Situational Analysis : Bentley Motors

Essay by shabby2002College, UndergraduateB+, March 2004

download word file, 3 pages 3.9 1 reviews

Bentley Motors provide a range of high quality branded goods designed to appeal to Bentley enthusiasts, all across the world, from trackside supporters to owners of new or classic Bentleys.

Bentley Motors is affected by the External (Macro and Micro) Environment.

These are the six External Macro factors that affect Bentley Motors:


Demography is the statistical study of human population and its distribution. People who have similar demographic characteristics (such as age, geographic location, or income level) often share other relevant characteristics, creating a potential market for a particular product or service.

Baby boomers are people born between 1946 and 1966. They are now passing through their middle years (late 30s to 50s), bringing changes in middle-aged values, tastes and concerns - indulging in well earned vacations and luxury cars instead of family minivans. These people are likely the ones to buy Bentley cars because they will inherit more wealth from aging parents than any other group.

Seniors, who are people aged 65 and older, have the lowest level of wealth and mostly focus on affordable retirement services and products, so they do not affect Bentley's marketing environment.


People must have money to spend and willing to spend it. A marketing system is affected especially by such considerations as the current stage of business cycle, inflation and interest rates.

Inflation occurs when price levels rise at a faster rate than personal income, so that there is a decline in consumer buying power. At the same time consumers may overspend today for fear that prices will be higher tomorrow.

When interest rates are high, consumers tend to hold back on long-term and large purchases such as housing and vehicles, so this may affect Bentley badly since it is expensive to borrow money.


In the global markets, competition encourages Bentley to rapidly produce different products with latest technology, and high levels of comfort and luxury to meet the needs of business owners and entrepreneurs across the world.


Social and cultural forces, such as lifestyles, social values and beliefs continue to change much more rapidly than in the past. Today, quality of life is a major focus for many people, including the demand for more quality goods and services. Therefore Bentley provides people with high quality products.

In many countries women are not allowed to drive cars (e.g. Saudi Arabia) so this may affect Bentley's sales as many rich women business owners are not able to buy Bentley's cars, even if they want to.


Failing to remain innovative and keep pace with technological advancements in its product category, may threaten Bentley's ability to remain competitive.

As technology is increasing more technologically advanced cars are being made, for example, talking cars. If Bentley does not meet up with the 21st century's wants and needs, it my easily be kicked out of the market.


The level of government spending, the money supply and tax legislation may affect both Bentley and its consumers.

Bentley may be affected by government agency codes and policies, for example, by being continually under pressure to reduce unsolicited mail and the waste involved by producing unwanted flyers.

These are the four External Micro factors that affect Bentley Motors:


These are people who supply raw materials, such as steel, leather, glass, etc. used in the making of the car, to the marketing intermediaries.

Bentley has full control as to who it may buy these raw materials from.


These may be either wholesalers or retailers, who have ownership of the materials used to build the car or facilitators, who just ship materials from one place to another.

These wholesalers and retailers or facilitators supply to Bentley and Bentley can decide to buy its materials from another company whenever it wants.


These may be either wholesalers or retailers, who have ownership of the cars produced by Bentley (Middle East Traders in Qatar), or facilitators, who just ship the cars from Bentley factories to wholesalers and retailers.

Bentley supplies its cars to these wholesalers and retailers and can decide to stop supplying to them whenever it wants.


These are customers who will buy Bentley's cars. Heads of State, business owners, successful sportsmen and women, top entertainers and entrepreneurs all share a passion for the unmistakable driving and owning experience that Bentley gives.

These are people who have the purchasing power and people with the need to have a Bentley car for high class and status.