Question

PEST Analysis on Art Gallery in Canada? (Toronto) - Political - Economic - Social - Technological

PEST Analysis on Art Gallery in Canada? (Toronto)
- Political

- Economic

- Social

- Technological

Homework Answers

Answer #1

Marten Arts Gallery

Dennis Marten Pal has been running MAG since the era of 20, he and his spouse are working complete time on the gallery to help their family and reside in an extension constructed to the gallery premises, and Paul designed to operate the gallery throughout his working life and be engaged in the arts company, even if he finally decided to move on from the gallery. So returning the gallery to profitability and continuing to be an entrepreneur is desirable for him.

Pest Analyses

Political and Economic factors

MAG is mainly adversely affected by two significant political and economic variables. The price of Canadian products has risen for American clients with the appreciation of the Canadian dollar vs. the US dollar. Increased travel constraints as a consequence of the Western Hemisphere Travel Initiative (WHTI) deter visitors from traveling between the United States and Canada were the second significant effect. However, there are indications of recovery from the recession and although art sector has been affected by the financial circumstances. The Canadian art market is a well-established and mature one, and the location of MAG has helped it as a small business in a tiny tourist town. Three other art shops have opened in the region in latest years indicating strengthening the area's arts industry, and Pal has welcomed the area's competition.

This seems to be an optimal time for MAG in terms of possibilities to expand using debt financing accessible at comparatively low interest rates. As with the neighboring town of Stratford, deemed Canada's premier arts town, Pal should consider working with other companies, particularly those engaged in the arts industry, to jointly improve the picture of Bayfield as another major arts place, a sister town of Stratford. There is no shortage of tourists as the city is a famous tourist destination due to its beauty, it would be useful for all companies if three are more art-related activities in the region, which would increase the city's company profile

Social and technological factors

The emergence of e-commerce is one of the biggest variables on the technological front. It has given companies with the chance to be free from local demographic constraints and to tap clients situated in a wider region, thus increasing reach without necessarily expanding in various places physically. Paul has a website that is unmatched by any other gallery but lacks the key element of e-commerce, i.e. the capacity to sell his merchandise on the website so that clients end up purchasing the same piece from other galleries or from the artist himself when they look at the product online.

The 20% clients of MAG are those who understand and enjoy art and contribute up to 80% of the total income. The rest of the clients are travelers in the region and there is enormous potential to turn some into supporters by enhancing visibility and excellent service so that in the future they can only come for MAG's art. They may also advise others and artwork that they take home may become a source of inspiration for others to come and visit MAG, so Pal should make client service its top priority in personnel training, offering value that no one else can match.

He should advertise the fact that many exhibited artwork in his gallery, both with clients and artists, and became known to imply importance in showing and doing company through MAG. Strong relationships with artists are essential so that through MAG they do most of their company and rely less on other galleries. This goal would be helped by an unmatched service with solid e-commerce configuration.

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