MAJOR MARKET PRESSURES 1.Slower Market Growth 2.Growing Domestic and Foreign Competition 3.Growing Product Proliferation 4.Decreasing Perceived Product Differentiation 5.Shortening Product Life Cycle

MAJOR MARKET PRESSURES 6.Increased niche attacks by competitors 7.Rising customer sophistication and price sensitivity 8.Strong downward price pressures

MAJOR MARKET PRESSURES 9.Rising promotion costs and diminishing promotion effectiveness 10.Rising sales force costs

MAJOR MARKET PRESSURES 11.Rapidly changing distribution patterns and growing retail power 12.Shorter lived competitive advantages 13.Pressures from various stakeholders

MAJOR MARKET PRESSURES 14.National Government and international regulations 15.Activists 16.Rising importance and impact of social networks

MAJOR TRENDS: CUSTOMER Increased market fragmentation and polarization Increased customer information and sophistication Increased service expectations Increased time pressure Decreased customer loyalty More online shopping More global shopping for goods Growing acceptance of reseller brands Expectations and requirements about CSR

ATTENTION Profitability will determine who will survive Technology will determine who will compete Quality will determine who will grow People will determine who will win