Internal factors that affect subtitling services

Internal factors that affect Subtitling services

Marketing

Marketing is to do with how a business promotes the product to their target audience, it is also used to identify and discover the demand from the public for this product.

The business faces many changes due to the fact that they operate in two different economic environments, because UK is suffering from a recession they must be careful with how they invest their money, whereas China is in Boom so they can be more lenient with how they use advertising agencies to promote their products.

They should only use promotion effectively at times where the public would be most likely to spend for example around August parents look for school uniforms for their kids, Tesco offers affordable clothing in their stores, this is one of the few ways Tesco can make profit in the recession.

Due to the recession Tesco UK has made a loss in the first time in 20 years in October 2012, this is because customers reduced the amount that they spend on luxuries and were only sticking to their need but not their wants, also in April the managers in Tesco spend 1 billion pounds to refurbish their UK stores in order to win over their customers as well as attract new clients. This evidence can be seen through http://www.guardian.co.uk/business/2012/oct/03/tesco-profits-fall-uk-supermarkets

The business spent more than they earned in order to try and attract more customers to purchase goods from their stores but it backfired due to the scare amount of money in economy. The problem is that there is inflation, the current inflation rate is 2.4% but the members of public salaries and benefits are not increasing they have either froze or have been reduced, forcing these individuals to save or find cheaper alternatives.

They also tried to push sales through re-advertising but however the damage of the horsemeat scandal was still in effect this is why Tesco suffered a loss.

Comparison

In comparison, China is currently in Boom this means that employment of a country is high, confidence is high, GDP is high and spending power is high.

China has influenced Tesco positively, due to the fact that as a country, china's citizens have high spending power, also since Tesco has opened in China it has created opportunities for employment, with 124 stores open the firm would need thousands of employees which have a range of different skills, Tesco’s marketing techniques have benefited their profitability because they had recently advertised that they have processed foods for offer which include fried rice, sushi, rice cakes and other traditional foods from china, these product have become very popular due to a change in lifestyle by the Chinese public.

This was a very tactical decision from Tesco as they noticed an increase in popularity from processed foods in the China and took advantage of this situation because the firm specialises in these types of foods.

Due to China's high population Tesco can make a prediction of how much processed foods they would need from their supplier to meet the demands of their consumers.

The UK is suffering from financial instability meaning that there is not enough money to go round which forces the public into saving rather than spending, where as China is vice versa, the unemployment rate is low in china which means the public have enough to spend on necessities as well as luxuries.