ENVIRONMENTAL ANALYSIS

Greensboro Cotton Company



Table of Contents

External forces and trends considerations4

Customer analysis4

Competitor Analysis4

Environmental Analysis5

Demographic factors5

Economic Factors5

Technological factors6

Innovation6

Social6

Legal and regulatory7

Global7

Internal forces and trends considerations7

Structures7

Strategy8

Structures9

Technologies & Innovation9

Goals11

Resources11

Processes and systems12

Culture12

Intellectual property12

Strategic capabilities13

Marketing Mix Analysis14

Product14

Price14

Place (distribution)14

Promotion15

SWOT Analysis15

References19

Greensboro Cotton Company

External forces and trends considerations

Customer analysis

MAC surveyed a portion of the population to gather information about underwear consumers. The survey concluded Greensboro cotton company consumers are either fashion or quality conscious and take advantage of special offers such as introductory deals and factory outlet shopping. The customers who purchase Greensboro cotton company underwear come from Roy Morgan's value segmentation of 'look at me, young optimist and something better'.

Roy Morgan's research has shown 50% of men's underwear customers are women. The decision to buy is therefore influenced by both men and women; it just depends on the circumstances. For example, if a man is in a relationship he may shop for underwear with his partner or may ask them to purchase it for him. Alternatively, some men ask their mothers to buy their underwear or simply prefer to make the decision themselves. (Renouf, 2008)

Competitor Analysis

Greensboro cotton company's main competitors are Mitch Dowd and Bonds. Mitch Dowd is the biggest competitor because it targets the same value segment as Greensboro cotton company and is also sold exclusively in Myer and David Jones stores. MAC found that Mitch Dowd and Greensboro cotton company use similar pricing techniques and visual merchandising in both stores.

Other potential competitors include smaller brands stocked in Big W, Kmart, Target and Best and Less. These mainly include Rio, Holeproof, Jockey, Rio and Target's copycat brand MAXX. This brand mimics Greensboro cotton company by using similar fabric, design and tag placement. In order to compete with these brands, Greensboro cotton company must attract consumers who are price orientated and prone to brand swapping. This can be achieved by convincing consumers Greensboro cotton company offers value for money. (Gabriel, 2007)

Environmental Analysis

Demographic factors

MAC will target fashion and comfort conscious males aged 16-35 as well as their partners and/or mothers.

Economic Factors

An economic problem could result if cotton prices increase as this is the main material used by Greensboro cotton company. Interest rates, inflation and unemployment also have the potential to affect Greensboro cotton company's target demographic by changing their buying habits. If this was to occur, further research into the demographic would be required.

Technological factors

Technology is vital for competitive advantage and is a major driver of globalization. Technologies offer consumers and businesses more innovative approaches to reach the consumers. Through the development of an effective website, Greensboro cotton company will be able to take advantage of U.S. consumers who "are among the most advanced and sophisticated users of information and communications technologies throughout the world.(Noblitt, 2008)

Innovation

As the cotton and silk industries are widespread and heavily controlled through the use of pesticides it is unlikely disease would limit the output of these raw materials. Drought would not affect silk because it is produced not grown but water shortages have the potential to affect cotton ...