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Analysing the Market!

Analysing the Market!. Starter . SWOT PEST SLEPT. SWOT (the Wots Up? Analysis). Strengths – internal strengths of a company Weaknesses – internal weaknesses Opportunities – external opportunities Threats – external threats. SWOT Analysis. Kelloggs

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Analysing the Market!

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  1. Analysing the Market!

  2. Starter • SWOT • PEST • SLEPT

  3. SWOT (the Wots Up? Analysis) • Strengths – internal strengths of a company • Weaknesses – internal weaknesses • Opportunities – external opportunities • Threats – external threats.

  4. SWOT Analysis Kelloggs Kellogg wanted to be sure that the product was worth supporting. To find out they studied the market using SWOT analysis. What they ound was: Strengths. The brand was still very strong. Weaknesses. The brand was not as well known as before as it had not been promoted recently. The market is narrow. The idea that a 'fibre cereal keeps you regular' no longer appeals. Opportunities. Demand for more healthy foods and the over 55s age group who mainly bought the product were both growing. Threats. Smaller brands were growing. People wanted more tasty cereals.

  5. PEST • Political - change in Government • Economic – Wide economy changes – interest rates, exchange rates etc • Social – Age structure of population – buying patterns • Technological Changes – adapting and applying new technologies

  6. PEST Example Political UK Government policy and EU directives, for example, planning and environmental issues including sustainability affect the construction industry. Economic The health of the economy and interest rates affect demand for commercial and residential property. The UK government is using taxation as a means to encourage improving environmental performance e.g. The Climate Change Levy, Aggregates and Landfill taxes. The construction industry is increasingly interested in whole life costs of the building, which includes initial capital costs, operating and maintenance costs - understanding how better design can improve all these costs. Social Changes in the birth/divorce rates and the average number of people living in a household affect the demand for housing. Increasing crime, ageing population, and people's well-being are part of the social dimension - research shows that the highest number of disagreements amongst neighbours is due to car parking. Technology New construction technologies affect working practices in the building industry, constructing more component systems in factories rather than on the building site.

  7. SLEPT • Social – Changes in social trends • Legal – changes in Law • Economic - Changes in economic variables • Political – political changes • Technology – Changes in technology

  8. SLEPT Example – Vodafone Social factors Society is concerned about under 18s being at risk. Parents may have concerns about their children being contacted (using mobile phones) by paedophiles or other adults. Society is also concerned about adult content being available via mobile phones to under 18s. Adult content includes gambling, violent games, erotic material etc. Further issues related to 'social' include the rise of mobile phone theft. Legal factors Some laws regulate all businesses e.g. The Sale of Goods Act 1974 stating all products must be fit for the purpose they are intended. A mobile phone must therefore work. Certain laws are created to regulate particular industries. Examples include the ban on using holding a phone while driving introduced in 2003. Independent industry regulatory body: OFCOM - the Office of Communications. OFCOM is the independent body for regulating the communication industry - www.ofcom.org.uk. Vodafone goes beyond government regulation, working with its competitors in self-regulation. However to retain its leading position in the industry Vodafone believes it must exceed both legal regulations and industry self-regulation. Economic factors The state of the economy, for example levels of growth can impact companies. Companies' activities also contribute to the overall economy. Companies should remain true to their ethical values. If they do not, customers may question the company's beliefs. Political factors Government policy indicates that it wants the mobile phone industry to create self-regulating controls in relation to content. The government also shares public concern about unwanted contact and content. Technology New construction technologies affect working practices in the building industry, constructing more component systems in factories rather than on the building site.

  9. Linkage? • SWOT – Focuses on the internal • SLEPT – Focuses on the opportunities and threats external to the business.

  10. What can businesses do? • Marketing – added value, price changes, increased advertising, target market. • Human Resources – recruit/redundant, motivate, pay, conditions. • Production - cut or increase, technology (robots), efficiency, new methods, sourcing.

  11. Activity • Groups of 4 – Design a Poster • Choose a company to analyse • Analyse their market – SWOT, PEST and SLEPT • Presentation end of next lesson • Detailed answers – use internet to research!

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