Marketing & Competitive Intelligence FAQ SWOT & PEST analysis
ParknShop
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Response:
In lecture three, we mainly learnt SWOT and
PEST analysis. These two analyses can be applied to all business and they are
used very frequently. They are very useful for business in planning. They are
always used together in business so that companies can know both internal and
external environment deeply. Usually, when a company wants to produce a new
product or starts a new project, it would use these two analyses.
Explanation
of SWOT and PEST analysis:
Strengths: The characteristics of the
company or the business that take an advantage over other companies. E.g. The Company
can produce a good with same quality using less resource.
Weaknesses:
The disadvantage or limitation of the company or business. E.g. A
company cannot produce a good in lower cost than others.
Strengths and weaknesses are about the
internal environment of a company.
Opportunities: Trend or chances faced by the company for
profits and growth. E.g. Provide wifi service in the shop to attract more
customers.
Threats: External factors which are bad for
the company. E.g. Increase in tax.
Opportunities and threats are about the
external environment of a company.
PEST:
PEST describes the external
macro-environment factors which affect the company.
P-Political: Factors which are about how
the government influences the economy, including tax policy, trade law, tariffs
and labour law.
E-Economic:
Factors which are about the economic cycle, the growth or the decline of the
economy. Also, the interest rates, inflation rate and exchange rates which
affect the overall economy of society.
S-Social: The
cultural factors such as the population growth rate, career attitudes and age
distribution.
T-Technological:
The technological factors like the new technological invention or technological
change.
Case
Study:
PEST analysis for ParknShop:
Economic:
Social:
Technological:
SWOT
analysis for ParknShop
- ParknShop has very good brand name
- Have high bargaining power with suppliers
- Can get the supplies of goods at low price
- Have a large market size
Weaknesses:
- Too many employees so that it is difficult in management
- Too many product à cannot always sell the product in lowest
price compare with other competitors (cannot observe the price of all the
product from different competitors)
Opportunities:
- Can cooperate with other company to develop its own product
- There are more product including both low and high price productà attract more customers
- Provide online shopping à more convenient
- Some larger branch can sell fresh fish, pork and beef
Threats:
- There are other huge competitors such as wellcome and China Resource
Vanguard.
- Some small stores sell some product at lower prices.
Conclusion:
In lecture three, we mainly learnt SWOT and
PEST analysis. These two analyses can be applied to all business and they are
used very frequently. They are very useful for business in planning. They are
always used together in business so that companies can know both internal and
external environment deeply. Usually, when a company wants to produce a new
product or starts a new project, it would use these two analyses.
Explanation
of SWOT and PEST analysis:
SWOT:
Strengths: The characteristics of the
company or the business that take an advantage over other companies. E.g. The Company
can produce a good with same quality using less resource.
Weaknesses:
The disadvantage or limitation of the company or business. E.g. A
company cannot produce a good in lower cost than others.
Strengths and weaknesses are about the
internal environment of a company.
Opportunities: Trend or chances faced by the company for
profits and growth. E.g. Provide wifi service in the shop to attract more
customers.
Threats: External factors which are bad for
the company. E.g. Increase in tax.
Opportunities and threats are about the
external environment of a company.
PEST:
PEST describes the external
macro-environment factors which affect the company.
P-Political: Factors which are about how
the government influences the economy, including tax policy, trade law, tariffs
and labour law.
E-Economic:
Factors which are about the economic cycle, the growth or the decline of the
economy. Also, the interest rates, inflation rate and exchange rates which
affect the overall economy of society.
S-Social: The
cultural factors such as the population growth rate, career attitudes and age
distribution.
T-Technological:
The technological factors like the new technological invention or technological
change.
Case
Study:
ParknShop
It is one of the largest supermarkets in
Hong Kong. There are more than 260 outlets in Hong Kong.
PEST analysis for ParknShop:
Political:
Recently,
government set a minimum wage, it increase the production cost of ParknShop.
Economic:
The
overall economy in Hong Kong is fine. People would like to spend more. However,
due to the rapid increase in inflation rate, the price of the product
increases, and this may lower the demand for the goods and affect the revenue
of ParknShop.
Social:
In Hong
Kong, housewives are usually responsible to buy the daily accessories. They
have no jobs and they can go to different supermarkets or stores to compare the
price of the product. The price of the product should keep at the level of
others. Besides, nowadays working class like going to supermarket after work,
so ParknShop should concern these customers. For example, assign more cashiers
at the peak hours to shorter their waiting time.
Technological:
The new
technology, the new system allows ParknShop to collect data from customers so
that it can know more about the favor of the customers.
The
newly cashdrawer enable the cashiers to do the work more quickly and shorter
the time of purchasing of the customers.
SWOT
analysis for ParknShop
Strengths:
- ParknShop has very good brand name
- Have high bargaining power with suppliers
- Can get the supplies of goods at low price
- Have a large market size
Weaknesses:
- Too many employees so that it is difficult in management
- Too many product à cannot always sell the product in lowest price compare with other competitors (cannot observe the price of all the product from different competitors)
Opportunities:
- Can cooperate with other company to develop its own product
- There are more product including both low and high price productà attract more customers
- Provide online shopping à more convenient
- Some larger branch can sell fresh fish, pork and beef
Threats:
- There are other huge competitors such as wellcome and China Resource Vanguard.
- Some small stores sell some product at lower prices.
Conclusion:
SWOT and
PEST analyses are good tools for companies to understand the internal and
external environment. They are used especially before starting a new project or
a new business. Usually, PEST analysis is applied first and followed by the
SWOT analysis. With the help of these two analyses, companies can have better
plans and use different strategies in different situations.
- attractive layout design and good to illustrate SWOT and PEST with example
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Mark: Average