MKG701 Trimester 3 2016: Nura External Marketing Environment Analysis

This report provides an external analysis of Nura, an Australian electronics company specializing in personalized sound technology headphones. The analysis examines the company's business, target product (Nuraphone), and target market, primarily young adults in Australia and internationally. It delves into the external marketing environment using a PESTLE framework (Political, Economic, Social, Technological, Legal, and Competitive factors) to identify key trends, opportunities, and threats. The report highlights the relatively underdeveloped audio-visual electronic equipment manufacturing industry in Australia as an opportunity, alongside government support and skilled labor. Threats include increasing competition, a potentially limited market share, and a higher price point. The conclusion emphasizes the potential for Nura's growth through capitalizing on opportunities and expanding its market presence.

Running head: NURA EXTERNAL ANALYSIS
NURA EXTERNAL ANALYSIS
Name of the Student:
Name of the University:
Author Note:

1NURA EXTERNAL ANALYSIS
Executive summary
The report has discussed the external situation of Australian market that has direct connection
with the small Australian company named Nura. This paper has discussed about the
expansion and capabilities of this company, its Target Product and Target Market. This report
has also analyzed the external Marketing Environment so that the Opportunities and Threats
of Nura can be understood.

2NURA EXTERNAL ANALYSIS
Table of Contents
1.0 Introduction.....................................................................................................................3
1.1 Purpose & Scope.............................................................................................................3
1.2 Authorization...................................................................................................................3
1.3 Limitations:.....................................................................................................................3
2.0 Overview.........................................................................................................................3
2.1 Case Background............................................................................................................3
2.1.1 The Business................................................................................................................3
2.1.2 Specific Industry..........................................................................................................3
2.1.3 Target Product:............................................................................................................4
2.1.4 Target Market..............................................................................................................4
2.2 Theoretical Framework...................................................................................................5
2.2.1 External Marketing Environment................................................................................5
3.0 Environmental Analysis..................................................................................................5
3.1 Opportunities and Threats...............................................................................................8
3.1.1 Opportunities...............................................................................................................9
3.1.2 Threats.........................................................................................................................9
4.0 Conclusion.......................................................................................................................9
5.0 List of References..............................................................................................................10

3NURA EXTERNAL ANALYSIS
1.0 Introduction
1.1 Purpose & Scope
The aim of this particular report is to discuss the external environment on a small
Australian company named Nura which will fulfil the requirement of the task 1 of this course.
1.2 Authorization
1.3 Limitations:
The main limitation of this assignment is that the student is not an authorized
stakeholder of the company Nura, therefore has restricted access to company information.
2.0 Overview
2.1 Case Background
2.1.1 The Business
Nura is an electronics company based in Australia which designs as well as
manufactures headphones with the personalized sound technology. The proprietary
technology measures the hearing sensitivities of the users for differentiating frequencies
through monitoring the otoacoustic emissions (Nuraphone.com 2019).
2.1.2 Specific Industry
This particular company broadly operates in the electronics industry of the country
but specifies in the audio visual electronic equipment manufacturing industry. There is no
dominant company in this industry of Australia but the industry expects to increase at 8.0%
annualized in next five years to 2.4 billion USD (Ibisworld.com.au 2019).

4NURA EXTERNAL ANALYSIS
Figure 1. Industry statistics and market share
(Source: Ibisworld.com.au 2019)
2.1.3 Target Product:
Nura offers personalized sound technology and Nuraphone is one of its products. This target
product personalized sound by measuring how the ear responds to the various sound
frequencies. This product is patent protected because it is the only consumer electronics
headphone that monitors the otoacoustic emissions.
2.1.4 Target Market
Nura as mentioned before has been offering personalized heads phones to the customers in
the county market as well as reach the other countries through online business. The
international customers can order the products through the company’s website and get
shipped with proper shipping charges. The primary target group is therefore, the B2C in
which a large portion consists of the young adult’s ages between 15 and 35.

5NURA EXTERNAL ANALYSIS
2.2 Theoretical Framework
2.2.1 External Marketing Environment
The external marketing environment framework provides method of identifying
macro environment that consists of six major factors like political, economic, social,
technological, legal and competitive (Ardjouman and Mingaine 2017).
External Environmental Marketing Framework
(Source: created by author)
3.0 Environmental Analysis
Based on the above framework, the key findings about the business of Nura in the
market of Australia are as follows:
 The audio visual electronic equipment manufacturing industry in Australia is not
much developed yet therefore, does not have tough competition to survive.
Nura
Political
Economic
Technological
Legal
Competition
Social

