DESTEP is basically a wide-ranged analysis of various macro factors that may be held responsible for invading upon an organization’s operations as well as business.
DESTEP is an acronym term for Demographic, Economical, Social, Technological, Ecological and Political analysis.
1. Demographics Analysis
Demographics represent human population in a statistical form. business people need to take into account the total population so that they can develop a production strategy in order to manufacture their products or services. Demographics provide a rough idea about rate of population growth or decrement.
Demographic variable can be analyzed by taking into account some important factors including age, gender, income, population, origin and household.
2. Economic Analysis
National income plays an important role in deciding business as well as production strategies, but at the same time, analysis of international development plays an equally important role in effective business strategy formulation. Currencies are also changing at a fast pace. Hence, economic analysis gets important.
Factors that help in analyzing economic variable include purchasing power, GNP, inflation, unemployment, total income, disposable income and cyclicality.
3. Social-Cultural Analysis
Consumer behavior acts as a decisive factor. business associates need to focus and analyze current market demand plus latest customer requirements. All these can be assessed by focusing on various factors like lifestyle, behavior, level of education, values & norms and religion.
4. Technological Analysis
The field of technology has shown major advancements since past few years. Technological advancements mainly affect processes of product renewal as well as fresh upcoming products.
Communication technology is considered as the king of all the ongoing reformations. Internet & ICT are amongst some of the most impactful developments in this field. Furthermore, technological advancements can be analyzed by evaluating ‘know how’ plus ‘success rate’.
5. Ecological Analysis
Environment is also a crucial factor for analyzing numerous business processes. This analysis helps in judging good and responsible social marketing concepts and labels of products.
Important points that prove to be beneficial in judging different ecological variables comprise sustainability, safety, energy, garbage and climate.
6. Political analysis
Many a times, certain political restrictions come in the way of business developments such as maximum & minimum prices, political measures and zoning etc.
To overcome all these factors, certain points that need to be kept in consideration include licenses, funds as well as legislation.
Once all these points have been thoroughly analyzed, they will help in formulation of striking decision in favor of business organizations.
Take help of DESTEP analysis to acquire new heights of success in a business.