Introduction
Setting a new business and venture is important from the standpoint of an organization in particular. It is important for the organizations to increase their financial belongings with the help of effective strategies in particular. There are certain factors and tools which ought to have taken into account while setting a new business accordingly and among them, the name of PESLTE analysis, Porter’s Five Forces and SWOT Analysis are some of them . The business which has been chosen for the same analysis is an Event Management Company, which is about to launch in Vancouver, Canada. In the next section, a small description of the PESTLE analysis would be done accordingly.
PESTLE Analysis of the Company
Pestle analysis is yet another important framework that is used to determine the external macro environmental issues in order to identify certain environmental scanning based constituents for strategically directing the business in a comprehensive manner (Merz, 2008). Pestle stands for Political (P), Economical (E), Social (S), Technological (T), Legal (L) and Environmental (E). This marketing tool is equally beneficial for us just like others to successfully inaugurate the business in Vancouver city.
Political:
Vancouver is located on the mainland of British Columbia State in Canada. Due to densely populated city, the Vancouver has now become the 8th largest municipality of British Colombia. The state is regulated by elected democratic administration, and is considered as an ideal spot for our company to initiate and expand the operations . This event management company will surely enjoy undertaking their operations in this specific territory, because the circumstances are fruitful for the business to grow and move towards the next level with efficacy. The policies and strategies of government are equally favorable as far as the interests of company are concerned.
Economical
The Vancouver is the busiest metropolitan area with respect to population and other business activities. It is deemed to be a dynamic and viable city in terms of gross domestic and national product in particular. The rate of GDP remained high in comparison with Canada GDP at 2.2% in 2013. The city’s downtown encompasses with half of the offices volume in comparison with other state’s municipalities and regarded as the international gateway to British Columbia (Deon et al., 2011). Being a mainstream place, the city contributes a significant amount of revenue in the treasury of the state. Therefore, the company will have sufficient opportunities to get high recognition while running their operation as the financial future of the metropolitan area is immeasurably bright.
Social Factors
Vancouver is one of the most diversified cities in regard to ethnically and linguistically in the Canada. The demography is comprised of diversified ethnic groups having different religion and culture and it can be observed from the fact that 52% of the population has their mother tongue other than English. The core function of the business is to organize events for different purposes by not targeting the particular race. Therefore, the company should be versatile in organizing events that may fulfill the cultural spirit of all the communities.
Technological factor
Inevitably, Vancouver is the most advance and technologically sounds city in British Columbia and it would be fruitful for the company to commence their operation in this area.
Legal Factors
The legislative authorities are very much attentive and strict related to legal aspect and every venture should be obliged adhere all the legal facets and the same would also be applied on event management company as well.
Environmental factor:
Because of the highly populated metropolitan area, the Vancouver is encountered with certain environmental based issues. Therefore, the company has got to put supportive strategies into practice to overcome on different environmental challenges so that to run their operations in a healthy and green environment.
SWOT Analysis of the Company
SWOT is basically an acronym of Strength, Weaknesses, Opportunities and Threats. It is one of the most important and widely used tools which used by the companies to conduct thoughtful and perfect analysis while doing their operations (Jones et al., 2008). The company which has been taken into consideration for the analysis is an Event Management Company in particular and the SWOT of the same are mentioned below.
Strength
Unique and Effective Services
At our company, we strive hard for providing the unique and most effective services to our clients. The services would be effective and well organized which would certainly help us to achieve the effectiveness
Effective Workforce
Fortunately, we have effective workforce working with us which is an effective sign for our company, which enables us to provide efficiency in our services and containing our client for a long span of time
Weaknesses
Low Brand Awareness in the market
We are new in Vancouver, Canada and don’t have high brand awareness in the market. We have to make sure that we provide the most effective services to our client from which we can deliver the best services
Opportunities
Advancement in Economy
It is quite favorable for us that the economy of Canada is now growing after a severe economic crisis, which adversely affected the entire financial position of the businesses located in this particular region. This particular fact would lead us to get effectiveness as well in future
Event Management Business is Spurring
The business of event management is spurring in the Canadian region, and especially in the Vancouver region, which is a positive point for us in the near future.
Threats
High Competition
The competition in the market of event management specifically in Vancouver, Canada is increasing but there are competitors as well which are increasing which may pose threats for us
Porter’s Five Forces Analysis
Porter’s Five Forces are an effective and well organized tool used to assess the effectiveness of a business while entering in a new region. There are five different factors from which the fragility of a business would have been analyzed
Rivalry among the Competitors (High)
Competition always is ineffective for the organizations and organizations have to consider such strategies from which they can manage their effectiveness. As mentioned earlier, the essence of competition in Vancouver area Canada is quite high and it is needed to be covered accordingly . The essence of competition in Vancouver is high and we are having two different competitors like, BC Event Management, Vancouver and MCI Vancouver Company, and we have to make such strategies from which we can tackle with these competitors. BC Event Management specializes in the top quality based event management services. The company works with their clients to understand their own goals and their own objectives. The company creates award winning events for their clients in particular which is a positive thing for the company. There is yet another company which is a competing company. MCI Vancouver is a globally integrated based association, communication and event management company. Since the year 1987, MCI created corporate based events, incentives, meeting and association and other governmental conventional and association. The advantages of having these competitors are that these companies would make a certain benchmark for us in particular and we can deliver the effectiveness according to their effectiveness. However, the biggest disadvantage of these competitors is time consumption is high position.
Bargaining Power of Consumers (High)
Bargaining Power of Suppliers (Low)
There are a number of suppliers in the company which can provide event management function things and stuffs to us because Canada is a big market and there are a number of suppliers associated with it, therefore the power of the suppliers are low.
Threats of New Entrants (High)
The barriers to entry in this particular region for business is high which is a good sign for us, however the barriers to exit from the industry is also quite high which may be ineffective for us in the future
Threats of Substitute Products (Low)
There are no substitute products associated with event management, hence the threat of such products are quite low.
Conclusion
The business which has been chosen for the same analysis is an Event Management Company, which is about to launch in Vancouver, Canada. From the entire analysis, it is found that the businesses, which we are about, make and expand in the region of Vancouver, Canada, would certainly be effective and will certainly help us out in the future to attain our goals with effectiveness. All of the indicators, including PESTLE, Porter and SWOT are in the favor of the company and it will be effective in their future needs.
References
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