Apple is the second largest and most profitable mobile phone company in the world and together with Samsung have dominated the smartphone market, accounting for over 62% of this market in the last few years. Despite recording breaking profits and sales, the last two years’ results have relied on the incredible performance of the IPhone range which saw sales increase by 12% and 52% in the 2013/14 and 2014/15 period respectively. Using PESTLE, SWOT, Apples BCG matrix and Porters Five Forces framework, the report will examine how Apple can take advantage of its strengths, and opportunities in the market created by a competitive mobile phone and tablet environment and faltering rivals like Samsung to benefit.
WM Morrisons is fourth largest supermarket group in Britain with annual turnover of £16.1 billion for the year ending 2016, a 4.1% decline from the previous year (Annual Report 2016). Such financial figures are reflective of the general health of WM Morrisons which has over the last 3-4 years been losing market share to low-cost rivals especially Aldi and Lidl. In an effort to turn around the ailing supermarket, new CEO David Potts embarked on a turnaround plan, an ambitious recovery plan which aims to fix, rebuild and grow the company as it continues to battle with the hard discounters and other low cost rivals. Using Pestle, and Swot Framework, we examine external and internal factors behind WM Morrison’s poor performance, such as the rise of hard discounters Aldi and Lidl, who have benefited from a significant rise in consumer frugal shopping habits since 2009. Both Aldi and Lidl have doubled their market share in five years, at the expense of the Big Four supermarkets including WM Morrisons.
2016 was a very challenging year for most British based banks but not for Lloyds Banking Group. A sustainable and responsible business model characterised by a very low risk appetite enabled Lloyds bank to ride the turbulent macro climate faced by other banks. While rivals such as Royal Bank of Scotland and Barclays continue to undergo mega restructurings and battle legacy conduct issues, Lloyds has relied on its simple low cost operating model to become currently the second largest banking group in the UK after HSBC.
With the UK government completing its divesture from bank on the 17th March 2017, Lloyds is no longer burdened with any conduct issues resulting from its involvement in the 2008 financial crisis. This has translated into strong financial performance. Nevertheless, given its UK focus, the banks performance is inextricably linked to the UK macro environment which was affected by factors such as Brexit, the low interest environment as well as a sluggish UK economy, among the key external macro factors that have impacted the operational environment of UK banks.
In the following report, we will identify the major drivers of change behind the banks external environment and banking industry in general to help us understand how Lloyds Banking Group can utilise internal core competencies so as to take advantage of macro environmental opportunities while neutralising inherent threats from the external environment.
Facebook Inc is an American online social media and social networking service company with over 2billion monthly users. The social media industry has been at the forefront of privacy and data safety throughout much of 2018.
Using Pestel, this report examines the various macro factors that are shaping the social networking industry and the growth of Facebook including data safety regulations, the Cambridge Analytica scandal, emergence of 5G network technology, and Beijing’s decision to block Facebook in China, all affecting the business environment of Facebook.
Some of these external factors such as the rise of 5G technologies are market opportunities while others like the Cambridge Analytica scandal are threats. For Facebook, the key is in identifying key drivers of change that are market opportunities while mitigating against those that present a serious threat to its business model as revealed in this Facebook external environment analysis.
By September 2018, Trump had imposed more than $250billion worth of tariffs on Chinese exports to America (or 50% of total exports to the US in 2017) with the threat of a further $267billion worth of tariffs in the near future. If implemented, total tariffs would cover 100% of all Chinese exports to America, which would put macroeconomic pressures on Chinese export-led firms such as Alibaba. Alibaba, in fact, had to cancel the creation of 1million US jobs by 2020 as a result of the tariffs, consequently shifting its revenue strategy to focus on the domestic economy and become less reliant on exports. After all, Alibaba generates approximately 80% of all online sales in China.
