The internationalization of industry has boomed business, yet it is not a new phenomenon of growth. Many retail sectors are experiencing growth patterns based on innovation and emerging technology (Yadav &Verma, 2015). The speed and breadth in the market expansion are unprecedented. Grocery retailers are facing emerging marketing trends in the face of current consumer demand (Chatterjee, 2017). Increased market share and capabilities are making ways for these stores to make more revenues. In some cases, companies face failure in market performance, so confront unwanted consequences (Cova & Salle, 2017). This report will discuss business marketing strategies by Walmart and Aldi and explore how both of them faced each other and their marketing strategies in the form of distinct capabilities.

Situational Analysis of case

Mainly, the Aldi is targeting consumers and learning to chart their capabilities so that it can deliver value effectively. The firm is adapting to the competitive opportunity as per its rivals. Aldi was initiated from Germany and working to strengthen its economic landscape amid Walmart (Chatterjee, 2017).

Walmart is a strong competitor of Aldi that has substantial experience in the retail industry and managing the supply chain. It came across many challenges and problems in the growth path that helped it thrive in the industry and gain experience from past mistakes (Boswijk, 2017). In 1962, it was opened in Wal-Mart discount city and started selling toys. The essence of the company as wal-martization is to sell goods and bring change around the globe. For a retail store, it is important to unlock the capacity by selling larger than its competitors. Walmart has learned to set up a big picture of its business and bring innovation like Kmart. The business model, unfortunately, did not work more than expectations, and Walmart was not successful in converting it into what the customer wanted. This business model was to achieve predictability about customers’ demand.

The goal of Walmart was to predict and mark the extended value chain for its products on shelves. This capability was managed by offering surplus inventory. In case of lack of inventory, the company faced costs, and lean working capital was started as an innovative aspect of this business model. Walmart shared its point of sale data because of its large vendors. Some of its largest suppliers are Newell and P & G, and its suppliers, as well as logistics, are working on superior precision structure with better efficiency (Hernandez & Simmons, 2006). The stores and the entire inventory of Walmart are passed through check. Its predictability is ensured with the low price mechanism under a steady flow of customers when a period is approaching ending sales.

Aldi is a shorter name of (Albrecht Discount) which established by Kal and Theo Albrecht as a self-owner general store in 1945 in Essen. Aldi is carrying a billion-dollar price competition; this situation must be horrified for the Walmart. Aldi serves 1.5 % grocery market in the U.S, whereas Walmart is 22% (Boswijk, 2017). Aldi’s sales growth increased gradually and rose to 15%, and about Walmart assumed only 2% increased till then 2017.

The business needed strategic and developmental approaches to compete with other followers—this case-based on the Walmart retailing process, and how Aldi overcame the reputation of Walmart. Walmart is a regional company that designed several working models to compete with other organizations on price detecting issues. At that time the Aldi is also making its progress and competing with other grocery stores running into the U.S. The Aldi conducted an exhibition and tried to approach the different customers, where it identified its various abilities, and adjust contentious strategies to serve its products against the competitors (Chatterjee, 2017).

Retail Competition

The Aldi was established in Germany, and now it is increasing its worth in the U.S.A. The Aldi is creating a continuous change into the economic aspects by following the various business patterns. Aldi takes several right decisions associated with its first exhibition. Its first strategy is price control to underserved customers; second is opening the super grocery stores on cut-rate prices into communities for such consumers who are conducting a financial struggle by providing a limited range of merchants (Hernandez & Simmons, 2006).

Aldi follows Walmart and creates a low price conducting business model. But the different business models presented by Aldi, create a competitive environment for Walmart and allow Aldi to open new stores, several new business models are constructed, the step one is prepared to focus on the possible customers, and fixing the competition positions into the market (Voigt, Buliga, &Michl, 2016). Step two is constructed to select a convenient business model to develop the target section. Step three is to maximize the profit constituted in different business models. Four-step is for business development, the profit ratio develops on its priorities, and focusing on different profit-earning aspects.

Walmart is enjoying the developing business model and becoming a substation of business practices. It considered for consumers to buy goods from their stores based on the point of sale (POS) data (Hernandez & Simmons, 2006). By following the industrial methods, Walmart shares its experience of POS data to the other merchants; logistic providers also allow it to start its store to create a network. Further, it established a business network to efficiently the grocery business dealings, all strategies adopted to be an aggressive force in front of its competitors. It slipped because Walmart changed its retail business model to increase its business efficiency model and got stumbled on this practice. Aldi is making its reputation as a hard discounter. It offers such prices that traditional discounters did not offer before yet (Laurenthomas, 2019).

Price-conscious customers purchase a short variety of grocery products. Aldi sells 30,000 grocery products, whereas Walmart has 15,000 items (Alxaedra, 2018).

Aldi believes in discount trade as it did on the Costco megastores chain. Both retailers have influenced the merchants by repackaging their goods to increase the demand for their goods (Manalova, 2018).

Departmental stores provide customers with every kind of product in one place and save time. A superstore provides a complete range of products on a serving pattern. The stock items collection makes it much easier. Aldi does not provide the bag and credit card facility that increases the consumer’s expenses. Consumers use a shopping cart that must be returned after shopping. Aldi connected electronic locks to a shopping cart that fixed the carts to the parking area. Although both retailers focus on the cost of products. Aldi hired experienced staff to maintain control of the price fluctuations in the market. Aldi also appointed a multitasking staff who can perform different kinds of duties on stores, minimum staff hired to perform duties. All tactics helped the retailers to possess the profit (Manalova, 2018). Aldi’s growth is increasing 8% every year, and 40 stores opened in a year from 2004 to 2010 only in the U.S grocery market, and also conscious of increasing the growth into new markets. Most new stores are privately managed. Aldi does not explain its growth to its shareholders.

