DEEPLIST analysis is a framework that is implemented to analyze the influences of macro environments like Demographics, Economic, Environmental, Political, Legal, Informational, Social and Technological. This analysis also determines which aspect of the macro environment will have a negative and positive impact on the marketing strategies of an organization. DEEPLIST analysis is considered as a way of promoting entrepreneurs of the chief areas that are required to be explored before setting up a business.
For what DEEPLIST analysis is used for?
DEEPLIST analysis is an effective and simple tool that is used to analyze the key external forces that can affect the operations of an organization. These aspects can produce both threats and opportunities for a company. It is also employed to assess the potentiality of a new market. The thumb rule of this analysis is that the more the negative impact a force has on the market, the more it will be harder for the organization to operate in it. This firm can thus decide beforehand to not set up a facility in that market due to a reduction in the profit of the organization. The DEEPLIST analysis is mainly used for:
- To determine the current external factors that will affect an organization
- Identification of the forces that may change their nature in the future
- To exploit the opportunities or threats better than the competitors
- Analysis of the marketing strategies that would be beneficial to the enterprise
- Gives a broad perspective to the analysts while making important decisions
- Planning and covering every possible angle for making a profit
By covering all the aspects, it is possible to get an idea of any given situation. This analysis also helps in the SWOT analysis to further determine the opportunities and threats.
How to Apply the Analysis?
The process of DEEPLIST analysis involves more than one manager to take care of the results. The analysis follows the below steps.
- Gathering required information about the demographic, economic, environmental, political, legal, informational, social and technological changes
- Identification of the necessary factors among results of the analysis which represent threats or opportunities
The Factors for the DEEPLIST analysis
To perform DEEPLIST analysis, the strategic analyst has to gather information relevant to the external environment of the organization. Now let us see the factors that are included in the DEEPLIST analysis. And they are as the following.
- Demographics: Demographic factors can have an impact on how the enterprise performs. Demographics are important as it includes where people can live, who they are, what are their nature and their social circumstances. Demographic factors included in the DEEPLIST analysis are a calculation of populations through age, type, household size, ethnicity, gender, income, work patterns, the status of employment, education, and lifestyle. Other factors are the growth of the population rate, emigration and immigration rates, life expectancy rate, and minorities.
- Economics: The competitive environment and economic prosperity in various countries determine the digital marketing potentiality of an organization. The economy of a particular area can give you an idea about the budget required to launch a new product or to set up a new factory. The Economic factors for DEEPLIST analysis include taxation, interest and exchange rates, monetary policies, fiscal policies, growth and inflation rates, labor costs and unemployment trends, credit availability, and fluctuations of the prices. Flow and pattern of the trade, trends of stock markets, climate and weather change are other vital aspects that are included in this analysis.
- Environment: Recently environmental issues are vigorously reflected in the business practices and market positions. Many organizations have to embed corporate and social responsibilities policies (CSR) to avoid paying any fines to the authorities. This factor determines what can be done or not in a sector. Questions like what is the insight of the environment in the industry? What is the attitude of the customers towards green products? The environmental elements that are included in the analysis are weather and climate change, water and air pollution, environmental pollution laws, recycling, and waste management, energy consumption, and spatial allocation of the population.
- Political: Public opinion, government agencies, professional organizations, and consumer pressure groups together form the regulatory and political influences. The political environment in the regions where the company will be operating can hinder or help in the operations. Political factors for DEEPLIST analysis include the stability of the government, bureaucracy and corruption level, tax policies, press freedom, regulation and deregulation of the trade control, restrictions on the import, competition regulation, tariffs, and involvement of the government. Other aspects of political influence are environment and education law, anti-trust and discrimination law, copyrights and patent laws, employment and data protection law, health and safety law, and laws for regulating environmental pollution.
- Legal: The legal way is another aspect that can change the way the firm performs by abiding all the court rulings and laws of the country. These are the limits and constraints on what an organization can or cannot do. Legal elements for DEPLIST analysis are laws and restrictions, advertisement controls and standards, taxation laws, antitrust and discrimination law, copyright and property law, eCommerce and consumer protection, employment law, health and safety law, and data protection.
- Information: Information deals with the availability of the company or consumer data, access to the information, the way it should be used, and control of the data. It also involves the protection of the data from cyber-attacks.
- Social: Social priorities of an organization focus on the quality of life, needs of the targeted communities, social exclusion extents, individual levels of perceptions and trusts of the security, and social discrimination. It also involves the recent trends that make people buy or reject the product or services. The social aspects that are included in the DEEPLIST analysis are health consciousness, education level, attitude towards work, retirement and career, leisure, services and goods, and saving and investing. Lifestyles, habits of buying, religion and beliefs, immigration and emigration rates, distribution of sex, average disposable income, family size and structure, and minorities.
- Technology: The latest technology can change the way that an organization operates or the demand for a product. The change in technology, innovations, adoption rate and their results are also included in the technology section. The technological factors included in the DEEPLIST analysis are levels of infrastructure, technological change rate and incentives, research and development, technological legislations, communication infrastructure, internet penetration and infrastructure, and access to the updated technology.
Thus DEEPLIST analysis is good for the assessment of all the above-mentioned factors both from within and outside the organizations. The more factors are covered in this analysis, the more are the chances of accurate results of the strategic planning via this analysis.