Situation Analysis

Situation Analysis

If we talk about ‘’ Situation Analysis ’’ we also talk about ‘’market audits’’. Basically ‘’Situation

analysis’’ is same meaning with ‘’market audits’’

Situation Analysis

Basically, an audit is the means by which a company can understand how it relates to the environment in which it operates. It is the means by which a company can identify its own strengths and weaknesses as they relate to external opportunities and threats. It is thus a way of helping management to select a position in that environment based on known factors.

Situation Analysis

A market analysis will be made up of a range of factors relevant to the particular situation under review, but would normally include the following areas:

• Actual and potential market size

• Trends

• Customer

• Customer Segment

• Distribution Channel

S W O T

STRENGTH

WEAKNESSES

OPPORTUNITIES

THREATS

“An analysis that identifies the strengths and weaknesses and the opportunities and threats in relation to an organisation” – Elliot Rundle-Thiele

Waller “Marketing Second Edition”

“is a tool that is commonly used during the auditing process. SWOT draws together t1he key strengths, weakness, opportunities and threats from the audits” – Graeme Drummond, John Ensor, Ruth Ashford “Strategic Marketing Planning and Control”

WHAT IS ‘’S W O T ?’’

Attributes of the organization that hinder it in trying to achieve its objectives

Elements of S W O T

STRENGTHAttributes of organization that help it achieve its objectives

WEAKNESSES

Elements of S W O T

OPPORTUNITY Factors that are potentially

helpful to achieving the organisation’s objectives.

THREATSFactors that are potentially harmful

to the organizations efforts to achieve its objectives

EXAMPLE

S

T

E

E

P

L

E

Social and Culture

Technology

Economic and market conditions

Education, training, and employment

Political

LegalEnvironmental

Protection

P – E – S – T – L

POLITICAL The influence of politics on marketing decision

ECONOMIC Those factors that affect how much people and organizations can spend and how they choose to spend it

SOCIAL CULTURAL

The social and cultural factors that affect people’s attitudes, beliefs, behaviours, preferences, customs and lifestyle

TECHNOLOGICAL

Vital for competitive advantage

LEGAL Laws : Legislation enacted by elected officials

Regulations : Rules made under authority delegated by legislation

POLITICAL/LEGAL ISSUES Taxation policy Monopoly controls Environmental protection

measures Employment law Environmental legislation Foreign trade agreements Stability of the

government system

ECONOMIC FACTORS Interest rates Inflation rates Money supply Business cycles Unemployement GNP trends

P – E – S - T

P – E – S - T

SOCIAL/CULTURAL ISSUES Age profiles Social mobility Changes in lifestyle Family structures Levels of education Work behavior Leisure activities Distribution of

income Patterns of

ownership Attitudes and values

TECHNOLOGICAL FACTORS Focus of government

research Rate of technology

transfer Materials Developing

technological process

COMPETITOR ANALYSIS

Strategic Groups

Strategic groups are made up of organizations within the same industry that are pursuing equivalent strategies, targeting groups of customers that have similar profiles.

EXAMPLE

APPLEVS SAMSUNG

FERRARI

VS

LAMBORGHINI

Range of attributes to identify strategic groups

• Size of the company• Assets and skills• Scope of the operation• Breadth of the product range• Choice of distribution channel• Relative product quality• Brand image

Competitor’s objectives

Three important factors :

• Whether the competitor’s current performance is likely to be fulfilling their objectives.

• How likely the competitor is to commit further investment to the business.

• The likely future direction of the competitor’s strategy.

Competitor’s current and past strategies

Three area that should be explored :

• Identification of the current markets, or market segments, within which the competitor currently operates.

• Identification of the way the competitor has chosen to compete in those markets.

• Comparison between the current strategy and past strategies can be instructive.

Competitor Analysis Table

MAINCOMPET

ITOR

PRODUCTS/ MARK

ET

BUSINESS DIRECTION

AND CURRENT

OBJECTIVES AND

STRATEGIES

STRENGTH

S

WEAKNESS

COMPETITIVE

POSITION

Guide to Competitive Position Classification

• Leadership : Has major influence• Strong : Has a wide choices of

strategies• Favourable : Exploits specific competitive

strength, often in a product market nice.

• Tenable : Performance justifies continuation in business

• Weak : Currently unsatisfactory performance

Competitor’s capabilities

A number of areas need to be examined:

• Management capabilities • Marketing capabilities• Innovation capabilities• Production capabilities • Financial capabilities

• Certain Retaliation : The competitor is guaranteed to react in an aggressive manner to any challenge.

• Failure to react : Competitors can be lulled into a false sense of security in an industry that, over a long period of time, has seen very little change.

• Specific reactions : Some competitors may react, but only to competitive moves in certain areas.

• Inconsistent reactions : These companies’ reactions are simply not predictable.

Competitor’s future strategies and reactions

Problems in Identifying Competitors

• Overlooking smaller competitors by placing too much emphasis on large visible competitors.

• Focusing on established competitors and ignoring potential new entrants.

• Concentrating on current domestic competitors and disregarding international competitors who could possibly enter the market.

Name of Group :

Dani Vanadi Junius2012160512

Dina almadania2012160822

Devina ayusanti2012160276

Febrian nindyo2012161236

Felicia rosmarie2012160052

Tricia cornelia2012160268