. Still India is known for having disconnect between the
companies and employees due to unethical practices, and undermining human rights of workers.
Business
Analytics
US Economy
Inflation
Unemployment
&
Demographical
disparities
Trade policies
&
Trade agreements
Fisical
&
Monetory policies
GDP, Percaptia
& Income levals
Exchange Rates
&
Business
Regulations
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Exploitation of workforce in India is a commonly seen practice, through child labor, over time
work, no minimum wage rules etc. On the other hand, American workers are well educated and
aware of their rights, in support laws around business ethical framework are stringent. My
company will have to ensure ethical, social and corporate responsibility in order to be successful
in the US market. Millennials are my target employees as it a software industry, studies also prove
that younger generation believes in a cause and they support companies embrace ethical and social
responsibility.
Businesses survive and sustain only if they have a purpose in the current business environment.
My responsibility as a business owner and decision maker, think about environmental implications
and harm that could cause, then propose a plan that minimizes harm to the environment. As a
responsible human I will create plan and align it to business purpose in helping poor and convince
business partners and engage employees in the cause, use the opportunity to enhance goodwill of
the company through fundraising and put technology and other resources necessary for betterment
of poor through educational workshops, charity events etc.
Ethical Issue Intensity
Individual Factors
Organizational Factors
Opportunity
Ethics and Unethical
Behavior
Business Ethics
Evaluations and
Intentions
Market Strategy Analysis
1. Cultural Intelligence
For most of the Americans, business deal or contract is more important than the personal
relationship. Meeting agendas are common and typically followed quite carefully. Final decisions
are usually made from the top down although group consensus is valued. They are usually polite
and friendly. Conversation topics to avoid include politics, religion, homosexuality, racism,
abortion, and criticism of the government. Race is a sensitive subject throughout the country. To
avoid offending anyone refer to Americans of different ethnicities, Americans value punctuality
and expect things to be on time. This includes appointments, services, and deliveries. Americans
