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The Marketing Environment and Competitor Analysis

The Marketing Environment and Competitor Analysis. SWOT analysis PEST analysis Five forces analysis. SWOT analysis. Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external). PEST analysis. Political factors Economic factors Socio-cultural factors

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The Marketing Environment and Competitor Analysis

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  1. The Marketing Environment and Competitor Analysis • SWOT analysis • PEST analysis • Five forces analysis

  2. SWOT analysis • Strengths (internal) • Weaknesses (internal) • Opportunities (external) • Threats (external)

  3. PEST analysis • Political factors • Economic factors • Socio-cultural factors • Technological factors

  4. Political/legal • Monopolies legislation • Environmental protection laws • Taxation policy • Employment laws • Government policy • Legislation • Others?

  5. Economic Factors • Inflation • Employment • Disposable income • Business cycles • Energy availability and cost • Others?

  6. Sociocultural factors • Demographics • Distribution of income • Social mobility • Lifestyle changes • Consumerism • Levels of education • Others?

  7. Technological • New discoveries and innovations • Speed of technology transfer • Rates of obsolescence • Internet • Information technology • Others?

  8. Five forces analysis Potential entrants Threat of entrants Suppliers COMPETITIVE RIVALRY Buyers Bargaining power Bargaining power Threat of substitutes Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4. Substitutes

  9. 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 competitive rivalry)?

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