*NEW* Unit 28 Branding: M2 - Analyse the potential impact of internal and external factors on branding activities of a product

Internal influences

Are things that happen inside the consumer's minds and their knowledge about the business
itself, customer's psychology and personality impacting the brand?

Size of a business

The size of a business can influence customers' mind-set about the brand, considering the value
of the brand in a particular market such as Apple in the smartphone market, they have built a
large customer base and overall is a high profit making company with staggering revenue of
2.38 trillion in market capitalization. This is due to the brand's global recognition and Apple's
ability to successfully communicate and satisfy consumer requirements and desires, which is
why Apple has over 1.6 billion customers worldwide. They are also multinational businesses
with operations in 175 countries rather than an individual country, which can have a beneficial
influence because Apple has a high market share concluding to the greater size of the business
which further implies Apple greater sales leading to lesser effort to sell more and a strong
barrier to entry for other competitors. In conclusion, the size of the business can influence
brand activity of Tesla electric cars because it increases the number of potential consumers
within the business. Tesla is a multinational and large company, which overall impacts the
availability and increases awareness and recognition of their goods and services due to their
high popularity on social media and the large number of stores Tesla has across over 35
countries, which positively influences the accessibility of their product reach. To exponentially
increase.

As we all know, Tesla has amassed a sizable customer base, which contributes to the company's
large market capitalization. Tesla has a market capitalization of 1.172 trillion globally and is the
sixth most valuable company in the world, indicating that the company has a large customer
base, which influences brand image and increases customer loyalty, awareness, and recognition
of the brand. Tesla is a worldwide corporation that distributes its goods in over 25 countries
across the world. While Tesla is also a very large business in social media, with over 10 million
followers of famous application, Twitter, and Elon Musk having over 60 million, which is
staggering statistics, it demonstrates how big of a brand Tesla is when compared to other
companies such as Toyota only having (more employees)

Stages of a business

Businesses go through different stages. The start-up stage, the growth stage, the maturity stage
and finally the last stage is the decline stage ( a business may or may not go into decline,

, depending on whether the business goods and services over a period time, has failed to satisfy
customer needs and wants and other aspects concluding to the decline of the business ). The
first stage is where the business first starts up their company. A start-up of a firm is where the
business is in its early phases of operation. A business that Start-ups are created by one or
more entrepreneurs who desire to create a product or service that they feel will be in demand.
These businesses typically begin with high costs and low revenue, which is why they seek
money from a number of sources, including private investors where investors seek an interstate
in the business and see the potential of the business through their goods and services. The
start-up of the business is considered the most difficult part of a business as the businesses are
trying to gain an audience through their goods and services in which they may not have enough
resources or promotional skills to establish their brand to their target market or the general
public.

The next stage of a business is the growth stage. This is the point in which a business starts
seeing a profit within their business through the goods and services sold to a prospective
consumer, now a consumer of the business. If a business sees higher generated profit this will
indicate a positive cash flow as the business is gaining more sales leading to greater Total
income within the business. Furthermore companies in the growth stage demand increasing
amounts of money and more capital as they strive to increase their market reach and diversify
their business essentially meaning where the business is at stage where it seeks to expand the
range of product or field of operation of their business , enabling a wider range of the business
goods and services where more potential customers can reach out to the firm and become
consumers, resulting in an increase in profit within the business.

After the growth stage is the maturity stage of the brand. This is when a product in the PLC
reaches the maturity stage, it has established itself in the market. This due to the fact that the
product that business provides has achieved its peak in sales and volume sales growth has
slowed, due to the business being already developed and positioned in their market. It is
considered to have reached its maturity stage. During the maturity stage, the firm benefits
because customers have the need for the brand product in their day to day life in which sales
volumes are large enough to provide profits for the company.
Tesla is a brand that has reached the maturity stage. This is because Tesla is a multinational
company, globally recognised in the business market as a whole, this is due the fact that Tesla
has achieved exponentially increased sales in the goods and services provided in which
consumer Tesla has and continues to satisfy consumer needs and wants. Tesla is at a stable
place where the business will always gain increasing profit for its expenditure. Also Tesla is the
leading company for the electric vehicle market and has an impressive market share of 18% of
the global electric car market. The Tesla Model 3, is an example of a product that is in its