Alphabet Swoth and Pestel Analysis

Topics: SWOT analysis, Factor analysis, Company Pages: 9 (2055 words) Published: October 10, 2011

Pestel forces
SWOT Analysis of Alphabet Games
SWOT Analysis Guidelines
Alphabet Games

B. SWOT Analysis2
C.SWOT Analysis Guidelines6


Mullins stated that, organisational effectivness and performance depends upon thes sucesfull management of the opportunities, challanges and risk presented changes in the external enviroment. PESTEL is an acronym for political, enviromental, socio-cultural, economical and legal external factors. There are several PESTEL forces which could affect our company. Socio-cultural pestel includes distribution of population according different age group, sex, religion, income etc. All these features can have an impact on our company, as distribution of computer games in an area, where people are not interested in computer games is not target area, as sales would not be high enough to create siginficant profit, or profit at all. For example; an area with a high average age is not a great place, as older people and mainly retired people are not able to operate computers or games consoles. they have different interests and priorities. Even an area with a low wage income,as prices of computer games keep rising, people would not be able to afford buying them. The desired area which our company should focuse is area with average age between 10 and 20, as this age group is highly intersted in playing computer games and are able to operate computers and game consoles. The best way how to pick the best market is to do research of the area for future business. Population Census is the ideal dokument , which provides our company with all needed information for sucesfull business and healthy profit. Economical PESTEL incudes factors as inflation, prices of competition, taxation and addtitionla charges for importing patrs from foreign countries, and overall economical situation in the country. This type of PESTEL is highly important for Alphabet Games, as it affects prices of its products, which go higher, if competition has much higher prices, higher taxes or rising inflation. Vice versa, prices have to be lowered, if people can not afford compny’s product due to recession and economical crisis. The best way how to adjust prices for customer making our products desirable is to carry out research on montlhly bases to make sure that prices are correct, reasonable, but still making profit. Technological factor is another type of PESTEL which Alphabet Games should be aware of, as technology keeps changing, new game consoles, computers and game softwares are being intoroduced on daily bases. Products of our company has to be up-to-date with the correct software which could be played on any type of new game device. It would be useless to produce games with an old graphic, or old flash software as customers would not be interested in buying them, as competition produces games with the newest technology and graphics. The best way how to deal with this factor, is to observe market with a new technology and make reasonable and realistic decisions about using it. Legal factor is another type of PESTEL. This factor includes laws, policies, age restrictions or any neccessary lables on packaging of product. This factor is important for our company as well, as all laws needs to be watched and followed. If the company produces games with a forbidden elements,for example violence, sexual scenes etc., local authorities or even government could take them down from market. This will affect profit and could cause serious financial damage. Also all packaging has to be labeled with correct marks and sighns as age restriction label, epilepsy warning labels etc. B. SWOT Analysis

Swot analysis is a process during which all strenght, weaknesses , opportunities and threats are examined considering external and internal factors of company. SWOT
S- Strenghts...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Pestel Analysis Essay
  • Pestel Analysis Essay
  • pestel analysis Essay
  • PESTEL analysis Essay
  • Pestel Analysis Essay
  • PESTEL Analysis Research Paper
  • Pestel Essay

Become a StudyMode Member

Sign Up - It's Free