THE IMPORTANCE OF ENVIRONMENTAL SCANNING: LOOKING AT EMERGING MARKETS AND FORMING STRATEGIC MANAGEMENT PLANS
Industries involved directly with consumers that buy products or services are expected to increase in Africa by a whopping $400 billion, by year end 2020. The rise of the African consumer, according to McKinsey’s Africa Consumer Insight Center, can be measured by three main ideas: African optimism, an intense increase in internet use among urban Africans, African desire and demand for quality products and services, as well as brand awareness. This is vital information for consumer-facing industries but how do these companies, seeking a return from investing in the African market, put a plan in to action to get that desired return on their investments?
It is clear in this article that environmental scanning is a key component of putting together the right strategic management process. Africa is an untapped market which does not currently have a lot of consumer behavior data. Environmental scanning is a process that helps to collect this data and it involves several important phases which mainly include the gathering of vital information within the environment an organization desires to operate. The information to be gathered can include demographics, economics, governmental and legal data as well as information about competitors within that market. This data can then be used to plan the appropriate company strategies that will determine both short-term and long-term objectives as well as new policies that will continue to give the company a competitive advantage with in that market.
With in this report the McKinsey African Consumer Insight Center explores the newly emerged buying power of the African consumer. With over 2,000 dialects and languages across the 53 African countries, it is important for a consumer-facing business to focus on how to serve the African consumer. With an increase in disposable income, a surge in digital access and use, the African consumer is rapidly acquiring a desire for modern and sophisticated brands as well as top quality. Based on the research done by the McKinsey Center, more than 50 percent of urban African reported to have accessed