PESTLE Analyses of Netherlands External Environment
Added on 2020-12-10
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Expand Ocado inNetherlands
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................12) Background of Ocado-............................................................................................................13) Business environment background of Netherlands-...............................................................13.1) PESTLE analyses of Netherlands external environment-....................................................23.1.1) Political factors- ...............................................................................................................23.1.2) Economic factors-.............................................................................................................33.1.3) Social factors-...................................................................................................................33.1.4) Technological factor-........................................................................................................43.1.5)Environmental factors-......................................................................................................43.1.6) Legal factors- ..................................................................................................................53.2) PORTER's Five Forces-.......................................................................................................53.2.1) Industry rivalry- Low risk-...............................................................................................53.2.2) Power of buyers- Low risk-..............................................................................................53.2.3) New Entrants- Low risk- ..................................................................................................63.2.4) Power of substitutes- Medium risk-..................................................................................63.2.5) Power of suppliers- Medium risk-....................................................................................6CONCLUSION ...............................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONBusiness is related to production, buying, selling of products and services. It is the legalentity of country which has to follow government rules and regulations. Ocado is a British onlinegrocery service provider. It was found in April 2000 by Jonathan Fiman and Tim Steiner. Itstarted trading business as a partner with Waitrose in 2002. It has no chain supplier store incompetitive market. It operates all business empire from own warehouses. Companyheadquarters in different places and having a good position in 2010 on United Kingdom stockmarket (Edwards and Rodriguez, 2018). Firstly, report will explain the history of Ocado plc.After this, it will discuss about Netherlands business environment background. In the next step,report will talk about PESTLE analysis in Netherlands business environment and at last, it willdescribe Porter's Five Forces Model on different business risk level.2) Background of OcadoIn April 2000, Ocado was founded by Jonathan and Jason. It was launched in January2000 as a normal concept and started business in partnership in 2002 with Waitrose. It is afamous British online supermarket. Ocado has no chain stores and run all business fromwarehouses. The organization was floated on United Kingdom Stock Exchange on 21 July 2010.Its headquarters located at United Kingdom, Hertfordshire, Hatfield. In July 2009, it releasedtheir first mobile application and this app called 'Ocado on the go' (Gülseven and Davidsson,2017Lubián and Esteves, 2017). This facility allows consumers to do their shopping without theuse of personal computer. In 2010, it launched mobile app for every android device. Recently itsigned a deal with the Sobeys which is a Canadian supermarket. August 2017, companylaunched online app for Amazon's Alexa voice assistant, that is allow users to share theirdemands to an Ocado order via voice. Since 2014 January, company have been deliveringgroceries online for grocery rivals Morrison’s. 3) Business environment background of NetherlandsCulture of business in the Netherlands is defined by business communication, meetingetiquette, internship, living cost, balance between work and social life. The Netherlands has atemperate marine climate with mild winters. Distinctive feature of the country geographically butalso logistically and economically too. Other countries like United State love to do business inNetherlands. United State partnership is the oldest business relationship with Ocado. Netherlands1
is a small geographically, populated country occupying strategic economic commercial locationwith Europe. According to a survey, Netherlands favourite business place among the top worldindustrialized countries. Country economic, political and legal environments are suitable for alltype of businesses. Investors want to invest their money and earn more business profit. UnitedState is the largest foreign investor and has the greatest trade surplus. GDP of Netherlands ishealthy and it provides a good business culture (Rossi and Krey, 2017). A strong GDP is the signof a business environment where everyone wants to operate their business. Because of a goodbusiness culture its ranks 12th in the world by GDP per capita. 3.1) PESTLE analyse of Netherlands external environmentPESTLE analysis is helpful to describe Netherlands external environment. This analysehighlights various challenges which influence the economic investment. Country is dependent onoils and export products, which is one the main issue. Netherlands government business policies,trade investment are the open invitation for other countries. Its low rate rules for differentbusiness plans are the attractive factors for investors. Netherlands have a good geographicalposition in the whole world. Its open economic policy force an organisation to develop otherbusiness plans and they are like to establish their organization. It is most favourite country ofUnited State, which is preferred for running Business Empire. It has a high class social environment; the citizens carry a rich life style. Its commercialand economic culture provides great development opportunities for all kind of companies (VanGysel, 2017). It has strong communication network and technologies in the Europe, whichbeneficial for political support and technical development. Its telecommunication market hasmost advanced infrastructures in European countries, which helpful in providing a strongfoundation services. Netherlands legal systems encourage others to operate their businesswithout any barrier. Environment of the country is healthy and liberal for business. Netherlandshas to depend on other foreign countries for food meals because it does not have high agricultureproductivity.3.1.1) Political factorsThe Netherlands is well known in the world for its economic, commercial and businessinvestment policies. It has internationalization economy with low government interference andbusiness trade policy is the open for every country. Government offers different kind of policies2
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