Aldi focuses on its cost, which has essential performing edges, shows 9.3% in Germany, but its slow success because of its efficient business model (Nassauer, 2018). Aldi establishes its position as a 20th bigger grocer into U.S.A out of 52. All retailer strategies are mentioned in the 2nd exhibition. Product choice, supplier administration, and its workers are pivotal means for Aldi’s business model. Its business methods are easily followed (Meyersohn, 2019).

On the other hand, Walmart shares its sale data with other merchants and analyzes the demand of the consumers and prepares some predictions for its expansion for a particular period. P&G and Newell are also involved in making new and efficient manufacturing plants and to reduce product cost (Mujtaba& Maxwell, 2007). Alternately, the production volume and quantity of stores needed to increase.

SWOT Analysis

Aldi and Walmart are two strong retail brands. Aldi has larger than 1800 stores in California, Mid-Atlantic, Florida, and Mid-west. Aldi is now a strong supermarket chain after Kroger and Walmart in America (Alxaedra, 2018). The aggressive growth rate is forcing the industry to implement new changes that attract customers. Aldi is working on Walmart’s actions and approaching it in competition. Recently it opened a store in Bentonville, which is only one mile away from the corporate headquarters of Walmart. Another strength of Aldi is keeping low prices, so providing the best experience to customers regarding shopping. This privately held company is offering products without reducing quality. According to customers, ’ low priced products provideprovide a distinctive experience (Cova & Salle, 2017).

Another big advantage for Aldi is selling its own natural organic products,, so it makes customers happy, and they save time finding branded goods in the store (Boswijk, 2017). Aldi’s wage rate for workers is higher than average in the market, and it still saves labor costs by hiring few people. Its prices are about 50% cheaper than competitors such as Walmart in Chicago and Houston. Aldi is also investing in its stores to remodel, i.e., $1.9 billion is used to remodel 1300 stores. New technology is the use of zip codes with a $65,822 average household income. It is also providing smart shopping era by offering alternatives like bargain hunters. It is relying on private label brands to win Millennials, who are inclined to low prices and brand agnostic. To counter Walmart, Aldi has opted bare-bones approach under a national advertising campaign. It has pledged to improve sustainable packaging and cut plastic by 2025.

Walmart has lost its way to growth by focusing on thin profit margins and cost leadership strategy. Its key weaknesses are numerous ethical violations and lawsuits it faced against employment discrimination. Poor benefits and a less adequate working environment resulted in high turnover (Yadav &Verma, 2015). Walmart has faced failure regarding experiencing activities like other retailers or make its warehouse a large place to experience; some of its products are of inferior quality (Nassauer, 2018). The growth opportunity it has is to offer more goods to developing countries; it can seek a bargain, including large grocery stores, and offer modern formats (Hardaker, 2018). Aldi has weaknesses in terms of profitability ratio and Net Distribution, which is less than the industry average. Poor financial planning at Aldi is making it vulnerable, so liquid asset ratio and current asset ratio tell that company can use cash efficiently in the current situation. It has a high attrition workforce rat as compared to other retailers.

Aldi has future opportunities in terms of core competencies present, such as GE healthcare research. It has made new environmental policies and better market share due to new technology. This is done with the help of government agreement because free trade agreement is a big opportunity to enter into new markets. Walmart has big opportunities like providing better trendier goods, special products, and gluten-free and organic options. It has also started services like spa, optometry, and banking. Walmart is also facing competition from global retailers, and Aldi is an emerging one.

A successful business always estimates the values which are helpful in business growth. Omnichannel is helpful in examining customer experience. Omnichannel is a multi-business channel that deals with sales of the consumers, and critically analyze the customer needs and expectations and find the solution to meet the consumer’s needs and expectations (Hardaker, 2018). The Omnichannel introduced an online shopping method to give essential retailers.

The omnichannel transformation for Walmart is an advantage because this strategy will improve $1.2 billion. Increased physical stores, fulfillment centers, click and collect, and delivery services are making it successful. This is related to a fully integrated shopping experience and a big approach to marketing. Aldi is also Omni channel retailer with fast development and transformation of its supply chain in the digital growth. The integrated digitalization strategy is acting as a key to transforming it into an omnichannel retailer (Alxaedra, 2018). The financial implications of these processes will be positive and productive for companies and engage better customers.

PESTLE analysis of Aldi & Walmart

Political, economic, social, technical, legal, and economic factors work inherently for any organization. Aldi has applied an approach to analyze and catalog the macro environment and its further perspectives that are implemented on the political, cultural, commercial, environmental, and legal framework which influence a company. This investigation assists in identifying principal factors, these principals consisted of opportunities and threats into the company’s external environment and afterward to overcome these opportunities and threats. Aldi, which is a shorter name of Albert Discount, was operating grocery stores into the U.K environment. Aldi’s achievement was extremely inspired by political and juridical circumstances European Union.

On the other hand, Walmart is an American brand, and dealing with the retail industry, its associated branches render its services around the world. It provides a wider range of products to customers. Grocery, household items, garments, enjoyment, and different other varieties are manufacturing to facilitate its consumers. This company got an unbeatable position to become the world’s best retail industry around the world. Government support retailer business because it provides mixed job opportunities for unemployed people. It also provides job facilities to none experienced and highly attractive payment to experienced, encouraging the living standard of different people by providing them job opportunities.

Aldi also provides part-time job facilities to students and other needy persons. Walmart is based on the macro-environmental factors and such aspects that are directly associated with business and its development. It critically analyzes the positive and negative, direct, and indirect aspects that influence the business structure. It also is known as Walmart PEST. This term helpful to create a trustful relation with U.S.A that implemented on both retailers like Aldi and Walmart. It moderates all political risks that impact business growth, prepares such strategies through the company pay less than five %tax from the other companies, faces an economic crisis, and can control price expansion into the market.

