Business Strategy in Corporate Giftware industry (PEST Analysis) Essay

Business Strategy in Corporate Giftware industry (PEST Analysis) - Essay Example Corporate giftware is an industry, which caters to almost all the industries across the board, in varying degrees. Sponsoring sports and other events, organizing hospitality events also form part of the corporate gift industry. The profitability of any industry, in general, depends upon five environmental factors enlisted by Porter as: ï‚ § Buyers'/Consumers' power: This is the power of industry’s buyers to secure discounts or negotiate added value to products. The consumer profile of Corporate gifts presents a two-dimensional picture. Personalized Corporate gifts are procured by different companies like Intel, Microsoft, Tesco, Asda, Starbucks, Pepsi, Virgin Airways etc. from the companies which are in the business of personalizing the promotional merchandise. This merchandise is then given away to the corporate clients, general customers, students, sales agents, company executives etc or on occasions like employee appreciation, retirement or special recognition etc. Therefore the actual buying power lies in the hands of companies which get such merchandise prepared with their logos/ messages. But to a certain extent, the ‘power’ is also exercised by the stakeholders, who are the end point receivers of such gifts. The power depends on buyer concentration, information and switching costs. The desires and tastes of stakeholder also keep on changing with times and they expect their companies to give away items which are in tune with the times.