Business Environment and Market Analysis

This document provides an analysis of the business environment and market in Australia, focusing on the factors influencing the business sector and the competitive environment. It includes a PESTEL analysis, discussion on the competitive advantage of Grill'd, and target markets for the new product. The analysis highlights the political, economic, social, technological, environmental, and legal factors affecting the business environment in Australia.

BUSINESS ENVIRONEMENT AND MARKET

Table of Contents
PESTEL Analysis.......................................................................................................................3
Competitive Environment..........................................................................................................6
Target Markets...........................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

PESTEL Analysis
Figure 1: PESTEL Analysis Description
(Source: Clark, 2016)
Factors Analysis
Political The political scenario in Australia has been
quite stable and it has been favouring the
business sector through providing wide
range of developments and investment
perks. The snacks business in Australia
would be favoured by the political situation
as the country has been favouring the
healthy and entertaining environment for its
people. This has been considered in the
current product features. The stability in the
political scenario of the country provides a
positive outlook for the investors and thus,
this would be favoured by the concerned
company that is Grill’d.
Economic The country’s economy has been quite
developing in nature and the Gross
Domestic Product of the country has been
on an increasing trend since last five years.
This gradual increase in the GDP of the
country reflects some positive developments

in the economy and thus some positive
figures of the other economic factors (David
et al. 2019). The GDP of Australia for the
year 2018 has been A$1.69 trillion which
has been ahead of 2017 by 0.7%. The trend
of increasing Australian GDP reflects that
the country has been witnessing the rising
number of products which would favour the
purchasing power of the people and thus the
introduction of the new snack would get a
wide market range.
Social The social factor of Australia has been quite
wide in nature and the lifestyle that the
people has been following has been trending
towards healthy lifestyle. This has provided
a downfall in the sale of the junk foods and
the introduction of the chocolate fudge
brownie would replicate a healthy intake of
a stylish food. The fudge would be
completely healthy and the ingredients
would be selected in a way that no harmful
or unhealthy inclusion is made. This would
match with the healthy lifestyle of the
society and thus it would favour the
company.
Technological The technological usage in the country has
been wide in nature and the use of the latest
technologies has been the trend of the
country. The delivery and the cooking of the
chocolate fudge would incorporate the latest
technologies of food preparation and this
would help in maintaining the cost as well
as the hygiene of the product which would
favour the Australian healthy lifestyle. The

use of latest technology would also help in
maintaining the price of the product which
would help in mitigating the impact of
intense competition in the Australian
market.
Environmental The environmental condition of the country
has been quite healthy as compared to the
other developed countries and the cause or
the reason of this has been the right
maintenance of the pollution in the country.
The manufacturing industries has been
managed appropriately and the food centres
and restaurants has been provided with
some imitation to the exposure of the
pollution (Lee, 2015). The Grill’d would
utilise the minimum pollution generating
technology in the preparation of the fudge
which would favour the environment
condition of the country too.
Legal Consideration of legal actions is vital for all
the businesses and so the Grill’d would also
inculcate all the legal considerations in the
preparation and the sale of the chocolate
fudge brownie. The consideration of the
healthy food act and the other criteria which
are necessary to be met for selling a food
item in Australia would be considered. This
would help in gaining the authentication
over the product and thus the product would
be safe and healthy for the customers which
would create goodwill of the company and
thus, the competitive advantage would be
created through creating a strong brand

image.
Competitive Environment
Australia has witnessed huge market for the food and junk items which has resulted in the
intense competition in the Australian food market. Grill’d was founded in the year 2004
which has grown into a wide range of outlets in Australia. The competitors which has been
the great fighters in the market and who gave tough competition to Grill’d are Burger urge,
burger edge, vend, shopkeep and many more (Lee et al. 2016). The Grill’d has been dealing
in burgers only and the new initiative of including the chocolate fudge brownie in the
company is expected to add on to the popularity and the profits of the company. The addition
of the brownie would add on to the competitors list which would include Dello Mano,
Brownie Points, and the previous ones. Dello Mano is one of the best brownie servers in
Australia who also provide online services. The burger edge has been the business who has
owned about 30% of the market share and this provided Grill’d with an intense competition
to Grill’d. The increasing love for the healthy food has provided on with some deduction in
the market share by the competitors and the addition of the chocolate brownie fudge is
expected to add on to the market share of the concerned company.
Figure 2: Competitive Advantage of Grill’d
(Source: Tham & Fudge, 2019)
The competitive environment in Australian food market has been intense and it has been on a
gradual growth trend which proves the inclusion of the chocolate brownie fudge in its menu
is expected to provide Grill’d with a wide coverage of the market share. The increasing
competition is expected to turn in favour of the company as the burger intensive restaurants