The social factors and social-cultural aspects that impact on consumer attention and inclinations. Social factors present a healthy lifestyle aim, cultural difference, residential movement; these factors create opportunities for the Walmart and Aldi business growth. Thus the companies can increase their production by following various cultural aspects. Aldi and Walmart must follow the technical approaches, by increasing the business self-regulation, business analytics on behalf of data collection, and by providing the transport facility to consumers, these factors are helpful in the expansion of the business growth (Manalova, 2018). The company boosts its production by providing an online facility. Companies can enhance their revenue by using the source of online marketing and selling of products. Environmental protection is a common principle that influences business. According to ecological factors, the impact on business sustainability, and friendly environment is essential for Aldi. To achieve monetary sustainability, Walmart improves its business operations; technical addition also improves business performance.

Change business procedures and production systems that are present to sell into retail stores. Aldi purchased raw material from farmers or other local producers to get sustainable development. Aldi adopts a strategy to attract consumers by providing an attractive label and packaging. Aldi has received Green chill certification by using a viable refrigeration system and adopting an environmentally friendly method. Aldi has faced a copyright issue on brand operational methods. It proves successful for the Aldi brand on Aldi’s products or on non-Aldi, s products. The advertisement also encourages the business into expansion matters. Aldi is a chain of supermarket companies that need to update their technology to meet the production level. Consumers rely on their commodities rather than follow a queue (Hernandez & Simmons, 2006). These retailers provide an e-commerce platform that serves consumers by providing online facilities. Social media like Facebook, Twitter also create the consumer’s interaction with the brand. Walmart is also the largest retailer brand around the world and has a large scale of operations through which it is able to achieve a good economic scale and has developed a technical mode of websites.

Different prosecutions have faced Walmart due to unethical behavior to its workers. Walmart has huge political support. PESTEL analysis on Aldi and Walmart’s business is very valuable and helpful to take initiatives for the business growth to compete with the other business rivals. It provides a complete guideline collection of raw material to production and supply in different stores and countries. It also provides a complete guideline of economic, environmental, and political issues on how to sort out them and how to overcome these situations. It also guides the companies on how to increase productivity growth and how to satisfy the customers. Aldi and Walmart are the two largest retailers’ companies sharing their parts around the world. Thus both companies follow the PESTEL analysis and follow the business growth and focus on its strengthening aspects and gain a trustful relation to customers and making progress day by day (Laurenthomas, 2019).


Aldi’s newest store in Cleveland is making development that Walmart supercenter possessing. Aldi increased its customers by creating a price competition to compete with its rivals. Aldi opened its new stores that are close to Walmart and selling it8s products on discount. Aldi opened new multiple adjoining superstores to Costco in New York City. Its rivals arranged its marketing because a variety of customers trusted Aldi. This plan was constructed to operate 2000 stores into U.S markets in 2018.

Aldi adopts the strategy slowly and steadily wins the race, its slow progress gains the customer trust by providing them the preference, satisfied their expectations at a low price. Aldi and Walmart are two successful retailers performing in many economies of the world. The cut-throat competition of both companies is due to increased demand. This case study shows that Walmart is now becoming vulnerable to Aldi, which is a privately owned firm and working as a grocery chain on an innovative model. Aldi is outcompeting its competitors on the basis of pricing and become a significant competitor in the US grocery market.



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Manufacturing industries contribute to the Gross Domestic Product of an economy, so it has to keep up with the latest trends and key emerging societal factors that are aligned with the cultural factors. The construction and manufacturing industry is helpful for a much-skilled labour force because it integrates high-value parts, design, research and development, and marketing. In Hungary, there are several global chains of multiple industries that are further comprised of millions of medium, small, and large manufacturers that are facing intense demand from consumers, and manufacturing innovating products. Today, global economies are ignited by macro-environmental trends. The report discusses a comprehensive scenario of the economy of Hungary as an emerging market. Key conditions in the local business environment, socio-economic and political factors and key entry strategies to enter in a new market are a part of this report. The research report elaborates the involvement of business in the economic growth of a country and key role played by industries to involve people under economies of scale.



Hungary is a part of central Europe that has transitioned from a planned economy to a market-based economy (Lane, 1995). Emerging technology is changing the direction of business and overall industry and further involving new strengths, capabilities, merchandisers, and professionals (Bae, S. Y., 2018). Aerospace, agriculture, and healthcare sectors are now specializing in better development aspects and have gained a strong position worldwide. This research report is going to discuss Hungary as an emerging market, in future it will be changing the economic patterns. The report will examine Hungary economy as an emerging market, and it will analyze the local, cultural, legal, and political factors that are shaping this overall economy.  In addition the following will also be discussed  key market entering strategies, the overall performance of the economy, trends, risks and challenges, entry and long term strategies to minimize risk as well as recommendations to businesses looking to enter this market.

The Local Business Environment


Under global strategy, Hungary’s economy has gained significant importance due to the marketing mix and segmenting the local market. It has been seen that this economy is an attractive destination for international business now, and it is going to be in the future. Business and service industries are considered a powerful segment of the economy that cannot only change the future of the labor market but also create more opportunities for business (Eszes, L., & Muhlemann, A. 1993).With the rapid expansion in transport, trade patterns, and communications, the international market has provided easy access to all businesses(Szent-Iványi, B., Végh, Z., & Lightfoot, S. 2018).

To fulfill consumer requirements, world is getting harmony in all its processes, such as technology, lifestyle, transportation, capital, and travel. Resurgence in global standardization at international level provides many motives to global firm’s decisions about trade. International marketers focus on right standard balance in global businesses so that performance can be optimized (Chan, E., 2019). Integration level is viewed at a global level due to global marketing strategy and role of marketing tactics. Technological advances have a significant role in the economy.

