Cochlear’s macro-environment and global marketing mix Analysis
To analyze the reason why Cochlear is successful, it is better to inspect it from a worldwide range. This essay uses PESTLE model to analyze its macro-environments in different countries and regions, and then discuss the impact of these factors. This essay also uses a number of examples to illustrate Cochlear's responding global marketing mix, to further emphasize the deep impact.
Table of Content
2.1 Political Factor4
2.2 Economic Factor5
2.3 Social/Culture Factor5
2.4 Technical Factor5
2.5 Legal Factor6
2.6 Environmental Factor6
The Cochlear's headquarters and factory are both located in Sydney Australia. The sales of its hearing healthcare systems spread to over 100 countries, all over around North America, South America, Europe, and Asia Pacific. Cochlear hires over 22,000 employees. And its products account for 70% of the global market share, providing good quality service to more than 200,000 patients with severe hearing loss. As follows, this essay will use PESTLE model to make analysis of Cochlear's macro-environment, and list its marketing strategies in responding of these factors one by one. 2. Main body:
As Borden (1964) stated, “when we think of the marketing mix, we need to give particular heed today to devising a mix based on long-range planning that promises to fit the world of five or ten or more years hence”. To establish a well-round global marketing mix that is “fit the world”, we need PESTLE model, a commonly used analysis tool, which includes policy, economic, social/culture, technological, legal, and environmental factors. With macro-environment analysis, Cochlear “might benefit further by placing more emphasis on an integrated health service strategy and recognizing the macro environment influences” (Ahmad, 2012). 2.1 Political Factor
Frist of all, the Political factor has a great impact on international company. On one hand, government stability is on top of all things. For example, unstable government brings ceaseless war to people in the Middle East. And signal jamming is widely used by the army, in order to disable roadside improvised explosive device bombs. But signal jamming would give pain experience to cochlear implant patients. Consequently, for Cochlear, the political factor is unfavorable. Cochlear must not expand its market in the Middle East. On the other hand, the government supports maybe favorable factor. There are two instances: with the desire to make up for the healthcare gap, Chinese government spent about $350 billion on healthcare in 2010. And the Chinese government promised that, within five years, it would provide 16,865 units for hearing children who cannot afford the products. (Grigg and Gao, 2012) Besides, the Japanese government completely refunds the products for the profoundly deaf. In countries like China and Japan, governments are not only stable but also welcome foreign investment and fair trade. Cochlear should increase its investment in these markets and investigate their tax policies, foreign trade regulations, and social welfare systems. 2.2 Economic Factor
Secondly, the Economic factors such as economic cycle, interest rates, currency supply, inflation, and unemployment rate influence a company’s performance in a certain market. Among of these, the GDP growth is a significant index. Cochlear has direct operations in 22 countries. But in the past 15 years, it has sold devices by distributors in India. Now it is obvious that India is on a rising path. Therefore, Cochlear decided to open up new subsidiary and sold products directly. In addition, disposable income is another pacing factor to marketing strategy. Considering that India is a developing country, Cochlear prices its products in the range...