Situation Analysis


Examining the industry including the industry size, location, production, sales volume, employment, and success factors based on research evidence.

Examine the relevant political forces affecting or potentially affecting the organisation. Political factors require considerations of political stability, government policy, trade agreements, and taxation arrangement. The specific political forces most relevant to your organisation will vary depending on if your business is domestic or international in nature.

Describe the macro-environmental economic forces that influence the organisation and the market. For example, you may discuss the impact of interest rates, economic growth, consumer confidence, income levels, saving levels, the availability of credit, unemployment levels and exchange rate. These are suggested considerations. You may choose factors that are relevant to your industry to discuss.

Describe the sociocultural force in the organisation’s market. Social and cultural forces that may influence the organisation include religion, subcultures, multiculturalism, beliefs, attitudes and population trends. Organisations operating internationally may face various sociocultural forces in each of their country-specific markets.

Consider how technology can be used to offer better value to customers. This should include an examination of how technology may support innovation across various aspects of the marketing mix. Technological change offers significant opportunities and threats and should be examined based on research evidence.

Identify legal and regulatory forces that govern many aspects of an organisation. Legal force include legislation in place locally such as the Trade Practices Act as well as international conventions and agreements.

Examine the micro-environmental competition factors including the type of competition (e.g. pure, monopolistic, oligopoly, monopoly, and monopsony) and competition at each level (e.g. total budget, generic, product, and brand). You need to exam the major competition in the industry in Australia wide and competition situation in ACT based on your research evidence.

1. Who are your competitors?
2. How are they different or similar to you in terms of size, location, ownership, etc?
3. What is their competitive advantages?
4. What is your competitive advantage compared to major/direct competitors? (E.g. access to finance resources, skilled employees, location, and so on.)
5. How effective is your competitive advantage? You may discuss the following aspects:
• Service quality, positioning, resources, location, and growth potential.


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