Global expansion caused the industry to push its product launch regarding automation, knowledge-based products, and biotechnology (Eszes, L., & Muhlemann, A. 1993). Economy can better explain the consumption perspectives of an industry when it comes to its specific features and products (Chaudhry, H. and Hodge, G., 2016). Value, when produced in commodities, undertake cultural and political-economic approaches to fulfill the historical trends. Marxist economists focused on linear commodity trends to discuss the concept of production and consumption. Individual production network tends to acquire vertical structure systems for the provision of consumer goods.

Approach of economy regarding the interaction of horizontal factors undertakes all political, socio-economical, and cultural factors, about consumables that move from one country to another. In Hungary, the automotive industry is advanced, and leading edge technology is implemented in biotechnology sector (Lane, S. 1995). A regulatory environment for the development of pharmaceutical products and biotech products is implemented. Through low cost and quick method of manufacturing, consumers engage in the ever-changing collection of affordable commodities; for instance, capital sources are involved in corporate development and spin-off activity. The rapid changes in trends and evolving lifestyle perspectives have shaped the industrial products (Cox, H. and Mowatt, S., 2012). On a broader culture, tremendous stress is placed on the system of production that can be labor-intensive. Hungary has a broader scope regarding fashion and footwear due to potentiality of factors; for instance, high-end fashion, products for the younger generation, and luxury brands are an important part of Hungary’s economy (Eszes, L., & Muhlemann, A. 1993).

Hungary’s economy focuses on broader business initiatives; for instance, construction industry is facing local regulation and strong price competition. The economic position of Hungary is based on GDP, and it’s per capita income is two-third of the average of EU-28, while in 2018, its GDP was $155.7 billion (Szent-Iványi, B., Végh, Z., & Lightfoot, S. 2018).Current markets are performing good and high competition is see in main global brands, their high quality of products, and performance is causing difficulty for new firms to enter(Lane, 1995).Opening of a fashion company in a new place is based on certain factors, some of which are difficult. In Hungary, supply of raw material and transportation is advanced level and moving towards sustainability and therefore making the competition intense (Eike, R. J., 2018). Hungary economy is performing a competitive role in the education and ICT segment of the industry. Socioeconomic and demographic factors and trends are likely to shape its future potential as an emerging market (Lengyel, B. and Cadil, V., 2009). For global trade supplier finance, capital is made available to the suppliers, who are engaged at the global level, to practice better policies. To open a business in Hungary, its cultural and social factors are important to consider; for example, if fashion textile industry decides to open its brand in Hungary, it will have to focus on its market, economy, and social aspects (Jarmuzek, M., Orlowski, L.T. and Radziwill, A., 2004). Consumer values, socio-cultural patterns, ethnicity, and perceptions of consumers are some key factors that will change the future market and its potential (Gardetti and Muthu, S., 2020).

PESTLE analysis


Industrial development is competitive in terms of the provision of quality and sustainability of products in Hungary. Segmentation, targeting, and promotion policies of different companies are conducive to increase sales and consumer spending (Lengyel, B. and Cadil, V., 2009). PESTLE analysis deals with all political, economic, technical, social, legal, and economic factors at a place. For instance, if Apple is planning to open in Hungary, it has to consider all the factors in the IT industry in Hungary regarding segmentation.New entrants in Hungary will face intense competition because stable socio-economicsystem.Political system is stable, yet some after-effects are due to the international worsening of global issues that will cause new incumbents to focus on their cost structure. Before 2019, Hungary’s fashion market has faced good performance, and its recorded revenue reached $75 billion, according to the National Fashion Chamber Hungary (Jacobs, and E., 2016).

Healthcare in Hungary is facing some global uncertainties, yet it is providing opportunities to British companies such as investment projects, management consultancies, supply of medical equipment, and hospital management services (szikinger, 1999). Economic situation in Hungary is much better due to the presence of many luxuries, lifestyles, and consumer goods in the Lombardy region (Kim, E.-D., 2000). A multi-party democracy of Hungary is divided into conservative right and opposition.

Legal system in Hungary is strict and composed of many regulations and rules. Fundamental law in Hungry is considered a parliamentary republic. For sustainability in the environment, the rule of law is established. Many implementations are faced with business networking (Mcgrath, P., 2013). The commercial communication system is established to know about products’ sustainability. Legal factors are persistent in following the rules and product’s life cycle as well as to reduce any impact on the environment. Specific manufacturing elements have to undertake to license regarding product’s packaging or supply chain and transportation (Lee, J. K., 2018). Legal system also provides confidence about state laws, product features, and fashion-based networking. Property laws and intellectual property elements prevail in the economy that is helpful for whole industry brands.

Economic factors such as inflation, employment level, and per capita income in Hungary are stable for businesses to make companies more productive, and industry can gain its sustainability. Social atmosphere and socio-cultural aspects undertake values and norms, societal characteristics, customs, ethics, and other peculiarities that work significantly for fashion as an emerging market. These factors are important to consider when a business company tries to launch a new product or bring innovation in existing products. For instance, in 2018, US merchandise exports to Hungary were $1.75 billion, and the main exporting items were automotive components, IT equipment, vehicles, electric machinery, electronics, and other manufacturing supplies. It is also working on the economies of scale rule to target consumer’s standards and fulfill their expectations (Mitterfellner, O., 2019).

The socio-cultural factors in Hungary are traditions, values, and norms that people love to see in their favorite brands. In Hungary, despite sustainable implementation, an adequate legal framework about environmental rules is implemented. Activities of involvement with rules & regulations customers will be fruitful to enter into the market. Difference in attitude and culture is a key factor that multiple brands have to focus on while entering in an emerging segment of society. Sustainability of products in Hungary is maintained under specific guidelines of commercial communication to make sure that traders are focusing on green claims (Mcgrath, P., 2013).  In Hungary, rapid industrialization has raised environmental concerns; therefore, product sustainability needs environmental protection policies.

