1. Introduction - Strategic Insights for Blooming Northampton's Growth
1.1 Brief Outline of Blooming Northampton
Blooming Northampton is a Northampton-based flower shop that offers a variety of fresh flowers and plants for every occasion. Be it romantic bouquets or sympathy arrangements, the shop has got it covered. The business has many expert florists who can help people with customized orders and present them with fresh flowers.
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1.2 Importance, Aims and Objective of the Business
Blooming Northampton will soon become an important part of the community as it aims to provide customers with fresh flowers and plants, which are personalised and appropriate to all occasions. The business also aims to provide customers with a warm and inviting environment where customers can browse and select the perfect bouquet or plant for their loved ones, with the additional feature of doorstep delivery.
The objectives of the business are
To provide fresh flowers and plants for all occasions
To create a warm and inviting environment for customers to browse and select the perfect bouquet for the occasion
To cater to everyone’s needs
To provide doorstep delivery service
To be ethical and environmentally aware
1.3 Customer Satisfaction
The business aims to provide high-quality service and be ethical and environmentally aware to create a customer base for the business. The business will also contain expert florists, who will help the customers with personalised orders and thus build up trust and gain popularity.
2. Internal Analysis of Blooming Northampton
2.1 Importance of the Internal Side of Business
The internal side of a business helps the business analyse the efficiency, employee satisfaction, quality control, flexibility, strategy implementation, resource allocation, and compliance in the business and improve the areas that need it (Taouab and Issor, 2019).
2.2 Introduction to Porter’s 5 Forces
According to Porter (1979), Porter’s 5 Forces include five basic categories to judge the competitive scenario of the business by analysing the external aspects of the business.
2.3 Role of Porter’s 5 Forces to Help the Business
Porter’s 5 Forces can help the business identify the competitive nature of the business and its standing in it. It focuses on five categories to determine the shape of the industry and helps to determine the industry’s weakness and the company’s position in the competitive market.
2.4 Author’s Opinions about Porter’s 5 Forces
The author personally thinks that the model is based very nicely, but is used for analyzing the competitive nature of the business and not the internal side of the business.
2.5 Analysis of Porter’s 5 Forces of Blooming Northampton
Porter’s 5 Forces
My research/check or analysis
Does this affect my business or not?
Internal rivals (Other businesses)
The competitive rivalry analysis of the market shows that the company Blooming Northampton is likely to have a number of competitors like “Bennett's Bouquets”, “County Florist Northampton” and many more, and all of them are rated full or close to full stars in Google.com. There are different flower shops in the area that provides services like “same day hand delivery” like Bob’s Flower Shop (Bob's Flower Shop, n.d.). According to The Produce News (2022), the industry in the UK is growing and thus it can be a good opportunity for the business to make a profit and increase market share. It can also be said that starting a flower shop in the UK requires relatively less investment and also there are not many barriers to entry into the market (Mishra, Wu and Sarkar, 2021).
There are some things that may affect it but can easily be mitigated.
New People who want to start my type of business
The threat of new entrants in the flower industry is relatively high as the barriers to new entry are low (Staelens et al., 2018). Starting a flower shop often requires a relatively small investment and there are no significant barriers to entry like patents or economies of scale. But, the market is already flooded with a number of existing flower shops in Northampton and the surrounding area.
The threat is relatively moderate.
Other products just like mine in the area
The threat of substitutes for Blooming Northampton may be moderate as there are many substitutes for fresh flowers like artificial flowers and silk flowers, but it might not be much desirable for the customers as they might prefer something else (Russell et al., 2019; Chandrasekhar, Gupta and Nanda, 2019). The personal touch, the customised bouquet or flower arrangement that is made specifically for the occasion, and the ability to see and smell the flowers in person may still be a strong point of differentiation for a local flower shop like Blooming Northampton.
The threat is relatively moderate.
Are there suppliers near me who can supply quickly and cheaply?
The bargaining power of the suppliers can be considered as low as there are many suppliers of fresh flowers and plants, so the business has the option to source its products from multiple suppliers. Also, the perishable nature of the flowers means that the suppliers may not have much influence in terms of pricing or delivery of the items (Gresty et al., 2018). And there are many suppliers in the area.
Yes, it is an advantage for the business.
Will buyers be able to pay for my products (Do they have money to pay?)
It is quite difficult to say without proper market research using primary research but based on the information provided in Flowers & Plants Association (n.d.) shows that businesses like Blooming Northampton will have sufficient customers and they will be willing to pay as the UK fresh cut flower and plant market is worth £ 2.2 Billion at retail level, with an average spend per person per year of £ 36 (£ 28 on flowers and £ 8 on plants) which suggest that there is a demand and a potential market for flowers and plants in Northampton.
Yes, it does and it can be said that the market is viable and customers are willing to spend money.
