Specsavers: SWOT and PESTLE Analysis

Specsavers SWOT and muller outline1.0 IntroductionThis report willing fork over a detailed depth psychology of Specsavers current corporate appraisal SWOT compendium. This will highlight the companies strength, weaknesses, opportunities and panics, which will help the callers instruction, understand where the organisation is now. A atomic identification number 23 Forces purlieual summary of the industry will examine the local, national and globose influences of governmental, economic, social and technological f exertionors (in the form of a PESTEL analysis) to understand opportunities and threats facing Specsavers shortly and in the proximo. This will provide an evaluation of the outside(a) business environment in which Specsavers operates. This analysis will highlight the fundamental changes that the tenderness deal industry is undergoing, especially in defence to the unstable environment it faces from exogenic gets (oil prices, inflation etc) and endogenous force s.2.0 SWOT Analysis of SpecsaversSpecsavers main strength is in its local knowledge of customers within the UK and Worldwide, providing a trusted printionateness sell assistance, affordable glasses and pinch lenses to a number of countries in atomic number 63 and worldwide.. It in addition has a beefed-up work force with highly handy opticians, who carry out professional centerfield test using the in style(p) optical equipment. Its major weakness is its leave out of luxury source fool aw atomic number 18ness nationally and globally relative to its major competitors like Selfridges. Specsavers faces external threats from existing completion (Boots, Vision Express) in the market place for mettle wield as well as cheaper low cost smears from the furthermost East. Changes in Socioeconomic conditions can besides play a rive in Specsavers future success, as buyers argon now more environmentally conscious and ethically educated. The main competitors are all promoting a strong sense of Corporate Social Responsibility agenda. Specsavers must also be mindful of any potential takeover bids from the likes of Boots and Vision Express Group. hang Figure 1 below for a full SWOT analysis of Specsavers.Figure1 Specsavers SWOT Analysis INTERNALSTRENGTHSEstablished for 24 years tolerant ranges of products including hearing helpingUKs sending eye dispense service of process provider with 830 stores in UK and EuropeValue for money 2 for 1 offersBrand AwarenessHuman resources Expert Opticians and audiologistsOnline BookingUse of in style(p) optical and hearing equipmentNew Version One System for catalogue managementOPPORTUNITIESDevelop trade name awareness globallyFurther refinement of stores internationallyNew designer frames from leading make housesMarket deliver to globalisationNew facilities or servicesInnovation AlliancesDiversificationEXTERNALWEAKNESSESPerception of Low QualityDesigner Brand AwarenessDoes non stock high class brands like D G and BebeDoes not provide same day service like its competitorsTHREATSNew existing challengerVolatility in Price of FuelConsequences of UK recession and credit calf loveMarket shift to globalisationTakeover bids Norville OpticalFar-East eye care companies expansionExtremely high competition for customers and resourcesThe SWOT analysis of the company shows that its strengths are in its wide range of products and its reputation for carrying out a professional eye care service, large investments in latest optical and hearing aids equipment and its international presence. However, main weaknesses are low brand awareness for designer frames.Currently the company only distributes a number of designer brands of frames and sells it brands mainly through its stores. Therefore, it has opportunities to venture into e-commerce solution through tissue orders of designer frames. Also access additional capital and consider retail partnerships. The company faces various threats from new and e xisting competition, economic recession and ascribable to its low brand awareness in designer (luxury) market plane section faces potential takeover bids.3.0 The Five Forces Modeldoor guard explains that there are five forces inherent in a market, which will jointly prepare the intensity of competition and profit world power of Specsavers and the eye care industry. The first is the threat posed by new entrants, as with the growth in designer frames being offered by Selfridges, Harrods, and Rackhams etc. The second is the threats from substitutes, optical maser treatment v spectacles, and the growing demand in laser vision correction surgery. The tierce force is the threats from the bargaining power of buyers, is this strong for twain Specsavers and the entire eye care industry with a large number of alternative suppliers, hence, the self-asserting pricing strategy, two for one offers etc. This results in a precise strong competitive rivalry in the industry. This is intensifi ed as a result of little or no differentiation in the service offered. Finally the threats from the suppliers bargaining power, this is very strong in the eye care industry for two