Pest Analysis - the Sociocultural Environment

The sociocultural environment encapsulates demand and tastes, which vary with fashion, disposable income, and general changes, can again provide both opportunities and threats for particular companies (Thompson, 2002; Pearce and Robinson, 2005). Over-time most products change from being a novelty to a situation of market saturation, and as this happens pricing and promotion strategies have to change. Similarly, some products and services will sell around the world with little variation, but these are relatively unusual. Organizations should be aware of demographics changes as the structure of the population by ages, affluence, regions, numbers working and so on can have an important bearing on demand as a whole and on demand for particular products and services. Threats to existing products might be increasing: opportunities for differentiation and market segmentation might be emerging.

Social: demographics (age, gender, race, family size, etc.), lifestyle changes, population shifts, education, trends, fads, diversity, immigration/emigration, health, living standards, housing trends, fashion, attitudes to work, leisure activities, occupations, and earning capacity.

Thompson, J. (2002) Strategic Management, 4th Edition, London: Thomson.
Pearce, J. and Robinson, R (2005) Strategic Management, 9th Edition, New York: McGraw-Hill.

Social – SWOT

* Consumer attitudes and opinions * Media views * Law changes affecting social factors * Brand, company, technology image * Consumer buying patterns * Major events and influences * Buying access and trends * Ethnic/religious factors * Advertising and publicity * Ethical issues * Demographics (age, gender, race, family size,) * Lifestyle changes * Population shifts * Education * Trends * Fads * Diversity * Immigration/emigration * Health * Living standards * Housing trends * Fashion &