Entry Strategy and General Business Strategy


Main driver of growth in Hungary is domestic demand; it was estimated in 2019 when rise in wages and high consumer confidence was observed. In same year, the foreign investment acted as a strong performing vehicle, and the electronic sector captured interest of global investors (Lengyel, B. and Cadil, V., 2009). Long term strategiesthat new business could adapt to mitigate risksarising from challengesare to be more competitive and revolutionized due to digital market ideas.In Hungary, there is a high wage rate, high profit margins and increased tax collection that can be an attractive entry point for new firms, so they can enhance a general balance of the economy. Due to business and industry growth, Hungary’s economy faced public debt going down, and International Monetary Fund anticipates that in 2020 this debt will be 65.1% and further will reduce to 62.9% in 2021 (Szent-Iványi, B., Végh, Z., & Lightfoot, S. 2018). There is a need for fiscal consolidation for the economy because its supply-side reforms need to maintain growth momentum so that global resilience can be built.

The economy of Hungary undertakes entry and long-term strategies that could mitigate risks arising from the challenges. The entry mode in international business segments adopts various policies such as product export, involvement in joint ventures, participation in the franchise sector, and making operational alliances or subsidiaries (Szent-Iványi, Végh & Lightfoot, 2018). IT, automotive, and construction sectors in Hungary can become more competitive by adopting growth features to get short and long terms success. Due to high competition at a global level, Hungary’s economy will focus on a continuum by nagging in low control to high control practice with resource commitment. Low control model needs more limited commitment of resources, so investment risk is reduced. However, in economy, some firms have little power in global operations that can result in declined financial outcomes (Sadachar and Manchiraju, 2016).

In this case, competitive business brands can enter in Hungary market by focusing on key cultural practices, norms, and involvement of values in the society. Foreign market expansion by any brand also has to focus on the skills and managerial expertise while entering into a new market (Mcgrath, P., 2013). Retail environment in the industry has to establish a competitive brand under specific format, assortment, and product offering. Retailer needs a specific kind of entry mode that matches with the global expertise and its international experience (Lane, 1995). This aspect is closely related to tackling foreign market challenges. The industry undertakes key cultural and market-related factors as competition because these factors are integral to understand economic and political stability. The company has to focus on supply chain management and distribution practices (Szent-Iványi, Végh & Lightfoot, 2018).

In Hungary, the government does not restrict foreign investment. Foreign direct investment is not limited and convenient to organize a large scale for specialized firms (Lengyel, B. and Cadil, V., 2009). Hungary’s industry is specialized in terms of multinational investment to cater to consumer demand. foreign firms win market share from incumbents by adopting different strategies like price wars, raising specific barriers, and making intense competition (Sweney, M., 2019). Competitive advantage in Hungary is considered complex due to the degree of internationalization. According to specialization of segments, the market diversifies and modify different areas of products to shift the market trends. Economy of Hungary is lucrative for global business firms because they can reap the benefits by acquiring a larger market share (Lengyel, B. and Cadil, V., 2009). New businesses can enter by analyzing their competitors’ profiles as well as researching the potential of the Hungary market (Eszes & Muhlemann, 1993). The pricing, product value, and advantages are important to consider. Consumer market has been focused on existing brands, division categorization, and product diversification is necessary to enter in the market because these aspects are inherently related to the economy.

Conclusions and recommendations


Economy of Hungary is set up on a competitive framework that incorporates the latest trends, expertise, and skilled labor force into the product portfolio. Countries engage cultural and social factors in their products because it is helpful for targeting better customers. Country-specific socio-economic & business factors must be considered by new businesses to gain a competitive advantage in Hungary’s market. Working in a foreign country requires a firm to consider its specific economic, political, legal, and environmental policies. New businesses have to focus on specific norms and values operating in Hungary regarding competition in industry because already present firms are operating in tough competition.

Some fashion and business brands have to undertake country risk uncertainty to survive in atmosphere and to ensure the profitability of the firm. In a foreign market, uncertainties like economic health, inflation, disposable income, and political stability and unemployment rates have a considerable impact on the company’s performance.

Key recommendations for new business, who want to enter in this market are research and development, flexibility, and a focus on high control models. They should be avoided to limit resource commitment. To be successful in the global market of Hungary, companies should select low control, entry models, because there will be a high country risk. New businesses have to consider government restrictions. It is recommended to maintain control in emerging market by complying with local rules.

Many competitive business attempt to start operations in Hungary, so they have to focus on political, economic, legal, and environmental factors in the Hungary market. IT, automotive, and fashion being sophisticated industries have to work on a diverse set of occupations. This research has highlighted the significance of certain institutional and cultural factors that play a significant role in the development of an economy and help elevate a firm’s business performance.




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Stock Portfolio Strategy Paper




1.0   Introduction


Entrepreneurship is defined as that mind-set that gives someone the ability to see opportunity everywhere (co-founder of Sweeten) This can be a business idea and it can also mean the ability to see the opportunities in people that can help someone grow the company.

Mauritian economy encourages young entrepreneurs with great incentives.  SMEs contribution to the Gross Domestic Product (GDP) is 40 percent and accounts for 54.6 percent total employment in the country.

Pet Care is a good investment opportunity in Mauritian market as people love their pets, and they are willing to provide them with the standard quality of grooming and care when they are away or busy.

1.1 Opportunity Analysis


For the past decades, there have been many incentives and supports given to enterprises for the promotion of the SME sector in Mauritius. The Start-Up Scheme that provide financial support of up to a maximum of Rs. 100,000 to entrepreneurs to set up their enterprise.

