Shoppers Stop PESTLE Analysis

Published in Companies category by MBA Skool Team

Shoppers Stop PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of Shoppers Stop examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the Shoppers Stop PESTLE Analysis:

Political Factors:

The political factors in the Shoppers Stop PESTLE Analysis can be explained as follows:

Shoppers Stop has its stores spread all across the country. The government laws and their guidelines influence the company’s operations in a country. The company may have to pay huge penalties or may not be able to operate efficiently if these are not taken care of. Hence the political macroeconomic factors are of fundamental importance for a company's existence. Trade restrictions and taxations levied on the products of Shoppers Stop are the different brands available in the store might affect its profitability.

Political stability in a country hey helps the company to perform efficiently without any political chaos. Sometimes regulatory pricing by the government could also have great impact on the company and changing policies may also bring along change in political scenarios which could thereby impact the company. Hence to expand in a nation and grow efficiently complete analysis on the political environment factors must be done on a regular basis.

Image: company website

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Shoppers Stop:

The economic development of any country has direct influence on all its industries. Some of the economic factors that may affect Shoppers Stop could be exchange rates, interests, employment, inflation , structure of the economy and labour market conditions.

Inflation, for a company like Shoppers Stop may impact its net sales as people would switch to cheaper available products which could also lead to lower levels of brand loyalty. Labor market conditions or the rate of unemployment in a country would help to determine the charges that the company would have to spend on human resource. the more the unemployment the cheaper would be the labor. Customer purchases in stores are also affected by bank offers which are also partly a result of the overall economic factors. A thorough analysis of such factors would help the company analyses it's future aspects and take strategic decisions.

Social Factors:

Following are the social factors impacting Shoppers Stop PESTLE Analysis:

Apart from the various demographic trends like the average age of population, gender ratio and income of the people factors like culture, class distribution, willingness of consumers to spend, access to online shopping, time available to spend on online shopping/offline shopping, class distribution and levels of social concern are the social factors that affect what should be stocked. These factors also help in determining how potential customers can be attracted and which sources of marketing should be used if analyzed properly. Birth rate could also be an important indicator of future demand. Awareness in the society and knowledge about latest trends also affects the business operations and hence must be looked into regularly. There also might be some extraordinary qualities of the people staying in the society where the companies operating that much also by analyst to fully harness or exploit the opportunity.

Technological Factors:

The technological factors in the PESTLE Analysis of Shoppers Stop are mentioned below:

Shoppers Stop should be acquainted to new payment methods or applications that their customers would be willing to use and incorporate them in their stores. Research and development should be another area where the company should focus not only for its technological purpose but also for a better supply chain. Investment in research and development could help the company become sustainable for the long run by innovation and first mover advantage. The level of acceptance of technology must also be studied before adapting to any fancy technologies. Social media marketing is another technological factor that the company must invest in, as modern business environment demands it. Fashion has a very small product life cycle and hence the company should keep a good product range with quick changes in the stock and flexible and convenient supply chains.

Such measures can also lead in market share and help the company gain competitive advantage in the industry.

Following are the legal factors in the Shoppers Stop PESTLE Analysis:

Shoppers Stop serves thousands of customers around the world every single day and so there would be laws in place to avoid any kind of mishaps and unfair practices that may harm the customers, employees or the management. Antitrust laws are in place for the same purpose, which differ from one nation to another and the company must be well versed with all the laws to avoid any lawsuits or legal charges against the firm. Health and safety laws also need to be abided by the company as any allegations against such factors could impact the goodwill of a firm to great extents. Intellectual property laws are in place to help protect the firm’s ideas and strategies. This is what helps a company when they are the first ones to either enter a new market or explore new opportunities. Hence an investment in research and development could also entail major benefits to the company. So a study of legal factors could save a lot of extra costs and time that the company would otherwise have to spend on court proceedings.

Environmental Factors:

In the Shoppers Stop PESTLE Analysis, the environmental elements affecting its business are as below:

Being committed to operate in eco-friendly environment and help in conservation of non-renewable energy resources is a major challenge for all the companies. But doing so also leads to attaining sustainability and improves the chances of better profits and future growth prospects. Recycle, reduce and reuse are three major areas where Shoppers Stop should investigate to develop a sustainable environment. Upcycling products code also benefit the company and attract more customers as well.

along with this reducing the carbon footprint of the company and remaining below industry standards in the same would have a positive impact on its customers. Environment regulation also impacts the absolute cost advantage dynamics in an industry. Apart from this as a macroeconomic factor the weather and climate conditions of the country also affect the people visiting the store and thereby it helps to analyze the level of efforts to be taken to attract the customers online.

To conclude, the above Shoppers Stop 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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