The systematic process of gathering and using external information to guide strategy.
ENVIRONMENTAL SCANNING
Rising interest rates reduce consumer discretionary spending, forcing brands to push value packs. Which factor?
ECONOMIC
EV subsidies lead an auto company to accelerate its electric scooter launch. Which factor?
POLITICAL
A 5G rollout enables richer video commerce and live selling, changing acquisition strategy. Which factor?
TECHNOLOGICAL
A defensible advantage that competitors find hard to copy because it’s embedded in skills, processes, and culture.
CORE CAPABILITY
An FMCG brand signs exclusive retailer agreements to limit shelf access for new players
What is raising barriers to entry (Scenario of: high threat of new entrants)
A business faces customers who can easily switch and bargain hard on price : which force is high
Buyer power
Streaming apps competing with YouTube, gaming, and social media are fighting this force.
threat of substitutes
When China flexes its muscles to control key raw materials (like specialty chips or rare chemicals), this force rises.
Supplier power
When many brands sell similar products and compete heavily on discounts, this force is intense.
Competitive rivalry
Rising fuel prices increase last-mile cost; a D2C brand introduces minimum order thresholds and clusters deliveries. What is being optimized?
Place (delivery economics) and Price (thresholds)
Environmental pressure pushes a firm to redesign packaging and highlight recyclability in ads: which decisions herein the co acts upon primarily?
Product and Promotion
Data privacy restrictions reduce digital ad targeting; the firm shifts to in-store sampling & influencers. What is the firm doing ?
Changing Promotion
it’s a go-to-market model where the firm owns inventory and controls assortment and margins.
Inventory-led model
A competitor launches 20% discount. Your demand rises from 1,000 to 1,150 units when you match the discount. WHAT ARE you approximating.
Price elasticity o/r demand response to price change
WHAT ARE delivery time reliability, stockout rate, repeat intent, NPS, basket conversion VIS–A–VIS revenue, gross margin, EBITDA, retention at 90 days for a quick-commerce business.
leading and lagging indicators
Your dark-store count increases in City X and delivery time drops 20%, but ratings don’t improve. Give one plausible operational explanation.
Increased missing items/stock accuracy issues, picker errors, damaged goods, refund friction, app outages, substitution behaviour, quality inconsistency ETC. ETC.
Give two examples where PESTL changes the target segment (Where to Play), not just tactics.
1. EV subsidies: shift from petrol scooter buyers to EV commuters
2. Health regulation/sugar tax: target fitness/health-conscious segment
What is A quick-commerce metric that improves unit economics by spreading delivery cost across a bigger basket.
AOV (Average Order Value)
This represents the number of months / orders needed for contribution margin to recover CAC.
payback period
A common “how to win” lever where value comes from more users attracting more stakeholders / say users or suppliers
network effects
A tooth paste brand uses doctor endorsements more heavily in high Power Distance markets. Which framework is guiding the promotion choice?
Hofstede’s cultural dimensions
In a high Uncertainty Avoidance market, an electronics brand highlights warranties, easy returns, and service centers; what is the decision outcome called?
Promotion and Place strategy tailored to culture
When Deep, irregular promotions create demand spikes that amplify demand variability
bullwhip driver
A regression output that tells you how sensitive demand is to price changes.
price elasticity