PESTEL y PORTER: Cómo hacer el análisis y EJEMPLOS 🏕🌦| Lorena Ronda | Universidad de Deusto - YouTube

Hello today we are going to learn how to do the environment analyses PESTEL and Porter. The analysis of the

environment is the first step that we must take before starting to build our marketing

plan because it will allow us to identify the opportunities and threats that can affect

the activity of our company. Our company develops its activities in an environment.

That environment is usually a geographical location (it can also be social or cultural) in

which it will develop its activity and in in this environment the company will be affected by a series of factors.

Such factors do not only impact our company but also other agents that operate in the same environment.

The environment has two dimensions. First, the external environment includes factors that equally affect all companies in

that environment whether they belong to our sector or not, for example an economic crisis affects in the same way

a hotel or a car manufacturer. Second, we have the internal environment. Here

we find the forces that only affect those companies that operate in a particular sector. Let's see both

in detail. The tool we are going to use to analyze the external environment is the PESTEL analysis.

The name PESTEL includes the initials of the factors that compose it. The factors of the PESTEL analysis

are the following: Political factors, which include the political stability of a

country or how interventionist a government is. Economic factors such as the

GDP growth, interest rates, exchange rates or inflation. Legal factors

such as European regulations, competition law, advertising regulation or

workers' rights. Social factors which include the cultural changes

in a society with respect to consumption, demographic changes, the aging of the

population or new family structures. Environmental factors

include animal rights, recycling, the use of sustainable materials, or the

types of energy that companies can use. Finally, technological factors include

the development of new patents, the investment in R+D, of the investment in new infrastructures.

Now I propose an exercise that you can carry out at home. It consists of applying the PESTEL analysis to

a specific sector that interests you. In this case I have chosen television on

demand. What factors can you think of that may affect a company like Netflix in the

daily development of its business activity? I can think of a few! For example, the European

regulation that determines what content can be broadcast in Europe and which cannot. The right of

workers Netflix employs in each of the countries where they operate. The purchasing power

families have in different countries and how much

economic effort the Netflix subscription represents for them.

I invite you to think about what factors may be affecting Netflix and do this exercise at home.

Now we are going to continue analyzing the

second dimension of the environment which is the internal environment. For this we are going to use the analysis of

Porter's Five Forces. The five forces that Porter identified that affect competitiveness in

a sector are the following: the existing rivalry among competitors in that market, the

threat of new companies that can enter the sector to compete with the existing ones, the threat

of substitute products that can attract our customers, the bargaining power

of customers, and the bargaining power of suppliers. Let's see them in detail.

The existing rivalry among competitors affects those companies that are currently operating in the sector

The rivalry among competitors is greater in a series of situations. For example when there are

many companies competing for the same market. In such markets growing is very difficult,

as all competitors are trying to capture clients from other competing firms. We also find a

greater rivalry when the market is not growing, for example when nobody had a mobile phone and we

all had to buy one, the market grew a lot, making that market very attactive to compete in, however now that we all

have a mobile phone and we depend on whether we want to change it or not, the market grows less.

Strong exit barriers increase rivalry as well. If a company has made a very large investment to start operating

in a market, such as buying machinery, it will not want to leave the market it until

that money is recovered. Then we have the threat of new entrants.

When do companies want to enter to compete in a sector? In the first place

when we those competing in it are making a lot of money, when they are being very profitable!

New companies will enter a profitable sector until that profitability becomes zero, then

no new competitor will want enter. Threat of new entrants is also high when the

entry barriers are very weak. If there are no prerequisites such as obtaining permits to

have access to certain patents or make an investment in machinery it is easier than

new companies decide to start competing in that market.

Then we have the threat of substitute products. A substitute product is one that satisfies the same need that but

with a different technology and usually giving a very different user experience. For example

a consumer who wants to buy a car to go to work can find an interesting substitute for him

in the motorcycle market, as the need would be also satisfied but with a different technology.

A consumer who usually orders a Coke when meeting friends

can be find a substitute to coke in beer or coffee.

Then we have the bargaining power of suppliers. Suppliers will always

try to sell their raw materials to their components at a higher price and perhaps

giving a lower quality. Therefore when they have a lot of power it is likely that

our final product is going to be more expensive. Suppliers have a lot of power

when they are few. For example in electric car batteries. They also have a higher

power when they provide materials or components of a very high quality that cannot be easily replaced, such

as Intel processors. Most computers

have Intel processors because using another type of processor would lower the quality of the final product.

Finally we have the bargaining power of buyers. While suppliers are going

to make the final price go up, buyers are always going to try to

make the price of the product go down.

Buyers have more power when they are few and valuable. This is the case of

luxury consumers who buy products such as Maserati cars or Chanel handbags.

These consumers are scarce but they have great profitability for companies,

so they take good care when satisfying their needs. There is another

type of consumers who also have a lot of power: the consumers of

undifferentiated products such as pens or low cost garments. For example,

a t-shirt made by INDITEX is very similar to a t-shirt made by Mango or by

Primark. It is very easy for a consumer to change from one brand to the other.

Now we have finished, we have to know what to do with this information we have obtained

the PESTEL and Porter analyses. We are we going to

put this insformation in a tool called SWOT matrix. The SWOT matrix is a strategic tool that will allow us to

make a diagnosis of the situation of our company and see where we have to

focus the actions of our marketing plan. The SWOT matrix has four quadrants:

strengths, weaknesses, opportunities and threats. The information that we have obtained

in our analysis of the environment must be taken to the quadrants of

opportunities and threats. For example, a company of organic products could have identified in its PESTEL

a consumption trend towards sustainable products. This would represent

an opportunity for the company to increase their market share. However, in the Porter's analysis

it could have identified that, because of this new trend, new firms are entering to compete

in the sector. This would represent a threat the company must face.

In this lesson you should have learnt the following: First what are the external

factors that affect the activity of our company. Second what are the internal forces

that affect only the competitors in our sector. Third, how likely is that

the factors and forces that we have identified will occur and the potential impact they might have in

our company. It's not the same the positive consequences we can have the form a new

consumer trend towards the products we sell, which will be high, than the impact of a small competitor leaving the market.

We must prioritize which threats and

opportunities we are going to give more importance to when building our marketing plan.

In future chapters we will continue learning how to build the SWOT matrix. Thank you very much and see you soon.