4. SWOT Analysis
A SWOT analysis provides us with an effective way of analysing the relationship between our product and it marketing environment. A SWOT analysis allowed me to examine the Strengths, Weaknesses, Opportunities and Threats facing my product. It takes into account both internal and external factors. The internal factors are the Strengths and Weaknesses facing my product. The external factors take into account the Opportunities and Threats present in the environment in which the product is operating.
For ease of presentation, the SWOT analysis of my product has been continued on the following pages.
A2, The reliability of the models used
1. Boston Matrix
The Boston Matrix provides me with an effective way of analysing my products position, with regard to market share and overall market growth. However, there are flaws that affect the reliability of the Boston Matrix. A good example of this is that different marketers may have different views on where a product fits in the matrix, resulting in a possibly detrimental effect on developing specific aspects of an effective marketing mix. It is vital that I have a good understanding of my products position with regard to the Boston Matrix.
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A2, The reliability of the models used
1. Boston Matrix
The Boston Matrix provides me with an effective way of analysing my products position, with regard to market share and overall market growth. However, there are flaws that affect the reliability of the Boston Matrix. A good example of this is that different marketers may have different views on where a product fits in the matrix, resulting in a possibly detrimental effect on developing specific aspects of an effective marketing mix. It is vital that I have a good understanding of my products position with regard to the Boston Matrix.
In addition, when using the Boston Matrix to analyse the possible success of a new, unique product such as mine, it is important to recognise that it would operate in a market of its own, and therefore it is important not to rely on the results to the extent that they are the only basis for evaluating a possibly coherent marketing strategy. For the purpose of using the Boston Matrix to evaluate the possible success of my marketing strategy, I analysed my product in relation to other products in the functional energy drinks sector, although I recognize that as my product is relatively unique, and will operate in a market of its own, that of health-orientated functional energy drinks.
It may also be said that the Boston Matrix can over simplify a products position in the marketplace, in relation to its competition. It may also be misinterpreted, which could also lead to a negative affect on the development of a marketing strategy.
2. Ansoff's Growth Matrix
The Ansoff's Growth Matrix allowed me to analyse my product policies, in relation to the market in which I will operate. However again, as my product is unique, it would be true to say that it will operate in a market of its own, but for the purpose of using the Ansoff Growth Matrix to analyse my product policies, it was completed with regard to the functional energy drinks sector. As with the Boston Matrix, it may be true to say that some may disagree on where a product fits into the matrix, - any misunderstanding could have a negative affect on the development of a marketing strategy.
The Ansoff Growth Matrix allowed me to decide on certain marketing policies, for example, it was clear from our analysis that we should aim to diversify from other products in the marketplace as much as possible. However, this is only a general indication and does not give any guarantee of success.
The Ansoff Matrix did not take into account the possible competition facing my product, which would be a defining factor in the success of my product launch. This has a further affect on the reliability of the Ansoff Growth Matrix.
3. PEST analysis
The PEST analysis provided me with an effective way of analysing certain factors, which could create fundamental changes in the external environment in which my product will operate. Marketing may be described as the management of change.
I believe it was carried out in an adequate manor, and therefore the PEST analysis provided me with a reliable method of analysing and managing possible changes in the external environment. The PEST analysis can only be effective if it is taken seriously by an organisation, which must research the four defining external factors in great detail.
4. SWOT analysis
The SWOT analysis allowed me to analyse the strengths, weaknesses, opportunities and threats that face my product. However, it could be argued that this method is too simple and is therefore not a reliable way of analysing the marketplace in which my product will operate.
A3, Possible changes to the external environment
1. Changes in the political environment.
Political stability
If Britain continues to be a target for large terrorist organisations across the world, the political system on which its business climate is determined could be put under enormous pressure.
It would not be naive to suggest that Britain's political regime could become increasingly unstable if terrorist activity continues on such a large scale, as it has done in recent years. As suggested as part of my political analysis, if political instability could not be relied upon, it would be prudent to discontinue my project.
Changes in regime
If Britain were subject to a sudden change of regime; it would have an enormous affect on business activity.
If it were the victims of an invasion by let's say, a communist country, then attitude towards business activity would be somewhat different. It is likely that the new communist government would be much less sympathetic towards western profit motives and would reshape business motives that exist within Britain. This would be unfavourable for products such as mine that will rely heavily on successful marketing and economic freedom in order to increase both sales and market share, within a relatively competitive market.
