marketing environment and opportunity analysis

• Environmental scanning involves an in-depth examination of key factors that influence a firm's business operations
• Macro-environment refers to external factors impacting the area, industry, and market where a business operates
• PESTEL Analysis is a tool to identify external forces that may affect an organization positively and negatively
• PESTEL Analysis includes:

  • Political factors
  • Economic factors
  • Social factors
  • Technological factors
  • Environmental factors
  • Legal factors
• Political factors analyze the influence of political forces on an organization's operations, decision-making, and strategic planning
• Economic factors are external conditions and forces that affect a country's economy, organization, or industry
• Social factors determine the impact of the social environment and emerging trends on business profitability
• Technological factors are the influence of technology on business and the external environment
• Environmental factors are environmental issues or concerns that can impact an organization
• Legal factors are laws, regulations, and frameworks that influence an organization's strategy and operations
• Micro-environment includes factors close to the company that impact its ability to serve customers
• Micro-environment comprises customers, suppliers, competitors, and other stakeholders
• Porter's Five Forces include:

  • Threat of new entrants
  • Buyer power
  • Threat of substitution
  • Supplier power
  • Competitive rivalry
• Micro-environment involves five (5) forces, also known as Porter's Five (5) Forces. Michael E. Porter develops it as a framework for assessing and evaluating a business organization's competitive strength and position
• Threat of new entrants. This force determines how easy or difficult it is to enter a particular industry. If an industry is profitable and has few barriers to enter, rivalry intensifies.
• Buyer power. This force analyzes how buyers can easily influence price decreases. It is driven by the number of buyers in the market, the importance of each buyer to the organization, and the cost to the buyer of switching suppliers
• Threat of substitution. This force is threatening when buyers can easily find substitute products with better quality or attractive prices and when buyers can switch from products or services with little cost.
• Supplier power. This force analyzes how suppliers can easily influence price increases. It is driven by the following factors: the number of suppliers of each essential input, the uniqueness of their product or service, the supplier’s relative size, and the cost of switching suppliers
• Competitive rivalry. This force examines the intensity of competition in the marketplace. It is driven by the number and capability of competitors in the market
• Political factors

   Emergency declaration of a nation

   International disputes

   Infrastructure policy

   Government incentives and spending

   Government regulations and policies

   Immigration and Labor Law

   Political leadership

   Political corruption and bribery  Political unrest or conflicts  Political stability or instability  Tax policies and rates  Trade policies and barriers
• Economic factors

   Rising inflation rates

   Change in interest rate

   Fluctuation in exchange rates

   Tax policies

   Government regulations

   Unemployment rate

   Availability of credit

   Consumer spending patterns

   Income distribution

   Globalization
• Social factors.

   Cultural trends

   Population growth

   Education levels

   Income levels

   Health consciousness

   Lifestyle

   Career attitude

   Social movements and inequality  Public opinion and perception
• Technological factors.

   Rampant use of artificial Intelligence

   Automation and robotics

   Cybersecurity and data protection

   Level of innovation and digitalization

   Adaption of remote work

   Rise of e-commerce
• Environmental factors

   Supply of natural resources

   Pollution control measures

   Extreme climate change

   Urbanization and land development

   Deforestation leading to loss of biodiversity

   Disrupted marine ecosystem  Improper waste management  Increasing carbon emission
• Legal factors

   Employment laws

   Health and safety regulations

   Environmental regulations

   Corporate tax rates

   Regulations on import and export

   Intellectual property laws  Consumer protection and product liability laws

   Regulations governing business agreements

   Regulatory requirements specific to the industry  Anti-trust laws to prevent unfair business practices