The macro environment that surrounds the UK supermarket industry is made up of numerous factors that influence nearly all the players in the industry. In this Pestel and Swot case study, we will decipher how various political, economic, social, technological, legal and environmental factors, in form of positive and negative trends have affected the supermarket industry in the UK. A pestle analysis of Tesco in 2022 explores the impact of different factors like Brexit, falling post covid disposable income levels, new trade agreements, the rise of contactless technology as well as other legal and environmental factors. Critically, a macro environmental analysis will reveal the inherent opportunities as well as underlying threats facing Tesco and other supermarket multiples in the United Kingdom.
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Ryanair is the Europe’s largest airline, the largest low cost carrier and also one of the world’s largest airlines globally in terms of passenger numbers carried. It currently operates in a very competitive and challenging environment, worsened by the COVID 19 impact on travel in general. Despite the loosening of travel restrictions and lockdowns after a successful rollout of vaccines, the industry is not likely to get back to its normal levels any time soon as new variants keep coming up and the fear of travel and infection impacts consumer decisions making. Moreso, consumer confidence remains subdued by growing unemployment, looming recessionary fears and the continued uncertainty surrounding COVID 19.
Further, it should be noted that the airline industry was already overcrowded pre-covid 19 with major players competing on price, a fact that has pushed profitability to their lowest levels. This is a situation that is likely to worsen in the near term as supply exceeds demand, in fact, smaller airlines are likely to continue collapsing while major players consolidate to gain market shares.
Using SWOT analysis, this report examines why even though covid-19 decimated travel and poor customer service remains a weakness for Ryanair, the lasting legacy of covid-19 on travel habits, in line with a continued shift to staycations will play a key role in shaping the domestic travel battlefield, benefiting Ryanair and other low cost airlines.
Nike (NKE) is the largest seller of athletic footwear and apparel in the world, ahead of Adidas, Puma and Under Armour. Its business is focused on product design and development, marketing and sales. Key product categories are running, basketball, the Jordan Brand, soccer, training and sportswear. Nike has more than 1,150 retail stores in the United States and internationally, and employs approximately 76,700 workers worldwide. In 2021, Nike's global revenue amounted to about $44.54billion U.S. dollars., up from $37.4 billion in 2020 (Statista 2020c).
In the following strategic analysis report, the author undertook a pestle analysis and Swot analysis of Nike, assessing how numerous external macro factors such as a ban of China cotton products, a post covid shrinking economy globally, low consumer confidence, advancements in wearable technology and changing consumer habits have impacted Nike. PESTLE is used to identify key drivers of change and how they have affected Nike and competitors. This is followed by a Nike SWOT analysis assessing how Nike can use its internal strengths to take advantage of external opportunities, while mitigating internal weaknesses and arising threats.
The year 2020 wasnt a good year for Xiaomi. The US Department of Defence added Xiaomi to a list of Chinese companies that are not allowed to receive any American investment and are to be faced with tough restrictions to their businesses. The US accuses the companies of having ties to the Chinese military and/or being Communist Chinese Military companies. Xiaomi also faces intense competition from both high-end smartphone manufacturers like Apple and Samsung who unlike Xiaomi, charge premium prices but have managed to command a large market share due to their quality and strong brand names. It also faces intense competition from its fellow low price smartphone category competitors like Huawei, Vivo and Oppo who have achieved dominance in markets like China. Infact, Oppo rose for the first time in January 2021 to become the leading smartphone in China with a market share of 21%, followed closely by Vivo with 20% while Xiaomi, Apple and Huawei ranked third each with 16%.
In this comprehensive strategy analysis, we analyse Xiaomi's external and internal business environment using Pestle and Swot in order to understand the existing and future trends in the smartphone industry and their effect on Xiaomi, that is to say, whether they present opportunities that can be harnessed or threats that need to be mitigated.
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.
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.
In 2000 U.S. coffee chain Starbucks launched in Australia in the context of the global expansion. Besides its efforts in 2008 Starbucks suddenly closed 61 stores to the tune of a reported $143 million loss. In 2014 they handed over the remaining 24 shops to the Withers Group, which operates the 7-11 chain in Australia. They are currently examining the relaunch of Starbucks in Australia and they have hired you as a consultant to proceed with the relevant analysis.
In this context you need to conduct a detailed SWOT analysis for Starbucks in Australia.
