MARKET ANALYSIS TOOLS

Market Analysis Tools

Marketing Analysis

Introduction

A market analysis is aimed to study the dynamics and attractiveness of a specific market within a specific industry. The market analysis is considered to be an important component of the industry analysis which also leads to the global environmental analysis. An effective market analysis provides the researcher with all the strengths, weaknesses, threats and opportunities that are related to an organization. It is also very important to understand that the market analysis is also considered to be a documented investigation of a market that is further used for the information of an organization's planning activities involving the decisions regarding purchase, inventory, facility expansion, workforce expansion, promotional activities, capital equipment purchases and a number of other related aspects of an organization. It is very significant that here are a number of significant market analysis tools that are available to us that could be used for determining the various business factors that would affect the business of an organization in future and hat make up the business reputation of an organization in the present (Pahl, 2007, pp. 86). The core focus of this paper is to discuss and compare the two marketing analysis tools and models to signify their effectiveness in comparison to each other.

Discussion

There are various significant market analysis tools available for analyzing the organizational situation in an effective manner. The tool market analysis tools that have been selected for comparison in this paper are the SWOT analysis tool and the PEST analysis tool. It is very significant the SWOT analysis and the PEST analysis are the two most common tools or models hat are used for the analysis of a market in which the selected organization operates. Both these models provide a thorough analysis of the external environment in which an organization operates. The SWOT analysis tool provides the strengths and weaknesses of an organization which are based on the internal capabilities of an organization. In addition to this, the SWOT analysis tool also provides opportunities and threats that could be available to the organization in the near future. On the other hand, the PEST analysis is based solely towards the external environment of an organization regarding to the political, economic, social and technological factors that affect the performance of an organization (Miller, 2011, pp. 104). The following discussion will be based on the compare and contrast of the SWOT analysis and PEST analysis tools for the market analysis related to a particular organization.

SWOT Analysis

It has been briefly discussed above that SWOT analysis is one of the most common and effective market analysis models. The complete meaning of SWOT when broken down refers to analyzing the following.

S: Strengths - The strengths of an organization refer to the advantages that an organization possesses over its competitors in a given situation.

W: Weaknesses - The weaknesses of an organization refer to the disadvantages hat an organization possesses internally compared with a competitor.

O: Opportunities - The opportunities refer to the current external trend to the market ...