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Discussion
Scenario Planning in a Rapidly changing Global Marketing Environment:
Three events took place between 2001 and 2003 which changed the world. One was the attack on the World Trade Centre in 2001, the second was the war waged on Iraq by coalition forces in 2003, and the third was the outbreak of severe acute respiratory disease (SARS) in China and Hong Kong at the same time. The shockwaves of these events went around the world. The three events had a significant and long running effect on global marketing and trade in the wake of 11th of September, air travel and tourism fell dramatically. Passenger Travel from Europe to the USA dropped by 30%. This resulted in the snowball effect. World airlines faced severe passenger downturns, resulting in 30000 layoffs in the industry. Some 1000 aircraft were taken out of service. Some airlines did not survive. Suppliers to the airline industry suffered a downturn as global demand for new aircraft declined. The tourism industry was equally hard hit as the effects of a reduction in global travel began to bite. But tourism and the airline industry were not the only victims. The Iraq conflict also affected the Global Stock market values. Political reasons between Nations changed. The European Union was split over the war and the USA was in no mood to aid those countries or firms which opposed the allies. The world in 2003 was not a stable place in which to plan global marketing operations.
1. Quoting examples, identify and evaluate the global marketing environment in this case.
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