Swot and Pestle Alcohol Industry
Strengths
The market of online drinks retailing has grown very strongly these last five years, increasing by 123% between 2005 and 2010. Quantitatively, the market was valued at £370 million in 2005 and more than £740 million in 2009. More importantly, a survey of Mintel assumes that the market will continue to grow in the next five years, though more slowly (59%). By the year of 2012, which is for our business the year of setting up, the market should go past the £1 billion mark. There is a high demand among the young consumers (18-24 years old), explained by the convenience of getting the products with online drinks shopping. This is a very interesting fact for our business, as our major customers are students from the university. The convenience of delivery is also fulfilling the needs of women and people of more than 45 years old, as they do not have to carry heavy bottles. We can assume that the very sceptical consumers, who are often senior people, can be convinced easily after the first try, if the transaction has been performed effectively. They often worry about the online payment, but this can be avoided with the payment when delivered that our business will implement.
Opportunities
E-business is adapted to the setting up of start-ups and small companies, like ours. Moreover, it provides a real opportunity for SME to compete with bigger companies, like Tesco. Online business can minimize company expenses as is can employ less staff; it also saves money as no prime location real estate is required. Modern technology is perfectly adapted to the e-commerce, and is also a great tool for informing consumers, especially with the vast wine market. There are many applications for iPhone nowadays, to explain for example which wine matches which meal, etc. Nowadays, the main tendency goes towards the protection of the environment. An online business means that less space and consequently less resource are
The market of online drinks retailing has grown very strongly these last five years, increasing by 123% between 2005 and 2010. Quantitatively, the market was valued at £370 million in 2005 and more than £740 million in 2009. More importantly, a survey of Mintel assumes that the market will continue to grow in the next five years, though more slowly (59%). By the year of 2012, which is for our business the year of setting up, the market should go past the £1 billion mark. There is a high demand among the young consumers (18-24 years old), explained by the convenience of getting the products with online drinks shopping. This is a very interesting fact for our business, as our major customers are students from the university. The convenience of delivery is also fulfilling the needs of women and people of more than 45 years old, as they do not have to carry heavy bottles. We can assume that the very sceptical consumers, who are often senior people, can be convinced easily after the first try, if the transaction has been performed effectively. They often worry about the online payment, but this can be avoided with the payment when delivered that our business will implement.
Opportunities
E-business is adapted to the setting up of start-ups and small companies, like ours. Moreover, it provides a real opportunity for SME to compete with bigger companies, like Tesco. Online business can minimize company expenses as is can employ less staff; it also saves money as no prime location real estate is required. Modern technology is perfectly adapted to the e-commerce, and is also a great tool for informing consumers, especially with the vast wine market. There are many applications for iPhone nowadays, to explain for example which wine matches which meal, etc. Nowadays, the main tendency goes towards the protection of the environment. An online business means that less space and consequently less resource are