Question

PESTEL analysis for a retail store in Hawaii called "Moni Honolulu"????

Answer 1

Moni Honolulu is a gift and souvenir shop located in Hawaii, USA.

PESTEL analysis of Moni Honolulu:

Political Factors: The political situation is stable and the ideology of the current ruling party in the US is positive about businesses. The retail business will grow and the political environment will support it.

The retail business however has to face some challenges like new laws and regulations concerning the environment.

Economic Factors: The economy of USA is one of the most strongest economy in the world, the per capita income in the US is increasing and the economy is growing rapidly. The economic factors are directly responsible for the growth of an industry like retail industry in which Moni Honolulu falls also the change in per capita income can increase or decrease the demand for Moni Honolulu however the growth in retail sector is evident with the fact that stores like Walmart are doing exceptionally well.

Social Factors: USA is the third most populous country in the world with more than 326 million people living in it. The population of USA combines itself with people from diverse cultures and backgrounds. The education level of the citizens is satisfactory and the living standards of people living in it is increasing. This all paints a picture of USA which has opportunities for the retail business like Moni Honululu to grow. The changes in demographic factors however show the change in demand of the people and Moni Honolulu should keep this in mind while deciding its future plans.

Technological Factors: The technology has changed every aspect of life as earlier people used to depend on brick and mortar model are now easily shopping over the internet. This provides an opportunity as well as threat to the business of Moni Honolulu, opportunity as it can sell its products all over the world with the help of technology and threat that what if this business is not able to implement such technology and its customers start purchasing only.

The buying, selling and customer relationships has changed a lot with the introduction of technologies in the retail sector, the business in order to survive and grow must implement such changes.

Environmental Factors: Most of the products which are sold in a retail store like Moni Honululu are grown and produced in the environment and with the changing environment the quality and other factors of these products change as well. The government sometimes imposes ban on certain products which are being sold in retails stores that can affect the health of citizens. A business can only grow when it takes care of the environment it is operating. Moni Honolulu should carefully follow the rules and regulations related to its business and should not sell such products which are generally harmful for its customers.

Legal Factors: Generally, in the USA the rules and regulations have protected the retail business from vices like smuggling of products which creates shortage of a few supplies and the price rise hits general people. The legal factors related to the retail business is positive and in recent times only environmental laws are placed which needs to be followed and which have not affected the business much. Moni Honululu has to follow the laws of the country for its sustainability and this area of the PESTEL analysis looks positive for the growth of this business.