Case Study Jessop
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 regulations)
2. Economic factors: These include;
Rising unemployment and less disposable income (Consumers less likely to purchase luxury goods )
Pressure on profit margins to remain competitive
Increasing competition from online services and supermarkets
3. Social factors: These include;
Consumer’s rapidly changing tastes and needs.
Younger consumers prefer digital or online services
All wanting faster responses
Development of products for niche markets, e.g. Student portfolios, business cards, personalized calendars
4. Technological factors: These include; High-spec digital cameras more affordable which means Everyone can take and edit high-quality photos. Use of social media enables image sharing resulting in Less demand for print copies.
Bigger pixel cameras on mobile phones affecting sales of standalone digital cameras.
2. What has been happening to margins at Jessops? How have these margins been affected by changes in the economy, and by changes in competition in recent years?
Changes in the wider economy impact on businesses. In 2008–09, the UK economy went into recession. This had a negative impact on the retail industry. During this period unemployment was rising. Even people in work felt the
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 regulations)
2. Economic factors: These include;
Rising unemployment and less disposable income (Consumers less likely to purchase luxury goods )
Pressure on profit margins to remain competitive
Increasing competition from online services and supermarkets
3. Social factors: These include;
Consumer’s rapidly changing tastes and needs.
Younger consumers prefer digital or online services
All wanting faster responses
Development of products for niche markets, e.g. Student portfolios, business cards, personalized calendars
4. Technological factors: These include; High-spec digital cameras more affordable which means Everyone can take and edit high-quality photos. Use of social media enables image sharing resulting in Less demand for print copies.
Bigger pixel cameras on mobile phones affecting sales of standalone digital cameras.
2. What has been happening to margins at Jessops? How have these margins been affected by changes in the economy, and by changes in competition in recent years?
Changes in the wider economy impact on businesses. In 2008–09, the UK economy went into recession. This had a negative impact on the retail industry. During this period unemployment was rising. Even people in work felt the