Strategic Analysis of Slices: Recommendations using PESTLE & 5 Forces

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Case Study
AI Summary
This report provides a strategic analysis of Slices, a company operating in the UAE, using PESTLE analysis, Porter’s Five Forces, and an evaluation of its core competencies to recommend strategic changes for beneficial and effective growth. The PESTLE analysis examines the political stability, economic advancement, social infrastructure, technological advancements, legal framework, and environmental challenges within the UAE. Porter’s Five Forces assesses the threat of new entrants, substitutes, bargaining power of customers and suppliers, and industry rivalry. The core competencies are characterized by the different processes, purchasing of organic products from local farmers, adaptation of the meals on the basis of the season and selling of healthy food along with that of the viewpoint of corporate social responsibility. The report concludes with strategy recommendations focused on visual placement, inventory control, technology utilization, loyalty programs, and customer service improvements to augment the brand's value and competitive advantage.
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Running head: STRATEGIC ANALYSIS OF SLICES
Strategic Analysis of Slices
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1STRATEGIC ANALYSIS OF SLICES
Executive Summary
The purpose of this report is to discuss about the PESTLE analysis of Slices. It also deals
with the Porter’s Five Forces Analysis that highlights the external environment pertaining to
Slices. It also states about the core competencies along with strategy recommendations of the
company. The report highlights that smart visual placement can help in building the brand of
Slices.
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2STRATEGIC ANALYSIS OF SLICES
Table of Contents
PESTLE Analysis.......................................................................................................................3
5 forces Analysis........................................................................................................................4
Core Competencies....................................................................................................................5
Strategy Recommendations........................................................................................................6
References:.................................................................................................................................7
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3STRATEGIC ANALYSIS OF SLICES
PESTLE Analysis
Political- The political stability prevailing in Europe helps in the growth of a business and
the financial benefits that people get helps in the flourishing of new business. UAE has been
a model of that of political stability and this helps business of different kinds. Political unrest
prevails in the other countries but UAE inspite of having foreign community experiences
stable political conditons.
Economic- There is a strong cohesion in the leadership of the country along with that of the
openness and this has helped in boosting the economy of UAE. It is economically very
advanced owing to the educational along with health development.
Social- Development pertaining to infrastructure has been impressive within the UAE. There
is the existence of welfare system that helps in offering free services to that of the nationals.
The enrolment of girls in the educational institutions is impressive and the social
development has helped in the growth of different business (Molina-Azorín et al. 2015).
Technological- Free wi-fi within the public spaces of UAE helps the different kinds of
business to flourish. Technology has been created that can help in the monitoring of
infrastructure. Digital technology helps in improving life of citizens.
Legal- Reorganization pertaining to existing legislative framework can help in the
establishment of that business ventures across that of the UAE. Cross-border trade can be
easily facilitated with the help of the regulations existing in UAE.
Environmental- UAE ranks one in terms of the ecological footprint. The environmental
issues are caused owing to the exploitation of that of natural resources along with that of
rapid population growth.
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4STRATEGIC ANALYSIS OF SLICES
5 forces Analysis
Threat of new entrants
Business related to food is opening in the city and almost four restaurants are opening
in a day. Figures from that of Dubai Municipality has shown that around 2074 restaurants
have opened in the last 18 months. This makes the threat from that of new entrants very high
for that of Slices.
Threat of substitutes
Slices participates in different school along with university events in order to spread
the values. The entrepreneurs of Slices have developed food which is unique and the
community services offered by Slices sets it apart from the competitors. The philanthropic
attitude that Slices have for the poor people has helped in creating a distinct name for the
brand which makes the threat of substitutes quite low (Wagner and Hollenbeck 2014).
Bargaining power of customers
Slices provides a guarantee that the food that they provide is fresh and the shelf life of
the food is 24 hours. The international exposure that Slices have helps in the creation of
concepts that are fresh and this makes the bargaining power of the customers to be very high.
