AMP-425 Marketing Environment 05-Mar-2012
Instructor Kimberly Ritchay
Michael J. Perillo
Grand Canyon University
March 13, 2012
The external environment faced by the firm and its business units affects the strategy of the firm, the value of the strategy, and thus the firm’s performance. Environmental analysis is considered to be an active input which helps in identifying different threats and opportunities a firm is likely to face which will help in formulating different strategies for competing in the competitive market. The factors to be considered should include: social, economic, technological, completive, and regulatory. (Page 61) Social Factors:
The customers today have become more brand conscious and they prefer branded products over any other products available in the market. Customers have changed their preferences in terms of liking. The technological advancement and increasing use of e-commerce and internet have made the consumers information oriented. Youngsters prefer gathering information about the products and brands online rather than focusing on advertisements. The changing lifestyle of the consumers is also one of the forces. Consumers today look for brand who gives them best value. Consumers today are demanding low priced products with high quality; customers today look for quality, convenience and speed by which service is provided to them. Most families pass through the progression of family life cycle which is generally start from young singles, young married, parenthood, post-parenthood, and dissolution (Schiff man et. al., 2008). Every family needs are different. McDonalds have made a strong move in offering different set of offerings so that customers can choose from the dame according to their needs. Economic Factors:
The world has recently witnessed economic downturn which has affected the levels of income and currency instability...