Market Environment

Market Environment

Market Environment Jonathan Poland

The market environment refers to all of the factors that can impact a company’s strategy, decision making, and tactics. This includes both internal and external conditions that can affect a business. The market environment can include a wide range of elements, such as economic conditions, competition, technological advancements, government regulations, and social and cultural trends. By understanding the market environment, companies can make informed decisions and develop effective business strategies. The following are some common elements of market environments.

The needs, perceptions and mood of your customers including:

  • Brand Awareness
  • Brand Image
  • Brand Recognition
  • Customer Motivation
  • Customer Needs
  • Customer Perceptions
  • Pain Points
  • Price Sensitivity

The threats and opportunities presented by your competitors.

  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Prices
  • Relational Capital
  • Reputation
  • Strategic Intent

Your internal environment that represents your strengths and weaknesses in the market. This can be extended to include the strengths and weaknesses that you incur due to partnerships.

  • Ability to Innovate
  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Efficiency
  • Overhead Costs
  • Productivity
  • Relational Capital Reputation
  • Time To Market Unit Costs

Economic conditions including areas such as credit, labor, demand, supply, stability and growth. For example, a low unemployment rate that makes it difficult for small businesses to recruit employees.

  • Business Confidence
  • Business Cycle
  • Consumer Confidence
  • Credit Market Conditions
  • Deflation
  • Demand
  • Economic Growth
  • Inflation
  • Interest Rates
  • Inventory Levels
  • Recession
  • Supply
  • Unemployment

The changing laws and policies of governments and other political events such as protests and strikes. For example, a government that requires businesses to shutdown to try to reduce some risk to society.

  • Government Shutdowns
  • Industry Regulation
  • Labor Law
  • Political Events
  • Political Stability
  • Protests
  • State of Emergency
  • Strikes
  • Tariffs
  • Tax Interpretations
  • Tax Policy
  • Trade Disputes

Changes to society, culture and the way that people think. For example, consumers who grow aware of an environmental problem associated with a product, service or material.

  • Attitudes
  • Consumer Behavior
  • Demographics
  • Interests
  • Opinions
  • Psychographics
  • Values

Change to technology including physical technology and information technology. For example, new materials that make it possible to vastly improve your products.

  • Abandonment of Technology
  • Adoption of Technology
  • Data
  • Digital Convergence
  • Information Security
  • Infrastructure
  • Intellectual Property
  • Materials
  • Media
  • Platforms
  • Technology Economics
  • Technology Preferences
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