External environmental factors affecting the organized retail industry Essay
External environmental factors affecting the organized retail industry
The external environmental factors affecting the organized retail industry in india are as follows: •Demographical Environment – The important environmental factor that need proper and continuous monitoring called Demographical Environment. Demography is the study of population and its characteristics. Even India has over millions of retail outlet, it still has a long way to go with the international standard of retail industry
•Cultural Environment – they influence the consumer’s beliefs, art, morals, laws, custom. India’s large and dynamic size and economical and cultural diversity which had lead to no proper model or consumption pattern throughout the country. The main challenge the retail industry in India faces is of diverse strategies for different sectors and segments.
•Social Environment – it has the maximum effect on consumes. Social environment changes the habbits of people. In India brands like Dettol have a higher impact on people because of its burning sensation. Maggi noodles are more of convenient food in Indian Market than a staple food.
•Legal and Political Environment – Government plays a great role in moderating the role of business in the society through legislation. The legal frame work for relationship between business and consumer is designed to encourage a competitive marketing system to employ and adhere to best business practices.
•Economic Environment – depends on the type of economic system in which the consumer makes purchases. Oil companies in India have dome compaings when oil prices went high, where they gave tips on how to cut on fuel consumption. Shortages sometimes forces marketers to be allocators of limited supplies.
•Natural Environment – the finite and non-renewable natural resources are being consumed very fast and there is little likelihood. The resources such as fuel and gasoline are heading towards a big crisis. The supreme court of India has banned the list of industries in New Delhi. The government instead of being a facilitator for industrial growth is promoting industries which are creating less pollution.