The Role of Situation Analysis for a Marketing Plan

1485 Words Apr 19th, 2008 6 Pages
Situation analysis becomes increasing important for a marketing plan development. This essay aims to explain why it is so important and what factors it focus on and finally, a guild list is present and justify for the construction of an effective situation analysis for a Marketing Plan of J Boag & Son Brewery.
Analyzing situation prior a strategic decision is critical for generating or sustaining competitive advantages, especially when facing the dynamic environmental trend which can affect corporations’ performance positively or negatively. The main task for a situation analysis is to explore the external factors (that can imply what opportunities a firm should seize and what threats it has to pay caution to) and internal factors (that
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The 35mm camera market was dominated by Japanese manufacturers.
Market Nature:
Large, complex, fast-developing market for 35mm-camera manufacture
During the 1960s and 1970s, the 35mm single lens reflex became increasingly popular. By 1980s, the trend turned to automatic rangefinder type that called ‘point and shoot’ and the disposable plastic was welcome to be used in cameras.
Situation Analysis – External Factors
 Legislation dimension: international tariffs are removed by GATT agreement
 Social dimension: people in Europe have income and leisure time increased as well as the environmental concerns arisen in terms of chemical waste and disposal
 Economic dimension: currency fluctuations of Yen would impact the price of Japanese products including camera, while manufacturing costs in German factory 15% higher than in UK
 Technological dimension: automatic ‘point and shoot’ technology and cheap plastic disposable models were still popular in 1980s
 New entrants: Chinese and Korean manufactures that can provide low price
 Supplier power: Lens manufacturers tend to forward integrate into cameras and films making
 Threat of substitutes: Digital camera is replacing traditional camera
 Buyer power: not dominated by certain distributors
Situation Analysis – Direct Competitor
Japanese manufacturers such as Nikon and Canon which have good