The trends that effect the pet care industry includes the increase in disposable income of middle-income group and rising trend of nuclear families. Moreover, people are adopting more pets and demanding higher quality pet products and services (Market, 2019)

The Mauritius commercial bank had teamed up with the DCDM Research to investigate on the mindset of entrepreneurs, their behaviours and motivations with regards to same.

In Year 2016, the SME sector contributes approximately 40% to the GDP and employs around 300,000 people in the country (55% of total employment).

1.2 Company


This report provides not only the opportunity analysis, but also my affection for pets. I have always been a pet lover and the idea for pet care business originated from my passion for pet grooming and pet sitting. The goal is not just to start a business, but to form a work family who work with integrity and radical transparency with clients and provide services with excellence.


To provide innovative, high-quality, consistent, value-for-money, pet friendly service that will make your pet want to come back again and again.


Vision: To bring integrity and excellence in the pet care industry and become the number 1 service provider in Mauritius.


1.3 Key People and Skills


Pet Coach intends to open two branches, one in Balaclava and the other one in Trou aux Biches

Training pets require skills and time; therefore, the firmwill employ professionals with experience in dealing with pets but most importantly animal lovers. The veterinarians possess technical skills, e.g., first aid, wound stitching, sterilization of surgical instruments. The administrative clerk with top communication skills and administrative, two carers who have the know-how of Pets’ grooming and especially those who know the premises and safety measures of Pets (especially dogs). There will also be 2 drivers, one of which will be on part time basis, and the finance administrator in charge of all financials of the company.


2.0 External analysis


The World Trade Organization considers Mauritius’s investment apparatus as “open and transparent.” (Freedom, 2019). Mauritius’ GDP expanded by 3.4% in June 2019. While the GDP per capita reached 10,992.3 USD. Mauritius Consumer Price Index (CPI) for February 2020 was estimated to be 2.1%. Moreover, the Gross Saving rate of Mauritius was 6.8% in 2019. (CEIC, 2020). These macro indicators show the financial condition of Mauritius. Over 4 million pets are transferred by air, Millions of people are choosing to take their pets while they travel. According to LA Traveling magazine, Millions tend to marry later, and often spend a vast amount of money on their pets (Forbes, 2019).



A robust legal framework protects property rights and improves business acumen. Political stability will help pet coach in many ways including traveling, tax payments.


In terms of Business Confidence, Mauritius has moved up the ladder to 161.60 index points in 2019. The average compensation for labour has increased by 5.1 percent (Anon., 2019). The literacy rate of Mauritius is 93.16 percent (UNESCO, 2016), having educated and well-spoken staff and employees will prove to be beneficial tothe business.


Poverty and inequality is not a serious challenge in Mauritius which means the residents are not too poor to afford pet care services. Moreover, the government of Mauritius contributes a lot to social inequality and social justice, enabling businesses and service providers a safe and secure environment, social benefits will help pet care expand its business further.


Smart cities and techno parks is another pillar, which the government believes can assist inturning Mauritius into an intelligent island. Pet Coach is a mobile pet care service provider and is directly associated with technological improvement in the country.



Intellectual property rights are protected in Mauritius by the Trademark act of 2002 (Bheenick, 2018) making it secure and safe for pet coach to purchase new assets. According to Mauritius workers’ law, 2019 monthly salary of an employee must not increase MUR 50,000 (except for some sections), and an employee shall not work more than 12 hours a week (Yuen, 2019). Pet coach will provide its employees all the required and legal incentives.



Environmental protection Act of Mauritius is responsible for assessing and reviewing environmental regulation. Pet Coach will abide by the rules. Tropical cyclones can cause damage to property. However, there is a system of warnings and Pet Coach will adhere to the advice issued by local officials (Environement, 2019)


3.0           Industry analysis


Some of the noteworthy trends in Pet care industry:


Pet Parenting

Pet owners are treating and taking care of their pets, like family members. Pets provide companionship to their owners. Pet care and Pet products are associated with pet humanization because pet owners want to buy similar products and acquire the best services for their pets as they would for their child. Pet humanization gives rise to other trends in the pet industry. Few examples of pet humanization are per-friendly traveling service, therapy sessions, opulence grooming routine. (INTERNATIONAL, 0CTOBER 2016)


Pet Obesity

Obesity research done in the United States by the Association for Pet Obesity Prevention (APOP) found that almost 35% of the dogs and about 28% of the cats in the US are obese. The pet obesity is the cause of inappropriate human food provided by pet owners, not having a proper exercise routine, and too much eating. (INTERNATIONAL, 0CTOBER 2016)


Premium Products 

Pet premiumization means getting the premium level products for pets. Consumers who demand premium products and tools for their pets are middle class and urban living pet owners. (INTERNATIONAL, 0CTOBER 2016)




3.1 SWOT



  • First-ever mobile application-based Pet grooming and Pet care platform in Mauritius
  • Managing the business will be easy as most of the time, pet-sitters will be traveling places, which reduces the operating cost.
  • No inventory; this reduced the cost of business.
  • Pet grooming tools and products are easily accessible on e-commerce platforms.



  • Establishing a brand name for any new business is a hurdle. Marketing and Advertisement will help overcome this problem.
  • Initially, getting your business started could be very costly. Having a low budget will prove to be a big hurdle.
  • Having strong business links and PR (Personal relations) is essential. It might take time to establish ties with clients and locals.



  • The increasing use of the mobile and internet will make it much easier to reach out to new customers, making it easy for business expansion.
  • Increase in Business confidence (Economics, 2019)
  • Turning passion into profit. Being a pet enthusiast could be profitable and a great opportunity for business.
  • Once the business has successfully made a brand image, then further franchising to other passionate pet groomers is another opportunity to grow business further.




