The micro environment includes the customers, suppliers, financiers, public etc. while the macro environment includes political, economic factors, socio cultural factors, technological factors, legal and environment factors. PESTLE analysis is a strategic management tool which comprises of the following elements: political, economic factors, socio cultural factors, technological factors, legal and environment factors.
Porter’s Five Forces includes threat of new entrants, threats of substitutes, bargaining power of suppliers, bargaining power of buyers, rivalry among existing competitors
Clean Home will benefit from the political stability present in Oman and the good relation which it shares with the other countries. Due to the factors such as oil price decline and the COVID 19, there has been crisis in the country which has led to a decline in the purchasing ability. However, since Clean Home is involved with cleaning products, there has been a rise in the sales and growth.
The household cleaning industry witnessed a growth in sales by 195% which leads to increased revenue. Because of the onset of COVID 19, there has been a rise in the hygiene among the people. They have adopted hand washing, sanitizing, cleaning homes frequently etc. to prevent spread of the disease. This is a positive factor for Clean Home as it will lead to more sales. There is more demand for these products due to panic shopping.
The Enterprise risk management is highly essential for the accountants at such uncertain times and advancement of technology makes it easier. The ban on single use plastic affects the operation of Clean Home in terms of packaging, distributing the products etc.
Medium threat of new entrants since the capital needed is more Low threat of substitute since there are no replacement for the cleaning products High bargaining power of the buyers since there are many local and international brands offering cleaning products in Oman