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Pest Analysis For North America: Political Economic

The document provides a PEST analysis for North America: Politically, it has strong democratic systems and rule of law. The US has significant global influence. Countries have federal governments. Economically, the US and Canada have developed markets and high incomes, with low inflation rates of around 1-2.5%. Socially, populations are aging with good education and healthcare, but rising racial tensions and illegal immigration are issues. Technologically, the region leads in adopting and applying new technologies, with strong digital infrastructure and some digital courts.

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237 views2 pages

Pest Analysis For North America: Political Economic

The document provides a PEST analysis for North America: Politically, it has strong democratic systems and rule of law. The US has significant global influence. Countries have federal governments. Economically, the US and Canada have developed markets and high incomes, with low inflation rates of around 1-2.5%. Socially, populations are aging with good education and healthcare, but rising racial tensions and illegal immigration are issues. Technologically, the region leads in adopting and applying new technologies, with strong digital infrastructure and some digital courts.

Uploaded by

musadhiq_yavar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PEST ANALYSIS FOR NORTH

AMERICA
Economic

Political
Strong democratic setup
Effective rule of law
USA enjoys massive political
influence and global
policymaking
Federal form of government

Social

The economic system is welldeveloped


USA and Canada have high percapita income
Infation- ~1% for USA, ~1.5% for
Canada,~2.5% for Mexico

PEST Analysis
Technological

Aging population
Some of the best education and
healthcare
Liberal mindset, but rising racial
intolerance
Illegal immigration is another
concern

Country leaders in terms of


adapting and applying technology
Strong Digital Infrastructure
Digital Courts in some countries

Distribution in North America


Available through 1600 outlets ranging from single outlet distributor to Multi-outlet
distributor(eg. Bearings which had 260 stores)
Company adopted a selective distribution strategy( ~1,600/50,000). Considerable time was
spent on selecting the right distributor. Each area had 2-3 distributors in order to give customers
a choice.
Loctite provided extensive support to the distributors. Average distributor margin was ~30-35%.
Loctite's product turned over 2-3 times faster than distributors product. This created a stable
network of distributors
North American sales force was organized into 12 regions. Sales force also had specialized areas.
Direct sales to industrial consumers ~40%.
Supporting the sales organization were six market managers handling- automotive, electronics,
OEM, maintenance , automotive aftermarket and consumer retail.
Intensive distribution strategy was followed in the maintenance under a separate Permatex
brand. It was available in 5,500 stores. Cannibalization across channels was minimal.
No equity stake was needed in distributors as they were happy with the margins they received
and the sales were as per the companys expectation.

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