Custom «Micro Trend Analysis» Essay Paper Sample

Micro Trend Analysis

Macro trend analysis analyses the industry based on the environmental conditions that affect the industry as a whole. The environmental conditions include the demographic conditions, socio cultural environment, technological environment, economic environment and political or legal environment. The following write up is an analysis of how these macro environments affect the telecommunication industry and market in the Third World countries. I will base my paper on marketing of digital TV sets.

Digital TV sets have been gradually but steadily replacing the analogue ones over the last two decades. This has been as a result of people having had to switch to digital technology due to government regulations. How fast the technology will be embraced, is dependent a lot on the economic conditions of the citizens, as well as their socio cultural environment. According to the government projections, by the year 2015, Kenya will have fully embraced digital technology and do away with the analogue, in an attempt to make transmission of information as effective as possible. This will provide a huge market for telecommunication companies that deal with the supply of TV sets.

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Kenya has a population of about 30 million people, with about 10,000 people owning TV sets, though analogue ones. According to the regulations by the government, all the people will have to buy a new TV set by 2015 is they will have to enjoy what these gadgets have to offer. This programme though is expected to be faced with stiff challenges due to the economic conditions of the Kenyan citizens as at now, though the economic growth is promising. The demographics also appear to be in favor of such a switch, since more than 60% of the Kenyan population is youth who appreciate technological advancement. Technologically, Kenya is among the African countries that are striving to make it to the developed countries, as entrenched in the countries strategic programme, dubbed Vision 2030. The leadership is projecting that, by 2030, the country will have embraced technology fully. Awareness is being created among the citizens on the importance of technology, especially telecommunication technology, which is involved in the dissemination of information (Timmons, 2008).

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Economic environment-Kenya’s economy is among the fastest growing in Africa. In five years, the country is projecting an economic growth of more than 10% per annum. This means that the citizens will have a higher purchasing power, due to increased rates of employment.

Political and legal trends- The government has come up with a legislation in which the country will officially and fully switch from analogue to digital by 2015. This will see the analogue TV sets become useless, and owners will have to buy digital ones. The Kenyan government has also streamlined laws and regulations governing foreign investors to ones that are favorable, in a bid to encourage foreign investors into the country. The political environment is also favorable, with every attempt by the leadership to foster democracy hence peace and unity making it an equally favorable market for international and domestic investors.

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Socio cultural environment- The citizens have through the years been encouraged into embracing education, with the majority having completed high school. The government has also introduced free primary education that has seen an exodus of students into enrolling into learning institutions. This makes it easier for the government as well as the industry to create awareness on the importance of switching from analogue to digital hence faster embracement of the same. Most of the communities in Kenya are modernized and are fast to embrace new technologies from the West.

Demographic trends- Kenyan population has been steadily rising for the last decade, and it is expected to hit 50 million in the next ten years.

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Telecommunication industry is among the fastest rising in the world. This could be attributed to the significance and the importance attached to the industry. Virtually, all aspects of the civilized people are attached to this industry. The switch from analogue signals to digital is a perfect illustration of the potential this industry has, especially in the third world and the developing countries. These countries depend on foreign investors to provide their expertise as far as technology is concerned. As illustrated by the above discussion of macro trend analysis, developing countries can offer potential markets as far as telecommunication products and services are concerned.

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