M300 1st Edition Outline of Current Lecture I Unmet Unknown Needs II PECTS Model III What Do We Want PECTS to Produce for Us IV Political Analysis Key Points V Economic Analysis Key Points VI Competitive Analysis Key Points VII Technological Analysis Key Points VIII Social Analysis Key Points IX Identifying Competitors X Strategic vs Customer Choice Analysis Current Lecture I Unmet Unknown Needs a Unmet customer needs needs that are known but have not been fulfilled i Example You like Blackberry s buttons and want buttons on your Android phone The needs is known but isn t met b Unknown customer needs Solutions for customers that are so radical revolutionary that they can t envision them i Example People did not know they wanted he iPod before it existed II PECTS Model a P political b E economic c C competition d T technology e S social III What Do We Want PECTS to Produce for Us a An effective PECTS analysis produces WOWs b WOW an insight that arises from a PECTS analysis that can t be explained solely by the facts from the PECTS themselves IV Political Analysis Key Points a Current future laws and regulations b Lobbying organizations and efforts c Ecological and environment issues d Present and future political climates V Economic Analysis Key Points a Economic growth b Inflation rates c Unemployment levels These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute d Exchange rates e Customer confidence levels f Ecological and environment issues VI Competitive Analysis Key Points a Direct indirect competitors b Intensity of competition and trends c Competitor success VII Technological Analysis Key Points a Present future state of technology b Competing technologies to present technologies c Innovation potential d Customer use of technology e Legislation on technology VIII Social Analysis Key Points a Demographics b Buying trends c Customer needs d Lifestyle trends e Ethical issues IX Identifying Competitors a A strategic group definition argues that competitors can be defined by how they compete to serve the customer Competitors grouped according to whether they i Pursue similar competitive strategies use the same distribution channel etc ii Have similar firm characteristics size geography etc b Strategic groups analysis sitting in headquarters divide up marketplace to figure out who competitors are i This is inwardly focused X Strategic vs Customer Choice Analysis a A customer choice analysis is based on how the customer defines competing solutions i In other words in relation to their life how do they group together these competing products It s not always by price b This is compared to a strategic group analysis because the results are often conflicting and surprising c Example A consumer choice analysis may group together Nordstrom s and Costco because of their great return policy A strategic group analysis may have only grouped them by prices