External Environment

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Billcutterz Case study

2

Billcutterz Case study

Billcutterz Case study

Charan Kommuri

New England College

Operational Planning & Policy

Running Head: Billcutterz Case study 1

PESTEL Analysis is a strategic framework which is used to analyze a business strengths, opportunities and risks involved by dividing them into the following factors, Political, Economic, Social, Technological, Environmental, and Legal factors (Basu, 2019).

Political Factors. Several factors are needed to be considered when it comes to political. Same way in Billcutterz case factors like business model, strategies, competition, business laws are included. Apart from the above-mentioned factors other situations like exchanging, business outlines can be considered.

Economic Factors. For any business economic factors plays significant role in building and developing. Economic factors include, expenses in building business, sales, economic growth, interest rates depending on the business flow, also exchange rates. In Billcutterz case economic factors like heavy expenses plays a major role for things like vehicles, homes.

Sociocultural Factors. Social or sociocultural factors includes population, age, sex, health factors, awareness in health fitness (Galbraith, 2001). In Billcutterz case, Billcutterz can try targeting audience like women, by their age group and the activities like cultural and for students.

Technological Factors. In any business technology plays a significant role. To promote a business technology can be used in different ways. Also, to sell or receive products technology can be used. In Billcutterz technology factors includes internet which can be used to receive orders from customers online.

Environmental Factors. For any business environmental factors include raw materials, pollution and so on. The physical condition, which gives natural assets to assembling and vitality creation, has consistently been a critical piece of human business action.

Legal Factors. Legal factors include providing equal opportunities to everyone, product licenses, also ethical and moral principles

Billcutterz Porter's Five Forces

Porter’s Five forces is an analysis which helps business owners in balancing the business power by analyzing the business model between marketers, organizations at different levels. Also, Porter’s analysis can be helpful in analyzing the profitability of every financial and industrial sector.

In Billcutterz case, there are some threats which includes introduction of new varieties in the market which gives a very high competition. On the other hand, current business has a huge chance of building the business and taking it to next level.

For any business model there will be threats in the form of substitutes. As a competitor many substitutes will be released into the market. As part of industrial rivalry competitors will release substitute products with less prices and with more features. Rather than releasing the substitute product with existing features in current product, rivals will try to offer the substitute products with attractive prices and extra features and standards.

Supplier Power. Billcutterz has providers who sell parts, materials, work, or items. Provider power alludes to the perceived leverage in the connection among firms and their providers in an industry.

Buyer Power. On the off chance that Billcutterz gives a one of a kind decent or administration, it will have the power to charge its clients premium costs, because those clients must choose the option to purchase from the firm if they need that item.

References

Basu, C. (2019). The Importance of Porter’s Diamond & Porter’s Five Forces in Business. Small Business-Chron. com, http://smallbusiness. chron. com/importance-porters-diamond-porters-five-forces-business-33891. html. Accessed, 29.

Galbraith, J. (2001). Standard and Poor's Net Advantage. (Databases). Reference & User Services Quarterly, 41(2), 182-184.

Thompson Jr. A. A, Peteraf, M. A., Gamble, J. E., and Strickland III, A. J. (2020). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. 22nd Edition. McGraw-Hill. ISBN: 978-1-260-07510-6