Our company’s opportunities includes the following
- We are virtually the only group selling fashion accessories in the college; this will bring about less competition.
- We could expand or extend.
- Our local competitors could have poor or lower quality products than ours.
- We could seek better supplier deals.
- Our competitors may be slow to adopt new technologies.
- We could also change our consumers taste.
The treats against our company includes the following
- Competition is the biggest threat facing our young enterprise group, a company producing similar products as ours is Claire’s accessories in which they sell gift products, fashion accessories like ladies hand bags, head bands, jewelleries. Etc. this store is located at Romford market.
- Change in consumers taste, this may make consumers stop buying our products.
- Change or reduction in population of students
PESTEL analysis is used to scan the political, economic, social, technological environment within which the company operates in order to identify changes in trends. This might include change in fashion of students, new type of products and services, change in life style. Identifying PESTEL is a useful way of summarising the external environment in which our business operates.
Political factor affecting the young enterprise business
The government affects our business locally since we will not be exporting our products outside UK we would only be affected locally. We would need to collect local permission from local council if we are selling our products on the streets or market we would need to collect a license from the local council. Government policies, trading policies and regulatory bodies also affect our young enterprise company.
Economic factors, which affect our young enterprise group includes the following
- Level of interest rates, this might reduce peoples spending that is consumers would want to save more, this will make consumers purchase less of our products. It’s also an advantage if we borrow money from the bank at the time of low interest rates.
- Taxation specific to product/services.
- Change in consumer demand.
Social factors affecting our young enterprise business
- Our consumers buying pattern, attitudes and opinions.
- Ethnic or religious factor that is some religions the wearing of jewelleries.
- Students’ lifestyle trends.
Technological factors
Changes in technology could affect us in a great way. For example we can be using computers to email our leaflets to consumers instead of distributing them by hand. Some consumers might also want to buy some products of internet.
Competitor analysis for young enterprise company
Competitor analysis is very important to our young enterprise group; the roles in which it plays are listed below.
- It helps us to understand our competitive advantage or disadvantage relative to our competitors.
- To generate understanding our competitors past present and most importantly future strategies.
- To help us forecast the returns that may be made from future investments that is, how our competitor respond to a new product or pricing strategy.
Our main competitor is Claire’s accessories in which they sell gift products, fashion accessories like ladies hand bags, head bands, jewelleries and wrist watches. Etc. Claire’s accessories are located at Romford and other different locations it also has stores abroad. They sell good quality products to customers and also advertise their products nationwide through posters, media and internet. Their staffs are well motivated and have good customer service in which we should portray. Claire’s accessories distribute their products through different means, they also have good promotional strategies like discounts for students or buy 1 get the other free, and their main objective is to make profit. We also have other competitors in college their mainly selling jewelleries.
