PESTLE Analysis of Blackmore
The business environment is best with many ups and downs. There is the constant threat of factors like changing Government policies, change in the economic trends, entry of new firms or facing a strong competition from the already existing competitors. In order to carry on the business properly, it is the duty of each and every organization to keep a note of all these ongoing trends in the mallet (Bocken et al. 2014). They can make use of different business strategy models like the PESTLE, SWOT, Porter’s five force analysis, VRIO and many other such models. This essay will be discussing the two companies named The Grove Academy (Childcare Company) and the Blackmore (Pharmaceutical company) and their usage of the PESTLE AND Porter’s five force models (Galbraith 2014).
Political- Blackmores is basically a pharmaceutical company that sells the naturopathic medicines (Blackmores.com.my 2018). Based on the more or less stable political scenario in Australia, Blackmores does not really face many problems. It can be said that the political setup helps black mores to expand the business on a national scale. Australian trade agreements with any other countries have helped Blackmore to expand its business. It has very good trade relations with China, New Zealand, and others.
The products sold by Blackmore are mainly desirable goods and not essential goods. So, it is evident that if the economic growth slows down the purchase of the desirable goods will reduce (Collyer 2017). The economic trends in the Asian countries proved to be very helpful and there is no sign of loss. 19.57% profit comes from the Asian countries. Same is the case in the New Zealand economy as well. 1.54% profits obtained with so significant loss. The economic condition of China varies at times. However, if there is depreciation in the currency of Australia, people will purchase more products and the market will expand.
This is one of the major strengths of Blackmore as they support a large number of social causes. They work actively for removing gender bias and hire many women employees (Morley 2014). As far as the reporting period of the Opportunity in the Workplace Agency is concerned, Blackmore has recruited 355 employees with 70 percent of them being women. They also maintain their CSR by taking part in many charities. Sydney Running Festival had raised a fund worth $1.3 million for charity purpose.
Blackmore has invested largely in upgrading itself technologically. Being a customer-centric organization, they have taken the help of modern scientific technology to improve their distribution system. They have also sued the technological means to develop their customer services.
Porter’s Five Force Analysis of Blackmore
The law and order of Australia are more or less favorable for the business expansion of Blackmore. The low tax system helps it to develop its trade relationships with countries all over the world.
Blackmore has always given huge importance to the environmental conservation. They are actively concerned about reducing the plastic waste. They are involved in many recycling activities as well. They have also collaborated with PaCER or the people and corporate environmental responsibility for conserving the waterfall and bringing it back to its original form.
This is comparatively weak because the customers have a wide variety of affordable options to switch over. They follow the process of product differentiation that helps in reaching out to the customers.
The rivalry is intense among the retail firms in Australia. Blackmore operates in many smaller fragmented units and faces a fierce competition. It faces a huge competition in the East Asian regions. They must take measures that will help them to earn customer loyalty. They can start a loyalty scheme. Swiss one of the biggest competitors is giving a tough competition to Blackmore. However, at the same time, they sell homogeneous goods whereas Blackmore has a wide range of products.
Blackmore gave used very significant pricing strategies like cutting off the transportation cost. They have also started the system of premium pricing. They are best at providing customer service satisfaction and using the best innovative technologies.
Blackmore needs to develop itself so that they can adapt themselves to many new and advanced technologies. They have to be swift and spontaneous in responding to the changes and talking up new initiatives like the Pick to, light system and RF.
This is a strong point of Blackmore. They have excelled in the variety of products. They have partnered with the Bega Cheese or providing a large number of fresh and nutritional foods. They are also associated with Global Therapeutics which is the leading provider of Chinese Retail herbal medicine. They provide a wide variety of products through the online and physical stores for customer convenience.
Political- The Grove Academy is above to flourish in the fairly stable political economy. The political set up of Australia is not subjected to sudden changes to the education sectors can carry on their functions easily (The Grove Academy – Early Education Centres 2018). The political condition allows it to flourish its business in all the nearby places without many problems. They have opened their branches in the places like Mascot 1 and Mascot 2 and others.
