Join Doug Ladd for an in-depth discussion in this video The PESTCL framework: P is for "political", part of Marketing Foundations: International Marketing.
- What makes one country different from another? It's more than just the borders outlining the land and the language being spoken. When you're thinking of entering a new geography with your business, there are several factors that must be considered. A commonly used framework is to analyze the political, economic, social, technological, competitive and legal structure in new countries. The shorthand for this is PESTCL.
The political structure of another country is one of the simplest to research and learn. Online resources, such as Wikipedia or cia.gov, have up-to-date information on how governments are structured and the current political trends in every country on the globe. Of course, if you're looking for a more grassroots pulse on what is happening with another country, the major media outlets, business magazines and journals may be useful. But why is it important to understand when the next elections, if they have them, will be held in a country where you will be expanding? The political environment is an important factor for your consideration, because not all countries, peoples and governments will see your business the same way you do.
You may look at your business as being all about giving consumers a choice to have better access to products and services, but the politicians in the country you're about to enter may see your business as a threat to an industry that employs a lot of their people, or they may see it as a source of tax revenue for their coffers. There are some countries where the bureaucracies with which you must deal to get your product or service to market can make a visit to the Driver's License Bureau feel like a day at the spa. In essence, some nations are more business friendly than others.
In some countries, corruption within the government ranks can create challenges for you. In others, the government may have a history of nationalizing, or taking over, certain businesses or industries that they deem to be important to their national interest. So how do you go about finding out which countries might be a better political fit for you than others? There are a couple great websites where you can see how countries rank on both the ease of doing business and the transparency with which the markets operate.
You can visit these websites and look at the factors that are important to your business. Once you've gathered the information, it may be helpful to create a chart where you can show others in the organization how the countries stack up. Starting with the political analysis may result in you narrowing down the countries you will consider for expansion, and you may learn some interesting facts to share at the next barbecue.
The course also investigates options for global expansion, such as exporting, licensing, joint ventures, and direct investment, and details how to put together a successful marketing mix using distribution, promotional methods, and translation. Plus, learn where to turn for more information about your specific target markets.
- The rise of the global consumer
- Learning about customers in global markets
- Accessing foreign markets
- Adapting products
- Balancing risks and rewards