John Lewis PESTEL Analysis

John Lewis is entering the rising market that UK is part of the European Union. Competitors from Europe can enter the UK market without any limit or limitation. UK Government is deciding to decrease the corporation tax from 30% to 28% that help John Lewis to increase their profit in the future.

The whole UK economic is facing recession and very sensitive to changes in interest rates. Rigid competition within every sector of the retail sector has lead to retailers giving a lot of incentives to the customers. This will influence John Lewis's as the prices have to be driven down most of the time.

Consumer shifting preference and lifestyle correspond to opportunities for the business. Opportunities into the new market that created by consumers caused by the society is becoming more materialistic. John Lewis should introduce more branded and latest fashion product to please the customers.

Internet shopping is the main trend for the retailing industry, directly influence the sales approach. Paperless operation, the management and administration of the company are carrying out on IT systems, which are access through secure servers and make available flexibility in the operation of the business.

The renewable source of resources used in production, namely cotton and wool are environmentally friendly. The threats are in terms of legal penalty for livestock's in terms of health and safety. A lot of emphasis western companies have been on the role of big companies in reducing carbon footprint and increasing energy efficiency (Bream 2008). This is just not a backburner issue anymore and every firm will have to prove they are reducing their impact on the environment.