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d.The Marketing Environment and Competitor Analysis 4

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(1)

The Marketing Environment and Competitor Analysis

•SWOT analysis

•PEST analysis

(2)

SWOT analysis • Strengths (internal)

• Weaknesses (internal)

(3)
(4)

PEST analysis • Political factors

• Economic factors

(5)

Political/legal

• Monopolies legislation

• Environmental protection laws • Taxation policy

• Employment laws • Government policy • Legislation

(6)

Economic Factors

• Inflation

• Employment

• Disposable income • Business cycles

(7)

Sociocultural factors

• Demographics

• Distribution of income • Social mobility

• Lifestyle changes • Consumerism

(8)

Technological

• New discoveries and innovations • Speed of technology transfer

• Rates of obsolescence • Internet

(9)

Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4.

Threat of Threat of substitutes substitutes Potential

entrants

Threat of Threat of entrants

(10)

Five Forces Analysis: Key Questions and Implications

• What are the key forces at work in the competitive environment?

• Are there underlying forces driving competitive forces?

• Will competitive forces change?

• What are the strengths and weaknesses of

competitors in relation to the competitive forces?

• Can competitive strategy influence competitive forces (eg by building barriers to entry or reducing

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