1

10

Demographic
Company

Economic

Cultural
Publics

Political

Company

Competitors

Suppliers
Customers

Natural

Intermediaries

Technological
11

THE MICROENVIRONMENT

Company
Company
Publics
Publics

Forces
Forces Affecting
Affecting aa
Companys
Companys Ability
Ability to
to
Serve
Serve
Customers
Customers

Competitors
Competitors

Suppliers
Suppliers

Intermediaries
Intermediaries
Customers
Customers
12

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14

THE MACROENVIRONMENT

Demographic
Demographic
Socio-Cultural
Socio-Cultural

Political-legal
Political-legal

Forces
Forces that
that Shape
Shape
Opportunities
Opportunities
and
and Pose
Pose Threats
Threats
to
to aa Company
Company

Economic
Economic

Natural
Natural

Technological
Technological
15

16

17

18

19

20

21

BUSINESS SPECIFIC ENVIRONMENT

Market/Demand:
Nature & size of the demand, present & potential
Changes taking place in the demand
Invasion of substitutes
Changes taking place in consumption patterns & buying

habits

Consumer:
Changing tastes & preferences

lifestyles
Brand loyalties & shifts

-Personality &
-Purchasing power

22

.
Industry & Competition
Who are the competitors?

-What is their market

share?
What are their marketing strategies?
situation of the industry?

-What is the

Government policies
Subsidies, protection, ban on products/technologies?

Supplier related factors

Who are the suppliers?
Changes introduced in products, processes & business

practices?

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