External environment – PEST analysis for Somerset house Essay Example

like Somerset House, can lead to increased sales and profits. Additionally, technological advancements in the past 20 years have resulted in the creation of new products and improvements in product development and testing on computers, saving time and money.

The impact of technology on business has been significant, particularly in product development and marketing. Somerset House must recognize this transformation that was brought about by the internet two decades ago. The online platform has revolutionized how companies sell and promote their products, enabling customers to learn about companies and purchase items with ease. Somerset House benefits from this as visitors can buy tickets online, increasing the chances of more people coming in. Additionally, businesses across different countries and time zones can make sales through the internet without personnel in their offices. To stand out from competitors, a unique marketing strategy for Somerset House is proposed to attract more visitors, boost sales and increase profits.

By applying various techniques such as SWOT analysis, Boston Matrix, Ansoff's Strategy, PEST and SLEPT analysis, Marketing Mix, and Pest Analysis, I aim to differentiate Somerset House's services and products from its competitors and gain a competitive edge. I will conduct extensive research on external factors that might influence Somerset House's current strategy in order to develop an effective and beneficial strategy. External issues are factors that are beyond the control of Somerset House but could impact its product success and visitor numbers. For example, research shows that most people who visit London's museums travel by train, and 90% of tourists use the tube every day despite high fares and frequent delays.

Despite a 46% increase in tube and bus fares since the

abolition of GLC, the number of tourists using the tube has not been greatly affected. However, if London transport were to raise train fares again, this could lead to fewer people visiting Somerset House and its attractions. To ensure the strength and improve upon the weaknesses of Somerset House, I will conduct a SWOT analysis, identifying its strengths, weaknesses, opportunities, and threats. Using external research data, I will take necessary actions to recognize opportunities and threats and make decisions to enhance the overall performance of Somerset House. Ultimately, my main task is to attract people from different generations to visit Somerset House.

The goal is to attract tourists to Somerset House, with its diverse cultural offerings and accessible location by the River Thames. The ice rink is just one way to raise awareness and attract visitors. Additionally, Somerset House's unique selling point as the only place in London to sell high-quality silver is a strength to leverage. Other strengths include a helpful on-site staff and facilities that cater to all visitors, including wheelchair users. However, the major weakness affecting Somerset House's performance is its public perception as a venue solely for births, deaths, and marriages.

Despite the challenges presented by legal and political factors, there is an opportunity to improve the public perception of Somerset House by implementing promotional tactics such as inviting the press and celebrities to visit the location and featuring it on TV. It is important to consider the impact that laws, including those related to pests and health and safety, may have on the marketing strategy. Additionally, changes in VAT values can create a disadvantage for Somerset House and its competitors, who must

collect and pay VAT taxes on their products and services without fail or face fines and prosecution. With the exception of food, this tax must be charged for all offered products and services.

Due to Somerset House's international competition and the lower VAT values in other nations, tourists have encountered issues. Uncertainties about the establishment's future have also arisen from changes in the law. The upcoming budget reading will introduce new legislation that may affect sales, promotions, and pricing. Considering the UK's recent economic problems, the government may increase public spending, resulting in more funds for leisure and jewelry purchases - two services provided by Somerset House.

The economic changes could result in challenges for Somerset House, which would require considerable expertise to develop an effective strategy. A reduction in public spending may negatively impact the business by lowering customers' typical expenditure. Higher interest rates could necessitate a downsizing of staff, potentially resulting in poorer performance due to a reduced number of employees available to serve clients and a decline in customer service quality.

According to government statistics, unemployment in the UK is on the rise. This could lead to a decrease in visitors to Somerset House since fewer people are employed. Additionally, the adoption of the Euro will have an impact on Somerset House's pricing and promotions as prices for goods and services must be adjusted to align with other Euro nations. This may result in lower profits for Somerset House due to cheaper prices or decreased sales for the public due to higher prices. Inflation changes may also affect pricing, but government efforts post-September 11 alleviate this concern. Changes in younger generations' social behavior and lifestyles

also impact overall performance at Somerset House. While galleries are less appealing to young people, increased disposable income can drive sales and profits from leisure activities and restaurants at Somerset House, necessitating adaptations in advertisements.

Somerset house utilizes technology, specifically the internet, which provides benefits and advancements for the organization. Customers are able to purchase and book tickets online, eliminating the need for staff members to attend to on-site ticket offices and allowing for the repurposing of space previously used for box offices. This technology also enables visitors to access background information about Somerset house and its facilities before visiting. To ensure competitiveness in the market, research on technological advancements made by other museums is ongoing. In terms of environmental factors, Somerset house has on-site restaurant and cafe facilities that sell food and drinks. The decision has been made to purchase products in recyclable packaging from companies such as Coca-Cola, which promote environmental sustainability.

Somerset House is committed to environmental sustainability, with plans to use recyclable paper for ice rink tickets. However, due to being a historic listed building, any alterations must first be approved by Westminster council. This may limit the potential development of both interior and exterior brick work. Advertising for Somerset House will also be subject to regulatory bodies such as the advertising standards authority (ASA), which could conflict with their goals. Failure to comply with ASA regulations may result in significant fines. It's important to note that radio and TV advertising is controlled by other organizations such as the radio authority and ITC, not covered by the ASA.

My marketing strategy and promotion will be affected by three bodies, namely legal constraints,

the Sale of Goods Act 1979, Sales and supply of goods Act 1994 and the Trade Description Act. I must ensure that my adverts are legal, honest, descent and truthful, thus avoiding widespread grave. The Somerset House products that I market must comply with the laws surrounding them to ensure they are sold legally. These laws outline that the products must be sold as described, must be of satisfactory quality and fit for the purpose. Should Somerset House breach any of these conditions, the buyers or customers will be entitled to a refund of the purchase price resulting in reduced profits and an increased number of unsatisfied customers. The Trade Description Act considers it a criminal offense to apply a false trade description to any goods or services, or to supply these falsely-described goods or services knowingly or recklessly. It also permits misleading information about prices or service provision as well as false descriptions on facilities and services at Somerset House.

In order to prevent legal repercussions, it is important for me to exercise care in my advertising and avoid any misleading of customers. Failure to adhere to these regulations could lead to Somerset house being prosecuted and facing significant financial penalties. It is worth noting that engaging in anti-competitive behavior such as predatory pricing with the aim of eliminating competition and establishing market dominance is illegal under the Competition Act 1998, which is enforced by the Competition Commission. Any action deemed harmful to public interest by Somerset house may result in prosecution following an investigation conducted by the commission.