PESTEL Analysis of Bed bath & beyond
PESTEL analysis of Bed bath & beyond is a tool or framework that marketers can use to monitor and analyze the macro-environmental factors that affect this organization. A PESTEL analysis is done when a company wants to indentify weaknesses and threats and it used in SWOT analysis. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors that affect a business or company. Bed Bath & Beyond is an incorporated retail stores’ chain that sells different types of domestic merchandise. This firm was established in 1971 and its subsidiaries are operated under various names including Bed Bath and Beyond, Harmon and Harmon Face Values, buybuy BABY and Christmas Tree Shops.
A detailed PESTEL Analysis of Bed bath & beyond
Political factors
These include political instability or stability especially in overseas markets where Bed bath and beyond has stores and markets, government policy, policies of foreign trade, labor law, trade restrictions and labor laws. The headquarters of Bed bath & beyond are situated at 650 Liberty Avenue, Union, New Jersey but it has 32 stores in New Zealand and Mexico. The stores of this company and their operations can be affected by political factors in places where they are situated.
Economic factors
These include interest rates, economic growth, exchange rates, consumers’ disposable income and inflation among others. Bed bath and beyond is greatly affected by these factors in terms of how its stores do business and how profitable the stores are. For instance, since Bed bath and beyond specializes in the sale of domestic merchandises such as kitchen textiles, bath items and bed linens through its retail stores, factors like inflation and lack of adequate disposable income can affect its sales and profitability of its stores.
Social factors
These are also called socio-cultural factors. They include attitudes, population growth, health consciousness, age distribution, career attitudes and beliefs of the target markets of Bed bath and beyond among others. These factors are very important because they affect how customers are understood by the stores marketers directly and what drives buyers. For instance, due to these factors, Bed bath & beyond is compelled to use different names in different places in order to influence the perception of the target markets towards it.
Technological factors
These include new ways that a company uses to produce, distribute and present services and goods as well as to communicate with customers. For instance, Bed bath & beyond uses TV ads and banner ads with information about its rechargeable batteries to promote them among the target markets in North America. This means of promoting this particular product is aimed at attracting more attention from the target consumers.
Environmental factors
These are environmental issues that Bed bath & beyond is facing while marketing its products. Today, buyers are conscious about the environment. Most of them want to purchase products that are sourced from sustainable sources and in an ethical manner. Bed bath & beyond must present its products to consumers in an ethical manner while showing them that it is concerned about environmental preservation. For instance, this company presents rechargeable batteries that consumers can recharge and use for a long time before disposing them. This reduces the wastes and the need for raw materials that are required to manufacture new batteries. As such, by selling rechargeable batteries, the company plays a vital role in preserving the environment and raw materials.
Legal factors
These include consumer laws and rights, product labeling, product safety, health issues, advertising standards and equal opportunities. Bed bath and beyond must observe these factors while marketing its products. It must know what is legal and what is illegal in various places where it opens and operates retail stores in order to operate successfully. This can be very tricky because Bed bath & beyond has retail stores in different countries yet these countries have different regulations and rules.
Importance of PESTEL analysis of Bed bath & beyond
PESTEL analysis is very important because it makes the weaknesses and strengths of a company easy to identify. Such a PESTAL analysis will also enable Bed bath & beyond to formulate strategies. This way, running and managing the company and its retail stores becomes easy.
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Sources
http://www.professionalacademy.com/news/marketing-theories-swot-analysis
http://www.forbes.com/companies/bed-bath-beyond/
http://www.managementparadise.com/forums/principles-management-p-o-m/208876-pest-analysis-bed-bath-beyond-inc.html