Limitation of pestel analysis

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Limitation of pestel analysis

Limitation of pestel analysis

These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research — some of the strengths of Amazon and Whole Foods Acquisition are — Strong distribution network — Over the years Amazon and Whole Foods Acquisition has built a reliable distribution network that can reach majority of its potential market.

Highly skilled workforce through successful training and learning programs. Amazon and Whole Foods Acquisition is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.

This brand portfolio can be extremely useful if the organization wants to expand into new product categories. Highly successful at Go To Market strategies for its products. Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.

Good Returns on Capital Expenditure — Amazon and Whole Foods Acquisition is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.

It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.

Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning. Investment in Research and Development is below the fastest growing players in the industry.

Even though Amazon and Whole Foods Acquisition is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation.

It has come across as a mature firm looking forward to bring out products based on tested features in the market. The marketing of the products left a lot to be desired.

Limitation of pestel analysis

Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.

Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. This can impact the long term growth of Amazon and Whole Foods Acquisition Not highly successful at integrating firms with different work culture. As mentioned earlier even though Amazon and Whole Foods Acquisition is successful at integrating small companies it has its share of failure to merge firms that have different work culture.

The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.

Potential Limitations of the PEST Analysis and How to Address Them

Amazon and Whole Foods Acquisition has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Financial planning is not done properly and efficiently.

The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. Opportunities for Amazon and Whole Foods Acquisition — External Strategic Factors Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided Amazon and Whole Foods Acquisition an opportunity to enter a new emerging market.

Amazon and Whole Foods Acquisition SWOT Analysis essay,term paper Fern Fort University

Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Amazon and Whole Foods Acquisition to capture new customers and increase its market share.

Government green drive also opens an opportunity for procurement of Amazon and Whole Foods Acquisition products by the state as well as federal government contractors. Stable free cash flow provides opportunities to invest in adjacent product segments.ECONOMICS CHAPTER 1- INTRODUCTION TO ECONOMICS Assumed 3 decision makers- consumers (households) – that sell land, labour, capital & entrepreneurship and firms- that pay rent, wages, interest and profits (rewards for above factors of production) firms then use the factors to produce G/S in return for payment from consumer.

Chapter Three. The Jewish Question. To illustrate the history of the Jewish people from its earliest beginnings down through the ages to the present day, as seen and depicted by the Jewish mind itself, we give the following account from the Chicago Tribune, July 4, Search the world's information, including webpages, images, videos and more.

Google has many special features to help you find exactly what you're looking for. Explanation of IFE & EFE Matrices. Click inside to find the definition, examples and how to perform one for your company. VRIO Analysis is an analytical technique briliant for the evaluation of the company's resources and thus the competitive advantage.

Essays, Term Papers & Research Papers. SWOT analysis is a vital strategic planning tool that can be used by Amazon and Whole Foods Acquisition managers to do a situational analysis of the company.

Pestle Pestel Advantages and Disadvantages - Limitations - nationwidesecretarial.com