Week 7

PESTEL Analysis of Bigmart Supermarket 

Bigmart supermarket started its operations on 10^th July 2009. Starting from City Centre Mall in Kamalpokhari in Kathmandu, it has just recently opened a new branch in Lazimpat Kathmandu. Bigmart is known in industry for its value & saving concept to its shoppers .

fig:- Bigmart in Kamalpokhari 

Fig:- Bigmart in Lazimpat 

PESTEL analysis for Big Mart in Nepal
Political	1.       The political parties and its worker unions can create a great deal of problem for any industry in Nepal. Time and again they have organize strikes and other various programs which may cause problem for big mart also in future. 2.       The bureaucracy in Nepal is notoriously slow, Big Mart applying for expansion permit will take a lot of time. Besides the government in Nepal is also unstable and the policy of a government can change with the next government. This will also no doubt be challenge to Big Mart
Economical	1.       When Big Mart is expanding its branches it needs capital, much of it needs to come from loan. As there is still a high interest rate (14%) , this may create difficulties in paying back loan in future . 2.       The inflation rate is almost equally high this is hampering in the purchasing power of many Nepalese , but at the same time in recent years there has been boom in middle-income family group who has enough disposable  income to shop on such supermarkets 3.       The standard of living and the concept of living in middle class family is also beginning to change.  Earlier people even if they had huge income preferred savings over spending. However in the recent years middle income family have a changed mindset and they do not mind spending for goods if they have enough income.
Social	1.       The number of urban population is increasing almost daily in Kathmandu , this creates a huge number of potential customer target base. 2.       The demographic in Kathmandu is also changing, there is increasing number of youth population who prefers shopping in supermarket over the traditional shops.
Technology	1.       Marketing research tool in Nepal is still not highly developed so any data obtained through the course of research may not be as accurate as Big Mart wants, this may hamper in their promotion activities 2.       Local IT companies are coming up with custom made Management Information System software for local companies tailored according to local market.  This can save a lot of money over the foreign developed MIS. The MIS will also streamline all the process for Big Mart which will create productivity. 3.       Incretasing number of people in Kathmandu are carrying debit/credit instead of cash, as the facility for card payment is easily available Big Mart should adopt it.
Environment Legal	1.       Nepal is facing its worst energy crisis , power cuts can go up to 16hours a day this will have a real effect on overhead cost while running Big Mart. 2.       In Nepal currently there is no supermarket that is dedicated in support of clean and green environment ,  Big Mart can be a pioneer in doing such so while customers shops in Big Mart  they can subconsciously understanding they are making difference in environment 3.       The competition in the supermarket is fairly tough as Bhatbhateni Supermarket is a leading company and to compete against them is not a  easy task 1.       Be it opening a new supermarket or even opening a new branch in Nepal, the law is quite tough and bureaucracy is tough to overcome in Nepal . 2.       So far there is not a strong consumer law in Nepal and there are many cases where customers rights has been violated . Big Mart can be a pioneer in protecting their customers rights by setting up a department that looks after complains