Strategic Analysis Uk Retail Industry Essay

2454 Words Nov 3rd, 2012 10 Pages
Strategic Management

Analyse Home Retail industry using PESTEL, scenarios, 5 forces and strategic groups.

October 11 of 2012
London, UK
Introduction
Retail stores, are one of the biggest and largest businesses around the world. They produce thousands of hundreds in revenues and they are some of the biggest employers industries. WALL-MART, IKEA, TESCO, ARGOS, MACYS, WALLGREENS and OFICCE DEPOT are some of the well-known retail stores that supply us every day with different kind of goods and services. For a better understanding, one of the main definitions of retail is: “...store commonly a shop or stall for the retail sale of commodities, but also a place where wholesale supplies are kept, exhibited, or sold…” What this means
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This happens just with one click and the costumer can pick up an item at any branch on his way or send it directly to his home.

* Environmental factors

With the global warming problem and the over contamination in cities, industries have to pay more attention to their ways of producing products due to the increase of CO2 emissions. In addition, companies need to be aware of the amount of resources used day-by-day in their “in side” operations such as the excess of paper and garbage recycle.

* Legal factors

VAT, (value added tax) in the UK is one of the highest in the world. It´s around 17,5% and in most retail shops it must be included in the value shown to the costumer. This is one of the main reasons why products are more expensive and affect costumer purchases. On the contrary, labor laws are very strict with companies in the UK what makes them reduce the employment due to high rates. As a consequence, companies prefer to hire low-skilled people that have some experience, as it is cheaper, than giving the opportunity to high-skilled and inexperienced people.
With out a thought, the home retail industry must be aware in its massive production because somehow, those new products they sell, will get damaged or become old and useless increasing the amount of garbage and wastes. Each day, people are becoming aware of this and like companies that are socially and environmentally

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