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European Edition
David A. Aaker and Damien McLoughlin
Government
– What changes in regulation are possible? What will their
impact be?
– What tax or other incentives are being developed that might
affect strategy?
Culture
– What are the current or emerging trends in lifestyles, fashions,
and other components of culture?
– Why?
– What are their implications? Figure 6.1
Figure 6.1
Scenarios
– What strategic uncertainties are worth being the basis of a
scenario analysis?
Figure 6.1
David Aaker, Damien McLoughlin, Strategic Market Management European 10
Edition, 0470059869, © Copyright 2007 John Wiley & Sons Ltd
Figure 6.1
Technology Trends
An incremental innovation makes the offering more attractive
/profitable but does not change the value proposition on the
functional strategy (adding new flavors to toothpaste). Firms good
at at incremental innovations are committed to their business model
and they are unlikely to drive real change in the industry.
Cultural trends
Cocooning
Fantasy adventure
Pleasure revenge Small indulgences
Down-ageing
Being alive
99 lives
Cultural Trends
Tribing, the affinity towards a social unit that is
centred around an interest or activity and is not bound
by conventional social links.
Emergence of social media
Being green: Citizens are more concerned about the
impact of society and business on the global
ecosystem,
Every business needs to be assured of supply of
essential raw materials,
The governments will be imposing sanctions and taxes
on those damaging the environment
Demographics
The World population
7.608.310.132
The demand for healthcare, %32, %24, %21 (from 2005 to 2020)
housing and energy in Italy.
The demand for toy(sports, %41, %36. %23 (from 2005 to 2020)
motorcycles and education
•The pop. Of the UK will be rising by 5 million people over the next 25 years,
immigrants will be taking two-thirds of it. What may be the implications?
•1.The impact of strategic uncertanity is related to:
• The extent to which it involves trends or events that will impact
• upon eisting or potential businesses,
• The importance of the business involved
• The number of business involved
Monitor and
Analyse In-
High
analyse;contingent
depth; develop
strategies
strategy
Impact
considered
Low
Identify
Scenarios
Relate Scenarios
to Existing or
Proposed Strategies
Estimate
Scenario
Figure 6.3
Probabilities