Mcom SM

1.2
GROUP 7
PRESENTATION
Strategic
Analysis/Marketing Audit
1 JUWAKINYU STEPHEN M196966
2 TAVARWISA DESIRE M196764
3 JUSTIN MAILOS M197604
4 MAVIMA DAVID M196426
5 HONDO TARISAI M180767
6 KUREVA ALUIS M197620

Mcom SM 1.2
 Strategic Analysis/Marketing Audit

Strategic analysis refers to clarifying the future to decide

what constitutes opportunities, possible threats, strengths
and weaknesses to choose the best strategy to invest
opportunities and threat protection in light of the
strengths and weaknesses of the organisation (Bernoti,
1992).

Mcom SM 1.2
 Environmental analysis

Starting from the beginning, a company needs to

complete an environmental analysis of its current
strategies.
• Internal environment considerations include
issues such as operational inefficiencies,
employee morale, and constraints from financial
issues.
• External environment considerations include
political trends, economic shifts, and changes in
consumer tastes.
Mcom SM 1.2
 External Environment Analysis

Mcom SM 1.2
 PESTEL

Mcom SM 1.2
 PESTEL
P for Political factors
The political factors take the country’s current political
situation. It also reads the global political condition’s effect
on the country and business.

E for Economic factors

Economic factors involve all the determinants of the
economy and its state. These are factors that can conclude
the direction in which the economy might move. affect the
sales of products and services.

Mcom SM 1.2
 PESTEL
S for Social factors
Countries vary from each other. Every country has a
distinctive mindset. These attitudes have an impact on the
businesses. The social factors might ultimately

T for Technological factors

Technology is advancing continuously. The advancement is
greatly influencing businesses. Performing environmental
analysis on these factors will help you stay up to date with
the changes. Technology alters every minute. This is why
companies must stay connected all the time. Firms should
integrate when needed. Technological factors will help you
know how the consumers react to various trends.
Mcom SM 1.2
 PESTEL
E for Environmental factors
The location influences business trades. Changes in climatic changes can affect the
trade. The consumer reactions to particular offering can also be an issue. This
most often affects agri-businesses.

L for Legal factors

Legislative changes take place from time to time. Many of these changes affect the
business environment. If a regulatory body sets up a regulation for industries, for
example, that law would impact industries and business in that economy. So,
businesses should also analyze the legal developments in respective
environments.
Other legal factors are:
• Product regulations
• Employment regulations
• Competitive regulations
• Patent infringements
• Health and safety regulations

Mcom SM 1.2
 Internal environment
An internal analysis provides the means to identify the strengths to build on
and the weaknesses to overcome when formulating strategies. The internal
analysis process considers the firm’s resources; the business the firm is in; its
objectives, policies, and plans; and how well they were achieved.

Internal Environment Factors

The internal environment in marketing refers to components inside the firm
that are unique to the firm. An analysis of the internal environment is critical in
the development of marketing strategy to ensure that the firm’s strategy is
based upon its situation, resources and goals.

What are the main internal environment factors?

The main factors to consider when analyzing the internal environment in
marketing are: Resources, Employee skills and mix, Capabilities and core
competencies, Management values and corporate culture, Stakeholder goals,
Current strategy and success

Mcom SM 1.2
 Internal environment
Resource Based View (RBV)
The resource-based view emphasizes
the internal capabilities of the
organization in formulating strategy to
achieve a sustainable competitive
advantage in its markets and industries.
Luke 14:28-31 (NIV)
28
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the
cost to see if you have enough money to complete it? 31 “Or suppose a king is about to
go to war against another king. Won’t he first sit down and consider whether he is able
with ten thousand men to oppose the one coming against him with twenty thousand?

Mcom SM 1.2
 Resources
Resource is a broad term that refers to what the organization has and may be
thought of as inputs that enable an organization to carry out its activities.

In marketing terms the business will be particularly interested in:

• product range,

• brand equity,

• financial position,

• customer loyalty,

• customer base size,

• innovation.

Mcom SM 1.2
 Resources

Resources can be categorized as tangible and intangible.

Tangible resources refer to the physical assets that an organization possesses and can be
categorized as physical resources, financial resources, and human resources. Physical
resources include such things as the current state of buildings, machinery, materials, and
productive capacity.

Intangible resources
• Comprise intellectual resources (patents, copyrights), goodwill, reputation.
• Ability to innovate and the speed with which innovation occurs. For example, an
intangible resource for Econet is its creative innovation which its competitors have
been unable to successfully imitate.

Mcom SM 1.2
 Competences

• A competence is the attributes that firms require in order to be able to compete in the
marketplace.
• It is a prerequisite for competing within an industry.
• For example, in order to be able to compete in the automobile industry organizations
must possess knowledge about design and engine and body manufacture. Without this
base knowledge, firms would simply be unable to compete effectively in that industry
irrespective of their resources.
• Similarly, the Japanese motor manufacturer Toyota has achieved a core competence in
the production of petrol-and-electric hybrid cars. Other motor manufacturers are placed
in the unenviable position of playing ‘catch-up’. (Henry, 2020)

Mcom SM 1.2
 Resource-based theory

Resource-based
theory contends that the
possession of strategic
resources provides an
organization with a
golden opportunity to
develop competitive
advantages over its rivals
Figure 1 “Resource-Based
Theory: The Basics”
(Barney, 1991). These
competitive advantages
in turn can help the
organization enjoy strong
profits, especially over
time.

Mcom SM 1.2
 Competitive analysis

A competitive analysis is a way to identify competitors, and

understand competitor's strengths and weaknesses in
relation to the company business. It helps the business to
gauge on how to curb competitors and refine its strategy.

Conducting a competitive analysis is important because

the business will build:
• An understanding of how existing and potential customers rate the
competition.
• A mechanism to develop effective competitive strategies in the target
market.
• An idea of what gives the company an advantage over its competitors.
• A good idea of customers’ needs.
• Strategies for how to expand into a new market.

Mcom SM 1.2
 Determining Competitors
 What is the range of products and services they offer? Firms
offering dissimilar or substitute products to yours are considered
indirect competitors. For example, the manufacturer of eyeglasses
who competes indirectly with contact lens manufacturers.
 Are their products or services aimed at satisfying similar target
markets? A company's target market is a good indication of their
ability to be considered your competitor or not. It's possible that
they could offer the same product or service, but target a different
market segment. In that case, they may not be a competitor.
 Do they operate in the same geographic area? Any business
marketing a product similar to, or as a substitute for, your own
product in the same geographic area is a direct competitor.

Mcom SM 1.2
 Demand Analysis
The Demand Analysis is a process whereby the management
makes decisions with respect to the production, cost allocation,
advertising, inventory holding, pricing, etc. Although, how much
a firm produces depends on its production capacity but how
much it must endeavor to produce depends on the potential
demand for its product.

Mcom SM 1.2
 Conclusion

Managers need to carryout a strategic

analysis/ Market audit as it gives them
a comprehensive, systematic, analysis
and interpretation of the business
marketing environment

Mcom SM 1.2
 Thank
You
Mcom SM 1.2