reasons, one is highly specialised products supplied by fewer manufacturers, hence, Norville Optical who can command a very favourable foothold and second is the existence of many buyers within the industry.4.0 External Environment PESTLE AnalysisAll of those (political, economic, social, technical, legal and environmental) factors will to some extent hand to the eye care industry.POLITICAL changes in corporation tax in the future within UK and internationally. With operations in Europe and across the globe, is the political regime favourable to foreign investment. The introduction of Carbon Taxation could also pose a future threat to Specsavers.ECONOMIC the high-end eye conduct industry is vary recession prawn and also very tippy to changes in prices.SOCIAL changes in consumer taste and lifestyl e represent both opportunities and threats for the eye care industry. Opportunities in terms of designer branded eye wear are now popular with high disposable income groups and also the growing trend in spectacles as a fashion accessory. The aging population in UK and throughout the globe will retain a favourable impact upon the demand for eye care products and services. The threats are in terms of alternative vision correction treatments like laser and lack of skilled labour, will the educational system support future qualified opticians and audiologists, if not there may be a lack of supply.TECHNICAL Changes in retailing methods as such spec sales via the Internet is now a common place in eye wear, online appointment booking with patients receiving an email containing their appointment details and booking character when they book online. authorshipless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure s ervers provide flexibility in the running of the stores. Specsavers has employ a new version one system for document management in order to provide a centralised accounting lick for its 830 UK and European stores. The development of the next generation lenses will also lead to technological opportunities in terms of cost reduction and melioratement in quality of lenses.LEGAL Threats are in terms of future legislations for wellness and environmental issues. Specsavers necessitate to be mindful of data protection act (freedom of information act) as it will store a large union of patients personal details. Do the current (or future) employment laws provide an wages or disadvantage to the business?ENVIRONMENTAL The energy sources used, namely oil has enormous ecological/environmental implications. The threats are in terms of fines and rise in cost of raw materials. The introduction of Carbon taxation will affect Specsavers future profitability.5.0 ConclusionSpecsavers is clearly an organisation with a strong brand awareness and reputation for providing an affordable eye care service, with operations in a number of countries in Europe and across the globe.Specsavers environmental analysis via the SWOT, PESTEL and Five Forces showed that the eye care industry is experiencing a change in terms of becoming more socially responsible and customer service focused (due to intense competitive rivalry). Specsavers needs to view those environmental changes as an opportunity rather than a risk. In order to succeed in the future Specsavers needs to see employees as the key to competitive advantage in an industry that is highly dynamic.Corporate and human resource strategies are developed conshortly. Specsavers needs to view its human resources as the driving force in the development of its overall business strategy for the future. There needs to be an overriding emphasis on developing opticians skills through intensive training programme (2 year graduate programme) and continuous investment in RD.The future environment of Specsavers will largely be impacted by the introduction of the Carbon tax, which will threaten Specsavers ability to continue to offer affordable value for money glasses and contact lenses, as additional taxes will diminish margins, which could lead to increase prices.The cyberspace will continue to shape the way Specsavers operates as a business, currently using it primarily for online appointment booking, but as the social trends change, consumers with picky lifestyles will prefer to use online shopping for ordering their frames and contact lenses. Specsavers has in recent beats implemented an online document management system, to enable it to centrally manage payment of suppliers invoices. This has resulted in significant time savings and operational costs as a result of improve efficiency and freeing up of storage space.Word Count =1,550References BibliographyNeedle, D. (2004) affair in Context An introduction to busi ness and its environment 4th Edition, ThomsonWorthington, I. Britton, C. (2006) The handicraft Environment 5th Edition, Prentice Hall Financial TimesACCA Paper 3.5 Strategic Business Planning and Development (2001) The Financial Training clubJohnson G and Scholes K (1993). Exploring Corporate Strategy Text and Cases. Cambridge Prentice Hall.Porter M.E (1980) Competitive Strategy-Techniques for Analysing Industries and Competitors.