PESTLE Analysis of Slices Restaurant in UAE Market
Discuss about the Business Strategies for Emerging Technologies.
Let’s talk about the current strategies of Slices, it has analyzed that a number of strategies were used by Slices for attaining a financial position in the Abu Dhabi market. One of the significant strategies used by the restaurant was pestle analysis (DaSilva and Trkman, 2014). The pestle analysis is strategy used in evaluating and identifying the different macro environmental factors in the market. From the political perspective, Slices can take various advantages in UAE market. The restaurant has a good and biggest opportunity to utilize the advantages providing by the UAE government entity Khalifa fund (Korkmaz, 2015). It is one of the leading entities who provide support to the restaurant for expansion and development. The entity is providing financial support to the capable and potential young businessman and women who have effective managerial skills and knowledge. If talks about the economic factors, the country is strong from economic perspective. The per capital income was measured in 2012 was US$40390 and GDP was approx 289.88 which is considerably. This indicates that the restaurant has a big opportunity for gaining various types of opportunities in order to sell healthy and services to the student in UAE market (Elkington and Upward, 2016). Along with this, it is noted that social structure of the country is unique and dynamic therefore, the company can attract ample of consumers in the marketplace. Furthermore, technology is significant factor that determines the growth and success of the firm. Latest and innovative technologies are used Slices restaurant. With the help of social media and promotional strategies, the company can capture the entire market for selling of food products. Legal factors also play a significant role to maximize the profitability and revenue of the firm. Effective legal standards and rules are being followed by the company to attract and retain the large number of the customers in UAE market. The company has made strategies for environmental sustainability. Good material and resources are being used by Slices restaurant to satisfy the needs and requirements of the clients in the market (Sebastiani, Montagnini and Dalli, 2013).
Along with this, porter five forces analysis is one of the effective strategies that was used by Slices restaurant is assignment one. There is high and intense competition presented in the industry which may affect the outcomes of the firm. Various types of competitors maintain effective supply chain management to carry the business activities successfully. Furthermore, the bargaining power of suppliers is low in the UAE market (Porter, 2011). In addition, the there is high degree of power in the hands of buyers of the industry as they influence the selling of the firm. Due to high bargaining power of buyers, Slices has been able to find out the tastes and preferences of the consumers. Apart from this, there are many substitutes’ products that could influence the sustainability and productivity of the company. The organization needs to focus on the prices of the substitute products to gain various types of competitive advantages. Finally, it shall be noted that threat of new entrants is high in this industry (Hillson and Murray-Webster, 2017). All these strategies are currently being used by the firm to make a strong and unique position in the global market. The core competencies provide wide range of growth benefits to the organization. Integrity, dignity, passion, accountability and customer service are considered the core values of the firm that help to boost and increase the level of satisfaction of the customers (Grunert and Traill, 2012). By using pestle analysis, porter five forces analysis and core competencies, Slices restaurant has been able to cope with rivalries in United Arab Emirates market. Having effective and unique core values, the company can make a strong and dynamic image in the eyes of the consumers. The organization also uses differentiation strategy to distinguish its food products from the competitors. It will help the firm to earn maximum returns and profitability in the UAE market (Tavitiyaman, Qu and Zhang, 2011).
Porter’s Five Forces Analysis of Slices Restaurant in UAE Market
Considering the existing business strategies of the company it is high time due to which the company should bring new strategies in their business. The new e-business strategy for the company is the collaboration of the database management in restaurants and the use of social media in the marketing of company (Lee and Carter, 2011). This e-business strategy helps the company in achieving the goals of a company and to expand the business in UAE market (Jelassi,Enders and Martínez-López, 2014). The implementation of the new e-business strategies is discussed with the help of Roadmap. This roadmap guides the actions that the company should take to implement the new e-business strategy. Below given is the roadmap for Slices Company. On the other hand, core competencies provide a great opportunity for the firm (Korkmaz, 2015).
