Launched in 2008, Airbnb has through the years grown from strength to strength to become the most recognised brand in the online home sharing industry. As of today, the company is, one of the largest privately owned companies with about $75 billion value by the end of 2020. Despite its fast growth, the company continues to experience a number of challenges, with the most notable one being the challenging regulatory environment. The business model has become vulnerable to strict regulations at the local, state and country level. In fact, some locations have considered the business model illegal and put in place regulations and laws banning it. According to the findings, the challenging regulatory environment coupled with the COVID19 impact on the general economy, consumer confidence and growing unemployment among others pose a major threat to the company’s biggest asset, its scale.
Using a pestle analysis, this report firstly examines the macro external environment of Airbnb and how various external factors have/ are likely to impact its growth potential and performance. A swot analysis identifies Airbnb’s internal strengths, plus its weaknesses before examining strategies Airbnb can use to exploit emerging opportunities to leverage available opportunities while mitigating arising threats.
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After facing multiple bans in some of its most critical markets in the West such as the United States, and UK, Huawei has also been contending with total bans in markets from other core Asian markets including Taiwan, Japan, Australia, New Zealand etc. Many of the western countries mentioned have security concerns about China and the possibility that it could use it’s 5G network equipment to spy on other countries. Such bans have posed grave obstacles to Huawei’s production capacity so much that even with the technology giant developing its own operating system, finding good quality and original components will still be challenging. In addition, Huawei has lost market share of the 5G network in crucial European markets including the core UK market, leaving alternative suppliers like Nokia and Ericsson to quickly jump in to claim it. This is an example of political factors from the external business environment that can severely impact the operations of a business.
Using key strategic frameworks including PESTLE, and SWOT, the report will identify the major drivers of change behind Huawei’s external global environment looking at the general trends and shifts driving the global mobile and telecommunications industry in general. This will help us understand not just how Huawei is being impacted by its external environment, but also how can it can utilise its brand competencies to help it take advantage of ever changing environmental opportunities while at the same time neutralising fatal threats that are continually threatening its very survival.
Incorporated in 2009, General Motors manufactures and sells cars, automobile parts and provides automobile finance solutions which include retail loans and lease lending. The company operates in several segments which include G.M North America, international operations, South America and GM financial company (Reuters 2018).General Motors manufactures and markets brands like Cadillac, Chevrolet and GMC among others in and outside North America as well as in its various subsidiaries like in Asia.
Using strategic frameworks including Pestel and Swot, this report looks at the current macro environment in the USA and globally to assess the trends driving GM’s markets and in the process reveal opportunities that GM can capitalize on as well as threats on the horizon. Using a swot analysis, the report further assesses GM’s current strengths that can be the building block for its global ambitions before concluding with recommendations.
In 2013, Xin Jinping launched one of the most transformative trade and development initiatives known as China’s Belt and Road Initiative (BRI). Compared to the Marshall Plan by the United States, the BRI is a generational opportunity that has led to a stampede for financing opportunities by local domestic Chinese banks as well as international banks. Bank of China is among the many State Owned Enterprises (SOEs) benefiting from the financing and internationalization opportunities under BRI.
Using Pestel and Swot analysis, this report examines such opportunities as well as threats faced by Bank of China in its external operating environment. Some of these threats include the growth of shadow banking in China as well as the challenges of banking one of the fastest ageing populations in the world.
Google has become the biggest search engine globally commanding 86.02% of the market followed by Bing, Yahoo and Baidu with 6.55%, 3.27% and 1.08% respectively as of 2018. The tech giant has created a near monopoly in the global search market commanding the biggest market share in UK, USA and across many European countries.
However, a macro environmental analysis of Google’s business environment using Pestel reveals several factors that may hinder future growth of the tech giant. One of the major political issues likely to further hinder Google is continued trade tensions between USA and China.
Using PESTLE, this report thus discusses how trade tensions between China and USA will impact the company. The report will also examines threats from economic, social, technological, legal and environmental issues while also identifying the available growth opportunities in Google’s business environment Using Google’s SWOT analysis, the report looks at the search giants key strengths and weaknesses and how it can use these strengths to mitigate threats and take advantage of arising external opportunities.
Zara is a Spanish fashion brand mainly dealing in the sell of clothes and accessories in many countries. Various macro factors affect the growth of Zara such as high Spain's fast-growing economic environment, increased consumer demand to shop online, among others and using a Pestle and swot analysis, we explain how these factors have affected the growth of Zara.
In February 2018, Li Shufu the CEO of Geely announced news that his company had increased its stake in Mercedes-Benz owner, Daimler to 9.69 percent, a strategic move aimed at giving Geely access to Daimler’s leading electro-mobility technology which included electric batteries. As part of a global ambition to become a dominant auto force all over the world, Geely already owns British supercar brand Lotus, Swedish car maker Volvo and has a 50 percent stake in Malaysian automaker Proton. In other words, Geely is making all the right moves yet the Chinese automaker has barely a presence in major markets such as the US. Can Geely become a dominant auto force that can threaten the Japanese and American auto giants in the short-run and how?
Using strategic frameworks including Pestel and Swot, this report looks at the current macro environment in both China and globally to assess the trends driving Geely’s markets and in the process reveal opportunities that Geely can capitalize on as well as threats on the horizon. Using a swot analysis, the report further assesses Geely’s current strengths that can be the building block for its global ambitions before concluding with recommendations.
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.
Apple is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market has become highly fragmented into high-end and low-end players. Apple being a high-end market player faces competition primarily from Samsung. In 2018, Apples share of the global smartphone industry had fallen to third, behind Huawei and leader Samsung. It is the first time Apple is not in the top 2 global smartphone firms in the world since 2011. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals.
Using a pestle analysis for Apple, this report examines how various external factors have impacted the growth potential and performance of Apple. The analysis includes the effect of US tax cuts, and how escalating US-China trade tensions are likely to affect its future revenues and performance.
In addition, the report looks at how developments in technology and demographics can favor further growth of Apple. Using Swot and BCG Matrix analysis, the report identifies Apple’s major strengths and weaknesses and strategies the Cupertino based tech giant can use to exploit emerging opportunities such as demand for smaller wearable devices, while mitigating threats and minimizing weaknesses.
Using Porters five forces, the report examines how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low cost rivals.
The UK food retailing industry is characterized by price wars, heavy discounting and increased merger and acquisition activity as seen in the recent merger of Tesco and wholesaler Bookers Group as well as the much anticipated merger of Sainsburys and Asda (Sainsdas). While a Brexit-led lull in consumer spending has played a part in creating this state of affairs for UK supermarkets especially the Big Four, it is Aldi and to a lesser extent Lidl, who have played a massive part in shaking up the UK food retailing industry. They are the only two food retailers in the UK who have been recording double digit growth rates since 2010, during a time when sales and market shares of the Big Four were in freefall. Since 2010, Aldi has increased its market share from 1.6% to 6.8% in 2018, taking it from the 11th largest grocer to now 5th and predicted to overtake Wm Morrisons. Using Pestle, Swot, BCG Matrix and Porters Five Forces analysis, this report examines the macro environment and industry structure of the UK food retailing industry to understand the forces and trends driving competition and how Aldi has been responding. While some trends such as UK consumers continuing to trade down favour it, others such as digitisation innovations and internal weaknesses including its limited product assortment, may hamper future growth in the UK and other key markets such as the US and Australia.
