DSC’s business grew from strength to strength since Mr. Hui took the decision in 1997 to introduce “Direct Sale” and started from a 600 square feet upper floor shop, and sooner found its market opportunity, now DSC has developed as one-stop retailing shop for Furniture, Home appliance, Electronic Product, Digital gadget, tailor made †upholstery and cabinet. The business scale has increased tremendously and now its shops have widely opened in Hong Kong Island, Kowloon and New Territories. The total retailing shops occupies 236,000 square feet and employees are amounted to 800 people.
Recent years DSC has shown the reduction in the growth of sales, a downturn in economic conditions definitely not in support of the company’s furniture core business, another key factor in the slowdown is perhaps a lack of strategic direction. As a report reveals that decline in sales, increasing operation cost, high labor turnover, and decreasing profit are eroding the company’s profit.
This paper aims for auditing the market external and internal environment, setting achievable objects, determining the target segment (positioning), developing strategies, and budget/control, a comprehensive marketing plan
a) Discuss the importance of an environmental analysis (PESTLE) to DSC’s planning. Give examples to illustrate your points.
Political: political factors include garment regulations and legal issues and define both formal and informal rules under which the firms must operate. Commencing on Dec.1st 2005 the HKSAR government has implementing construction waste disposal charging scheme. “Waste Reduction” is one of the government challenges tasks. It is no doubts that design for long use, reuse and recycle household products are the main stream in coming years.
Economic: economic factors affect the purchasing power of potential customers and the firms cost of capital. Concern overall financial market meltdown, pressure spread to wide ranges of...