PESTLE Analisys Essay Example | Topics and Well Written Essays - 750 words

PESTLE Analisys - Essay Example There is minimal political interference since the company deals with entertainment products. Though, the government once ordered the CDs produced by HMV to be investigated. This is simply because the company was making too much profit that led to a rise in suspicions of the eligibility of the CDs. Economically, several factors pose a great effect on the company. The crash on the company finances due to the acquisition of Waterston’s agency had a severe impact. The company’s shares performed poorly in the London stock exchange. The great impact made the company to have a partial closure. The unstable currency in the past recession years had a great impact on the company’s economy. This is because currency exchange from the signed deals produced futile results. Another factor that greatly affects the economy of HMV is the decline in the company’s performance in 2009.This affected the market as many customers felt that the company did not offer the best. The overall decline in the entertainment industry by 3.4% in 2008 had diverse effects on the company too. Firms in other countries working under the brand name of HMV contribute revenue to the company empowering it economically. The sales revenue of the company rose by 3.1% in 2010. This increased popularity of the brand and the cash inflow. On the sect of social factors, change in consumer demands or else lifestyle changes affects the company. This is whereby the customers drift their demand from one product completely to the other. If there were large stocks of the product, the company may experience a loss. It is mostly brought about by celebrities and other influential people. Advertising these items on a more apparent note helps to adhere to the lifestyle changes by reducing stock. The tapping of music and entertainment is another social factor. Most people can easily burn personal CDs posing a great challenge on the markets of HMV. They can also transfer music from one device to t he other without necessarily purchasing it. On the technology trends, several factors are considered. These include; Online business. Most of the music and computer games can be sold online. This is in line with business protection. The use of DVD s may not be applicable anymore since the sale of music can be easily done through the internet. The company can direct its focus on dealing with such issues to keep up with the pace of the fast developing technology.HMV has created a website whereby it sells its products through an online market. Another one is filming technology. There is the use of high filming technology that provides a live coverage of events. It can be used to record live performances of celebrities. The performances can be sold online for example through YouTube. This easily copes the growing technology. The company also utilizes the social media sites, for example face book. These sites can be used as advertisement centres. This is because they can be accessed by a large number of people. The various products offered by the company are displayed to the customers giving updates on the trending issues (Adams, J. L, 2002, 44). There are ecological factors that can be depicted. The shift from plastic DVDs to using the internet in order to protect the environment is a considerate factor. The plastic CDs that are not re-used but instead disposed off, can affect the environment since they are non-biodegradable. The cost of purchasing CDs is higher than that of selling music

Marketing Plan Essay Example | Topics and Well Written Essays - 750 words

Marketing Plan - Essay Example The cafe also sports a small but enough accommodating library along with some soft music and mood lighting to give a relaxing environment to its customers. With its light menu and other value added services like soft music and a small library, the customers have become addicted to the comfort and coziness offered by Moods Cafe. THREAT FROM COMPETITION The cafe in the near future will face tough competition from two of the international giant franchises namely McDonalds and Starbucks coffee. The two chains of fast food and coffee will be opening around in a period of six months and the customers can barely stop themselves from talking about it. Moods Cafe foresees a loss in its customer base to Starbucks with its state-of-the art technology deployed at the outlet along with McDonald’s world famous burgers (Jakle et al, 1999). Moods Cafe on the other hand, must come up with a strong marketing strategy in order to stop Starbucks and McDonalds from invading into Moods’ terr itory. COMPETITIVE MEASURES Moods Cafe’s strength is its personalized service and the light environment which people enjoy the most. The most it can do is to add more value to its services rather than totally revamp the brand image of Moods Cafe (Bennett, 1991). Revamping Moods to a more upscale restaurant, bistro or a bar would bring it under head-on competition with McDonalds and Starbucks (Ritzer, 1998; Read, 2010). McDonalds being a fast food chain, would rather focus on drive-way sales and quick breakfast or meal for the customers whereas, Starbucks on the other hand, would impose a more threat to Moods Cafe. As the customers are offered value added services like free Wi-Fi internet usage along with a wide range of coffee flavors and light snack/breakfast, Moods is bound to face tough competition from Starbucks. Customers looking for some time to relax or even work with a coffee on the table would go to Starbucks. One advantage which Moods Cafe will have over Starbucks w ould be the flexibility of the store environment. Starbucks being an international chain, will have to adhere to strict international guidelines however, Moods Cafe can mould itself in accordance to the tastes of the customers (Bennett, 1991). Moods Cafe will position itself as a cafe with personalized service where the customers will truly relax and feel like next to being at home. McDonald’s peak time is considered breakfast or lunch where the people stop by to have a quick meal whereas, Starbucks can be considered as next to being at work but in a more relaxed environment. People stop by for breakfast, to wait for someone or something, to kill time etc (Read, 2010). Moods Cafe’s Point of Difference would be that it will take the customers away from work and the daily scuttle of the city. Its Unique Selling Proposition would be its relaxing, soothing environment along with its personalized service (Bennett, 1991). In order to create a more compatible market offering, Moods Cafe would also incorporate Wi-Fi technology in order to provide what its competition would be providing. Besides this, as mentioned above, Moods Cafe would be positioned as a place which would feel like next to being home. This would be used as a strategy to compete with both McDonalds and Starbucks which will be positioned as a more upscale brand with little or no personalized serv