Question

What general and specific types of market data would you need to perform an analysis of the Indian market? Which of these data might be less available in a developing country?

Answer 1

In general, Environmental Analysis is crucial not only for mapping the current market where a company operates but also for entering new market. It allows companies to be aware of everything what is happening around and may affect the firm either positively or negatively. Consequently, by monitoring and knowing outside environment, current marketing strategy can be adjusted according to upcoming influences or trends. Moreover, Environmental Analysis may be beneficial in terms of evaluation of assessing competition, effective resource allocation or identification of consumers´ needs and wants.

Efficient environmental scanning can be performed using SWOT or PESTLE analysis. When entering new market, conducting both of them might be relevant. While SWOT elaborates both internal (Strengths and Weaknesses) and external factors (Opportunities and Threats), PESTLE examines external factors only - Political, Economic, Social, Technological, Legal and Environmental. To illustrate, SWOT may help to identify aspects such as market accessibility, the strongest market players or consumer habits. On the other hand, PESTLE may help to research actual political climate in the country, economic situation of the country (high unemployment, etc.), social habits or trends, technical maturity of consumers, and finally legal and environmental obstacles for your business. Overall, Environmental Analysis itself is advantageous for business since it helps to set right direction (strategy) for a company and thus eliminate wasting of resources, time and effort.

In case of Indian market, efficient environmental scanning can be performed using PEST or PESTLE analysis. PESTLE is just the expanded form of PEST. PESTLE examines Political, Economical, Social, Technological, Legal and Environmental factors. In developing countries, the major problems in data collection might appear in Social factors. Since India is too overpopulated accompanied with high poverty, it is impossible to properly gain data as literacy of population (potential labor), social behavior (habits and tendencies), standard of living (since high poverty in certain regions) and so on. Basically, these kind of data might not be accurate and relevant because of high overpopulation and poverty not allowing monitoring of these factors.

Explanation:

In general, Environmental Analysis is crucial not only for mapping the current market where a company operates but also for entering new market. It allows companies to be aware of everything what is happening around and may affect the firm either positively or negatively. Consequently, by monitoring and knowing outside environment, current marketing strategy can be adjusted according to upcoming influences or trends. Moreover, Environmental Analysis may be beneficial in terms of evaluation of assessing competition, effective resource allocation or identification of consumers´ needs and wants. Efficient environmental scanning can be performed using SWOT or PESTLE analysis.