IMPACT OF THE PRODUCTS IN THE MARKET
 

 

 

 

 

 

 

 

 

 

 

 

Study the impact of an environmental trend on a product/market—An environ- mental trend can pose either a threat or an opportunity for a company’s product/market; which one it turns out to be must be studied. The task of deter- mining the impact of a change is the responsibility of the SBU manager. Alternatively, the determination may be assigned to another executive who is familiar with the product/market. If the whole subject appears controversial, it may be safer to have an ad hoc committee look into it; or consultants, either inter- nal or external, may be approached. There is a good chance that a manager who has been involved with a product or service for many years will look at any change as a threat. That manager may, therefore, avoid the issue by declaring the impact to be irrelevant at the outset. If such nearsightedness is feared, perhaps it would be better to rely on a committee or a consultant. Forecast the direction of an environmental trend into the future—If an environ- mental trend does appear to have significance for a product/market, it is desir- able to determine the course that the trend is likely to adopt. In other words, attempts must be made at environmental forecasting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analyze the momentum of the product/market business in the face of the envi- ronmental trend—Assuming that the company takes no action, what will be the shape of the product/market performance in the midst of the environmental trend and its future direction? The impact of an environmental trend is usually gradual. While it is helpful to be the “first” to recognize a trend and take action, all is not lost if a company waits to see which way the trend proceeds. But how long one waits depends on the diffusion process, the rate at which the change necessitated by the trend is adopted. People did not jump to replace their black- and-white television sets overnight. Similar examples abound. A variety of rea- sons may prohibit an overnight shift in markets due to an environmental trend that may deliver a new product or process. High prices, religious taboos, legal restrictions, and unfamiliarity with the product or service would restrict changeover. In brief, the diffusion process should be predicted before arriving at a conclusion. Study the new opportunities that an environmental trend appears to provide— An environmental trend may not be relevant for a company’s current product/market, but it may indicate promising new business opportunities. For example, the energy crisis provided an easy entry point for fuel-efficient Hondas into the United States. Such opportunities should be duly pinpointed and analyzed for action. Relate the outcome of an environmental trend to corporate strategy—Based on environmental trends and their impacts, a company needs to review its strategy on two counts: changes that may be introduced in current products/markets and feasible opportunities that the company may embrace for action. Even if an envi- ronmental trend poses a threat to a company’s product/market, it is not neces- sary for the company to come out with a new product to replace an existing one. Neither is it necessary for every competitor to embrace the “change.”