Analyzing

E Nthe
VI R ON M ENT
Ma'am Carla Kristina M. Cruz,
MBA
 R EM E MBE R
:

The marketing environment

are the elements that make
up the world around you.
 M Y O P I N I ON

You cannot just launch a

product without first knowing
anything about the world at
large.
Before we Information about competitors’
products and strategies

The market and its behaviors

S TA RT
Government regulations and
economic trends

Distributors and their behaviors

Alternative options for each

You need the following information:
 M E ET COMPONENTS
OF THE BUSINESS
M Y P E T
ENVIRONMENT
We met one rainy night
accidentally (or so he would have
me believe).
 This refers to your
business itself.

Company Cash Flow

Organizational Structure
INTERNAL
ENVIRONMENT Assets and Other Resources

Strategic Alliances

Products and Services

Strengths and Weaknesses

 Competitors
S T AR I N G
without Competing

blinking
Research says pets stare to
communicate or relay their love to us
Products and
Services

hooman butlers.
I have doubts about that, here's what
really I think about their unblinking
stares. Substitutes
COMPETITIVE ENVIRONMENT
BACK TO
OUTLINE
 R EM E MBE R
:
While competitors tend to get the
bulk of our attention, history shows
that it is often the substitutes that
end up doing the most damage.
 E X AM PL E
S

Newspaper Local Music

Demand for
publishing Publishing
Beer
business Industry
 PO R T E R
FiveForcesModel
Michael Porter’s model implies that it
is not just rivalry from competitors
that threaten a firm’s existence.
 M E ET PORTER’S FIVE
FORCES
M Y P E T
FRAMEWORK OF
We met one rainy night
accidentally (or so he would have
COMPETITIVE
me believe). FORCES
E XT E R N A L
The internal and the competitive
environments form what is often referred to
as the microenvironment of business. But
looming even larger would be the
macroenvironment, which is composed of
environmental variables that are typically
beyond the control of any organization.
P – Political
E – Economic
S – Social
T – Technological
L – Legal
E – Environmental
 In the end, environmental
scanning is all about identifying
important trends in the
environment.
TRE ND
They become the reality of the near future.
The continuing growth of
smartphone penetration
The continuing growth in credit
card users
The continuing growth of easy do
it yourself items
 M Y ACT I V I T Y

Identify the potential substitutes of

the following products or services.
 Analyzing
E Nthe
VI R ON M ENT
Ma'am Carla Kristina M. Cruz,
MBA