Discuss the specific factors within the current external environment Essay

Discuss the specific factors within the current external environment that must be considered prior to the development of a new - Essay Example Teenagers drink and behave that way because of youngsters’ culture that is influenced by peer pressure. This behaviour is extended in order to get someone to act in a similar way, and often, teenagers drink because everybody else is doing it. Peer pressure encourages teenagers to change their behaviour either on a negative and positive way (Wise Geek). It may be dangerous to children, especially the younger or insecure children. In group gatherings of teenagers, they may be encouraged to take dangerous actions simply because everybody else is drinking alcohol. Another external environment that is a very important consideration is the competitive condition in the market. This requires an analysis of the competitive environment that the business will operate. Some businesses may offer similar products that the company is contemplating on doing. Thus, it becomes necessary that an analysis consist of study of the strengths and weaknesses of the soft drink industry in UK, as well a s the company’s own strengths and weaknesses; a study of the demographics and desires of marketplace customers, and barriers that can impede the introduction the new soft drink (Competitive analysis). First, it is important to discover the magnitude of competition in the soft drinks manufacturer in the market. Then, there is need to consider the chances of the new soft drinks on how it will compare and compete in this market. Second, what are the taste preferences of the teenagers when it comes to soft drinks? For instance, competition in the industry includes giants such as Coke and Pepsi. The study should look into reasons why companies like Coke and Pepsi succeed, or why others failed. For example, why did Pepsi â€Å"BLUE† fail in the market when it was introduced in 2004? It is worth looking into what are the motivational factors that encourage people to buy a product. Let us look at Pepsi â€Å"Blue† again. Pepsi spent a lot of money in its development, ad vertisements and promotions, but after a while, it lacked the needed luster to remain in the market (PepsiCo – bolt from the â€Å"Blue†) Technological factors are also vital consideration for development of new soft drinks in the market. We all know that technology is fast changing and this likewise change the production process and product innovations. The relevant factor here is the product presentation or packaging, its appeal and process needed. In the ready to drink category of the new soft drink, what is the most appropriate for the 11-15 teenage market; will it come in an aluminium can, tetra-packs or in bottles. Comes next is the appropriate theme in the brand labels to create an appeal. For instance, Mountain Dew became a popular drink when it turned into aluminium cans, and used eye appealing labels as well as durability, fast chilling capability and recyclability (Shelf Impact, 2008) Economic environment becomes an important factor of analysis because these are the taxation, government spending, general demand,