would be competed easily due to addition of the new product and this would provide a
competitive advantage in this segment to Grilld (Lee, 2016). Considering an overall
competition, the Grill’d would have to compete with the brownie based restaurants too which
would be a bit tough for which the concerned company needs to include some latest
techniques and tools of mitigating the competition effects.
Target Markets
The restaurant would focus on the psychographic segment of the customers as this would
help in dealing with the customers in the most satisfied manner. The food items to be sold
needs the confidence of the people and the trust that the product being served is healthy and
hygienic. This complete depends on the psychology of the people and the psychographic
segmentation s expected to provide with the most favourable and progressive output to the
restaurant. The target customers would be the youngsters and the food loving people along
with the kids. The consideration of the segmentation and the target customers has been done
through conducting some research through Quantitative as well as Qualitative research
(Honkanen, 2019). The conduction of survey of the customers of the restaurant through a
questionnaire helped in gaining the knowledge about the prospect which attract them to the
restaurant and the regressive research on the previous case studies of the restaurants has been
acknowledged through exploring various books and other informative sources. These actions
has provided with some fruitful and effective measures being adopted for the introduction of
the chocolate fudge brownie and the future of the same has also been assessed. The
concerned target customers are expected to be attracted to the product is based on the
psychology that the children and the youngsters are the most chocolate loving people and the
changing generation and living style has also included in the list the adults and old people
(Alt & Iversen, 2017). Though the percentage of the liking is low in the old people group but
it has been on the increasing trend Thus the target customers has been chosen on the basis of
the human psychology and this would prove to be accurate as the human psychology remains
same be it in any generation.
Conclusion
The acknowledgement of the Australian market has been quite wide and the utilisation of the
various analysis tools and techniques has helped in having an insight in Australian working
perspective. The market of Australia has been quite wide in nature concerning the food
market and the restaurants and the hotels has also been on the priority list of the country. The
introduction of the new product by Grill’d that is the chocolate brownie fudge would have a

positive and exciting response as the analysis o the market has provided with the scenario that
the targeted customers and the market segmentation has been made quite accurate. The
targeted customers has been chosen through proper and accurate research in the market which
has provided with the kids and youngsters being the high priority, though others has not be
ignored. The market segmentation has also been on the basis of the research but the
consideration of the human psychology has been made too which helped in enhancing the
psychographic segmentation. The overall analysis of the entire market has provided with the
fact that the competition in the food market of Australia has been intense and the competitive
advantage has been gained by Grill’d through taking up the concerned product as this would
add on to its competitors but along with it, there would also be an advantage to the restaurant.

References
Alt, J., & Iversen, T. (2017). Inequality, labor market segmentation, and preferences for
redistribution. American Journal of Political Science, 61(1), 21-36.
Clark, R. M. (2016). Intelligence analysis: a target-centric approach. CQ press.
David, J., David, J., David, J., Rahman, M., David, J., & Rahman, M. (2019). PESTEL
analysis of Australia | howandwhat. Retrieved from
https://www.howandwhat.net/pestel-analysis-australia/
Honkanen, H. (2019). Competitor Analysis Process: A Proposal for the Critical Power
Business.
Lee, C. (2015). Innovation, entrepreneurship, and business performance: a mixed methods
study of the Australian restaurant sector.
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Drivers of success in independent
restaurants: A study of the Australian restaurant sector. Journal of Hospitality and
Tourism Management, 29, 99-111.
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and
restaurant performance: A higher-order structural model. Tourism Management, 53,
215-228.
Tham, J. C., & Fudge, J. (2019). Unsavoury Employer Practices: Understanding Temporary
Migrant Work in the Australian Food Services Sector. International Journal of
Comparative Labour Law and Industrial Relations, 35(1), 31-56.