Political Factors Ireland is a neutral country therefore war and terrorism is very scarce in this part of he globe. So setting up a business in Ireland is quite safe. We are a small, private limited company and are main headquarters is based in Dublin which is the capital of Ireland which experiences little conflict with other counties and various countries that we might have to deal with world wide. Because we imports our goods from China we have to pay taxes.
We have to pay VAT (Value Added Tax) of 21% and also pay for shipping costs which are quite cheap and due to economies of scale where the average cost per unit that we produce falls sue to a large amount of output. The Irish government is very lenient when it comes to price regulations. There are virtually no controls on prices in Ireland. This means that their is no legislation what the maximum or minimum price for any product should be. This allows are company to have flexibility in are pricing and it allows us to change the price of our product whenever we want without having to consult the government about it.
Economic Factors The economic crash has plummeted Ireland into a great depression. The inflation rate was last reported at a low 2,1 percent in February. Unemployment has increased even further leading consumers to spend less which could end up being a age problem for our company if we want to grow in the near future. However we don’t have to worry too much about labor cost because there is only three of us and therefore the money that we make is either used as profit to put into advancing our product and paying other expenses.
Ireland NAS a very advanced transport system and the understructure is overall very good. This enables us to transport our product efficiently and quickly which therefore will enhance our business’s reputation with regarding reliability and punctuality attracting more interest from wholesalers across the country. Social Factors Netter umbrellas are very fashionable and will hopefully take the market by storm. Our target market will range form all ages but I think this product will be more trendy for teenagers and young adults.
However, it doesn’t cost nothing to make so in order to make reasonable profit we’ll have to sell it quite a high price. Economic times are tough, therefore people might be quite hesitant to reach into there pockets and purchase an item like this but our if our marketing campaign is persuasive enough I think that sales could actually go through the roof. I want this product to be suitable for all social-classes. Just because it is expensive doesn’t mean that we are targeting the upper class people alone.
This umbrella is made of quality material that will last for years, if not decades therefore consumers will get there moneys worth out of it. Technological Analysis Without technology, communication would suffer and our business wouldn’t be able to run as efficiently as it should. We have to constantly be in touch with China where are products are produced. When designing this product, we carried out research and development and using the internet helped us greatly in finalizing and getting different ideas to create and improve a product that would have a great chance of surviving in a competitive market.
Our headquarters in Dublin, have several computers where we do most of our work online. I am the marketing manager and a lot of my work is done by telephone or internet using sites such as ‘Backbone and twitter’ to promote our product. Conclusion from the PEST analysis This PEST analysis will give us an insight into how we can take advantage of our opportunities and how we can minimize our threats. If our strategic planning is done correctly, this PEST will enable our business to grow in the future.