Comprehensive Strategy Assessment
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unit_4.docx
Industry conditions:
In any business all internal conditions depend on the internal business handling techniques of the P&G. But that does not mean that external affairs have no effect over the business growth and business environment of the P&G. Now going towards the external effects before going in to any other detail, lets’ explain the external effects which control the overall growth of the industry.
Political Analysis
In the areas with stable political conditions like UK, business is easy to run because of the guaranteed security of business environment provided by the government. Apart from political restrictions there are other many reasons which help in doing business in stable conditions like new tax conditions. This is a big issue in the countries where the conditions are not stable politically, rapidly changing governments usually make it difficult for the brands (foreign brands especially) to perform business which stable rules. Currently P&G is working over countries with strong political conditions.
Economic
Economic conditions are one of the extremely major factor in the business affair. Stable economy gives reasons to invest in a specific region where human labor might be a bit expensive but overall outcome in terms of profits is acceptable. In case of unstable economies all invest can go in vain at any given point with no guarantee at all. P&G is focusing over the strong economies.
Sociological Analysis
This is about the public demand of brand, in the given case the public demand of given brand is high which makes it favorable for the brand to perform business as it already has its own business value among the customers. Sociological demand is all about the customer’s retention and for a new bee it is important to achieve that kind of retention that it might lead towards strong business foundation. P&G is a strong brand name with quite remarkable sociological demand among customers.
Technological Analysis
This demands constant innovation along with the changing demands of customers. Though all the brands do not belong to the technological industry but their production methods and deliverable product qualities all belong to the technological field directly or indirectly. So in order to stay relevant among the customers P&G has to focus over the constant innovation in products or production line through the technological growth on regular basis. P&G is bit back in its technological needs and requirements this needs to be updated.
Legal Analysis
This aspect is also very important as in many countries it is really strict to follow legal matters but in other countries like middle east countries legal matter can be solved with a bit of negotiations and business in such environments is not much of an issue but in other countries like European countries it is extremely difficult to perform business which taking the strict notice of legal analysis so it can be counted as a strong external factor.
Environmental Analysis
This is quite an issue for the industries which are responsible for the wasteful emission out their productions as by products. Environmental problems can cost a lot as it compels industries to be in the remote area where usually common facilities are not available and industries have to develop that areas according to their needs. Such kind of issues belong to the existence of the industry. And quite sensitive in case of allowance of license for the functioning of industries.
Strategy before tactics:
This belongs to generating the market vibe that can help in attracting the targeting customers, this can help in developing such environment which can help in taking competitive edge over the competitors. This can be categorized as the pre-tactical situation related to the sociological demands where people can be manipulated according to their thoughts and demands by providing them the exact products that they are looking for.
Narrow Market Focus:
Target market is also a big issue which decides the overall business success of the organization. Wider the targeted market wider will be the chances to have a hold over business growth.
References:
Bao, D-N & Gao, Z-Q 2011, ‘Implementation Path of Enterprise Brand Strategy from the Perspective of Value Chain’ Packaging Engineering,Vol. 6, pp. 030.
Batra, R, Ramaswamy, V, Alden, D L, Steenkamp, J-B E & Ramachander, S 2014, ‘Effects of brand local and non-local origin on consumer attitudes in developing countries’ Journal of Consumer Psychology, Vol. 9, pp. 83-95.
Gawer, A, Cusumano, M A & Strategy, D S 2012, ‘How companies become platform leaders’ MIT/Sloan Management Review, Vol. 49, pp. 32-39.
Godart, F & Zhao, Y 2014, ‘Drivers of China’s Desire for Luxury and Consequences for Luxury Brands’ Luxury Brands in Emerging Markets, Vol. 119, pp. 325-329.
