Part One Situation Analysis A. External Analysis: Political/legal Economic Social/Cultural Demographic Technology

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PART ONE SITUATION ANALYSIS A.

EXTERNAL ANALYSIS
Level of Analysis Time of case Industry Definition Market size Growth Market/Industry External Environment

Influence Political/legal Economic Social/Cultural demographic Technology


So What?

Implications

Industry Analysis
Industry trends Industry attractiveness

Porters Five Forces analysis for the industry


Porters Force Rating Evidence

Threat of New Entrants

Bargaining power of buyers types

Bargaining power of suppliers Materials Labour Business services supplier

Threat of substitutes

Intensity of rivalry among competitors

So What?

Summary: How attractive to incumbents and why and how attractive to newcomers and why?

Key Success Factors of Industry


KEY Success factors Competitors advantages Company strengths and weaknesses

Conclusion Is this an industry to compete in? What changes are likely to occur and how is the company positioned against these changes?
Yes but ..

Distribution Analysis.
2

Channel

Competition

Power

So What?

Competitor analysis Depends on how defined. de

Company

Brand

Target market

M/S

SBUs

Mkt Position

Current Skills/ resources strategies

strengths/w

So what?
Indirect Competitors
Substitutes

Customer Analysis
Consumer segmentation. Segment
Variables used Segment Segment Segment

Segment size Profitability

INTERNAL ANALYSIS

Mission: Competitive strategy: Core competence: Skills and resources:

Organisational Health Some internal problems identified with company response to change and new ideas. Mgt skills Leadership capability Culture Innovation capacity R&D etc etc

Current Marketing Strategy Target Product Price Market

Primary Distribution

Promotion

Positioning

Evaluation Does the current offering to current segments achieve satisfactory outcomes? Will it be sufficient for future?

Financial analysis

Financial Health - So What?


This will enable or restrict strategies and is important. Somewhere you must use whatever financials are available of projecting costs and expected sales/revenue etc

Preferred SWOT for this unit as it encourages your thinking.


Strengths
State fact

Implications Actions
What does it mean to organisation? What must be done to overcome or take advantage if positive?

Weakness

Opportunity

Threats

Key Issues facing organisation:

Corporate objectives: Marketing objectives: 1.Pros / Cons


SOLUTION 1 Pros Risks -

SOLUTION 2 Pros

Risks -

SOLUTION 3 Pros

Cons

2.Evaluation against criteria

Evaluation Criteria
Criteria Strat1 Strat2 Strat3

Total 100.00%
3. Financial Analysis Project estimated sales and costs for each strategy

Select best strategy


Clearly state best strategy

Justify extensively
SPELL IT OUT LIKE YOU TELLING THE BOARD HOW CLEVER YOU ARE. THIS SHOULD LINK OR DRAW FROM CRITICAL PARTS OF SITUATION ANALYSIS AND SWOT,.

Implementation
What else must change to make it happen.

Contingency Plans

What if?

More

Criteria Evaluation
1. Sustainable in the long term 2. Achieve corp. objectives of sales growth and op profit growth? 3. Fit with current strengths/skills 4. Risk This approach lacks insight as criteria selection indicates an understanding of running the businesses.
Sustainable 3 LT Achieve 3 Corp ob Skills 2 Fit Risk 2 total

6. SELECT BEST ALTERNATIVE AND JUSTIFY

7. IMPLEMENTATION
Impact on Marketing Mix or future corporate strategies

Target market Product Pricing Promo Distribution Positioning

8. CONTINGENCY PLANS
What happens if? Consider the threats of your swot.

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