SOSTAC (1) | Marketing Model | 行銷方法 | SWOT | Michael Porter’s Five Forces Model | Environmental analysis

The following is my Marketing learning note, reference materials will be placed at the bottom.

This is my first time doing an analysis of our industry, if you have any different perspectives, please leave your comment below.

  • Situation Analysis where a business is presently (where are you now?) 現況分析
  • Objectives set the mission or goals for the business (where do you want to be?) 行銷目標
  • Strategy is an overview of how to achieve the objectives (how do you get there?) 行銷策略
  • Tactics are the details of strategy (how exactly do we get there?) 行銷戰術
  • Actions how do you ensure excellent execution of the plan. (what is our plan?) 行銷計畫
  • Control establishes how you know whether you are getting there (what do you monitor?) 行銷管理

Situation Analysis

I have to point out that SWOT analysis (強弱危機分析) when we’re talking about the situation analysis

What is SWOT?

Strengths 優勢

Weaknesses 劣勢

Opportunities 機會

Threats 威脅

SWOT, From JIBILITY

I do a SWOT analysis of the company (some kind of OEM parts company) where I work for.

  • Strengths: high product quality, quickly renew technology (sometimes we provide parts molds for another bigger factory development)
  • Weaknesses: the high cost than China, India, Turkey, etc., not well known (we started to operate our Facebook and Google Page this one year. Finally, my boss decided to redesign our official website and let me take responsibility with the media company!!! Shh, he doesn’t know the existence of my blog. Then will do SEO after, hope it works.), production volume is not enough to cope with large international companies, can’t let the customer pay after shipping, like the trader (95% of our customer have to pay before delivery.), some traders control the factories and mainly sell the products of those factories, therefore, the products they buy from us just aim to offer a wide range of products to their guests. Sometimes they offer to the guests the same price we offered or only plus 5 NT dollars, it’s possible that some company to choose the trader.
  • Opportunities: more flexible to provide our customers with more complete selections (we have a middle east guest who came last two weeks, ordered 40' General Container, but he said that not every manufacturer willing to accept his quotation because of the minimum quantity of each part.)
  • Threats: import taxes are higher for customers than in another country, customers have lots of options, raw materials waiting time

Second, let’s see Michael Porter’s Five Forces Model. (波特五力分析)

What is Michael Porter’s Five Forces Model?

The tool was created by Harvard Business School professor Michael Porter, to analyze an industry’s attractiveness and likely profitability.

Competitive Rivalry 產業競爭對手

Supplier Power 與供應商議價能力

Buyer Power 與消費者議價能力

Threat of Substitution 替代品的威脅

Threat of New Entry 新進入者的威脅

Porter’s Five Forces, From Wikipedia

I do Porter’s Five Forces analysis of the company as well.

  • Competitive Rivalry: How many rivals do we have? Hundreds. No matter in Taiwan, China, or India.
  • Supplier Power: This is determined by how easy it is for your suppliers to increase their prices. How many potential suppliers do you have? Medium, some suppliers can bargain, but some no, especially, when the materials increase, we do not have more choice.
  • Buyer Power: How easy is it for buyers to drive your prices down? Medium, we have a bottom line. (Remember that I quoted 12.5 dollars to a new customer once, but he requoted 7 dollars. Then we downed to 11.3 dollars, he doesn’t accept the price. Finally, we refused it, of course, our collaboration broke up)
  • Threat of Substitution: This refers to the likelihood of your customers finding a different way of doing what you do. Medium. I think our operating model between the big manufacturer and the trader. Most of our guests are medium-sized companies or traders.
  • Threat of New Entry: Your position can be affected by people’s ability to enter your market. Low, the market is almost saturated in Taiwan and another country.

Third, according to the threat which we referred to, we need to know Environmental analysis. (內外部環境分析)

What is Environmental analysis?

The most used detailed analysis of the environment is the PESTLE analysis. Often, managers choose to learn about political, economic, social and technological factors only.

Political factors 政治因素

Economic factors 經濟因素

Social factors 社會因素

Technological factors 技術因素

Legal factors 法律因素

Environmental factor 環境因素

PESTLE, by Ann Hill

To be continued

外向型內向人,朋友們的西文老濕,生活之餘分享行銷.商業.語文.心靈.舞蹈.國際觀點 Extroverted Introvert, EI. Sharing some management, marketing, language, spiritual growth, and global perspectives.