Macro Environment

Topics: Economics, Supply and demand, Force Pages: 2 (548 words) Published: November 20, 2010
Macro environment is the external and uncontrollable factors that influence a company's or product's development. Billabong must know the value of each of the macro environment factors; such as, economic, demographics , and lifestyle, technology and natural forces. Before companies, or in our case Billabong, produce a new products, they should study each macro environment force carefully. Each force have its effects on the market.  

Economic forces affect the consumer buying power and spending patterns. Thus, the new product should be affordable to their income. Billabong targets the millennia’s generation which include those who born between 1977 and 2000. People between the age of 13 and 20 are more likely to be living with their parents which means they spend most of their pay cheque on clothes and entertainment. Therefore, the company should keep in mind the income level of this generation to meet their profit goals. Economic recession and boom plays a major role in determining the demand for a product like Billabong. Billabong produces outdoor sports wear, thus categorized as a non-necessity product. This means that in a time of an economic recession, the demand for a product like Billabong would decrease.    

Another major macro-environmental factor that would affect the demand for Billabong would be the demographic changes in society. An increase in immigration would raise the demand for Billabong while the emigration would decrease the demand for such a product. The lifestyle of the population would also greatly affect demand. The more awareness there is for an outdoor lifestyle the higher people would  be willing to purchase a product like Billabong, that caters to the outdoors youth individual. An increase in awareness for the outdoors could come in many facades. Increased marketing for sports, increased facilities in locations such as ski mountains and skate parks would also increase awareness.  

Another macro-environmental factor that would affect...
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