ENVIRONMENTAL THREAT AND OPPORTUNITY PROFILE

ETOP ANALYSIS
PEST ANALYSIS SWOT ANALYSIS

WHY ETOP??
o Helps organization to identify O-T o To consolidate and strengthen organizations position o Provides the strategists of which sectors have a favourable impact on the organization. o Organization knows where its stands with respect to its environment. o Helps in formulating appropriate strategy

ETOP ANALYSIS

Economic factors:
General economic condition. Rate of inflation. Interest rate/Exchange rate.

Technological factors:
Source of technology. Technological development. Impact of technology.

ETOP ANALYSIS

Socio cultural factors :

o Demographic characteristics.

Environmental factors:
o Weather change o Climatic change.

o Social attitudes. o Demand related factors. o Education level , awareness, and consciousness of rights. o Suppliers related factors.

ETOP ANALYSIS

Political factors :
o Political system.

Legal factors :
o Policies related to licensing , monopolies.

o Political structure , its goals and stability.

o Government policies , degree of intervention

o Policies related to export and import.

o Policies related to distribution and pricing.

FACTORS Political Economic

COULD INCLUDE international trade, taxation policy interest rates, exchange rates, national income, inflation, unemployment, Stock Market

Social
Technological Environmental Legal

ageing population, attitudes to work, income distribution

innovation, new product development, rate of technological obsolescence global warming, environmental issues competition law, health and safety, employment law

THREAT MATRIX
HIGH

ATTRACTIVENESS

LOW

HIGH

LOW

PROBABILITY OF OCCURENCE

OPPURINITY MATRIX
HIGH

ATTRACTIVENESS

LOW

HIGH

LOW

PROBABILITY OF OCCURENCE

PREPARING ETOP
o Dividing the environment in different sector. o Analyzing the impact of each sector on the organization. o Subdividing each environmental sector into sub factor. o Impact of each sub sector on organization in form of a statement.

ETOP: Pros and Cons

Pros
o Help to determine the key factor of threats and opportunities. Good tool to qualify the factors related to companys strategy. Can consider many factors for each special case. o

Cons
It doesnt show the interaction between the factors. It cant reflect the dynamic environment. Its a subjective analysis tool.

Case study : MILLIPORE

About Millipore Millipore is a multinational, high technology bioscience company that provides technologies, tools and services for the development and production of new therapeutic drugs. The company, headquartered in Bedford, Mass., serves the worldwide life science research, biotechnology and pharmaceutical industries. Mission and Vision Millipore exists to provide technology, tools and services for the development and production of new therapies and drugs that will enable people to live longer, healthier lives. Our vision is to become the partner of choice for critical tools, technology and services used in the discovery, development and manufacture of new therapeutic compounds.

MILLIPORE PRODUCT LINE

1. Life science. 2. Drug discovery. 3. Sample preparations. 4. Lab water. 5. Process development.

6. Bio production.
7. Process monitoring.

Factors
Economic

Impact of each Sector

Fluctuation in exchange rate Increasing rate of inflation Worsening economic conditions Strong R&D program Market Leaders Better solution providers New Intergral-2008

E T O P O F M I L L I P O R E

Technological

Political

No significant change.

Legal

Following FCPA (Foreign corrupt practices act). Strict IPR laws - No poaching

Socio cultural

No significance change.

Factors Competitive

Impact of each sector Competition particularly from low priced products .

E T O P O F M I L L I P O R E

Demand related

Downfall in demand due to low priced products . Containment of rising healthcare cost.

Governmental policies

No excise duty only vat for product manufactured in India.

OPPORTUNITY MATRIX
EB and CB Market leaders brand value and brand awareness. Provide customized protocol support. Dedicated service team.(Toll Free numbers).

Special offers with OEMs.(Agilent).

Large installation base. New low budget product lines.

Saturation point of market is far away New markets are opening

THREAT MATRIX
Competition particularly from low priced products. Concentration majorly on big Fishes. IPR laws are not so strong in INDIA. Switching over form process patent to product patent

Patent law not well defined

Expensive products. Bad rapport with customers (unsatisfied customer).

Lack of geographical division (remote areas). Poor dealer network. Low investment in marketing.