The consequences of Trump's tariffs on Chinese firms like Alibaba demonstrates perfectly how external actions, from political forces, in this case, can become emergent threats for firms. As will be demonstrated in this report using Alibaba pestle analysis, changes in the macro environment can present opportunities for expansion and market growth but they can also be fatal for organizations. A Swot analysis of Alibaba will tell you more clearly how Alibaba can take advantage of new opportunities in its domestic market such as the rising Chinese middle class, to mitigate against emergent threats such as Trumps Tariffs.
Amazon is the worlds leading retailer after surpassing Walmart. Amazon’s subsidiary in the UK was ranked the top retailer in 2016. The tremendous success of Amazon is not accidental, which means that the business organisation has taken deliberate efforts to leverage the internal strengths and environmental opportunities, while mitigating the effects of internal weaknesses and environmental threats. Using PESTLE, and SWOT, the report will examine how Amazon Inc. UK can take advantage of its core strengths in digital innovation, and seize on opportunities in the current global market created by a competitive retailing environment as well as faltering rivals to benefit even further despite pending threats including Brexit.
In 2015, Xiaomi was the biggest smartphone maker in China ahead of household names including Apple, Samsung and local rivals such as Huawei. A year later in 2016, its valuation stood at $45bn, a massive achievement for an upstart technology firm launched in 2010, the same year Apple released the IPhone 4. But fast forward to 2017, Xiamo had fallen from 1st all the way to 5th rank in the Chinese smartphone market alone, behind Chinese rivals Huawei, BBK (which offers the Oppo and Vivo brands) as well as Apple and Samsung. Its valuation has fallen drastically to just $4bn in 2017, from $41bn less in just one year. From being the bestselling smartphone brand in China to fifth. What happened to Xiaomi?
As will be looked at shortly using Pestel and Swot, many factors both macro and micro have contributed to Xiaomi’s fall from grace. While some are internal weaknesses due to poor strategic decisions, certain macro threats haven’t favoured the Chinese smartphone maker.
Samsung electronics is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market is a prominent oligopoly with both high-end and low-end players. Samsung being a high-end market player faces intense competition from Apple and low-end players like Huawei, Xiaomi who are affecting its market share. In 2017, Samsung had a global smartphone shipment market share of 21.6% with major competitors Apple and Huawei having 14.7% and 10.4% respectively (Statista 2018f). Various external factors affect the growth of Samsung and by using a pestle analysis, we realize how the political factors like the 3% increase in corporate taxes in South Korea threatens its profits, how high economic growth in US affects Samsung and how the Chinas growing population of the elderly and the middle class affects its profit margins. In addition, we look at how developments in technology can favor further growth of Samsung. Using swot analysis, we identify Samsung’s major strengths that can be deployed and weaknesses that can be improved upon to deliver products that meet consumer demand.
In 2016, over 8,349 EasyJet flights were either cancelled, or delayed over three hours or diverted due to severe disruption by external macro factors such as strikes, severe weather, terrorist attacks, and other airport issues. The total impact of these external events on profit was estimated at £150million (Annual Report 2016). PESTLE is used in strategy to analyse the macro environment and identify how external events in the political, economic, social, technological, environmental and legal environments might impact individual organisations within an industry. Managers use the PESTLE tool as an aid when studying key drivers of change in the external environment. These key drivers of change constitute opportunities and threats for firms and PESTLE helps identify them overcome. However, PESTLE is only a starting point since other frameworks such as SWOT and Porters Five Forces have to be used in conjunction to help firms like EasyJet utilise internal core competencies (strengths) so as to take advantage of opportunities while neutralising threats in its industry.
Founded in 2009, Uber has become the biggest and most successful taxi and ride sharing company in the world, and in 2018 commanded around 73% of the US market share, its biggest market. The ride sharing firm together with rivals has the potential to disrupt a potential $650+ billion global market for human and non-human mobility that includes taxi cab hailing, car-as-a-service, last mile package delivery, or short-term car rentals (Kulkarni 2017). Despite its success, all is not well with Uber recently. Uber CEO was forced to resign in 2017 following the DeleteUber campaign that resulted in a loss of more than 500,000 customers and market share decline across numerous US states (Statista 2018c). Using a SWOT analysis sample, this report analyses Ubers strength and weaknesses.