External Environment Analysis for Eataly


Added on  2019-09-25

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EXTERNAL ENVIRONMENT ANALYSISGeneral Environment: What forces in the general environment are most relevant for Eataly? Consider factors that mightbe present in the political, legal, economic, sociocultural, technological, natural/physical environmental, etc.Political: The factors like high level of consumer protection, political instability due to terrorist attacks, international pressure groups.Economic: the factors like level of taxation, inflation rate, exchange rate, weather and seasonality issues etc. Sociocultural: Activities of vegetarian and vegan groups, Consumer attitudes and opinions, Healthy eating trends etc.Technological: Development in catering industry, technologies associated, innovation in this industry.Legal: Taxation, Catering charges, employment laws etc.Industry Environment:What industry is Eataly in and how attractive is that industry? Consider Porter’s 5 forces: Potential new entrants, Bargaining power of suppliers, Bargaining power of buyers, Threat of substituteproducts, Intensity of rivalry among competitor, Bargaining power of suppliers: The prime objective of Eataly is to uphold a system of ecologically-sustainable and responsible production, distribution as well as commercialization. That is why Eataly has purchased share in their suppliers.Potential new entrants: There is a massive threat from other ventures and companies. Therefore, Eataly needs toincrease their store size and non-Italian Eataly should focus on the food which are exported from Italy and to make them look like a specialty store.Bargaining power of buyers: The product price is higher than the regular supermarkets. High price can be justifiedon artisanal food products but buyers do not like to pay more in regular products like meats, vegetable etc.Threat of substitutes: Various products like pasta, cheese pizza are highly common and Eataly aims to differentiateitself from artisanal slogan. All the upcoming and small companies needs to change their structure in order to challenge Eataly.Competitor Environment: Who are Eataly’s direct competitors? What is each competitor’s objectives, strategies, assumptions andcapabilities?Walmart and Tesco are the biggest rivals of Eataly.WalmartObjectives: Providing everything to their customers at an affordable value. Strategies: Cost leadership and differentiation.Tesco Objectives: The prime objective of Tesco is to keep their clients happy and further to motivate their employee so as to gain high profits and be friendly towards the environment.Strategies: Cost leadership and differentiation.
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