Industry Consulting Project Assignment 2022

BUS30009: Industry Consulting Project
Assignment 2: External environment report
Due Date: Monday 12th August, 2019
Katherine Boorer - 101654301
Kim Muxworthy - 101201927
Sara Jada - 101333480
Sarah Wilkinson - 100814722
Shelley-Anne Mclennan - 100829878
Thespina Misomikes - 101779589
Executive Summary - Kat

Easy Eddy is a three-piece modular paddle board that is designed by Artech
Modular Paddle Sports (MPS) to meet the needs of performance,
convenience, and sustainability. A stand up paddle board (SUP) is designed
for the consumer to stand up or kneel on whilst propelling themselves across
a body of water. The Easy Eddy board connects into one piece to convert into
a durable paddle board which is differentiated from competitors. This report
will analyse the competitive external environment surrounding the SUP
industry and other closely related water sports to understand the advantages
and risks involved in distributing the Easy Eddy in the Australian Market. The
report will further highlight the competitive advantages that the board will
offer as opposed to its competitors.
In order to analyse the external environment of the product, we will use
multiple analysis tools that will help measure the viability of Easy Eddy with
Australian consumers. The tools used in this report are a PESTEL Analysis,
Porter’s 5 Forces model, and a 3Is competitor radar analysis to better
understand the Australian market and where the Easy Eddy product fits into
this market.
Findings from the PESTEL analysis were that Australia has good conditions to
introduce Easy Eddy. This can be attributed to Australia’s stable political and
economic environments, with low unemployment, and reasonable net
adjusted disposable income of on average $48,632 AUD per year. It was also
found that Australia’s love for posting on social media and advocating health
trends suggests that this would assist marketing of Easy Eddy boards. One of
the negative effects found in the analysis was that Australian’s feel that they
have less work-life balance, however there is demand for more flexible
working arrangements that may mitigate this. Another positive connection
that can be made from this finding is that Australian’s tend to make the most
of their little leisure time, enjoying ‘the great outdoors’, which aligns with the
current target market of the Easy Eddy in USA being people that enjoy
outdoor water activities. The final positive finding from this analysis was that
Australian’s have made a move towards more sustainable products, with the
Health and Sustainability market growing more than 150% in the last
decade. According to Sustainability Matters (2018) over 90% of Australian
consumers are concerned about environmental sustainability, which aligns
with the sustainable nature of Easy Easy being produced from recycled High
Density Polyethylene (HDPE), and being 100% recyclable.
Porter’s 5 Forces:

Threat of new entrants - low
Low customer loyalty
Larger buying power for suppliers
Competitor rivalry - moderate
Most competitors are already in large sporting retailers
The global Stand Up Paddle Board market is valued at million US$
Other players in the market may have financial backing to support economies of
scale, and therefore sell at a cheaper price
Bargaining power of suppliers is high
Bargaining power of buyers is moderate
Buyers sensitive to price change
**Am writing this out to make sure I haven’t missed any points for the exec
summary, will work on more tonight (Kat)
Contents
1 Introduction
2 Discussion
2.1 PESTEL Analysis
2.1.1 Key Trends
2.2 Porter’s 5 Forces Analysis
2.2.1 Key Forces
2.3 Competitor Analysis
2.3.1 Key Advantages
3 Overall Impacts
4 Conclusion

5 References
6 Appendix
1 Introduction - Kim (200-300 words)
2 Discussion