The entrance to a new region is always a challenging issue because of the necessity to consider all peculiarities of the market that might affect a firm in its functioning. Any company is not isolated as it operates and evolves in a particular context. For this reason, consideration of all forces that might impact the project is critical. For instance, the entrance of FysioSupplies to the Spanish market can be prepared by using the DESTEP model to consider all existing peculiarities and select the most appropriate strategy.
In general, DESTEP can be taken as a potent tool of modern management. Frue (2017) states that all outside forces that are important for the evolution of any business project are considered by DESTEP, which functions as an approach to determine the current macro environment and help firms to formulate their strategy to remain successful. DESTEP is an abbreviation that stands for demographic, economic, socio-cultural, technological, ecological, and political forces (“The macro environment,” n.d.). Every element of modern markets is critical for the work of organizations and should be investigated when planning the entry to a new market. The enhanced understanding of these factors can help to generate a competitive advantage and become popular with local clients or targeted audiences. That is why the FlysioSupplies can benefit from the employment of this tool for macro environment analysis.
For instance, demographics, or peculiarities of local people, is the first core component of the DESTEP model. Speaking about the given force, De Vlieger (2012) states that a better understanding of clients’ buying behavior and preferences is a key for the development and success of any company as it might help to create products or offerings that will be appreciated by the target audience and help to generate income. For this reason, the entry to a Spanish market can also be started from the analysis of local customers and their preferences regarding the selected market segment. It will help to offer unique services and interest them.
As for other elements of DESTEP, the existing literature is united in the opinion that the given tool provides multiple opportunities for companies of various sizes. Thus, analyzing the economic, socio-cultural, technological, ecological, and political forces that are peculiar to the region, an organization can conclude the possibility of entrance this very market and benefits that can be acquired from this step (“DESTEP analysis,” n.d.). At the same time, these forces of the macro-environment impact any new venture, which means that the employment of tools such as DESTEP is a correct step demanded the in-depth investigation of the current sphere and creation of the short-term and long-term goals.
Altogether, the entrance to the Spanish market can be taken as a complex issue that demands a comprehensive investigation of all forces that can influence the company. For this reason, the DESTEP model can be applied to the physiotherapy industry with the primary aim to perform the analysis of such demographic, economic, socio-cultural, technological, ecological, and political forces to select the most effective strategy. The existing literature supports this tool as a potent method to improve the understanding of the exiting macro environment and align the functioning of various units in a way that will help to meet clients’ expectations and consider all potentially significant elements of the local market. It is recommended to align the entry process by using DESTEP as the primary analysis tool.
References
De Vlieger, R. (2012). DESTEP analysis. Web.
DESTEP analysis. (n.d.). Web.
Frue, K (2017). What is DESTEP analysis and how it’s used in business. Web.
The macro environment – Six forces in the environment of a business. (n.d.). Web.