Published by MBA Skool Team, Last Updated: April 04, 2021
PESTLE Analysis of John Lewis analyses the brand on its business tactics. John Lewis PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as John Lewis, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the John Lewis PESTLE Analysis:
The political factors in the John Lewis PESTLE Analysis can be explained as follows:
John Lewis is one of the leading premium retail stores based out of UK. With varying trade policies as such import and export rules and regulations in a country impacts the company’s business. As this company is operating in over 55 countries worldwide, the policies of governments play a major role in strategizing the business operations. As COVID-19 pandemic has brought in a lot of uncertainty and changes in foreign trades globally, it is important for this company to be agile in its actions to stand strong in the market. The more political stable a country is, the more profitable the business of this company becomes. As its retail stores and outlets dealing with spas, beauty cosmetics etc. deals directly with customers and requires right government regulations over it. Political factors are key factors to strive successfully and profitably in any operating country.
Below are the economic factors in the PESTLE Analysis of John Lewis:
Economic factors have a role to play in the purchasing power of consumers.
There occurs a shift in consumer spending with rising economic fluctuations. Rising inflation, taxes and duties, recession impacts the performance and profitability of John Lewis. During COVID-19 lockdown phase, the business got hampered with shutting down stores and closing down sales. But now with situation improving, it is important for this company to shift its strategies and attract more consumers through different promotional tactics. As macro-economic condition stabilizes, consumer spending increases and this leads to more sales and profits for the company.
Following are the social factors impacting John Lewis PESTLE Analysis:
With changing societal traditions and behaviors, people tend to buy more often and rigorously. The demographics impact the choices and the lifestyle attitude towards products and their brands. It is important for John Lewis to increase more focus on quality, safety and hygienic part of products and accordingly do the right segmentation, targeting and positioning in the market. It is pivotal to understand consumer needs and make strategy accordingly which helps in pulling the customer base. The increasing competition from private and local labels is a major factor to account for. The brand can leverage its unique selling proposition to undercut the market share of its competitors and get profitability.
The technological factors in the PESTLE Analysis of John Lewis are mentioned below:
Technological innovations are happening in all industries today. It is important for John Lewis to go digital in this internet savvy world. This firm is investing in mobile technology and Artificial Intelligence to get relevant data and for better consumer reach. It has recently partnered with Wipro for supporting its digital business strategies to meet consumer demands and expectations. Even they are focused on product innovation for making best in class products with high quality and safety standards. This firm is all about technology and innovation which sets omnichannel strategy for driving marketing and sales of its products.
Technology is shaping the business model of this firm in different countries.
Following are the legal factors in the John Lewis PESTLE Analysis:
Legal factors play a critical role in the retail luxury industry. John Lewis needs to take care of all laws related to the industry whether it’s the consumer privacy laws, health and safety laws, IPR, patents, discrimination and anti-trust laws etc. Consumers need to be protected from any unlawful practices. It is important to follow consumer privacy regulations to gain consumer trust in the brand. Even the IPR and patents need to be safeguarded from any misconduct. The lawful business practices can give the company competitive advantage and huge market share.
In the John Lewis PESTLE Analysis, the environmental elements affecting its business are as below:
The environmental factors are really important for a brand like John Lewis to gain sustainable competitive advantage. Some of the factors such as waste management, recycling, reducing carbon footprint and greenhouse gas emissions causing pollution etc. are really imperative to focus upon for gaining sustainability in the long term.
This brand is already making a lot of initiatives to reduce its wastage by introducing new, durable packaging made up from 70% recycled material. It has also reduced its plastic hanger waste and encourages customers to bring their own bags. It is focused on operating sustainable business processes to drive the efficient performance and profits in the target market.
To conclude, the above John Lewis 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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