Market Penetration: This strategy is used when the company’s products already exists in the market by some another organisation. The companies have to smartly use their market share to earn profits for each of their products launched in the market. Most of the small businesses use market penetration as their business strategy to have growth in their current business.
Development strategy: Slices restaurant uses expansion and development strategy to beat the competitors and attain enormous benefits in the market. UAE market has been selected by restaurant to explore and flourish the business actions in the market. There is no competition faced by the food companies in the UAE market. Therefore, the employees of the Slices can easily identify the needs and demands of the students in such market. Furthermore, the company can easily capture the entire market in the United Arab Emirates
- The vision of the company in the UAE market is to achieve the high recognition in the international market.
- The objective of the company is to make the citizen of UAE aware of the healthy products that they are offering in the market.This can be fulfilled with the use of social media in marketing.
- The value creation in the e-business strategy is the way through which the business creates the value for the company. The company ensures that while creating value for shareholders in form of a rising in stock price ensures the future of availability of investment capital to fund operations.
- Slices generate the value creation through its healthy and quality products as this the way through which they can satisfy the customers who are health conscious.
- The slices need to make use of social media market through which they can generate the awareness for the services that they are offering.
- Moreover, the company can make use of data collaboration through which they can analyse the customer needs and can offer the value according to their needs.
The target segment of the company includes the market segment to which the business is willing to offer its services in the market. The e-business strategy of the company that is social media marketing focuses on customers with the age group of 18-25 with a middle and high-income group as they are the most active person on social media sites. Further, the company can use data collaboration in identifying the needs and preference of customers related to the food products as this the only way through which they can extend their target market in UAE. The value proposition that the company offer to their customers is healthy food, convenient services, affordable price and many other (Reynolds, 2010).
There are different ways through which the company can try to achieve its social media marketing strategy. The company should ensure that they are not involved in any kind of security breaches, they make use of data collaboration in an effective manner; they should not disclose any confidential details (Lipschultz, 2014). Along with this, the company should ensure that whatever content they are posting on social media sites for promotion does not hurt anyone intentionally or unintentionally.
Core Competencies of Slices Restaurant
Slices in UAE will definitely involve the external partners in their e-business strategy because these activities are not possible without the involvement of external partners. The external partners of the company include customers, shareholders, partners and many others (Bigliardi and Galati, 2013).
Considering the case study, the existing business structure that the company is following is functional structure. The new e-business strategies reflect that the company should follow the independent business with the 4 partners (Rothaermel, 2015). This means that they should not get involved with any other organization for the achieving the e-business strategies.
The company follows the production model which is one of the effective revenue models. According to this model, the company produces the healthy goods and effective services and then sells it to their potential and new customers (DaSilva and Trkman, 2014). Along with this, the company makes use of the absorption costing model as this helps the company in offering the products to the customer at low cost.
The term strategy alignment is clear from its name which means the arrangement of the e-business strategy with the company’s existing strategy. The company can make use of the data collaboration that helps the Slices to align the e-business strategies (Rothaermel, 2015).
Considering the overall analysis, it has been recommended by the company to follow the e-strategies effectively for which the company needs to upgrade the use of technology. The company should enhance the use of technology because without effective use of technology the company might not be able to perform the social media marketing strategy effectively. Moreover, the company should share the effective details on social media channels. These details include the information related to healthy food, discount, and offer that company offers and many other. Along with this, the company can add some healthy ingredients in their recipe with the help of data collection (Aithal, 2016).
Conclusion
As per the discussion made in this paper, it has been analyzed that the role of e-Business Strategy is effective for the organizations to increase their sales and marketing product. The business strategy that is used by Slices has provided all kinds of monetary benefits as well as has generated maximum number of leads as described. It is suggested for Slices to create a continuous business improvement plan so that they can frequently obtain success in the market and could easily overcome the potential risks associated with the market. The company uses attractive and unique strategies to stay in the rivalries market. The above analysis shows that how Slices restaurant makes new strategies to carry the business activities and operations effectively and successfully
References
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