Macro Environment Analyses
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Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7e Social Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
2-7e Social Forces
Social forces refer to the way in which changing social mores and values affect an industry. Like other macroenvironmental forces, social change creates opportunities and threats. One major social movement of recent decades has been the trend toward greater health consciousness. Its impact has been immense, and many companies that recognized the opportunities early on have reaped significant gains. Philip Morris, for example, capitalized on the growing health consciousness trend when it acquired Miller Brewing Company, and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite). Similarly, PepsiCo was able to gain market share from its rival, Coca-Cola, by being the first to introduce diet colas and fruit-based soft drinks. At the same time, the health trend has created a threat for many industries. The tobacco industry, for example, is in decline as a direct result of greater customer awareness of the health implications of smoking.
Chapter 2: External Analysis: The Identification of Opportunities and Threats: 2-7e Social Forces Book Title: Strategic Management: An Integrated Approach: Theory and Cases Printed By: Pearl Chen ([email protected]) © 2020 Cengage Learning, Inc.
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