Environmental Analysis in Strategic Marketing

This document provides an in-depth understanding of environmental analysis in strategic marketing. It explains the significance of analyzing internal and external factors and how it helps in forecasting trends and setting organizational goals. The document also explores the concepts of PESTEL analysis and SWOT analysis.

Strategic Marketing

Contents
Environmental analysis................................................................................................................1
REFERENCES................................................................................................................................3

Environmental analysis
Environmental Analysis is described as the method which examines all of the components,
inner or outside, that has a power at the overall performance of the company. The internal
components indicate the strengths and weak point of the enterprise entity whereas the external
additives constitute the opportunities and threats outdoor the company. To perform
environmental analysis, a consistent move of applicable data is needed to find out the excellent
path of movement. Strategic Planners use the records gathered from the environmental analysis
for forecasting tendencies for destiny in advance (Hussain, C.M. and Kecili, R., 2019). The facts
can also be used to assess running environment and installation organizational dreams. In order
to perform environmental analysis, PESTEL analysis and SWOT analysis can be considered and
the description of them as under:
PESTEL analysis
PESTEL Analysis is a strategic framework used to evaluate the outside surroundings of a
enterprise by using breaking down the possibilities and risks into Political, Economic, Social,
Technological, Environmental, and Legal factors. PESTEL Analysis can be a powerful
framework to apply in Corporate Strategy Planning and for figuring out the pros and cons of a
Business Strategy.
Political- This can consist of – authorities policy, political stability or instability in
distant places markets, overseas trade policy, tax coverage, labour law, environmental regulation,
change restrictions and so on. Changing political atmosphere create a good landscape for
advertising. Now day’s political parties are centring more on the quality of advertisement and
their reach.
Economical- Factors encompass – monetary growth, interest quotes, change quotes,
inflation, disposable profits of clients and agencies and so on. The business of Humble Links can
be influenced by fiscal recession. During recession, advertising was the first thing that
experiences a cut down (Adefarati, T. and Bansal, R.C., 2019). Advertising is included as extra
expense which can be loaded off, although, this can be the perfect tool to connect the good with
the customer easily. It has been analysed, that during recession, the venture that have invested in
advertising more got a better ROI.
Social- These elements include – population growth, age distribution, fitness attention,
profession attitudes and so on. These elements are of specific interest as they've a right away
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effect on how marketers apprehend customers and what drives them. With maximising
awareness of internet and its usage on multiple devices, advertising sector has to change the way
and ad reaches to its targeted audiences. With change in social values and ethics, it is the
advertisers that have to change their way so as to connect with the society.
Technological- With developing internet reach and other technological advancements,
advertisers target viewers in each medium like phone, tablet and digital billboards etc. With big
data analytics, every user’s interest can be captured and can be used to display ads that prompts
user to click and buy (World Bank, 2019). Marketing and advertising sector earlier paid for
opportunity to see and hear but now they are now paying for engagement.
Environmental- With more environment concerns, advertisers have to come up with
other innovative solutions that will decrease the energy consumption and decrease the cost to
atmosphere. Individual are more disposed regarding natural organic goods and appreciate
products that are environment friendly.
Legal- Legal factors consider health and safety, equal opportunities, advertising
standards, consumer rights and laws etc. There is different kind of laws and legislations which
are important to follow for Humble Link in order to operate its business Australia. The
government of Australia incorporate several laws which assist a company to operate its business
in new geographical area.
SWOT analysis
SWOT analysis permits corporations to discover factors which want to be taken under
consideration when developing advertising and company approach. SWOT is an acronym which
stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are
internal elements which are controllable by way of the enterprise (Büyüktiryaki, S. and et. al.,
2019). Opportunities & threats are external factors which are uncontrollable with the aid of the
corporation.
Strengths Weaknesses
 High barriers to entry.
 Highly experienced owner operator
 Limited competition in Australia Area
 Very high gross margins
 Highly visible website
 The main weakness of Humble links is
that its competitors can offer similar
kind of services and product quickly.
 Limited start up costs
 Limited flexibility in pricing
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 Limited start up risk
Opportunities Threats
 Constant expansion for online sales
 Affiliate relationship with related
vendors
 Ability to develop additional stores
 Development of proprietary goods and
services
 Modifications in regulations and laws
can impact the business
 Services and products are already sold
by major rivals
 Maximisation in price inputs can cause
upward pricing (Wang, Y. and et. al.,
2018).
REFERENCES
Books & Journals
Hussain, C.M. and Kecili, R., 2019. Modern Environmental Analysis Techniques for Pollutants.
Elsevier.
Adefarati, T. and Bansal, R.C., 2019. Reliability, economic and environmental analysis of a
microgrid system in the presence of renewable energy resources. Applied energy, 236, pp.1089-
1114.
World Bank, 2019. Myanmar Country Environmental Analysis: A Road towards Sustainability,
Peace, and Prosperity--Synthesis Report. World Bank.
Büyüktiryaki, S. and et. al., 2019. Lab-on-chip platforms for environmental
analysis. Encyclopedia of Analytical Science, pp.267-273.
Wang, Y. and et. al., 2018. How to construct DNA hydrogels for environmental applications:
advanced water treatment and environmental analysis. Small, 14(17), p.1703305.
Faraji, M., Yamini, Y. and Gholami, M., 2019. Recent advances and trends in applications of
solid-phase extraction techniques in food and environmental analysis. Chromatographia, pp.1-
43.
Online
Swot Analysis. 2021. [Online]. Available Through: <https://marketingagencypune.co.in/swot-
analysis-2/#:~:text=SWOT%20analysis%20enables%20firms%20to,are%20controllable%20by
%20the%20organisation.>.
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