Case Study Jessop Essay

1101 Words Jun 16th, 2013 5 Pages
MERCADOTECNIA GLOBAL

1. Why might an organization wish to carry out a PEST analysis? What are the four key components of a PEST analysis? How does a PEST analysis help to provide a picture of the challenges facing Jessops?
The company uses a PEST analysis to see which Political, Economic, Social and Technological factors are changing in the market. There are the four key components of a PEST analysis.
Political factors
Economic factors
Social factors
Technological factors
PEST analysis helps to analyses Challenges to Jessops. These are;
1. Political factors: These include;
Government environmental initiatives, e.g. Reducing waste to landfill, Increasing recycling.
Legislation, e.g. Safe disposal of electronic goods (WEEE
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This means they are less likely to purchase luxury goods. During the recession, Jessops’ sales margins on hardware were falling year on year. Fortunately, the margins on services such as photo and imaging remained stable. In the photographic and imaging market Jessops is facing increased competition. Online competitors include Amazon and online photo printing companies. Jessops also faces competition from supermarkets. Although supermarkets do not have Jessops’ reputation and expertise, they are able to offer low prices.

3. Formulate a strategy for Jessops that will enable the company to respond to changes in the environment in which it operates? What new products and services should it be seeking to develop in order to respond to changes in its environment?
Jessops should formulate these strategies;
Businesses must comply with all relevant laws. Recycling is one current issue. The UK government promotes recycling of electrical goods through regulations. Jessops should not only supports these, but goes further by supporting a national fund to help local councils provide collection facilities. Customers can also recycle batteries in its stores.
To improve its overall profits it should focus on the service side of the business. Another key economic factor is the level of competition. For example, photo prints can now be bought online. Jessops should respond by offering a multi-channel strategy. This involves offering customers

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