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Different Analytical Tool For Analysing Market | Sunset Tan


  • Unit No: 5
  • Level: High school
  • Pages: 7 / Words 1677
  • Paper Type: Assignment
  • Course Code: BSBSUS201
  • Downloads: 22
Question :

This assessment will demonstrate all the report structure as in accordance with:

  • What are the analysis tool in relation to working?
  • Give an overview of Sunset Tan.
  • Give the recommendations for analysing the external and internal factors of Sunset Tan.
Answer :


Every business is desire to earn high profitability and market shares, for which they need to conduct market analysis. As that will help them in developing proper decision according to the need as well as demand of customers (Amelec, 2015). Organization selected for their project is Sunset Tan  which is located at Neasden lane Brent Park, London, United Kingdom. They provide numbers of professional salon services such as hand and feet care, eye care, body treatment, face treatment and so on. The main aim of conducting this report is to apply different analytical tool for analysing market i.e. PESTLE, SWOT Analysis, Porter’s five forces and BCG matrix.

Analysis tools


PESTLE Analysis

Political factors that may affect the organisation:

There are several political factors which impact on the working of Sunset Tan  business such as government policies for salons, political stability, foreign trade policy. Along with this they other factor like labour law, trade restriction, corruption and so on (Darabi and Clark, 2012).

Economic factors that factors may affect the organisation:

In respect of respective company there are several economical factors which affect their business operations and functions such as economic growth, exchange rate, disposable income, unemployment rate, interest rates, inflation rate and so on. It is so because if economic condition is not good then society not able to take services.

Social factors that may affect the organisation:

Social factors that may impact on the salon business of Sunset Tan are age distribution, safety emphasis, health consciousness, lifestyle attitude, cultural barriers and many others. It is so because every people not take salon services, this is highly depend on the society from which they are coming.


Technological factors that factors may affect the organisation:

This factors all so include several factors which may affect business of respective salon such as level of innovation, technological awareness, research and development, automation and so on. It is also essential for this salon to consider this factor so that they can adopt new technology that help in providing quality services (Harrison, 2013).

Legal factors that may affect the organisation:

There are several legal factors which can impact on respective salon business such as heath and care law, copyright law, safety and security law, discrimination law and so on. By considering these factors Sunset Tan can conduct business effectively and ethically. 

Environmental factors that may affect the organisation:

There are various environmental factors that directly impact on the business of Sunset Tan  such as weather, climate change and so on. It is so because of their will be raining day then very less customer visit to salon.

 SWOT Analysis

SWOT Analysis


  • The Sunset Tan have huge brand value because they provide quality skin and body care treatment.
  • They also have huge numbers of loyal customers because they get quality services at effective price range (Österle, 2013).


  • The respective firm didn't have global presence due to which they not able to gain much profit.


  • Sunset Tan can expand their business at national and international level.
  • They can also offer services in combo which increase customers base and market value.


  • There are number of other salons who are operating at same location.
  • There are also several application which provide option to get salon facilities at home.

Porter’s 5 forces

Porter’s Five Forces

Bargaining Power of Suppliers:

The bargaining power of suppliers in respect of Sunset Tan will be low because there are number of supplier of cosmetics products. So it respective company can buy from anywhere, at which they get high quality at low price.

Bargaining Power of Customers:

At this phase bargaining power of customers will be high because there are various other salons which provide same variety of services  may be at low price (Sturdy, Wylie and Wright, 2013). Then in this case customers can bargain for getting high quality services at low price. 

Threat of New Entrants:

The respective company have high threat of new entrance because in this industry there is less legal rules and regulation. So any one can easily into into market effectively.

Threat of Substitutes:

This factor is also high for Sunset Tan because there are numbers of competitive companies who operate in same industry and offer similar kinds of salon products as well as services. 

Rivalry between Competitors:

The competitive rivalry is also high for Sunset Tan because there are various local salon who offer similar range of skin as well as body care treatment such as manicure, pedicure, eye treatment, body shaping treatment and so on.

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BCG matrix

Ansoff model 

Market penetration:

In this respective company need to enhance their promotional activities so that they can attract more customers (Antony, 2014).

Product development:

In this aspect Sunset Tan need to introduce new and unique product for attracting customers and earning high profit.

Market development:

In this section respective company can introduce their business at new marketplace at local, national and international level.


In this strategy respective firm can introduce new products at the new market so that they can maximise customer base and profitability.


After analysing above mentioned topics, there are some recommendations which help Sunset Tan in conducting their business in effective manner. For example they can introduce new and unique service that no one is offering because that will help them in gaining competitive advancement at potential marketplace. Along with this, it is also suggested to them that they can expand their business at international level so that they can attract more and more customers as well as that will also maximise their business and profit ratio.

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By analysing above discussed point it can be analyses and summarise that, for every company it is necessary to conduct market analysis because through it management can develop proper decision in order to gain competitive advancement at the marketplace. These environment can be of two types internal which can be analyse through SWOT analysis and another one is external environment that will be evaluate through PESTEL. There are also several other tools and methods which can be used for market evaluation such as porter's five force model and B

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