Blog 2
7th march
Blog 2
Macro Analysis
Macro analysis is when you
examine various macroeconomic factors that can impact a business/
industry.
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Economic Forces: Economic
conditions can affect Myprotein in many ways. One way it can affect Myprotein
is when the economy enters a recession or takes a downward turn, consumers are
less likely to spend money on non-necessary goods such as sports nutrition
drinks. On the other hand, if the economy takes an upward turn or the economy
is booming then consumers will be more likely to spend money on sports
nutrition drinks as they feel like they have more disposable income.
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Technological Forces:
Advancements in technology can have a large impact on Myprotein for instance
innovations in manufacturing processes could lead to cuts in wastage when products
produced and therefore, they will cut back on their costs as they will be able
to produce more with what they have. Also, an advancement in technology could
also lead to an improvement in delivery systems which would enhance the appeal
of their products if consumers knew they arrive on time and quickly.
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Cultural Forces:
Cultural forces such as tends in health and wellbeing for example will have a
large impact on Myprotein. Consumers are becoming more and more health-conscious
therefore demand for sports nutrition drinks is increasing. On the other hand,
if consumer trends were to fall then demand for sports nutrition drinks will
subsequently fall too. Also, with trends of dietary trends and also in gym
goers increasing over the last few years consumers have become very conscious
of their nutritional intake and therefore protein drinks and other such sports
nutrition drinks have risen in demand.
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Political Forces:
Legal regulations can have a significant impact on Myprotein as the company has
to keep up with new legislations such as labelling, product safety and
marketing claims. For example, companies have to be very specific when putting
ingredients on packaging and also have to make sure that any products that
contain allergens for certain people are clearly labelled and nowhere near the
production line. Myprotein operates in a global market, and factors such as
trade policies and tariffs can impact its supply chain and market access.
Changes in trade agreements or tariffs on key ingredients or finished products
can affect production costs and pricing strategies.
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Demographic Forces: Demographic
forces can play a large impact on a company, for example, age ranges, changing
in lifestyle choices can lead to certain groups requiring different needs to be
met. For example, younger people have
fuelled demand for products to be more tailored to different lifestyle choices
and therefore Myprotein having a large product range can boost sales as there
is most likely something for each customer.
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