PESTLE Analysis of The Grove Academy
Economic- the services provided by this company is essential good. The service is education and early childhood services. These services will always be desired and purchased by the customers even if there is a fall in the economy of the country.
Social- This Company is very much responsible towards the society. They take many social initiatives like the Grove fruit market. This initiative ensures that the children are getting fresh fruits and vegetables that are locally made. It is also a very good initiative to support the local farmers. They also celebrate a day clawed the pink Ribbon day which is mainly for the charity purposes. They raised about $6000 for the cancer fund. They also work for the other charities like the leukemia patients. They also raise funds for the patients of ovarian cancer in Australia
Technological- They have paid due importance on the technological aspects as well. They have used many ICT tools in order to uplift the teaching style in their classes. They have a very well furnished classroom (Bower 2018).
Legal-They maintains proper legal orders. They make sure that the law and order of Australia are being properly maintained (Lancy and Grove 2017). They do not want to take any steps that go beyond the Australian standards of education.
Environmental- They have always maintained a good response towards the environment. They make sure to carry on many eco-friendly activities that would promote the sustainability of the environment.
Bargaining power of buyers-The bargaining power is slightly weak in this field because there are many alternatives that the customers can switch over. However, the Grove academy works in many small fragments over different parts of Australia.
Rivalry among firms- This is one of the major areas of concern. This is because there are many different child care centers working in Australia. Some of the well-known organizations are ABC Learning, Bright Horizons, and other such organizations. So, the Grove academy has to upgrade itself so that the customers do not find an alternative.
Grove Academy has successfully followed the policy of product differentiation and also a good amount of pricing strategy (E. Dobbs 2014). They have also entered into a partnership with the local farmers so that they can balance their cost of production and concentrate on the quality of their products at the same time (Tevington et al. 2017).
Grove academy needs to make sure that they are using many modern and advanced technological systems so that they can create a customer loyalty. They have to provide many discounted schemes under which people of all income groups can afford to avail their services.
Grove Academy has expensed a lot in terms of services. They follow the method of product differentiation. Apart from providing education to children at the early childhood stage, they make sure that they are focusing on the overall development of the child. They have a program called the Grove Develop Program. They also keep many family training programs as well. This has really helped them a lot to develop a strong customer base.
So, it can be concluded that it is necessary for all the business organizations to use the strategy models like Pestle, SWOT, Porter’s five forces and others. Thus they will get a clear idea about their position in the market, current strength and weaknesses. This will aid them in taking the necessary steps for surviving in the tough competitive market.
Reference
Blackmores.com.my. (2018). Company’s Information | Blackmores. [online] Available at: https://www.blackmores.com.my/companys-information [Accessed 20 Aug. 2018].
Bocken, N.M., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review to develop sustainable business model archetypes. Journal of cleaner production, 65, pp.42-56.
Bower, D.J., 2018. Company and campus partnership: supporting technology transfer. Routledge.
Collyer, F., 2017. The corporatisation and commercialisation of CAM. In Mainstreaming Complementary and Alternative Medicine (pp. 81-100). Routledge.
Dobbs, M., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
Galbraith, J.R., 2014. Designing organizations. Jossey-Bass & Pfeiffer Imprints, Wiley,.
Lancy, D.F. and Grove, M.A., 2017. Marbles and Machiavelli: The role of gameplay in children’s social development. American Journal of Play, 3(4).
Morley, L., 2014. Lost leaders: Women in the global academy. Higher Education Research & Development, 33(1), pp.114-128.
Tevington, P., Napolitano, L. and Furstenberg, F.F., 2017, December. Financing Children’s Futures: Economic Strategies for Postsecondary Education Among Middle?Income Families. In Sociological Forum (Vol. 32, No. 4, pp. 726-747).
The Grove Academy – Early Education Centres. (2018). Homepage – The Grove Academy – Early Education Centres. [online] Available at: https://www.thegroveacademy.com.au/ [Accessed 20 Aug. 2018].
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