DIGITAL MARKETING Digital Marketing Name of the Student Name of

Running head: DIGITAL MARKETING
Digital Marketing
Name of the Student
Name of the University
Author note

1
DIGITAL MARKETING
Introduction
The report throws light on the overall analysis of Cape Town which is situated at
South Africa. Proper external analysis is required to be conducted which will be providing a
brief overview on the environment of Cape Town for promoting it and creating a huge impact
on the travelers. On the other hand, the micro-environment analysis is required to be
conducted in which the market analysis, company analysis along with competitor analysis
and analysis of the city are required to be identified which will be helpful in analyzing the
competitive advantage. Lastly, the target customers are required to be identified which will
be beneficial in analyzing the digital marketing aspects which will be beneficial for the
success of the firm.
External Environment Analysis
Political Factors-The political aspects of Cape Town in South Africaare not stable
and due to the instability of the entire economy; therefore, the respective problems often slow
down the economic development along with progress. However, there is corruption in the
business scenario and it affects the overall growth of the economy in a negative manner
(Sajid, 2016). However, the winning the support along with confidence of general public
along with investors in light of the different political challenges becomes one of the most
aspects which will improve the political instability to a great extent. However, in Australia
the political environment is stable and the efficient and transparent legal framework will be
beneficial for growth of the country (Ryan, 2016).
Economic Factors- The economic aspects of South Africaare stable as SA is 34th
largest economy in the entire world in terms of nominal GDP. Moreover, the economy is
weak and slow, however as of June 2018, the GDP of the country stands out at 371 billion-

2
DIGITAL MARKETING
dollar USD (McDonald & Wilson, 2016). The travel and tourism industry of South Africa
directly contributed towards ZAR 102 billion to South African GDP in 2012 and it helps in
supporting 10.3% of the jobs in the entire country. It is similar in case of Australia wherein
the economy is strong and diverse natural resources attract high level of foreign investment
which will be the other positive aspect of the country (Lovelock & Patterson, 2015).
Social Factors-The economic inequality is one of the major social issues which affect
the overall growth of South Africa in numerous manners. Moreover, the digital trends in
Cape Town has been strong as more than 99% of the individuals uses the smart phones and
tablets and they are technologically advanced (Kotler et al., 2015). In Australia, it is similar
as most of the individuals are educated and there is utilization of the smartphones and tablets
which has increased the internet subscribers in the market.
Technological Factors-In the past two decades, there has been rapid adoption of the
game changer technology wherein the digitization of the different products and services in
SA is disrupting the travel and tourism sector, banking along with retail aspects along with
the other industries as well. There has been huge expenditure on the research and
development activities in the different sectors (Kotler & Armstrong, 2015). In Australia, it is
the similar situation wherein there is advancement in marketing technology in tourism sector
which helps them in becoming more advanced in their operations.
Environmental Factors-In South Africa, the environmental condition is stable and it
is one of the diverse countries in the entire world. There are various places such as mountains
and beaches which attracts the tourists in the market (Kauškale & Geipele, 2017). In
Australia, about 5% of Australia is national parks which provides excellent places which
inhabit them and it will be beneficial for the overall success of the country.

3
DIGITAL MARKETING
Legal Factors- In South Africa, there is a mixture of mixed and hybrid legal system
and the main concerns include the non-tariff barriers along with there are different export and
import restrictions which can affect the overall growth of the country. On the other hand, in
Australia, there is inclusion of Australian consumer law which will be beneficial for the
success of the company (Kauškale & Geipele, 2017). Moreover, there is inclusion of data
protection and privacy related laws which affects the overall growth of the tourism in
Australian economy.
Micro Environmental Analysis
Market Analysis
As per the market analysis, the major competitor of Cape Town city is Johannesburg
as the population is less and the scenic beauty is appreciable in comparison to Cape town.
The parks and gardens in Johannesburg are maintained by Johannesburg city parks and zoo
(Johansson, 2017). Moreover, Johannesburg is one of the green cities and it is one of the
young and sprawling cities and the availability of the public transportation is effective.
Competitor Analysis
The three major competitors of Cape Town along with the background of the countries are
stated as follows:
Particulars Cape Town Johannesburg Durban Pretoria
Cost of
Living
The cost of
living in Cape
Town is way
too expensive
The cost of living
is expensive;
however, it is less
than Cape Town
In Durban, the
cost of living is
low and it will
be beneficial for
In Pretoria, the
cost of living is
high and it costs
$7.88