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Tag: swot

  • What is a PESTLE Analysis and how can it help?

    What is a PESTLE Analysis?

    So we have learned that Situation Analysis is the first step of the over-arching Marketing Process. One thought-provoking element of this is the PESTLE Analysis. You should sit down and consider the macro issues that are affecting or will affect your business sector.

    But what is a PESTLE Analysis anyway?

    PESTLE invites you to consider the Political, Economic, Social, Technological, Legal and Environmental issues, trends and changes that impact upon your sector and your ability to do business.

    For example, if you want to sell your goods into politically unstable Market A, how do you propose to achieve that securely? Due to the economic downturn in Market B, might you need to down-spec the product, or reduce margin to maintain volume sales? You may first need to proof if your product is even socially acceptable in Market C, before you think about thriving there. How is the speed of technological advance impacting upon your R&D budget? How might you react to that legal change about to be introduced in key Market D? New environmental regulations in Market E might impact upon your packaging materials.

    And so on.

    What is a PESTLE Analysis
    Factors in the Macro Environment to Consider

    Let’s look at some real examples.

    Some years ago, the Irish smoking ban was a legal event that impacted upon many businesses, among them aluminium fabrication enterprises that spotted an immediate need for outdoors wall-mounted ashtrays. Bingo.

    The move to mobile has forced the introduction of responsive website designs. Web designers who don’t have any on offer? Bye bye.

    The WEEE Directive meant electronic goods retailers suddenly had to put in place systems to take back hazardous substances in electrical and electronic equipment from consumers.

    In the US recently, we’ve seen how non-compliance with that country’s EPA requirements on car emissions can have a potentially major impact on manufacturers in that sector…

    PESTLE Analysis and You

    PESTLE can be a slightly head-wrecking exercise and should not be attempted in one sitting. You won’t be able to take it all in. Rather, absorb what is going on in the markets that matter to you and build up a file on impacts, both current and potential. You can already see how this ties in with SWOT Analysis, also part of the first step of the Marketing Process.

  • Situation Analysis : The ‘Now’ of Marketing

    Situation Analysis – Where Are You At?

    One of the bigger challenges facing any marketing trainer, like myself, is holding participants’ attention while discussing the role played by what we call “Situation Analysis”.

    While carrying out a Situation Analysis should be the first step (and then regularly repeated), it can be so much more appealing for training attendees to jump straight to the exciting part that is the Marketing Mix – discussing product, price, promotion, and so on.

    But it’s the Situation Analysis stage that should direct us along the path of the Marketing Process towards developing a marketing plan. This first step is where we learn about and evaluate political, economic, social, technological, legal and environmental information that might impact upon our plans. Essentially, it’s a critical review of our current business situation. We need to be able to identify internal and external forces that may influence the performance of our business and what strategies we might pursue. We equally need to assess our current and future strengths, weaknesses, opportunities, and strengths, aka carry out a SWOT Analysis.

    Situation Analysis
    What to consider during a Situation Analysis

    A Situation Analysis could unearth issues like legislative change coming down the tracks that might provide us with great opportunities or, perhaps, curtail revenue generation from some existing services. We can devote time to investigating recent trends and what might happen next. Perhaps we can spot possible future products and services that we could offer to the market that might just give us a head-start on competitors.

    Situation Analysis – What’s Involved

    Really, the Situation Analysis is all about looking at both the micro- and macro-environments that impact upon or potentially could impact upon our business. So, we might consider looking at issues under the following headings, while carrying out a Situation Analysis :

    Company – What we’ve got internally and what not (resources).

    Customers – Which type of customers we’ve got and which not. What other market segments exist?

    Collaboration – The value we attribute to our suppliers, partners, bankers, etc.

    Competitors – What they’re up to, good at, not so good at, etc.

    Context – The environment in which we are trying to do business – legal, technological, etc.

    All critical stuff.

  • SWOT Analysis – A Valuable Business Tool

    Of all the business tools out there, the SWOT Analysis is perhaps the best known. More interesting, perhaps, might be to know how many business owners have ever actually sat down and objectively carried one out!

    The SWOT Analysis is an integral part of the first stage of the Marketing Process. Knowing the Strengths and Weaknesses of your business, as well as being aware of and alert to the Opportunities and Threats in the market, can be of huge benefit to any business owner. This is especially true of the sole trader or micro-enterprise owner, as he or she may not have anybody else’s eyes, ears and opinions to fall back on in the early days.

    How many pub owners didn’t notice what was going on over the past ten years in the Irish economy, or, if they did, failed to spot the opportunities to react to the threats and continue to trade well?

    The SWOT Analysis looks at two internal factors in a business, namely the Strengths and Weaknesses. This might be termed the “easy” part of the exercise and they are as they are. Often, however, the challenge is to recognise and acknowledge them. Then external factors, represented by Opportunities and Threats, are considered. This is where it can get tough. It’s clearly much easier to spot one’s own strengths and weaknesses, but the real business value here is in the “what if” scenarios.

    Spotting opportunities in a market is the hallmark of a great business owner. Seeing the threats coming down the tracks in time to adjust, equally so.

    SWOT Analysis
    SWOT Analysis looks at Internal and External Factors

    Completing a SWOT Analysis

    Given the difficulty that can be encountered in remaining objective while completing a SWOT Analysis, it is strongly advised that business owners get a second person to help out. And no, not a family member!

    Look at factors such as resources (personnel, funding, etc.), facilities, location, product offer, branding, pricing levels, expertise within the team, innovation, legislation (existing and pending), market trends, competition, market dynamics, online presence, etc. Study the relationship between your business and its customers. Develop a picture of the whole and then steer in the best direction for you and your business.