CHP 3 The Changing Market Environment

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Marketing Strategy and

Competitive Positioning

Part 2
Competitive market analysis

Chapter 3
The changing market
environment

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The Fellowship of the Ring
• “The road goes ever on and on, down from the door where it
began. Now far ahead the road has gone, and I must follow if I
can. Pursuing it with weary feet, until it joins some larger way,
Where many paths and errands meet. And whither then? I
cannot say.”

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Figure 3.1
PESTEL analysis of the macro-environment

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Figure 3.2
Global activity downturn

Source: International Monetary Fund (April 2019) Purchasing Managers Index.

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Figure 3.3
The economic and political environment

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Figure 3.4
The social and cultural environment

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Figure 3.5
Differences between generations

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Source: adapted from Barclays.
Figure 3.6
The growth of the Internet of Things

Source: NCTA (5 May 2014).

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Figure 3.7
Five forces driving competition

Source: from Competitive Strategy: Techniques for Analyzing Industries and Competitors (by Michael E. Porter, 1998) Reprinted with the permission of Free Press, a division of
Simon & Schuster, Inc., Copyright © 1980, 1998 by The Free Press. All rights reserved.

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Figure 3.8
The product life cycle

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Figure 3.9
Sales of iPods

Source: iPodlounge.com. Data are for every two months from November 2001 to May 2004. Thus 11 is November 2001,1.02 is January 2002, etc.

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Figure 3.10
US car sales

Source: J.O. Power and associates, DOE (left), Green Car Congress (right).

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Figure 3.11 Map of strategic groups in the US
automobile market

Note: * Brands now owned by large-scale American or European manufacturers.

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Figure 3.12
Industry evolution

Source: Adapted from O’Shaughnessy (1995).

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Table 3.1
Determinants of environmental turbulence

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Environmental turbulence
Figure 3.13

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Source: Based on Ansoff (1984) Figure 3.4.5, p. 222.
Figure 3.14 SPACE analysis map

Source: Based on Rowe et al. (1989) Exhibit 6.10, p. 145.

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Table 3.2 SPACE analysis – components

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Figure 3.15
The Advantage Matrix

Source: Based on unpublished material from the Boston Consulting Group.

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