InstaCart: Food Delivery Business
Before venturing into any market, it is imperative to research the various factors which may impact the business in that particular environment. One of the tools widely used to conduct an analysis of the external business environment is the PESTLE analysis (Arline, 2014). A PESTLE analysis refers to a tool employed by marketers to analyze the external factors that may impact the success of an organization. The outcome of a PESTLE analysis can be used by an organization to pinpoint threats and weaknesses facing an organization. In this paper, we shall conduct a pest analysis for InstaCart food delivery business.
Political Factors
Political factors examine government’s influence on the economy (Arline, 2014).The UK is a fairly political stable country with a lot of opportunities for business people. The system of government is a constitutional monarch supported by a parliamentary system. Moreover, the government of UK is much proactive with the country divided into national and local administrations. The political stability in the country is vital for the success of InstaCart. The recent decision by Britain to withdraw from the European Union (BREXIT) will impact the ability of InstaCart to expand to other foreign markets within Europe. BREXIT will also cause devaluation of the sterling pound thus reducing profits for InstaCart.
Economic Factors
These are economic factors that impact the organization (Arline, 2014).The UK boasts of a strong economy as compared to other countries within the region. The country has a diverse economy and a high Growth Domestic Product (GDP) which makes it a conducive place to do business. The country’s GDP is only second to Germany in Europe and fifth globally. Moreover, the country also has a free market system and large population offering a market for companies. The diverse economy, free market system and large population would be vital for InstaCart to thrive in the UK.
Social Factors
Examines the social surrounding of the market in which the organization is operating in (Arline, 2014).The UK has high social standards compared to other countries within the region. Some of the social factors that make the UK a good place to do business are a dense population, several free public services, cheap labor occasioned by open migration, and quality living standards. The open migration policy will ensure that InstaCart has a rich supply of cheap labor round the clock.
Technological Factors
These are innovation factors on technology that may affect the market positively or negatively (Arline, 2014).The UK has embraced technological advancement in most of its sectors. The country is well known for technological innovations and good internet coverage which helps businesses reach a wider client base. Moreover, the country has sufficient IT expertise. InstaCart can adopt technology in its operations to stay ahead of the competitors.
Legal Factors
Legal factors refers to laws and rules which impact the business environment in a particular way (Arline, 2014).The UK has a more organized, transparent and effective legal system. This makes the business environment friendlier since legislations are done in a professional way, taking into consideration the interest of all stakeholders (Williams-Grut, 2015). Moreover, the government has created tight rules to guard against tax evasion by businessmen. Policies targeting the business environment have been created taking into consideration the interest of all the investors. The fair policies will provide a level playing field for InstaCart and enable it compete effectively with the established giants
Environmental factors
The UK, just like the other global powerhouses have a role to play in shaping future global policies. The country is committed to ensuring sustainable development and ensuring that the economic activities do not impact the climate negatively. The UK has entered into a number of international agreements aimed at improving environmental protection. The UK is well known for achieving several environmental objectives. Commitment to sustainable development will require InstaCart to adopt green technologies in its operations.
SWOT Analysis
SWOT analysis involves examining the strengths, weaknesses, opportunities and strengths of an organization. SWOT analysis helps an organization understand its aims, goals, and ambitions (Quast, 2013). Depending on the outcome of a SWOT analysis, an organization can maximize its strengths and limit its weaknesses.
References
Arline, K. (2014).PEST Analysis: Definition, Examples & Templates. Business News Daily. Retrieved from <http://www.businessnewsdaily.com/5512-pest-analysis-definition- examples-templates.html>
Quast, L. (2013).How To Conduct A Personal SWOT Analysis. Forbes. Retrieved from http://www.forbes.com/sites/lisaquast/2013/04/15/how-to-conduct-a-personal-s-w-o-t- analysis/#653012496047.
Williams-Grut, O. (2015).Deliveroo, the online delivery service that brings restaurant food to your door, has raised £16.5m. Independent. Retrieved from < http://www.independent.co.uk/news/business/news/deliveroo-the-online-delivery- service-that-brings-restaurant-food-to-your-door-has-raised-165m-10010064.html >
