UK FURNITURE RETAIL

UK Furniture Retail

[Name of the institute]UK Furniture Retail

Introduction

The world in which we live today is moving at a fast pace. Every day new technology and methodologies are being introduced. The only thing that is constant in this world is change. So, today is the era of change and innovation. The fast pace and rapid changes increase the competition among the organization. In this era, only those organizations remain successful those thrive on change and continuous evaluation of the internal and external environment and then bring changes according to the changing pattern. In order to stay abreast and to attain competitive advantage it is imperative for an organization to continuously evaluate the various factors that are present in the external environment and that can cause a strong impact on the smooth and effective functioning of the organization. The aim and objective of this paper is also to perform analysis of industry. For that purpose the industry that is selected is furniture retail industry. The following part of the paper presents the PESTLE analysis, SWOT analysis and implication of ketchup theory on this industry.

PESTLE Analysis

The PESTLE analysis is a tool for designing and devising the strategy. This method is used to analyze the macro-external environment in which an industry operates. PESTLE factors play an important role in the opportunities for value creation strategy. However, they are usually beyond the control of the company and should normally be regarded as threats or opportunities. Following part of the paper reveals an analysis of PESTLE factors of the retail furniture industry.

Political Factor

The political factor for UK industry is fine and stable. Governments of different counties and principal cities are also in a stable state. Overall, there are no challenges from the political side in UK for furniture retail industry. However, there are few factors related to the politics tat can cause an impact on the furniture industry. These factors include political or relationship of UK with other countries. This aspect can affect the import of the raw material and export of the furniture to other countries. There are big retailers who want to expand their business outside UK to expand their target market. In this expansion the role of relationship of UK with other countries matter. For instance, the store of IKEA is present in UAE. Similarly, if IKEA wants to open its franchise in Pakistan then IKEA may have to face difficulty in obtaining license to operate there because of their relationship that is affecting because of terrorism and its war (Verdict Report 2012, 16).

Economical Factor

In the times to come, the customers would be unwilling as well as unable to make the large purchases. This is because of the credit crunch and occurrence of deterioration of the housing market. Sales in the furniture retail would decrease as their would be few people who would prefer to move house. From this situation the most affected field of the industry would be the sales related to fitted kitchens. The industry of furniture retail ...