For the purpose of this analysis I have chosen to do a PESTEL analysis of the industry looking into the most relevant factors that have an impact on the industry e. This should give a broad understanding of the effects of the external environment on the industry. I have chosen the UK supermarket industry because, as presented in this paper, there are a great deal of external factors influencing this industry.
Town B Although Town B looks more competitive 10 competitors vs. The definition of a potential customer will depend on your type of business. For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range.
As in the example above it is likely that most companies would have only one person in charge of purchasing furniture hence you wouldn't take the size of these businesses in consideration when assessing the number of potential customers.
You would however factor it when assessing the value of the market. Market value Estimating the market value is often more difficult than assessing the number of potential customers.
The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body. It is very likely that you will find at least a number on a national level. If not then you can either buy some market research or try to estimate it yourself.
Methods for building an estimate There are 2 methods that can be used to build estimates: The bottom up approach consist in building a global number starting with unitary values. In our case the number of potential clients multiplied by an average transaction value.
Let's keep our office furniture example and try to estimate the value of the 'desk' segment. We would first factor in the size of the businesses in our delivery range in order to come up with the size of the desks park. Then we would try to estimate the renewal rate of the park to get the volume of annual transactions.
Finally, we would apply an average price to the annual volume of transactions to get to the estimated market value. Here is a summary of the steps including where to find the information: You can get the number and size of businesses in your delivery area from the national statistics.
Your accountant should be able to give you the useful life of a desk but you should know it since it is your market! You can compare the desk prices of other furniture stores in your area.
As a side note here: That was the bottom up approach, now let's look into the top down approach.
The top down approach consist in starting with a global number and reducing it pro-rata. Once again the number of employees would only be a rough proxy given all business don't have the same furniture requirements. When coming up with an estimate yourself it is always a good practice to test both the bottom up and top down approaches and to compare the results.The UK's form of government is a constitutional monarchy with a parliamentary system, and its capital city is London.
PESTEL Analysis, SWOT Analysis and Risk Analysis of United Kingdom United Kingdom PESTEL Analysis This report covers United Kingdom's PESTEL (political, economic, social, technological, environmental and legal) analysis.
The Germans know the UK market better than the British do In the last two years, the UK supermarket business has turned into a bloodbath of misconceptions.
And the Old Guard — Tesco, Sainsburys. This business analysis of the UK supermarket industry aims to provide an overview of the factors influencing the industry and the threats they are facing in terms of competitors. For the purpose of this analysis I have chosen to do a PESTEL analysis of the industry looking into the most relevant factors that have an impact on the industry (e.g.
The UK supermarket industry forms the largest part of the UK retail industry. The retailing in Britain employs over 3 million people nowadays, which equates to 11% of the total UK workforce. Its sales in were approximately £ billion and near 8% of the British GDP were generated by this sector (Data monitor, ).
In a previous paper (Moore, ), the headline findings from a study of social and financial performance over three years of eight firms in the UK supermarket industry were reported.
This business analysis of the UK supermarket industry aims to provide an overview of the factors influencing the industry and the threats they are facing in terms of competitors. For the purpose of this analysis I have chosen to do a PESTEL analysis of the industry looking into the most relevant factors that have an impact on the industry (e.g.
Political, Economic, Social, Technological, Environmental and .