Pest Analysis, Pestle Analysis Factors, Marketing Help

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PESTLE Analysis: PESTLE Analysis stands for political, economic, social, technological, legal and environmental factors which describe the factors of macro environmental factors which are very much popular in INDIA.

Political environment: The climate changes seriously have created a lot of problem to the people. There was lots of pollution due to carbon trading etc. in a city which created a huge problem. There were new power plant construction in the city which define the energy is getting waste.

Economic factors: These include tax rates, interest rates, inflation and exchange rates, economic growth and inflation etc. The wealth of people is high in INDIA. It is a market place where big multi nationals hold a larger market share with high turnover rate. The Industry is very competitive and presents very high barriers of entry (economies of scale, access to supply and distribution channels) at a national level, which are exacerbated by the presence of many multinationals operating in INDIA.

In a wider competitive context, “living out” competes with the whole Leisure sector (holidays, clothes) to grab the largest share of consumer’s expenditure.

Social factors:

The social factor includes living and working conditions, income level, and educational background which have powerful effect on health. There are big gaps in life expectancy and disease rates between rich and poor, the well and poorly educated and professionals. There is no adverse culture on the way business is conducted.

Technological factors: Technologies used here are quite old and need to be replaced in the new ones in the technology market. Technology have always reduced the energy of the manpower and also reduced the manpower. It is a boon to mankind and helpful in achieving the goals of the business. Internets have successfully become very much useful in solving the queries of the customer and maintaining the business in a proper order.

Environmental factors: Environment is having an impact on many industries such as hospitality, real estate, travel and tourism, etc. To protect the environment is very much necessary because it helps in moving towards the goal in a happy mood. Environmental factors affect the business because in case of rain and cloud most people don’t want to go out from home and students also bunk their classes which will affect our business.

Legal factors: “These are related to the legal environment in which firms operate. In recent years in the INDIA there have been many significant legal changes that have affected firms' behavior. ” This also includes health and laws of safety and there should be no age discrimination law which could affect the business.

Porter’s five forces analysis:

Competitive rivalry within an industry: Competitive rivalry basically denotes the competitiveness of an industry which determines the competition of an industry, the competition strategy that has been applied to an industry which is powerful and with advertising expenses. Competition is measured on the basis of customer service, design quality, good word of mouth, reputation and goodwill of the business and in our interior design company business, top ten interior design companies that are very famous in Delhi follow the good marketing strategy. We have found this from internet which is a secondary source research where we measure the competition on the basis of customer satisfaction, design quality and needs of the customer. It is also measured on the basis of price, quality innovation and creativity. The new technologies and the new strategy which follow in the business are very much measurable in terms of profit and goals.

Bargaining power of customer: Bargaining power of customer is not so high as it is a premium side of the cup and it is not so competitive because if a customer have came for having a design he or she will definitely have a goods and not argue for prices with the manager or servant of the interior design company because they came to a interior design company which is a first preference. If they will get a good output by getting full satisfaction they will not bargain with the people unnecessarily for the information provided to them.

Bargaining power of Supplier: Bargaining power of supplier is determined on the basis of input of market and suppliers available for that certain product which is available in the market which is very high because daily products get bargained from the supplier. If we buy one furniture of 20000Rs. then the supplier will not think even to bargain but if we purchase furniture’s and items daily from the same supplier in high quantity then surely the bargaining power will exist in the market and the preferences always matters lot.

The threat of the entry of new competitors: If the business is on high profit margins it will attract new industry and new firms. New entrants possible on the basis of customer requirements and their preferences.

Threat of substitute product or services: Threat of substitute product or services is not so high in Interior Design Company because it is purely based on the taste and choice preferences. There are n numbers of substitute products available in the items of design part but the first preferences which are given to choice and quality. If both the things are available then there is no mean of getting into another interior design company.