  • Increasing competition
  • The higher cost of services (Economics, 2019)
  • Volatility in the exchange rate
  • An already established business might start providing mobile-based facilities as well (copying our business idea)

4.0           Financial analysis


One thing is clear that there would always be a demand for organizations and individuals pet owners whose demand is extra coaching and grooming for their pets. That is the primary reason why Pet grooming and training will still be required. To start-up capital estimated for Pet Coach is 2.3 million MUR (USD 53,000), which constitutes of 1.3 million MUR loan from a bank and 1 million MUR is personal deposits and some loans (from relative and family members).

One of our primary goals of initiating the Pet Coach is to start a business that will survive off its cash flows without the need for financial resources from outside sources once the business is officially running.

4.1 Investment Outlay

Total number of employees 20 Employee wages per month 35,000 MUR
700K total
Advertising and Marketing
Billboards, Social media marketing
40,000 MUR

Transport (10 bikes and twotrucks)

300,000 MUR
670,000 MUR
Tools and equipment 100,000 MUR
Tax and legal payments


50,000 MUR
Inventory and warehouse 200,000 MUR
 Total 2 million MUR

Source: self-work


Generally, for Pet grooming and Pet sitting, prices are charged on an hourly basis, but Pet Coach’s pricing strategy is different. They will charge a flat fee for the service, except for, few cases which may require different pricing. E.g., Pet Coach will invoice 700 – 800 MUR for pet sitting. Additionally, if the client needs 24 Hours service or more than 24 hours, the charges will vary. Similarly, during holidays prices charged shall be a little higher than usual due to excess demand for service. Keeping in mind that there would be some clients who wouldn’t mind paying extra bucks for their pet routine and grooming and for that Pet coach has established a premium and tailored services, according to clients’ needs. The Payment policy will be entirely inclusive. Payments transaction shall be accepted via Bank Transfer, via Cheques, via Mobile Payment and Cash payment.

5.0 Exit


Pet caring is considered a “hot” opportunity for business start-ups. But, in a situation where the business doesn’t go as planned, the pet coach has an exit strategy.

  • Merge with an already established business. Sell 51% of the business shares and the controlling power.
  • Complete sell-off to another firm or business who will acquire the management as well as the capital of the business.

6.0 Conclusion


As per the report, it is concluded that Pet Coach is a viable business opportunity. Bringing a revolutionary and to the Mauritius market. It will prosper in the future as the business is technology-driven, and the targeted audience is expatriates and tourists. With extensive research and business strategies, Pet Coach has the know-how of consumer taste, preferences, and, most of all, customer needs. With PESTEL analysis on the front, the business will be sustainable in the long run producing more jobs to the locals and expansion of business opportunities.





Potential of New entrance


§  Initial cost is low

§  Tools and products are easily accessible.

§  No barrier to entrance


Power of Customers


§  High customer loyalty

§  Pet coach has different service identity

§  No mobile pet grooming in Mauritius

Power of Suppliers


§  Higher number of suppliers

§  Similar products are available

§  E-commerce platforms provides variety of tools and equipment


Threat of Substitutes


§  Online available free platforms

§  Freelance pet care business

§  Veterinary shops

Competition in the industry

§  Pet industry is growing

§  People are fond of conventional pet shops

§  Well-known retailers









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A strategy plan helps determine the potential of a business. Information technology offers details about the management of a project with technology-enabled services (Fitzpatrick, Nguyen & Cayan, 2015). This strategic plan is about Youvic Technologies. It will discuss Porter’s five forces, the role of competitors, the potential strengths and weaknesses of the company under SWOT analysis. The paper will also focus on the PESTLE framework for the technology company. The blue ocean strategy will also be discussed to get an idea about the low-cost operations to capture the market space and generate new demand.

Porter Five Forces

Youvic Technologies is a technology company that provides significant results to different businesses. It is working with the latest trends and innovations to maintain a strategic place in the industry. This role will be analyzed under the Porter five forces framework.

The bargaining power of buyers for Youvic Technologies is high. In the case of a product with a large number of competitors, the value is increased, and undifferentiated products tend to represent a high cost for the client. The technology-based functions of the company in the industry allow it to switch in the loyalties and offer quality to its customers. The company is offering quality management to its potential business clients while the sector has several rivals. 

The bargaining power of suppliers is low; in the technology industry, the inputs are purchased on different degrees of cost (Author, 2019). This accounts for the varying proportions of demand and hence, different levels of profit for the respective company. The one or two suppliers for an input provide the evidence of essential products, and if switching among suppliers is expensive, the supplier acquires a high level of power.

The threats of new entrants for the Youvic Technology company is high because due to advancement in technology and science, the accounting and management techniques are improved, and it needs more companies to work. A high level of demand is coped up with multiple firms, and this scenario constitutes that new companies can start producing products and offer services just like their competitors.

Threats of substitutes are low in the case of technical management, mainly due to the established demand of potential clients for the company (Business, 2019). The modern business management by the company is diversified, and it has engaged several customers by taking care of all their needs in a single place. Youvic has offered different tools to its customers and improved the performance ratio. The high threat of substitutes is based on the attractive price-performance level of trade, and when the cost of the buyer to switch, the alternative product is low.    

The rivalry among existing competitors is intense. In the case of technical firms, the scope of the value of products is high, and they offer different software and related product that are close to their rivals. The competitors in this way are numerous and they are roughly equal in size and market competition to Youvic technologies. The exit barriers are high, and there are fixed costs due to price cuts and incentives.

