Week: 7
Introduction
Big mart Supermarket
stands out as one of the most valuable brands in Nepalese supermarket industry
in a very short span since its inception. The first store was launched on 10th
July, 2009 in the finest mall of the country - City Centre Mall, Kamalpokhari,
Kathmandu covering an area of 11,000 sq ft. It has been recognized for its
innovation in introducing super marketing to the Nepalese market with a very
different and organized approach. It stands out as being the first in Nepal to
provide the VALUE & SAVINGS concept to its shoppers. (Big mart,
2013)
The PESTLE analyses of
Big Mart are as follow
Political
a.
The political instability
of Nepal is directly affecting the Big Mart for day to day operation.
b.
Strike of different
parties make unable for mart to open and meet the demand of customer.
c.
Political instability
has direct influence in union of staff on mart. And make different unnecessary
demand on the name of betterment.
d.
They are not able to
expand their mart and also very hard to open a new branch.
e.
There is no any direct
or indirect support from government to Big Mart.
f.
Big Mart collect
product from domestic as well as international market. But in case of
international market no subsidy and tax benefit is provided.
Economic
a.
The overall economic
for Big Mart refers to customer demand, customer satisfaction, government
regulation etc,
b.
Big Mart has very
tough competition with Bhatt Bhateni. In comparison, Bhatt Bhateni offers more
products in number of branches in different part of country. So it’s very
difficult for Big Mart to expand and have a loyal customer.
c.
Due to different
political factor mart is not able to meet customer demand properly.
d.
Tough tax and subsidy
lead Big Mart to high the price which directly effect on competition. In this
scenario to mart can’t offer any discounts and gift to attract customers.
e.
The inflation in
country affecting the mart externally and internally. Externally seems to
increase price of product whereas internally seems increasing demand of
employee union in terms of salary and facilities.
f.
Due to certain reason
mart is not able to meet the demand of the entire customer they are high level,
medium level and low level.
Social
a.
The taste and demand
of customer varies on time so it’s very difficult for mart to make long term
plans.
b.
The product that mart
if offering should be authentic like if the product is expired than it’s a very
disadvantage for the mart. Means while there will be bad rumors of mart in
society result decreased in customer.
c.
The mart should manage
there disposal properly. If not its very hard for mart to exist in that
society.
d.
To meet the customer
demand the mart must have knowledge of taste of every customer. Example in
Nepal society, there are different people with different culture and religion.
In time of occasion the mart must offer the product that is require for people
of same culture.
e.
The mart must meet the
life style and life standard of domestic people.
f.
The mart must
contribute something positive for society. For example providing donation for
educational program.
Technological
a.
The technology shows
how advance and smart the business is. The mart must have similar or better
technology than competitor.
b.
There is a specific
department for IT in Big Mart. It assist to record consumer’s data and
transition on there database and maintain supply chain order to run day to day
operation activities and functioning well.
c.
The systems make
direct effect on Big Mart decision. Like it helps to know the specific customer
taste and preference as well as customer onion and ideas.
d.
The advance technology
records the entire product in and out of the mart. And helps to make new order
with supplier.
e.
The system helps to
manage money properly. There is no chance of money leakages.
f.
Overall the system
helps mart a lot to add value to the customer and provide better service to
their customer.
Legal
a.
It includes all the
rules and regulation made by the nation. In addition it has direct effect on
organization.
b.
It includes like
enlargement of minimum employee wages system, the foreword of age
discrimination and other inducement and service has forced retailer business
like Big Mart for cost increase.
c.
Any changes in legal
sector may increase the price of the product and cause inflation.
d.
The competition law
which is made to save small retailer business and confirm that there is no
subsistence of monopoly in retail firm and consumers are not demolished from
the monopoly power from the individual store.
e.
The consumer laws are
made to look after the right of consumer next to the ambiguous and unfair
practices.
f.
The health and safety
laws are made to facilitate workers a protected and sound environment where
they works using the safe products.
Environment
a.
There is a direct
effect for Big Mart of environment like environment change, climate or weather
condition.
b.
The mart need to make
decision according to the environment like offering more umbrella in rainy
season, offering more warm clothes in winter etc
c.
The mart must focus on
using paper or renewable product then plastic to save the environment.
d.
The using technology
and offering product should be environment friendly. And it’s better to
organize the awareness program in society.
e.
The more they
contribute to environment the more there brand value is added and gets positive
feedback from customer as well as from government.
Reference
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