Bargaining power of suppliers
Slices believes in maintaining intimate relationship with that of the vendors present in
the market. This helps in controlling the products through the value chain and they want to
work with the suppliers who have the same kind of values. The healthy drive undertaken by
Slices makes it necessary that the suppliers also believe in community initiatives (Alonso-
Almeida, Bremser and Llach 2015). There are very few suppliers who share the belief of
Slices and this makes the bargaining power of suppliers to be high.
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5STRATEGIC ANALYSIS OF SLICES
Industry Rivalry
Understanding of the rivals of the industry is necessary for the successful marketing
of a product. Slices buys the organic products from that of the local farmers and it adapts the
meals on the basis of the season (Nitiwanakul 2018). This is clearly set forward in their
advertisements. The fact that Slices helps in supporting local employment and has low
ecological footprint have been suggested in their marketing makes it stand out in the industry
which makes the rivalry from te industry to be low.
Core Competencies
The competencies of Slices have been characterized by the different processes that
helps in deploying the resources in an effective manner. The meals of Slices are on the basis
of the remarks and suggestions of the customer.
The purchasing of organic products from that of the local farmers and adaptation of
the meals on the basis of the season makes it a unique brand among the consumers (Mao et
al. 2016).
The supporting of Slices of local employment has also helped in creating a position in
the market.
Selling of healthy food along with that of the viewpoint of corporate social
responsibility has together contributed in creating a unique name for the company (Kim et al.
2015).
The delivery service opened by Slices has made it more convenient for the consumers.
The distinctiveness in terms of the organizational capacities has enabled in providing
Slices with competitive advantage.
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6STRATEGIC ANALYSIS OF SLICES
The resources have helped in making the team of Slices in the generation of superior
products along with services at a standard cost.
Strategy Recommendations
The customers get to see different kinds of messages in a day and showing of product
recommendations can help in influencing the customer buying behaviour. Integration of a
visual that shows products near that of point of sale can help in the creation of smart visual
placement that can augment the value of the brand.
Product availability should be the basis on which the products are promoted. This can
help them in having more inventory control and help in prevention of food waste (Leonidou
et al. 2017).
Technology should be made use of to a large extent in order to capture that of
customer data. Loyalty programs should be made use of by Slices for capturing data related
to the customers.
Service is key in the case of restaurant business. Hospitality can make the customers
feel good and it can help in bringing them back to the restaurant. The management should
actively engage with that of the customers that can set an example in front of the customers.
The restaurant should be kept properly staffed in times of peak hours and an incentive
system can be made use of in order to keep the employees satisfied.
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7STRATEGIC ANALYSIS OF SLICES
References:
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., López-Gamero, M.D. and Pertusa-Ortega,
E.M., 2015. The effects of quality and environmental management on competitive advantage:
A mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive
advantage. Routledge.
Alonso-Almeida, M.D.M., Bremser, K. and Llach, J., 2015. Proactive and reactive strategies
deployed by restaurants in times of crisis: Effects on capabilities, organization and
competitive advantage. International Journal of Contemporary Hospitality
Management, 27(7), pp.1641-1661.
Nitiwanakul, W., 2018. A Comparative study of customer perceived value as a driver for fine
dining restaurant selection. AU Journal of Management, 12(1), pp.1-13.
Mao, H., Liu, S., Zhang, J. and Deng, Z., 2016. Information technology resource, knowledge
management capability, and competitive advantage: the moderating role of resource
commitment. International Journal of Information Management, 36(6), pp.1062-1074.
Kim, S., Koh, Y., Cha, J. and Lee, S., 2015. Effects of social media on firm value for US
restaurant companies. International Journal of Hospitality Management, 49, pp.40-46.
Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal
drivers and performance consequences of small firm green business strategy: The moderating
role of external forces. Journal of business ethics, 140(3), pp.585-606.
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