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Strategic Marketing 1

The UK Market Investment

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Strategic Marketing 2
The UK Market Investment
Overview
AgavEnergy organization is based in the United States. It specializes in the production and
sale of AgavEnergy products like sugar-based energy drinks, which utilizes the Agave plant as a
unique selling position. The company has recently opened a branch in the U.K. and has a 0.5
percent market share. Examples of energy drinks include monster, Rockstar, and Redbull. The
organization is yet to decide on whether to invest in the U.K. marketplace. An energy drink
company falls under those industries that flourish within a short time since their products are so in
demand in the market. Let's consider the use of market analysis to help us analyze the
environmental forces that may be deemed to affect the U.K. in the next three years.
Market analysis of the U.K. aims at addressing the political, economic, social,
technological, environmental, and legal aspects that may affect the U.K. markets. The analysis is
an effective technique that aids the business strategist in comprehending the impacts of macroenvironmental elements of the business. This case will help us analyze the factors that will affect
AgavEnergy Company in the next three years. It also aids in making strategic decisions. The
analysis is mainly conducted in the company's context; however, it can be done on the country
overall. The following are the factors of the analysis;
Political factors
The U.K. is among the powerful nations globally. It uses modern parliamentary democracy
and constitutional monarchy. The country is headed by a monarch, while the prime minister is the
head of administration. It is involved with four political parties that dominate the politics in the
nation. The national is politically stable, which acts as their greatest strength. Since it is stable
politically, it means that the country is safe from violence or conflicts, hence conducive to business

Strategic Marketing 3
(David, 2019). The U.K. has always maintained good relations with the United States and other
countries worldwide. It is a permanent affiliate of the United Nations that is considered a
significant power believed to influence global economic, cultural, political, and scientific affairs.
Many aspects determine the administration's stability, such as the rule of law, corruption is
low and managed, and effective government policies are applied. Since the government is doing
well in all these factors, it is considered a stable and successful administration. It is ranked at the
top position since 2007 for its political stability. The U.K. investment market should be regarded
as since the nation is a proactive government, politically stable, and it's relatively a fair country.
The demand for the organization's products will grow with time since it is a settled country (David,
2019).
The political environment has a moderate effect on the energy drinks market. The
government is concern about energy drink and their impacts on the health of the people. The
country might implement restricted regulations if it identifies any risks of the energy drinks on the
public's health. They might violate the rand or file a case in the high court, resulting in the rand
incurring a significant loss in the market share together with the rand name. Therefore before
investing entirely in the U.K. market share, the company should consider checking on their
restrictive regulations on various drinks.
Economic factors
The U.K. is among the nations with a robust economy relative to other countries. It has a
high G.D.P. with a diverse economy. It a significant inflow of foreigners hence; standing on a
sustainable pillar with a thriving business community. The nation responds to changing threats and
dynamics. It has robust pricing models that are connected with a cost-effective supply chain. This
parameter enables companies' sustainable footing in the nation (Pan and Zhan, 2019).

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The reason behind its success is the diversity of the economy. The variety of the market offers
equal chances to all growing businesses hence higher chances of the AgavEnergy Company
growing faster. As long as the country adds value to customer's lives, there is a demand for their
products in the market.
In the case of energy drinks in the U.K., there is an increased extent since more brands are
emerging in the industry, which might confuse consumers when it comes to deciding what they
would like to purchase. It might result in a diminishing purchase intensity of consumers in the next
few years. Consumers are always interested in the alternative of low price that the product with a
higher price. The AgavEnergy Company is encouraged to set its price to moderate as it offers
quality products to customers (Pan and Zhan, 2019). The strategy will attract more customers to
the company. Considerable measures of competitors are emerging in the marketplace. Also, there
is a steady growth in purchasing power among consumers in developed nations.
Various economic factors face the financial performance of energy drinks. One of them is
macroeconomic stability which affects the industries that operate in the premium sector. The other
one is the exchange rates with ...