Company Overview
Dunnes is a leading retail chain store operated from the heart of Ireland in Dublin. The chain stores are primarily dealing in food, textile products and other household segments. The company is a privately owned company who has been serving the nation of Ireland for over 65 years (General Books 2010, p. 156). The company predominantly offers a wide range of updated fashion apparels under one roof where customers can find a comprehensive selection of fashion apparel either women, men or children. The company network is based on over 155 retail stores across Ireland and other neighboring countries. Moreover, Dunnes incorporation is also initiating to grow their operations via the online channel with access throughout the globe. Grocery store operations are only executed on the premises of Ireland and a few stores in Northern Ireland, although the shops can be found in Spain with some limited range of food offerings. Many products of Dunnes stores are put up for sale under the brand of Saint Bernard which was established in the year 1956 (Linda 2007, p. 111). The company employs over18, 000 in their huge network of 155 retail stores with reported 4.6% strong sales growth in the year 2013 which is the highest as compared to prior 4 years.
PESTLE Analysis
Pestle model includes the gathering and depiction of data about external elements which have or might have an effect on business. Or in other words a pestle analysis is a tool which is utilized by marketers to dissect and screen the macro-environmental or external marketing variables that have an effect on an organization ( OFFICE & Webster 2010, p.88). The effect of which is utilized to recognize dangers and shortcomings, which is utilized within a SWOT analysis. The abbreviation of PESTLE is as follows.
P>Political
E>Economical
S>Social
T>Technological
L> Legal
E>Environmental
All the above factors have played a vital role in making good profitable marketing strategy.
Political
Dunnes Stores, known as Dunnes is basically a retail store, based in Dublin, Ireland. The chain primarily sells clothes, foods and other household wares. The company is based in Dublin, Ireland. Ireland is basically an Island to the North West of the Continental Europe. It is known as the third largest islands in European region. Politically, Ireland is a safe and effective country. It is divided between the Republic of Ireland that covers six different islands in total
Politically, it is one of the most effective countries on the world, as far as political stability and effective decision making is concerned. There are number of companies which are effectively and officially found in this particular region as active possibility towards the company. The political stance within the country is perfect and the companies operating in this particular region is having a great time there. Likewise other companies, Dunnes Stores are also having effective growing stance with the company and moving with a perfect pace.
Economical
The essence of economical based stance could be extremely positive and effective from the viewpoint of an organization and from the viewpoint of a country as a whole. Ireland is a perfect and economically stable country of the world, which has effective interest rates and exchange rates as well as a whole. Economically, Ireland is a sound country which affected a lot during the current economic crisis. During the period 1997-2007, the economy of Ireland grew strongly and with a robust which is equally beneficial for the company as a whole. Dunnes is doing a perfect job as far as retaining in this particular jurisdiction is concerned and moving with a perfect pace.
Social
Social factors are extremely important to execute for a company and there are certain things which come under the ambit of socialism. When it comes to a food based company, then there are certain factors like social factors like religious based stance in total and when companies found it perfect then the chance and probability of earning would be on a higher scale. Social factors could be extremely effective from the viewpoint of an organization. Ireland is a multi ethnic country which has number of religions and it is important for the companies to fulfill the religions. Dunnes is a food retailer and has effective measurement in terms of social based things. Dunnes is effectively complying with the social based issues effectively.
Technological
If it is analyzed that this particular era is all about technological era then it would not be wrong. Technological efficiency could be extremely important for the companies in total and nowadays all of the companies trying to maximize their potential with the help of technological based stance. Ireland is technological effective country of the world and it is currently operating with perfection. Dunnes is operating in this particular country and having a great time while operating in this particular region in total.
Environmental
Environmentally Ireland is a perfect company and all the companies operating in this particular region is having a great time as far as environmental factors are concerned.
Legal
Legally, Ireland is a perfect country and the issues and regulations relate to this are extremely high and strict and Dunnes is doing a great job to satisfy these things with perfection and it is actually doing it.
Porter’s Five Forces Analysis
PORTER five forces is referred to the tool of analysis of industry investigation and business method which help in improving. It draws upon industrial organization (IO) commercial concerns to determine five forces that verify the intense power and consequently allure of a business.
Three of Porter's five forces allude to rivalry from outside sources. The remaining is referred to internal threats.
PORTER alluded to these strengths as the micro environment, to differentiate it with the more common term the macro environment. They comprise of the aforementioned constraints shut an organization that influences its capacity to serve its clients and make a benefit or profit (HILL& Jones 2008, p. 12). A change in any of the strengths typically requires a product to re-assess the commercial centre given the general change in industry data.
Firms have the ability to apply their center skills, plan of action or system to realize a benefit above the industry average. An acceptable illustration of this is the carrier business. As an industry, productivity is low but distinct organizations, by applying special plans of action have the ability to make a return in abundance of the industry average.
Porters’ five forces are highly dependent upon the Structure-Conduct-Performance ideal model in organizational trading and lending (HENRY 2008, p. 98). It has been connected to a differing go of issues, from helping organizations come to be more gainful to helping governments stabilize commercial ventures
Rivalry among the Competitors
Competition always become worthwhile for organizations and effective measures should have been taken to eradicate the same. Every company or industry has some sort of competition in total .Likewise, other companies Dunnes stores also encounter numerous competition while operating in Ireland because the country is economically powerful and doing exceptional job attentively. Therefore the rivalry among the companies hear in Ireland is high and dunes stores have to make new strategies to overcome the hurdles.
Bargaining Power of Consumers
In having high competition in the market and industry the amount of homogeneous companies are increasing in Ireland, hence consumers’ have number of options to have legitimate relationship with the companies .By considering this fact the power of bargain of the consumers for dunes stores is high and it may effect on dunes earning potential.
Bargaining Power of Suppliers
Dunnes Corporation is having effective suppliers in total. Dublin is a big place which has number of suppliers in it. The Bargaining power of suppliers is low in this particular region because of availability of high number of suppliers in it. We get a product easily because of high supply and higher number of suppliers. With this particular stance, the power of bargain of the same is on a lower scale in total
Threats of Substitute Products
The threat relates to the substitute products is essential and companies have to consider numerous things for the substitute based products in order to become productive. There are number of substitutes associated with the products of Dunnes Stores.
Barriers to Entry
The barriers to entry in this particular region is high which is a positive sign for Dunnes Stores because the stance of increasing of competition would be on a lower scale in total
Barriers to Exit
The barriers of exit are on a higher scale too which may increase the stance to expel out from the industry in total.
Reference List
DR. CHARLES W. L. HILL, Gareth R. Jones. 2008. Strategic Management: An Integrated Approach: An Integrated Approach. Miami: Cengage Learning.
FALLON, Linda. 2007. Cork. Dublin: Bradt Travel Guides.
HENRY, Anthony. 2008. Understanding Strategic Management. New York: Oxford University Press.
LLC, General Books. 2010. Supermarkets of the Republic of Ireland: Tesco Ireland, Dunnes Stores, Superquinn, Supervalu, Quinnsworth, Joyces 365. London: General Books LLC.
STATIONERY OFFICE, Ruth Murray-Webster. 2010. Management of risk: guidance for practitioners. Chicago: The Stationery Office.
