PESTEL ANALYSIS FOR A CELL PHONE REPAIR COMPANY
w/references if you cite anything
External Analysis
PESTEL Analysis: (Circle One, T = Threat, O = Opportunity, N = Neither; Briefly Describe Reasons)[unique_solution]
Demographic Conditions | T | O | N | · The demographic factors that can affect the mobile phone repair sector include race, population dynamics, gender, and age. These factors can significantly affect the industry positively by providing diversification to the industry. An opportunity can be provided to the sector when it attracts people from all races in the world. When the industry is dominated by only one race, legal laws can sometimes be undermined like discrimination, which can negatively affect the sector, thus posing a threat to its profit |
Economic Conditions | T | O | N | · The U.S. economy is strong, but there is a threat of a recession in the near future · Areas with more expendable income will be more likely to seek our services over a longer period · The Student Loan Debt Crisis is a threat to factor for those considering higher education
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Political/Legal Conditions | T | O | N | · Only a factor when it comes to changes made regarding the SAT/ACT such as content, format and scoring changes · The possibility of changes due to the College Admissions Scandal |
Sociocultural Conditions | T | O | N | · Culturally, groups of people who value higher education will seek our services · There is still significant importance to having some sort of qualification to stay competitive in a market where more students have higher degrees and it is harder to stand out. · Considerations include: the growing costs of college, applicants to MBA programs have declined, declining college enrollment, end of degree inflation, alternatives to higher education · High-poverty students are more likely to require academic tutoring.2
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Technological Conditions | T | O | N | · The vast amount of learning, tutoring, and certifications that can be completed over online platforms. · The changing architecture of education. The world is becoming a “show us what you know and can do” vs. the courses and credits model. Certifications and portfolios are beginning to hold more weight.
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Global Conditions | T | O | N | · For international students, SAT/ACT scores, as well as English Proficiency exams, are important for acceptance. |
Environmental Forces | T | O | N | · Not a significant factor. Storms or adverse weather may make it difficult to reach a location, but with online options, it should not be a significant issue · There will be seasonal demand changes for different services (core subjects and SAT/ACT prep). |
Porter’s Five Forces: (Circle One, Briefly Describe Reasons)
Threat of New Entrants | Strong | Neutral | Weak | · Low capital outlay to establish tutoring/supplemental learning model · No regulation of requirement/licensing to offer service · Limited number of multi-location competitors (Kumon) · Unless following specific method/learning model, access to materials nearly unlimited · Online platforms create further potential competition with decreased overhead |
Bargaining Power of Suppliers | Strong | Neutral | Weak | · Nearly limitless supply of supplementary learning materials · Online learning platforms/software emergence ongoing · Suppliers will compete for business as more entrants emerge into supplemental learning market |
Bargaining Power of Customers | Strong | Neutral | Weak | · Corporate options limited · “Under the table” tutors/sole proprietors abundant · Online/free options are numerous · Business model needs to be unique and able to be replicated/franchised · Threats can be mitigated through satisfactory value creation |
Threat of Substitutes | Strong | Neutral | Weak | · Limited number of substitutes who have breadth of operations that we strive for · Vast number of localized substitutes · Concerns mimic those for bargaining power of customers · Easy barrier to entry = potential for entrant with significant capitalization · Price point can be extremely flexible as more alternatives enter |
Intensity of Rivalry | Strong | Neutral | Weak | · One primary competitor within general idea of business model (Kumon) · We can mitigate through modifying our offerings away from their strengths · Price point/perceived value may be an opportunity to win business away from competitors |
References
[1] https://nces.ed.gov/fastfacts/display.asp?id=372#PK12_enrollment
[2] https://www.businesswire.com/news/home/20180413005463/en/Survey-American-College-Students-Satisfaction-College-Tutoring
https://www.forbes.com/sites/tomvanderark/2019/06/17/12-trends-killing-college/#55f9d76c6609