Big Bazaar PESTLE Analysis

Published in Companies category by MBA Skool Team, Last Updated: February 14, 2021

Here is a detailed PESTLE analysis of Big Bazaar which examines political, economic, social, technological, legal & environmental factors.

Political Factors:

The political factors in the Big Bazaar PESTLE Analysis can be explained as follows:

Big Bazaar being a retailer should be benefitted the most if government is looking forward to growth in such industries or not. The present economic situation affects the government’s budget which includes the fiscal and monetary policy, thereby affecting the consumers purchasing powers and the growth of the industry. Government that encourages new technology will be beneficial for the company as it would allow them to operate efficiently. Political stability and government policies may also affect Big Bazaar to a great extent. This includes abiding by laws when setting prices, doing marketing and overall business operations in general for its smooth running.

The consumer protection measures taken by the government should also be well analyzed. Level of restriction on foreign goods by government also plays a major role in measuring the ease of serving variety to Indian market. Apart from this, a stable government would also encourage investment thereby making the shareholder’s happy.

Image: Wikimedia

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Big Bazaar:

The pace of growth of the economy is a major lookout for a retail store like Big bazaar. This is because that is what would help to decide the range of products that should be stored in larger quantities.

It also helps in determining the cost of doing business and thereby estimating profits. This would further help in analyzing feasibility and prospects of long-term sustainability. Employment rates, inflation rates, price fluctuations in the markets, Availability of capital at reasonable rates, level of household incomes and saving rates and consumer disposable income are some of the major factors that could affect the operations of the company. The level of income inequality in an economy also depicts the level of crime that can take place and can lead to uncertainty of consumption. Thus, all these factors are very important for long-term analysis of growth prospects for the company.

Social Factors:

Following are the social factors impacting Big Bazaar PESTLE Analysis:

Having such a vast category of products, various social factors would affect Big Bazaar. Starting from birth-rate to estimate future demand, analysis of average age, gender ratio, culture and diversity would all have an impact on what the consumers would expect from the brand. State of health and the type of products people would like to buy constitutes one of the most important macro-economic factors affecting the company. Lifestyle changes, shift in product and services preferred are changing at increasing pace and Big Bazaar needs to ensure to chase down the same pace in order to sustain, serve and maintain its loyal customer base. The attitude of people towards saving their money for future or investing in different industries must also be looked upon. All these factors need to be considered not only for determining business operations but also for choosing the right marketing campaigns to position the brand in the minds of potential customers.

Technological Factors:

The technological factors in the PESTLE Analysis of Big Bazaar are mentioned below:

Accepting all modes of payments would be one technological factor that would affect Big Bazaar a lot with the increase in number of upcoming applications, UPI’s, Wi-Fi cards and various other methods of payments. Adapting to the speed of technological innovations is thus a major factor. Developing a fast-billing system would also involve using the latest and the best technology to maintain operational efficiency. Providing online services through well-developed applications is also a key pointer for Big Bazaar to survive in the long run. Other facilities like home delivery, ease of shopping, ambience, and supply chain management must be taken care of. Technology would be impacting the company in two ways, directly via the technological factors affecting the industry and indirectly via the affect of technological factors on the individual brands which it sells.

Technological trends awareness is another factor that could help to boost sales by taking the first mover advantage or quickly adapting to industry trends via digital marketing and various other sources.

Following are the legal factors in the Big Bazaar PESTLE Analysis:

Employee laws and consumer protection laws would have major impact on Big Bazaar as the business model requires engagement of large number of employees and it needs to take care of its customers and their problems even after sales. The expiry dates of products and quality check of products should be done on regular basis depending of the requirement of each category. Business laws need to be analyzed before opening stores in certain areas. As there are several customers who would be visiting the stores on daily basis, safety regulation and protective measures must be in place. Trade practices of the location they are operating in must be abided by and ensure best service, quality and products to obtain a competitive advantage over competitors. This would help them avoid any legal challenges which in turn also take a lot of time to conclude.

Environmental Factors:

In the Big Bazaar PESTLE Analysis, the environmental elements affecting its business are as below:

Proper waste management is one of the major environmental macro-economic factors affecting Big Bazaar. Regular assessments of products expiry must be done and products not sold must be disposed in an organized manner. Focus must shift to spending on renewable technologies and adapt to eco-friendly methods. The selection of location must also be appropriate such that the environment isn’t affected. Another major area to focus for the brand is in the type of carry bags it provides and the bills it prints.

It should discourage excess printing. Big bazaar should also convince the brands that they sell to adapt to greener packaging and contribute to corporate social responsibility as a result. This could be mostly directed towards the fast-moving consumer goods sector so as to minimize non-degradable wastes.

To conclude, the above Big Bazaar PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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