- Examine whether the industry in your selected geographical area is growing, maturing, or declining:
- If it is declining, identify the problems that exist and be able to change the ones you can. Show how you can adapt to changes that you cannot control.
- If your industry is maturing, show how, as a new company, you may be able to better adapt to external forces; better than the more mature competition.
- If your organization is a newly emerging and growing market (the best scenario), differentiate yourself from new competitors. Show how you expect to become a major market share holder, fusing a new approach to the marketplace and utilizing the latest technology.
- Acknowledge the problems and challenges of the marketplace you are entering. Use your analysis to construct a strategy that will put you ahead of your competition.
- Your focus should also turn to the local scene, since local markets may or may not follow the greater industry trends for various reasons. Compare the local situation to the national and provincial averages; the trends in sales, and the estimated total market that can be reached by local companies.
Conduct an Environmental Analysis on your organization.
- Investigate the world in which the organization will be operating. For example, unemployment, layoffs, recession, high interest rates, or reduced consumer activity.
- Political and Legal
- Explain any past or current political impacts on your organization.
- Identify the regulations and laws you must follow in order to operate your business.
- Explain social or cultural marketing aspects that should be supported (i.e., larger populations of Spanish-speaking residents; therefore there will be a need for Spanish advertisements).
Conduct a Consumer Analysis on your organization.
- Identify your target market and describe how your company will meet the needs of the consumer better than the competition does. Since demands may be different, services will vary between competitors.
- Identify the segment of the market (segmentation) that will benefit from your services and area of expertise as well as your approach to selling your product.