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.
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