2.6 Summary of the Analysis
The summary can conclude that the business is viable and can make a profit in the competitive market. The business offers some unique services, which are guaranteed to boost customer satisfaction levels and thus the business can stand its ground in the competitive scenario of the market.
3. External Analysis of Blooming Northampton
3.1 Importance of the External Side of Business
The external side of the business deals with analysing the threats and opportunities that the business may face, as well as staying competitive and complying with regulations. The external side also helps the business adapt to changes and identify the potential risks that the business may face (Shad et al., 2019).
3.2 Introduction to PESTLE Analysis
PESTLE helps the business analyse the external nature of the business with the help of six factors, ly, Political, Economic, Social, Technological, Legal And Environmental factors (Espinoza et al., 2019).
3.3 Role of PESTLE Analysis to Help the Business
PESTLE analysis helps a company or business identify the external factors that may impact the business, understand the external environment, identify new opportunities, identify the potential risks, monitor and adapt to change and help make an informed decision (Shtal et al., 2018).
3.4 Advantages of PESTLE Analysis
PESTLE analysis helps businesses identify opportunities and threats, provides a comprehensive overview of the external environment, identifies potential risks, helps in strategic decision making and helps track the external environment over time (Nandonde, 2019).
3.5 Analysis of PESTLE of Blooming Northampton
PESTLE
ANALYSIS FOR MY BUSINESS
IS THIS GOOD OR BAD FOR MY BUSINESS?
Political Factors
The government of the UK does not have any problem with selling flowers, and thus, up until the date of writing this report the business does not need to face any political consequences. However, it must be noted that there are many pest problems in the UK and thus the government instructs the companies and businesses to make sure to retain the plant health and follow the rules dictated by Defra (Department of Environment, Food and Rural Affairs) (GOV.UK, 2021).
GOOD
Economic Factors
The GDP of the country will have a direct impact on the expected growth of the company in the near future (Pantelimon, Georgescu and Posedaru, 2020). Also, the willingness of people to borrow and invest can be influenced by the country’s interest rates. Higher interest rates can lead to increased investment and growth in the industry. The efficiency of financial markets can also have an impact on a company's ability to acquire capital at reasonable prices, taking demand and supply into account.
GOOD
Social Factors
The company’s social landscape can be analysed by considering the demographic characteristics of the population, while taking into consideration the cultural beliefs and values, and customer attitudes and behaviour. The company should also take into account the level of education and primary income of the consumers in the community. Population growth and ageing, migration patterns, and the presence of diverse cultures in the area can all impact the consumer base for a flower shop in this location (Kizgin et al., 2020). Furthermore, the community's attitudes toward environmental sustainability, as well as their preferences for specific types of flowers and plants, can influence the success of a business in this field.
GOOD
Technological Factors
The company’s technological factors would include any advancements and developments that are related to the flower shop industry or transportation of goods for the industry. This could include advancements in flower cultivation techniques, the use of digital platforms for online sales and marketing, and the incorporation of technology into the shop's day-to-day operations, such as process automation (Malviya, Vala and Mankad, 2022). It would also entail assessing the level of technology adoption and usage among the target market in Northampton, as well as how this might affect the flower shop's business.
GOOD
Legal Factors
The business does not require any special licensing to sell flowers and plants. However, there are certain legal factors and licensing that need to be done. If the business someday decides to sell alcoholic drinks to accompany flowers, then the business must get the necessary licensing done in order to avoid future trouble. Also, if the business wants to put up displays, banners, or posters, the business will need to take permission from the local authorities and the highway departments. It should also be noted that the business needs to be aware of paying the annual fee for retaining the Music license if any type of background music is played (Atom Content Marketing Ltd, 2023).
GOOD
Environmental Factors
The company’s environmental factors would include the impact that the flower shop has on the environment. The factors like the use of pesticides and chemicals in flower cultivation, the carbon footprint of transportation and delivery, and waste disposal (Tudi et al., 2021). It would also include the local community's awareness and concern for the environment, as well as how the shop caters to that.
GOOD
3.6 Summary
The Blooming Northampton flower shop does not face any major political issues, but it must follow plant health regulations. Also, the growth and investment will be influenced by the economic factors like GDP and interest rates. Consumer preferences are also a major part of social, which includes demographics and cultural values. Technological advancements and target market usage can have an impact on the business, and legal factors like licensing and permits must be considered. The shop must also consider its environmental impacts, such as pesticide use and waste disposal, and cater to the community's environmental concerns.
Based on the whole report, it can be concluded that the business has viability and has the potential to earn profit in the market. The Porter’s 5 Forces analysis identified that the business can grow exponentially and the PESTLE analysis just confirms that. Overall it can be said that the company is viable and has the potential to grow over time.
5. Recommendations
The report recommends the business to pay attention to the Porter’s 5 Forces and PESTLE analysis and note the important parts like licensing and technological advancements so that it can grow and develop in the future and not get into any complications.
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