Textbook Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson

Discussion Board 

Companies need to understand their ability to compete and the environment in which they must compete. Of the strategy planning tools they have available, the PEST (political, economic, sociocultural, and technology) analysis has been shown to be very effective. Do you believe that companies who have a planning culture and use planning tools, such as the PEST analysis, can perform better in the long run than their industry competitors who may not use similar planning tools? Why, or why not?

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           I believe that companies who use planning tools absolutely do have an advantage on competition. The world is changing faster than ever, so companies must exhibit adaptability. In order to be adaptable, the company must prepare and educate itself, to the best of its knowledge, about the current external factors around it. Even though these variables are not within the company’s control, having the prepositioned thought of how they would respond if X changed to Y is far better than being blindsided.

           Blockbuster is an example of a business that failed because it did not meet the demands of the market in a way that the competition could at that time. As it relates to the PEST analysis, it struggled heavily with the technological component. It attempted to keep up with the up-and-coming online sensations like Netflix, but ultimately filed for bankruptcy in 2010 (Narishkin et al. 2019). While hindsight is twenty-twenty, I believe Blockbuster would have been a competitive, surviving option if it would have addressed its marketing from a more strategized perspective. While Netflix is one of the first online DVD ordering businesses, it has drastically adapted and is now one of the most recognized and successful digital streaming services available today. It isn’t alone… There’s Paramount+, Disney+, Hulu, and the list goes on. Who is to say that Blockbuster couldn’t have continued to alter its strategy back then, and provided us with a streaming service called Blockbuster+?

           Successful businesses we see today actively use and promote a planning culture within. Moreover, it is encouraged for employees to provide solutions proactively rather than reactively. While it is not specifically an analysis itself, I do love the example in our textbook about Google, Facebook, and IDEO using the question “How might we…” when approaching a challenge (Keller & Kotler, 2016). The question shows that solutions are possible, and the team is empowered and capable to find them. In addition to utilizing an analysis like SWOT or PEST, I would incorporate this question into challenges I may face in business or academics.

Works Cited:

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson. 

Narishkin, A.; Kim, I.A.; Morgan, C. (2019, December 30) 10 Companies That Fell in the Last Decade. Insider.

https://www.businessinsider.com/ten-companies-that-fell-in-the-last-decade.