Lecture notes
Ansoff Matrix, PESTLE and SWOT
- Institution
- CCEA
A look at PESTLE, Ansoff and SWOT analysis, along with diagrams and advantages and disavantages.
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Ansoff Matrix:Advantages Disadvantages
When the business decides what strategy they will follow Only provides a strategy, does not provide a guidance
it should help the business plan the efficient use of their about the strategy/ resources/ marketing activities that you
marketing resources to achieve that strategy. need to do.
Three of the strategies: Market Penetration, Product One of the strategies, diversification brings great risk to the
development and market development. The company company as you know nothing about the market.
already has knowledge of the product and market. If the
business knows these it will increase the chance of
success as the business has good knowledge.
It doesn't take into account the changes in the market
conditions after the strategy has started -> left pursing a
wrong strategy which is a waste of resources.
Used with other marketing strategy tools e.g. SWOT and
Pestle is very useful. On its own not very useful.
PESTLE Analysis:
This is an analysis of external factors that may have an impact on business.
Political: As government change it may lead to a change in policy. A change in policy may
impact the business e.g. change in corporation tax -> if it is raised the business may
relocate. In NI, the assembly is trying to gain control of this to lower it to attract businesses.
Economic Conditions: When the economy is in a good condition people are more willing to
spend more money thus businesses will do better and vice versa.
Social: A change in social needs or social tastes may impact upon the business. The product
may go out of date or will have to be modified to suit the customers.
Technological: As technology changes the business can be impacted upon. Could be better
or worse. If you don't keep up to date you could fall behind in the market.
Legal: These are the laws that will influence the business e.g. minimum wage: The difference
in wage between 17-18 year olds will increase and the business is obligated to raise this.
Environmental: Environmental friendly and using renewable energy resources. Carbon
footprint.
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