PEST Analysis: Analysis Of Australian Hardware

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1. A completed set of analysis: PEST ANALYSIS: Political: - Inbound logistic – due to lack of experienced personnel in importation and customs operation. Economic: - The operation of Australian Hardware is an area of strong value-add, with the state of the art management Information System (MIS) forming part of Australian Hardware infrastructure. Social: - Marketing and sales is a strong point. The marketing communications and promotions mix seems to be working well, particularly with the social marketing that Australian Hardware has introduced for the past year. Technological: - Technology developments are helping Australian Hardware to reduce costs, yet expand the message via internet marketing activities. - Service is another strong…show more content…
- Java estate – Australia wide partner-100% committed to service and coffee bean market. Weaknesses: - In working with a strategic partner who is not solely focused on the service industry. - Ambrosia coffee roast – product image is not quality but more commodity-based. - Java estate – other coffee bean suppliers may not recommend Australian Hardware machines with this strong strategic alliance. Opportunities: - Selling consumer home espresso machines to the home market, and incorporating other digital home entertainment products. - Ambrosia coffee roast- sell all grades of coffee bean to supermarkets and service around Australia. - Lava estate – to sell quality Arabica roasted coffee beans to all state of Australia. Threats: - hardware  Partner not fulfilling their financial commitment.  Association with a non-industry partner may have a negative effect on our customer base.  Partner access to Australian Hardware trade secrets. - Ambrosia hardware  Poor brand association.  Long-term commitment in signage. - Java estate  Concern over the amount of money…show more content…
- Home Espresso Trades  Shared space in four trade shows per year  Costs of the shows are $2,500 each. Four shows costing $10,000, selling 10 machines per show at $500. Profit for each would see a profit of $10,000 for the year and a breakeven after two shows. - Ambrosia Coffee Roast  Share the cost of outdoor advertising for cafes and restaurants, with shared branding of umbrellas and barriers.  50 café’s per year, at $200 per café cost for each partner. 50 machines sold at $500 profit is $15,000 profit return for the year. Break-even after 20 café’s. - Java Estate  Provides Australian Hardware espresso machine to client for no charge. Java Estate pays Australian Hardware cost price for the delivery and installation of the machine, then paid the remainder of the purchase price on a 12 month repayment program.  Potentially 200 machines installed in the first year. Interest costs $40,000 p.a profit $100,000. Break-even after 80 machines sold. STRENGHTS AND WEAKNESSES: - Home Espresso Trades:
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