Professional Documents
Culture Documents
• be able to define the boundaries of the industry within which a firm is located;
• be able to segment an industry into its constituent markets and appraise the
relative attractiveness of different segments;
Political Economic
Changes in government economic policy, e.g. Changes in the level of economic activity, e.g.
taxation, government spending, monetary policy growth rates, rates of unemployment, inflation
Changes in legal requirements e.g. employment Changes in wage rates and income distribution
law, health and safety legislation, licensing Changes in exchange rates
practices, environmental regulations, competition
policy
Changes in the government ownership
e.g. nationalization, privatization, de-regulation
Social Technological
Changes in demographics e.g. the size of the Development of new products and processes
population, the age distribution with the Automation
population Developments in information and communication
Changing attitudes e.g. work/life balance, concern technologies
for the environment, ethical standards Developments in the natural sciences
Changes in social structure e.g. socio-economic
groupings, social mobility
Identify possible
segmentation variables
Construct a
segmentation matrix
Analyze segment
attractiveness