WM Morrisons Supermarkets Limited is a retail chain supermarket British multinational company. William Morrisons founded the retail chain supermarket company in 1899. The company has established a network of approximately over 500 retail chain supermarkets in the UK and worldwide. Today, we’ll discuss the PESTLE analysis of Morrisons; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Morrisons
Some of the main political factors in the Morrisons PESTLE analysis are as follows;
I-Brexit Deal
The Brexit deal has had a great impact on the routine business operations of Morrisons. After Britain’s exit from Europe, the regulatory pressure and documentary requirements have increased for the Morrisons. In other words, the retail chain supermarket needs to incur a significant amount of regulatory expenses to perform routine operations.
II-Government Regulations
Morrisons need to comply with the food, health, and safety regulations of the UK and EU in order to smoothly perform and conduct their operations. The government regulations and policies for retail supermarket companies are very strict when it comes to the health and safety of ordinary customers.
III-Political Stability
The stable political and government environment plays a critical role in the growth of retail supermarket brands like Morrisons. For instance, riots, processions, strikes, and roadblocks would cause delays in the supply of materials and supplies to retail chain stores.
Economic Factors Affecting Morrisons
Some of the main economic factors in the Morrisons PESTLE analysis are as follows;
I-Inflation due Brexit
The Brexit deal has significantly increased the legal and other regulatory cost of Morrisons; leading to increasing the production and manufacturing costs of the chain supermarket. As a result, the inflation rate has increased significantly, and routine products become unaffordable for many ordinary customers.
II-Oil Prices
The oil price market is highly volatile and they have been increasing significantly for the past few years due to the change in OPEC regulations. The logistics and distribution costs have increased significantly as a result, and it has decreased the profit margin of the company on the retail price of products and goods.
Social Factors Impacting Morrisons
Some of the main social factors in the Morrisons PESTEL analysis are as follows;
I-Increasing Population
The global population has been increasing for the past few years. It presents a lot of business growth opportunities to the retail chain supermarket brand Morrisons. The chain supermarket company should introduce new product categories in its stores to target various segments of the customer market.
II-Healthy Lifestyle Trends
The consumer market has become highly cautious about healthy lifestyles organic food and dietary products. Morrisons should include organic food items, health and fitness products, and dietary products to target the health and dietary-conscious customers market.
III-Marketing Campaigns
Morrisons runs various types of marketing and advertisement campaigns for the promotion of its diverse range of products and goods. Running marketing campaigns would help the company to change the public perception towards the company’s favor.
Technological Factors Affecting Morrisons
Some of the main technological factors in the Morrisons PESTEL analysis are as follows;
I-Advanced Technology
Morrisons is investing a significant amount of capital resources in the latest AI and ML technology. It allows the retail chain supermarket brand to achieve cost efficiency in its operations and reduce the wastage of resources. It helped the chain supermarket brand to increase its revenue and profitability.
II-Data Analytics
Speaking of advanced technology, Morrisons is employing advanced analytical tools and applications to process the vast amount of customer data. It allows the company to recognize the customer shopping patterns and the key insight would help the company to predict future shopping trends. Most importantly, it helps the company to avoid stock-out and over-stocking issues while managing inventory.
III-In-house Software System
Morrisons needs to invest resources in the development of in-house software solutions and systems. It allows the company to develop customized solutions relevant to the specific needs and requirements of the company.
Legal Factors Impacting Morrisons
Some of the main legal factors in the Morrisons PESTEL analysis are as follows;
Regulatory compliance
Morrisons should comply with the regulatory requirements of different countries. They comprise health and food safety standards, trade policies, government regulations, and import export policies. Compliance with the government regulations would help the company to smoothly perform its retail chain supermarket operations.
Environmental Factors Affecting Morrisons
Some of the main environmental factors in the Morrisons PESTEL analysis are as follows;
Lower Carbon Emission and Product Wastage Rate
Morrisons is highly careful and cautious about the environmental sustainability and protection of the environment. The retail chain supermarket brand has taken various sustainability initiatives to decrease the carbon emission rate. However, they comprise using renewable sources of energy, biodegradable packaging, local sourcing, and efficient modes of transportation.
Conclusion: Morrisons PESTLE Analysis |PESTEL Analysis of Morrisons |External Environmental Analysis of Morrisons | Strategic Analysis of Morrisons
After an in-depth study of the pestle analysis of Morrisons; we have realized that Morrisons is the world’s leading retail chain supermarket company. If you are learning about the Morrisons PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
