Easy Jet Pestle Analysis

Assessment of ideas

In this report I will attempt to explain which of my two ideas is better and I will try to justify it. Also I will do a SWOT analysis on both my ideas to see good points and any flaws in my 2 ideas. I shall also look into the potential market of businesses as well as my own personal strengths and the barriers to success.

Swot analysis of my two ideas

The first idea is an electronics shop

Strengths

Christmas people buy more electronics, and this is a strength because more people will be buying in town so this will lead to more revenue for the business.

Seasonal sales like new year's or even Easter is another time where sales may go up because at these times there is more demand.

People like to keep up to date with gadgets so therefore the electronics shop is perfect for these kind of people as it will provide most of the up to date gadgets that are in high demand.

Weaknesses

Because it's a new business it means not much experience so there may have to be someone else with experience to help support them.

There is not much money and start-up costs will be high so we have to find the money from somewhere.

Lack of skills will slow the company down because you will have to keep hiring people with the skills you need and this will mean that wages may be too high.

Less likely to get loans from banks if it's a new business

Costs for utilities e.g. electricity and water

Opportunity's

Olympics sponsorship (2012 London Olympics) means more tourists so more money in the economy.

New years

Christmas

Easter

Eid (more sales)

These are all seasonal events that will all have high demand so those are the opportunities to make more profit.

Expansion Threats

The recession is a threat because not many people will have disposable income to spend on luxuries like electronics.

Competition is a big threat as there will be lots of fighting for the same target audience.

Inflation costs are a threat because this is a new business so it will be hard for it to keep having pay more and more for essential products.

Consumer spending is low due to the recession.

My second idea

The takeaway shop

Strengths

People want quick cheap food because of the recession and this is exactly what the takeaway shop will provide.

Recession so people are more likely to buy cheaper food in order to save money because consumer spending is low so if prices are low they will be more willing to spend their money. Weaknesses

New business so there will be lack of experience.

Not much money to start up the business will be an issue.

Lacks of skills for the business e.g. finance skills to complete money transactions.

Wages may be too much to pay as their will be more expenses (because it's a new business) then money coming in.

Less likely to get loans from banks if it's a new business

Costs for utilities e.g. electricity and water

Opportunity's

Olympics 2012 sponsorship means more tourists so more money in the economy and more money coming into the business.

Expansion

Threats

The recession has caused consumer spending to drop as not many people have much disposable income to spend.

Competition from other shops so I'll have to fight for the same target market.

Inflation is causing prices to go higher and higher.

Potential Market

The electronics shop's potential market is mainly adults and teenagers in Luton.

The statistic below shows from a reliable source that there is a big potential market in the UK and that it is still increasing:

The demand in the United Kingdom for consumer electronics, such as flat-panel TVs, MP3 players and High definition DVDs, is growing.

The takeaway's potential market is anyone who wants quick cheap food on the go.

This statistic below shows that there is good money in the fast food industry which must mean there is a fairly big potential market and because of the recession more people are likely to buy fast food.

The UK's fast food industry has benefited from the recession, with the sector increasing its presence by more than 8% in the last year, research has found.

I think that the electronics shop has a bigger potential market then the takeaway as technology is always updating and people are willing to pay to keep updated because they don't want to get left behind despite the recession and even though the potential market for fast food has gone up by 8% not many people will have much income to spend on going out to eat unless the prices are extremely cheap.

But then again because fast food has increased by 8% last year due to the recession and the majority of people would rather eat fast food rather than go out to restaurants this shows that the potential market for fast food is quite large due to the help of the recession. Overall I think that in the long term the electronics store will have a bigger potential market because when the 2012 Olympics come there will be more money in the economy which will begin to slow down the recession and the fast food shop has risen "8% in the last year" due to the recession so this will begin to slow