As you close your weekly meeting with Deborah, she says, “There are some very go
ID: 410854 • Letter: A
Question
As you close your weekly meeting with Deborah, she says, “There are some very good ideas here. I would like to see you continue with a global marketing plan. We need more concrete analysis and data for the presentation. Get your team to work.”
After your meeting with Deborah, you briefly meet with your team to discuss moving toward a more formal analysis.
“Tiffany and Mike, we need to provide a more detailed analysis,” you explain. “You’ve done a great job so far looking at what resources we need and potential countries, but we need to really dig deeper on this.”
Tiffany nods her head in agreement. “Definitely,” she says. “We need to look at some internal variables as well as political, environmental, sociocultural, and technological environments of the countries that we are considering.”
Mike interjects, “Well, that’s something we should consider, but it’s not the only way to analyze this type of project. This is such a big decision, and we need to give as much information as we can.”
You reply, “Great point, Mike. We should look at this from a couple of different angles.”
The next step in your strategic marketing plan is to determine the tools that are needed to conduct an analysis of the industry and competitors. Complete the following:
What are the best tools to use in this situation?
Provide a brief summary of at least 2 of these tools.
Why do you think these are the best ways to analyze the market?
How will you use these tools in your plan?
Explanation / Answer
Q1) The best tools ro be used in this situation include -
1. Porter's Five Forces model for competitor and industry analysis
2. PESTEL analysis for external environment analysis
3. SWOT Analysis for internal analysis
Q2) Below is a brief summary of these tools -
Porter's Five Forces - This is used to find out various forces that influence the firm's business in a competitive market. The forces include -
Supplier power - Bargaining power of suppliers based on the number of suppliers, value they provide etc.
Buyer power - Bargaining power of buyers based on the differentiation the product offers, purchasing ability etc.
Threat of new entrants - Ability to imitate the firm's products and business model by new entrants
Threat of substitutes - Low cost and easily available substitutes for the firm's products
Competitive rivalry - Rivalry from existing competitors
PESTEL Analysis - This tool is used to find the external factors influencing the firm's business and include Political, Economical, Social, Technologica, Environmental, Legal.
Q3) As the requirement of the analysis is to evaluate various environments like political, social, economical, technological etc., PESTEL model is the best tool for the same.
Another requirement is to conduct an analysis of the industry and the competitors which requires Porter's Five Forces model.
Q4) PESTEL can be used to understand the various factors that are influencing the business based on which the firm can plan its next strategic moves. Firm will consider the constraints due to these factors
Porter's Five Forces model can be used to understand how the various forces are affecting the business and can plan strategic moves to balance the forces.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.