Blacks Leisure Group Plc Case Study Example | Topics and Well Written Essays - 2500 words

Blacks Leisure Group Plc - Case Study Example Black’s leisure Group Plc is one of the leading retail outdoor and board wear group in United Kingdom. The company carries all its operations under two categories: The Outdoor Group and the Boardwear Division. The Outdoor Group comprises Millets and Blacks, the largest outdoor retailers in the UK, and Freespirit and Mambo, the leading retail chains in the newly emerging UK boardwear market. The Boardwear Division comprises the wholesale and retail arms of the O'Neill brand, one of the world's leading names in boardwear. The Group has the exclusive distribution rights to the brand for the UK. In brief, the company operates more than 450 stores under seven companies- owned and managed retail chains. 1. A macro-environmental and competitive audit The UK Boardwear market has been growing strongly in recent years and is estimated to be worth around  £400m at retail prices. Blacks Leisure is market leader in this fast growing market segment through its O’Neill and Free Spir it businesses. The main competitors for Blacks Leisure Group is Debenhams, JJB Sports, Snow & Rock and Halfords. With an increase in the number of consumers of the broad wear market, the competition has been growing tremendously. A large number of new entrants are seen entering this market in the past few years. However, Blacks Leisure still continues to dominate the market with its large range of products and a large number of outlets. PEST Analysis: PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates. Although the PEST analyses rely on past events and experience, it can be used as a forecast of the future (Wilson and Gilligan, 1998). Political factors The political environment is good. The government is stable and reliable, even if Britain fails to achieve total agreement with some EU policies from time to time. At present no EU directives are known which will have a direct effect on the UK sports or outdoor wear retail industry in the near future. Due to the EU membership a trend can be seen towards stricter environmental protection legislation. This may have a direct or indirect effect on Blacks Leisure Plc or its suppliers. Economic factors Looking at the economic environment, it is somewhat tricky since on one hand there is the strong sterling compared to the Euro. Euroland encourages imports and endeavors to hold domestic prices at an attractive level. But on the other hand it is difficult for UK to be competitive outside its boundaries because of the high pound sterling exchange rate against the Euro. As Blacks Leisure Group sells about 92% in the UK marketplace, this may currently only have a limited effect, but could be more important in the future when thinking globally. Social factors In the present world scenario it is being observed that the people retire earlier these days, and are working for shorter hours as well. Average working hours per week have decreased over the last 20 years. As a result people have more spare time. This means they have time to compare prices in the High Street and the quality of goods and services from retailers. As a result they are spending more time comparing different sellers. Another issue these days is the "Green environmental issues". A large number of people are getting concern over the environment and thus are getting in the depth of the production cycle of products. Blacks Leisure is taking different steps to assure people that they operate as an eco-friendly environment. Technological factors Another issue is the speed of technological transfers which also has an impact on the industry - it is not comparable with the fast growing internet business - but nevertheless it