Marco Analysis - Sales Expert India

Advancing into a new market requires detailed understanding of how does the overall market look like? The key factors being potential demand, opportunities, risks, competitors, socio-political environment, legal apparatus, traditional & cultural preferences & so on.

We have been successful in supporting many clients on launching into new operational areas both by geography, service, or product. We review the new market to understand if an investment is interesting and in what form a organization should enter a new market.

Entering a new market requires certain framework which must be followed in order to avoid post decision regrets. To start with, a macro analysis prove a wise move to quickly feel the market and the surrounding fundamentals. It answers questions like: –

Is there any potential opportunity?
Is the business environment appropriate?
Will our investments be safe?
How does the local value system look like?
What are the legal safeguard options available?
Do we have the requisite supporting systems in place?
Is mother nature supporting?

It is wise to have a more holistic approach initially, determine trends and then setting strategies. From a strategic management’s perspective, PESTLE and SWOT are appropriate tools, that provide an outside knowledge of the market and its surrounding environment, which assist in clarifying doubts as to whether to move ahead with any in depth study or not.

PESTLE can be rightly called a thorough view on the external environment in which an organization is operating. On the contrary SWOT analysis view the internal environment of the company, based on its products etc. SWOT tends to be more product/service specific and PESTLE tends to be more region specific.

PESTLE is usually done before the SWOT analysis. It is done to analyse the various external factors that can affect an organization i.e. the environment in which an organization operates. PESTLE analysis is a detailed view of the environment a business is situated in. It can be rightly called a bird’s eye view where a company or an individual tries to ascertain specific trends of the market from a macroeconomic perspective. A must for a foreign company entering a new market.

The component of PESTLE analysis are:-

Political: It accounts for all the influences that a government may have upon the business environment, including business cycles, the economy at large and individual business industries. Tax reforms, fiscal policies and trade tariffs form part of this analysis.

Economic: This analyses the economy as a whole and its performance owing to global trends and long term effects that may be evident. Inflation rates, interest rates, economic growth, demand and supply trends are all analysed under this head.

Social: This charts the analysis of cultural trends, demographical determinants, age distribution etc.

Technological: This analyses the technological trends of the business environment. It accounts for the rate at which the innovations are occurring and how directly and indirectly they’re influencing the business you’re in.

Legal: There are many laws and policies that directly impact the way your business is run and the decisions that fuel its propulsion. These laws can be social laws, regulatory laws, certain standards that need to be met and other such laws.

Environmental: Your business has effects in the environment it operates in, therefore you need to analyse in depth what implications your business might be having on it. On the other hand, the environment also influences your business directly or indirectly especially the tourism, farming or agriculture business. Therefore these factors account for the geographical location, weather, climate etc. but are not just limited to the study of these only.

SWOT analysis is a framework used to evaluate a company’s competitive position by identifying its strengths, weaknesses, opportunities and threats i.e. how a specific company stands in relationship to market opportunities and threats, today and in the future. The components of the SWOT analysis are:

Strengths: The S in the acronym stands for Strengths. Much to do with the name, it analyses the company’s strengths in line with the product/service and counts the USP (unique selling propositions) that it has. Strengths of a company or a product make it stand out when in comparison with their competitors.

Weaknesses: The W stands for Weaknesses. It accounts for all the current weaknesses that the company may have or may be facing and how the product features them. It gives the company the view from an external standpoint where they can understand what their areas of lacking and then work upon them to remove them from their internal environment.

Opportunities: O spells out Opportunities. These opportunities are for the company to gain, master and then derive benefits from. Usually, weaknesses are reflected here with a strategy to encounter them as opportunities where the company can work upon itself or the product/service.

Threats: Threats, denoted by T take into account the threats that able and potential competitors pose for the company and its products/services. These also analyse the barriers to entry and how potential competition can be tackled effectively.

PESTLE: PESTLE is usually done before the SWOT analysis. It is done to analyse the various external factors that can affect an organization i.e. the environment in which an organization operates. PESTLE analysis is a detailed view of the environment a business is situated in. It can be rightly called a bird’s eye view where a company or an individual tries to ascertain specific trends of the market from a macroeconomic perspective. A must for a foreign company entering a new market.

The component of PESTLE analysis are:-

Political:   It accounts for all the influences that a government may have upon the business environment, including business cycles, the economy at large and individual business industries. Tax reforms, fiscal policies and trade tariffs form part of this analysis.

Economic:   This analyses the economy as a whole and its performance owing to global trends and long term effects that may be evident. Inflation rates, interest rates, economic growth, demand and supply trends are all analysed under this head.

Social:   This charts the analysis of cultural trends, demographical determinants, age distribution etc.

Technological:   This analyses the technological trends of the business environment. It accounts for the rate at which the innovations are occurring and how directly and indirectly they’re influencing the business you’re in.

Legal:   There are many laws and policies that directly impact the way your business is run and the decisions that fuel its propulsion. These laws can be social laws, regulatory laws, certain standards that need to be met and other such laws.

Environmental:   Your business has effects in the environment it operates in, therefore you need to analyse in depth what implications your business might be having on it. On the other hand, the environment also influences your business directly or indirectly especially the tourism, farming or agriculture business. Therefore these factors account for the geographical location, weather, climate etc. but are not just limited to the study of these only.
SWOT: SWOT analysis is a framework used to evaluate a company’s competitive position by identifying its strengths, weaknesses, opportunities and threats i.e. how a specific company stands in relationship to market opportunities and threats, today and in the future. The components of the SWOT analysis are:

Strengths: The S in the acronym stands for Strengths. Much to do with the name, it analyses the company’s strengths in line with the product/service and counts the USP (unique selling propositions) that it has. Strengths of a company or a product make it stand out when in comparison with their competitors.

Weaknesses: The W stands for Weaknesses. It accounts for all the current weaknesses that the company may have or may be facing and how the product features them. It gives the company the view from an external standpoint where they can understand what their areas of lacking and then work upon them to remove them from their internal environment.

Opportunities: O spells out Opportunities. These opportunities are for the company to gain, master and then derive benefits from. Usually, weaknesses are reflected here with a strategy to encounter them as opportunities where the company can work upon itself or the product/service.

Threats: Threats, denoted by T take into account the threats that able and potential competitors pose for the company and its products/services. These also analyse the barriers to entry and how potential competition can be tackled effectively.

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