 SWOT Analysis


The SWOT analysis in a company is to discuss the potential strengths, weaknesses, threats, and opportunities for the technology industry. The company has inherent advantages in the form of offering the latest technology trends, business management solutions, and accounting business frameworks. It is providing advanced technology aid for doing business, assistance for client management, payroll, and HR activities. The role of management solutions is integral to build its customer base (Fitzpatrick, Nguyen & Cayan, 2015). Through HR-based services, several new horizons are explored. The functions related to technology development, software, and different applications are the key strengths of the company.

Potential weaknesses of the company are its interconnectivity among staff and low collaboration. It is facing difficulties in collaborating among staff members and effectively serve customers with technical trends (Author, 2019). There is a need to improve customer management services by hiring more staff and focusing on potential outlets to expand its services. The improved cooperation and affectivity of the team in responding to queries about services and products will not only help the technology company but will also advance the growth of the company.

The Youvic technologies have several opportunities; for instance, due to business expansion, it can introduce the latest software and management solution, client perspectives, scheduling, and the latest innovation about HR management (Business, 2019). It can improve its position by engaging more service outlets and broadening the exposure of staff. Working close to HR management aspects and developing new integrated software applications are liable to generate potential customers in the future.

There are significant threats to the company, for instance, increased rivalry, and a high level of new entrants that are potentially working on different projects. The scopes of Technology companies become limited if it does not focus on new techniques, software, and management solutions. There is a need to implement project management solutions with efficacy to retain its customers and position in the market.

Blue Ocean Strategy


 A significant pursuit that can help to develop the low-cost techniques and functions for an established firm is the blue ocean strategy (Chang & Luo, 2010). For Youvic technologies, the role of the blue ocean strategy is significant because it will not only compete with its rivals but also focus on low-cost methods for its services. This strategy is workable in case of capturing the uncontested market and reducing the competition. In technical frameworks, the scope of the competition is high, based on the latest demand and trends. It will help Youvic company to get the appropriate opportunity for marketing and make the competition less relevant (Carton, 2017).

The blue ocean strategy is useful for technology companies because it will depend on the available data for ideas and services. This approach also focuses on the goals of the company and to serve the company integrally that it will act as the best service offering a place. By redrawing the boundaries of the industry will provide a suitable marketing scope. The HMBL accounting business is providing a wide variety of ease and real-time visibility. Under the blue ocean strategy, this facility will offer brand recognition and a potential solution to its clients (Carton, 2017). It is suitable to cater to business needs and tailored to keep accounts track and connect all the clients.

PESTEL Analysis


The PESTLE analysis is a comprehensive framework of the macro environment of a company that identifies the potential climate of the industry. It constitutes political, economic, social, technical, environmental, and legal factors.

There is substantial scope for political factors in Youvic Technologies. It caters to business needs; serves different entities like private and public businesses; therefore, the cost framework and services offered by the company will fulfill political demands and best cooperation among various parties (Author, 2019). The full scope of its functioning is appropriate for the legislative framework in Canada.  The economic conditions for technical services and business management are open. It is rational for the company to work smoothly in an economically viable environment (Business, 2019). The business management solution, software, and application for HR imply a better economic framework under improved demand and supply mechanism.

Socially integrated platforms, business companies, and entities depend on technical-oriented functions, just like Youvic Technologies. The demographic segments in Canada provide value for the technical businesses, connectivity, freedom approach, and flexibility. Social networking is increasing due to an increase in the latest methods of connectivity. Technology savvy people are growing, and increased demand for management solutions is suitable for Youvic technologies. Different financial companies need assistance related to business management, and socially applicable software is helpful for them.

The technological factors such as new technology, implementation, and use of the internet and management solution framework are some critical aspects of the company. The public technical assistance in Canada is helpful for people to grow their businesses. The scope of accounting business under the technical framework is essential to discuss. Ecological factors that the company should focus on are a green business, ethical responsibility framework, and corporate responsibility (Chang & Luo, 2010). The environmental factors like natural calamities and disasters also matter for a company to implement its setup.  The legal framework for the Youvic technologies is different such as taxes, labor unions, government regulations, and special software licenses. Focusing on these factors will serve the company better and streamline its growth. The startup of professional business in any new country will consider these factors to get smooth functioning and better productivity. For the Youvic Technologies, it is significant to identify the potential operating environment in a place where there is increased usage of internet, better connectivity, and use of business solutions (Fitzpatrick, Nguyen & Cayan, 2015).   This will help developing accounting business and offer better and productive options for business customers.



The strategy for the technical business undertakes various aspects. It focuses on significant parts, functions, and processes of the company that can help develop new potential clients. Through business management solutions, software applications, and accounting business perspectives, in Canada, Youvic Technologies will perform significant functions. By focusing on business and corporate strategy, the company can bring long term growth rate. On accounting perspectives, it has a scope for the next ten years to flourish and use marketing activities based on PESTLE analysis. 




Author, A. (2019). HMBL Accounting Business by Youvic Technologies Inc. Retrieved 23 October 2019, from

Business, A. (2019). HMBL Accounting Business | YouvicTech. Retrieved 23 October 2019, from

Carton, G. (2017). A Blue Ocean Strategy for “Blue Ocean Strategy”: on Performativity of Strategic Management. Academy Of Management Proceedings2017(1), 17635. doi: 10.5465/ambpp.2017.17635abstract

Chang, H., & Luo, C. (2010). Analyze innovation strategy of technical‐intensive industries: scenario analysis viewpoint. Business Strategy Series11(5), 302-307. doi: 10.1108/17515631011080713

Fitzpatrick, B., Nguyen, Q., & Cayan, Z. (2015). An Upgrade To Competitive Corporate Analysis: Creation Of A Personal Finance Platform To Strengthen Porters Five Competitive Forces Model In Utilizing. Journal Of Business & Economics Research (JBER)13(1), 54. doi: 10.19030/jber.v13i1.9081


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