Situation Analysis is study of current market or industry in which a company wants to launch a new product.
In order to launch a new product, a company first needs to study the market conditions. 5 Cs of Marketing (Contd)
The conditions are about the number of competitors and their market share, the cost of producing the product, the profit ratio, etc. So, a quick SWOT analysis will reveal where does the company stand in the market and what strategy it should adopt in order to grab a Lions share in the market. SWOT analysis means the analysis of Strengths Weaknesses Opportunities and Threats. The Five Cs are
Company Collaborators Customers Competitors Climate or Context Company
Product line
Image in the market
Technology and experience
Culture
Goals
Collaborators
Distributors
Suppliers
Alliances
Customers
Market size and growth
Market segments
Retail channel- where does the customer actually purchase the product?
Consumer information sources where does the consumer obtain information about the product?
Trends- how consumers needs and preferences change over time
Competitors
Actual or potential
Direct or indirect
Products
Positioning
Market shares
Strengths and weaknesses
Climate or context
Political and regulatory environment -- governmental policies and regulations that affect the market. Economic Environment -- business cycles, inflation rate, interest rates and other issues of economic nature Technological environment new ways of satisfying needs, the impact of technology on the demand for existing products.