Reference no: EM133433854

Questions:

1. Explain why these "domino effects" happen across various global industries and markets.

2. Discuss why it is important for marketers to constantly scan and observe external global forces.

3. Provide at least one (1) example of a major event, such as the ones mentioned above (be it economic, military, political, etc.) that has caused a ripple effect across one or multiple industries and markets.

4. In your opinion, are we too reliant on foreign suppliers of energy and certain goods and/or resources?

While globalization has enabled businesses to reach new markets and expand their operations, it has also increased the likelihood that domino effects will spread across different industries and markets rapidly. Major events or disruptions in one industry or market can have a profound effect on other industries and markets that are interconnected.

For example, the COVID-19 pandemic disrupted supply chains across the globe, leading to shortages of goods and raw materials. This affected multiple industries, including manufacturing, retail, and transportation. The semiconductor chip shortage is another example of a domino effect that is impacting industries such as automotive and consumer electronics.

In order to effectively market their products and services, marketers need to constantly monitor external global forces because these domino effects can have a significant impact. In order to target their target markets effectively, marketers must be aware of changes in consumer behavior, economic trends, and geopolitical developments. They may miss out on opportunities or experience unexpected disruptions that harm their businesses if they fail to do so.

Japan's 2011 Fukushima nuclear disaster had a ripple effect across multiple industries and markets. Nuclear power plants were shut down as a result of the catastrophe, leading to an increase in demand for fossil fuels to generate electricity. Consequently, oil prices spiked and impacted industries including transportation, manufacturing, and tourism.

It is my opinion that we rely too much on foreign suppliers of energy and certain resources and goods. Due to our dependence on foreign suppliers, our supply chains are vulnerable to disruptions caused by geopolitical tensions, natural disasters, and pandemics. For governments and companies to mitigate these risks and ensure the stability of their operations, it is crucial to diversify their energy and raw material sources.