Matchstick Inc.: Word of Mouth Marketing Harvard Case Solution & Analysis

Situational Assessment

This section will analyze the environment in which the company is competing and it will assess various factors that are described below in order to assess the intensity of the environment. This section holds a key importance as analyzing environment is very important to get a closer understanding of the current situation.

Competitive Landscape

Matchstick Inc. brought innovation to the promotional techniques of the brand and is focusing more towards engaging the customers rather than increasing the reach. The company has assessed the importance of social media and the shift of consumers to online platforms. The industry is relatively new and there are not many competitors in this category. However, the company on a broader scope is competing with the traditional advertising agencies that are many in the industry and have an established brand name. Thus, the competitive environment is quite competitive on a broader perspective, however, the company has a strong point of difference that can be leveraged to compete strongly.

Regulatory Environment

The federal, territorial, and provincial are the three levels of government that are present in Canada and have different sets of regulations for different industries and the compliance of these regulations is vital. Matchstick Inc is dealing with technology and leveraging technology sic inducting its activities. Therefore, the company will have to face different sets of regulations in order to fulfill the IT security and also the protection of consumer information. The regulations are more industry based and are imposed by the federal government.

Economic Factors

The economic condition of Canada is although quite strong, however, the country is on the verge of recession, which will impact the buying behavior of the consumer as they will be more inclined towards saving rather than spending. The service sector is one of the booming sectors in the country and offers immense potential and the players competing in this sector have multiple opportunities to explore. Furthermore, the country is currently one of the wealthiest economies in the world and the purchasing power parity of the people is quite strong.

Secondly, the presence of many global brands is the proof that advertising and promotional activities have immense scope and the companies in this sector can prevail easily. Thus, the economic condition is currently very favorable and offers potential as consumers are currently having immense focus towards social media platforms and spending from the consumers end is quite high. The inflation rate is quite low and the GDP evaluation suggests that it is in a strong position as well.

Social Factors

The social environment of the country is quite unique due to the diversity that it has AS the people are mostly immigrants. The country has a variety of ethnicities which makes it difficult for global brands to target a mass market due difference in preferences. On the other hand, the population of Canada has increased significantly in the past eight years due to the increasing trend of immigration. Furthermore, there are multiple languages that are spoken in the country, but the official languages are English and French.

However, the social trends are quite favorable for marketing as innovation and diversification is essential for the companies to promote their brands. Canada is considered as a global hub and a multicultural society which offers potential as well as challenges. Thus, the social environment is quite diverse and needs a deeper understanding before pursuing any business either on a small scale or large scale.Matchstick Inc Word of Mouth Marketing Case Solution

Technological Factors

 The technological environment of the country is highly efficient as a vast portion of the country’s GDP is spent over research and development and identifying and assimilating new and innovative technologies. The companies that rely heavily on technology are widely accepted in this environment and have an abundance of opportunities to exploit and explore. The country’s science and technology sectors are highly developed and amongst the top sectors in the world.

On the other hand, the usage of internet is extremely commendable and majority of the population is aware of internet and is using internet on a regular basis. Furthermore, a majority of internet users are also aware of social media platforms and are actively participating in social media. Moreover, the country has huge potential for companies that are aiming to explore business opportunities leveraging the internet and social media platforms....................

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