Marketing Environment Analysis Competition In the luxury writing instruments market, Montblanc faces direct competition from various

luxury pen makers around the world such as Parker, Waterman, Cartier, Pelikan and Montegrappa. Adding to the competitors in the luxury market, Montblanc also faces general competition from low to mid-end pen manufacturers that offers lower priced, similar featured products giving consumers many alternatives to choose from in the pen market directly and also indirectly, as use of writing instruments has begun to diminish due to an increasing digital world and consequently, significantly less reliance on handwritten notes and snail mail. When it comes to high-end writing instruments, however, the luxury market are not very price sensitive. Instead, potential buyers look for iconic symbols of power and exclusivity, Montblancs forte given its historically rich background and its significance as a Power Pen used for signing important documents. SWOT Analysis (Montblanc Writing Instruments) Strengths Reputation Strong Financial Position Strong Advertising Traditional in-house German manufacturing High quality products and exclusivity Opportunities Growing market for luxury products in developing countries esp. China and India Threats Digital age High income elasticity of demand Weaknesses High prices Limited customisability Matured technology; little room for innovation

Developing eCommerce

New entrants threaten Montblancs market share Growing counterfeit market

Economic According to the Worldbank, the world economy is recovering from the global financial crisis five years ago with strong growth in developing countries like China. The increased buying power in China leaves Montblanc an opportunity to capitalise on the increasing amount of luxury spending. Political and Regulatory forces There are no price controls on the luxury instruments market in Australia and countries abroad. Advertising and promotions are bound under the Australian Consumer Law in Australia, which protects consumers against unfair conducts. Technological