6NURA EXTERNAL ANALYSIS
 The government being stable and properly structured, the operation of this type of
companies becomes easier.
 The abundance of skilled labor has helped the company flourish
 The huge demand of customized headphones is one of the factors that helped the
company to create a loyal customer base
Table 1: External Marketing Environmental Analysis
External
Environment
Relation to
business
Trend Analysis
Competition Companies meet
the needs of the
customers can
only sustain the
competition
(Zinovieva et al.
2016).
The Australian market
consists of the
competitors of Nura
which also offer
customized
headphones. These
companies are
Audeara, Nuheara
JayBird, BlueAnt and
BioConnected,
The competition level of
the customize headphone is
not yet developed in the
market. The demand of the
customers are higher than
the supply. Hence this
factor is supportive of Nura
to capture the entire
Australian market
gradually.
Political Governmental
support plays
important role in
the growth of
business
Australian
government supports
the small business that
are mainly local or
regional in nature
through funds and
grants
The company can get full
support by the political
stability and power system
of the country. Moreover, it
can get support from the
government to develop new
skills for the business.

7NURA EXTERNAL ANALYSIS
(Business.gov.au
2019).
Economic Economy of the
country regulates
the buying
capacity hence
business growth
(Castaño, Méndez
and Galindo
2015).
Australian economic
climate has become an
easy choice for the
investors as it has 13th
largest economy in the
world. Australia
remains a low cost
location for audio
visual electronic
equipment
manufacturing
industry.
The economic growth of
the company is effecting
the household income,
inflation and business
investments and taking
those higher than year by
year. Many of the Asian
companies mainly operates
in their headquarters in
Australia. The currency
exchange at favors the
company like Nura which
takes the opportunity of the
buying capacity of the
customers.
Social Sociocultural
factors help the
companies to set
target market and
work accordingly
(Khuong and An
2016).
In Australia, the high
standard of life and
multicultural society
has supported the
audio visual electronic
equipment
manufacturing
industry to grow at a
Socio cultural factors
relating to the class division
of the society has helped
Nura to diversify its target
market that offers to the
higher class young
Australians. Moreover, the
company gets huge support

8NURA EXTERNAL ANALYSIS
high pace. from the educated and
skilled labor force present
in the market.
Technological Technological
innovation is a
part of growth of
business now a
days (Castaño,
Méndez and
Galindo 2015).
Most of the companies
operating in the
Australian region are
taking full opportunity
of the government
investment in the IT
sector.
Automation is being
supported by technological
growth of Australia. This is
easing the R&D and
manufacturing of the
headphones more
efficiently.
Legal Country’s legal
structure helps the
business to
develop policies
(Khuong and An
2016).
Australian legal
system has helped the
audio visual
equipment industry to
understand the
consumer and
employee rights.
Based on the federal
system. the company has
developed its strategies to
work within the country’s
market and the international
one.
3.1 Opportunities and Threats
Table 2: Summary of Opportunities & Threats
Opportunities Threats
 Increased demand  Increasing competition
 New branches in other region  limited market share
 Scope of R&D  High price

9NURA EXTERNAL ANALYSIS
3.1.1 Opportunities
 Nura has a huge demand for its customized headphones that attract the young adults
There is a scope for opening new branches in the same market
 Government supports the R&D
3.1.2 Threats
 The threat of new entrants have incased competition
 The company does not have high market share
 The price structure is higher that only attracts upper class customers.
4.0 Conclusion
Therefore it can be concluded that the competition level of the customize headphone is not
yet developed in the market of Australia which can help the company to grow gradually and
expand itself in the entire country by grabbing all the opportunities available.

10NURA EXTERNAL ANALYSIS
5.0 List of References
Ardjouman, D. and Mingaine, L., 2017, July. An Investigation into External Environment
Factors Affecting Performance of Small and Medium Enterprises in Cote d'Ivoire.
In Proceedings of the International Conference on Business and Information
Management (pp. 138-143). ACM.
Business.gov.au (2019). Grants and assistance. [online] Business.gov.au. Available at:
https://www.business.gov.au/assistance/search [Accessed 16 Apr. 2019].
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and
economic factors on entrepreneurship. Journal of Business Research, 68(7), pp.1496-1500.
Ibisworld.com.au (2019). Audio Visual Electronic Equipment Manufacturing – Australia
Industry Report. [online] Ibisworld.com.au. Available at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/
machinery-equipment/audio-visual-electronic-equipment-manufacturing.html [Accessed 16
Apr. 2019].
Khuong, M.N. and An, N.H., 2016. The factors affecting entrepreneurial intention of the
students of Vietnam national university—a mediation analysis of perception toward
entrepreneurship. Journal of Economics, Business and Management, 4(2), pp.104-111.
Nuraphone.com (2019). nuraphone - Music in full colour™ | Personalized sound. [online]
Nuraphone.com. Available at: https://www.nuraphone.com/ [Accessed 16 Apr. 2019].
Zinovieva, C.G., Kuznetsova, M.V., Dorfman, T.V., Limarev, P.V. and Limareva, J.A., 2016.
Study of external and internal factors affecting enterprise’s stability. Advances in Systems
Science and Applications, 16(1), pp.62-71.