PESTLE stands forPolitical, Economic, Social, Technological, Legal and Environmental factors .continue to using the pool maintenance company case as below answer:

a. how could a future ecomoic factor affect the comapny?

b.how could a ecological factor affect the comapany?

c.how could a future legal factor affect the company?

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pool maintainance comapny case

Let's take a swimming pool maintenance company, that visits homes and hotels with pools, cleans them, adds chemicals (e.g., chlorine) to kill bacteria and fixes any pool-related mechanical issues or gadgets. The five Porter factors are listed for you, and for each, you need to supply a hypothetical situation where each of the five forces could be a worrisome (worth worrying about) threat to the pool maintenance company. The idea is to show that you both know what the force (threat) means, and how it could become a threat, rather than just a factor of no importance to a business when one analyzes it.

a. Ease of Entry

b. Power of Supplier

c. Power of buyer

d. Threat of Substitute

e. Intensity of Rivalry

Ease of entry: If there are no barriers to prevent and control the level of entry into the maintenance industry, then many potential investors will flood the industry in a bid to gain market shares.For example, if the hotels and homes the maintenance company serves are content and loyal to the company, then the potential entrants of the industry will be challenged to enter the industry with fear of incurring losses. However, if all the above barriers are easy to maneuver through, then the maintenance company will be in a compromising situation.

Power of suppliers: The supplier's potential to raise prices on purchases, such as cleaning solvents and chemicals, or reduce the quality of the same, will result in lower profits for the maintenance company. This is because of the reduced quality of cleaning services and losses due to the high cost of purchased products. Therefore, it is essential to operate in a business environment with many suppliers to weigh cost prices and choose the best quality of products.

Power of buyers: customers can pressure the company and their sensitivity to changing prices. Their buying power is low when the customers request services once in a while due to the ability to switch services from one company to another. They tend to compare prices and quality of services to settle for what suits them. Consequently, in such a case, the swimming pool maintenance company ought to start loyalty programs or offer additional services as a bonus to stand out from the rest of the companies in that industry.

The threat of substitutes: In the case of several companies offering the same services as the maintenance company, the customers can easily switch to different alternatives to sample the quality of cleaning services and maintenance and price differences. This will lead to lower profits if the customers fully adopt services from a competitor.

The intensity of rivalry: in this case, hotels and homes rarely require maintenance services frequently; consequently, the market pace is a bit down, and if one of the competing companies decides to lower the cost of their maintenance services, most hotels and homes like to whoop on the offer. This creates rivalry among the com`panies because of low profits or lack of customers due to the price offers.