What is a market environmental analysis?

The analysis of the market environment is the analysis of the external and internal environment related to the organization. The economic tool for performing a market environment is political, economic, socio -cultural and technological (pests). This measure for measuring the market environment focuses on the various factors on the selected market to find out how they relate to business.

The first step in applying pests to an analysis of the market environment is to perform a study of political factors that can have a positive or negative impact on society. Examples are different codes and regulations stored in various industries. This can be seen in the industrial sector of the construction industry, where mandatory administrative rules specify the means of operating. For example, in the United States, the management of the safety and health protection at work (OSHA) leads the rules on the way different work sectors work.

sets rules on workers' safety, required training, securityEntertainment, security procedure and even number of hours in shifts. The Environmental Protection Agency (EPA) brings rules that mainly reduce the procedures and activities of persons in industrial, manufacturing, building, medical and agricultural industries. Such rules may prove too restrictive or costly to manufacturers and other participants in various markets. Other political environmental factors include taxes, market regulations and political stability in the country.

Environmental market analysis consists of evaluation of international and national economic policies that can affect the market. These economic considerations include trade cycles, recession and national and global fiscal policy. Socio -cultural considerations include the Culture on the Place on the market and its effect on the market. For example, markets with highly restrictive cultures can affect society negatively, while cultures that are more open can offerdnit more benefits.

Examples of ways that cultures can affect markets are numerous. For example, in Western cultures that encourage people to maintain a slim figure, the market for food products, fitness equipment and fitness services can boom. On the other hand, such a market may not experience a great success in a place where people are not so passionate about weight loss. The technology is another environmental factor that can be considered when analyzing the market environment. The growth of technology has made it necessary for organizations to keep up with new progress as they come out to remain relevant to the competitive market.