John Lewis Pest Analysis

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Porter’s Five Forces
Level of competition
• Competition in the retail industry sector is extremely fierce. Predicament to this problem is exacerbated by the fact that institutions are diversifying into non-core turfs thus creating extra competition.
• John Lewis is particularly exposed to competition as it sells not only food and drinks but also apparel and household goods. This leaves it vulnerable to competition from giant supermarkets such as Tesco, Asda, Sainsbury’s and clothes retailers such as Next, Topshop, Marks & Spencer and Zara.
• Porter (1985) wrote that “companies pursue one of three generic strategies: low cost, differentiation or hybrid”. In this regard, John Lewis has long tried to distinguish itself from competition by placing …show more content…
John Lewis being a large company listed with a huge turnover, suppliers always want their products on the retailer’s shelves in order to reach a large customer base enjoyed by John Lewis (Davey and Laurance, 2008).
• Unlike other stores, John Lewis is not overly dependent on suppliers as it mainly sells own branded products. This means that it largely buys raw mate-rials and not finished goods, which is favourable for margins (John Lewis, 2012

Pestle Analysis
Political Factors

Globalization, can end up being a test in addition to an open door for John Lewis. Challenge as it should rival Retail stores from round the globe who might even be furnishing the clients with preferred administrations and items better over John Lewis. Globalization can turn out to be an open door as it will permit build up ing themselves anyplace round the globe.

Government tax assessment strategy can lessen or increment the overall revenue on items and administrations. - For instance:- If the Corporation assess increments to let say 30% from 20% then John Lewis should pay a greater amount of expenses which will inturn diminish the benefit

Economic …show more content…
Alongside conditions conditions, bank arrangements assume a critical part in influencing the buying energy of the buyers, better and adaptable the bank strategy and financial situation solid, buying power builds which thusly will expand offers of John Lewis, which will expand the benefit rate.

With more rivalry in each fragment from contenders like Deben-hams, Marks and Spencer's John Lewis administration keeps on thinking of dif-ferent sorts of advertising methods , giving increasingly of impetus to the cus-tomers; influencing costs , bringing about the less
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