7th Week Journal

A supermarket needs wide variety of quality products and services, customer friendly environment, convenience and affordable price to be well known among customers and Big mart Supermarket has it all. Big mart is one of the renowned supermarkets in Nepal operating since 2009. Currently, it has 2 branches in Kathmandu the capital city of the country and is planning to operate in new places as well. It provides large variety of grocery products from chewing gum and candies to snack foods and meat in really affordable prices. 

PESTLE Analysis of Big mart Super market

Fig: Political Analysis

Political:

Nepal is a politically in-stable country and this has been affecting many organizations including Big mart. Big mart has to analysis and considers the sub-factors that come under political factors so that its business does not get affected. The political factors are:

·         Donations asked by different political parties and leaders.

·         Strikes

·         Influence from political parties and leaders to employ their people.

·         Lack of constitution.

Technology:

Technologies are being developed, advanced and updated in every once in a while. It is important for Big Mart to update and install technologies in their current as well as new supermarkets. They can use new technologies in the supermarkets that are customer convenient. It can also think of online retailing. In the same way, use of information technology is must as the supermarket is expanding in different places, there will be lots of transaction data to be recorded and IT will certainly help them store, use and retrieve data well. Other technological factors that Big mart should consider are:

·         Installation of cctv for security and surveillance.

·         Electronic counters

·         Digital membership cards

·         Product information on its website

Environment:

Big Mart can find out how conscious people are about the environment. They have to consider the demands for environment friendly products. They can think of using renewable energies such as solar power in their new supermarkets probably for lighting. They can also use paper bags instead of plastic bags. These are very important for Big Mart in order to gain competitive advantage over others as people now are becoming more environment conscious. Environmental factors to be considered:

·         Use of environment friendly products such as paper bags.

·         Environment protection campaigns.

·         Awareness among people regarding global warming due to business activities. 

Economic:

·         If the economy of a country is not good, no matter how well an organization tries to perform, it will be facing many challenges to accomplish its goals and so cant Big mart.

·         Income of people and income earners are rising so is the spending.

·         The economy of the country is developing and improving.

·         Big and long recessions in Europe, Asia and United States could not affect Nepal and industries.

·         Globalization has made it easier for Big mart to import and offer various products to customers

Legal:

·         There are rules, regulations and policies to follow for any organization before they start their operations. They have to get the authority to operate from the Register office.

·         Big mart has legal authority to provide goods and services.

·         Cannot sell products that are restricted by the Government.

·         Sell only genuine products at reasonable price.

·         Cannot set random pricing. 

Socio-cultural:

·         The way people shop has changed in Nepal. Before, they went to small retail shops for groceries but today they prefer shopping at supermarkets.

·         People want wide variety of products.