The first example is the findings which helped devised a business strategy for the telecommunications sector. Threat of new entrants: It was found by Sutherland (2014) that the telecommunications market tends to be a monopoly or oligopoly due to the requirements of large investments and economies of scale. There are also the requirements of legal documents such as licences which can create a barrier to entry. Bargaining powers of suppliers: Sutherland (2014) notes that, the suppliers (Governments) offer monetary aid and funding in an effort to help develop new technology in this sector. Threat of substitute products or services: According to Sutherland (2014), there have been many attempts to find a substitute for the high costs of mobile networks.
The wide variety of products available in the market confuses the customers. It is the work of the company to take this as a challenge and prove its worth by satiating the customers with its products, leaving them with the choice of selecting their products only. Task 1 PESTEL Analysis The PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors.
PEST Analysis is a tool that helps to analyse the environment and constraints that are placed on developing and implementing an e-business strategy from outside the business. It is an acronym for Political Economical Social and Technological factors. 2.2.1 Political The major political factors affecting H&M are restrictions on imports and exports and relocation of production facilities since the company has chain stores in different countries. There is also a restriction on shipment of goods which is a concern for H&M. Relocation of manufacturing and outsourcing continues to be a contentious issue as companies seeks to maintain profit margins and reduce costs as well as receive incentives to locate production in specific areas.
4. Rivalry forces among existing firms (Moderate to High pressure) Brand loyalty is another factor that influenced the rivalry force among existing competitor. Consumer loyalty towards Google is high which means Google have high brand recognition in this industry. Therefore, that is not an easy task for a new entrance to compete with Google. Thus, Google must constantly bring the issues of brand image awareness into their consideration when generating their business strategies.
If the market is stable, governments help businesses and so these businesses advertise more on Google, hence benefitting Google. In addition, most of the governments do not have identified laws for online information sharing, thus, giving Google the opportunity to manipulate laws. However, China has created a barrier for Google by adding regulations that forbid Google from operating on their terms. For example, according to Essays (2013), "Chinese Government launched a surveillance system called Golden Shield for monitoring civilian use of Internet." On a positive note, most of the political factors affect Google negligibly.
Negative effects of Social Media The spread of social media has changed the way most people live every day. Although social media has some positive impacts for some people, but sometimes the excessive use of positive effects reverse to negative ones. The people who use its capabilities, it has changed everything starting from the way they organize their time, to where they are going to eat lunch next time. I contend that social media, while having real negative effects, have several positive influences on university students and will be thought of like a helpful resource. First, one of the most important arguments that social media has negative impacts on university students is that it raises their distractibility in general.
PEST analysis is a model that uses environmental scanning to analyze the four factors, such as political, economic, social-cultural and technological. PEST analysis is a part of external analysis when making market research, giving the company an overview of the different factors in the overall environment. This strategy tool can also effectively understand the growth or decline of the market, the business situation, potential and operational direction. Political factor include government type and stability, freedom of press, rule of law, Bureaucracy, Corruption, environmental controls, trade restrictions, tariffs and likely political change. Economic factors include business cycle stage, economic growth, interest rates, exchange rates and
Normally interest rate is high in an economy. It will be control the inflation but other hand it has a negative impact on economy by slowing down the economy activates. Interest rate is most important factor for government and financial institutions to get more information about variables that can affect interest rate to fluctuate. Normally interest rate mean everything stated by state bank of Pakistan (SBP) funds rate to any of treasury bill yield to ten years fixed deposit
Inc. This has even proved to be a great motivator for them as they feel more planted and secured now and they know they can succeed further in their work as they have new sets of skills now. Google. Inc bears all the costs of education its employees gain. This motivates them to keep learning without having to worry about their financial status.