Business
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Responding to changes in the market environment
Curriculum Topics • Political factors • Economic factors • Social factors • Technological factors
Introduction
Jessops has been a leader in the photographic business for over 75 years. The Jessops story began in 1935, when Frank Jessop opened a photography store in Leicester. Today, the company is the UK’s premier photographic retailer operating from over 200 stores around the UK. In addition it has an online shop and call centre. Jessops is the trading name of The Jessop Group Limited, which is a subsidiary of Snap Equity Limited. A key part of Jessops’ product portfolio is its photo and imaging business. Jessops operates in two main sectors of the photography market. Hardware Photographic equipment ranging from compact cameras to digital single lens reflex cameras Services Photo printing and imagery
is declining by around 30% year on year. This poses a challenge to the directors and managers at Jessops. To sustain and grow the business, they must develop ideas and plans to combat the changing market and stimulate new demand. This case study reviews the external factors that have had an impact on Jessops’ operations and strategy. It shows how managers study the company’s external environment through a PEST analysis. This involves identifying the political, economic, social and technological factors in the external environment that could impact on the business. This information is then used to assess the company’s current position within the market. The findings of the PEST analysis can be used by the board of directors to reassess business strategy and tactics. The board will decide what changes should be made to business operations to respond to external environmental changes. In this way, through carefully analysing the political, economic, social and technological changes in its external market, Jessops has been able to develop new business opportunities.
The modern
Responding to changes in the market environment
Curriculum Topics • Political factors • Economic factors • Social factors • Technological factors
Introduction
Jessops has been a leader in the photographic business for over 75 years. The Jessops story began in 1935, when Frank Jessop opened a photography store in Leicester. Today, the company is the UK’s premier photographic retailer operating from over 200 stores around the UK. In addition it has an online shop and call centre. Jessops is the trading name of The Jessop Group Limited, which is a subsidiary of Snap Equity Limited. A key part of Jessops’ product portfolio is its photo and imaging business. Jessops operates in two main sectors of the photography market. Hardware Photographic equipment ranging from compact cameras to digital single lens reflex cameras Services Photo printing and imagery
is declining by around 30% year on year. This poses a challenge to the directors and managers at Jessops. To sustain and grow the business, they must develop ideas and plans to combat the changing market and stimulate new demand. This case study reviews the external factors that have had an impact on Jessops’ operations and strategy. It shows how managers study the company’s external environment through a PEST analysis. This involves identifying the political, economic, social and technological factors in the external environment that could impact on the business. This information is then used to assess the company’s current position within the market. The findings of the PEST analysis can be used by the board of directors to reassess business strategy and tactics. The board will decide what changes should be made to business operations to respond to external environmental changes. In this way, through carefully analysing the political, economic, social and technological changes in its external market, Jessops has been able to develop new business opportunities.
The modern