Environmental Analysis

1. Environmental Analysis

1. PEST Analysis

Political

        The political environment of Sydney, Australia very stable. There is a continuous government without any problems or turmoil. The political stability means that all the events and projects are followed and completed. The government is committed to making the economy very diversified so it encourages a lot of new products and services. 

Economic

        The target customers are Generation Y who has disposable incomes and they want to spend money on making their lives easier and better. The believe in hard work and hard play, which means partying is an essential part of their lifestyle and they like to enjoy special events specially during summer break.

Social

              Beach is a common place for parties during summer. Youngsters are looking for new and exciting ways to party. This has given rise to such parties and large spending’s. The social environment of the country is therefore suitable for this event.

Technological

The technological environment is at its boom as the government has actively improved the investments in infrastructure and technology development. High speed Internet and wifi is available everywhere. Site is easily approachable by train for general public.

1. SWOT Analysis

Strengths

The strengths of the event are firstly event is being organized during summer break and more people are attracted to such event at this time. Another strength is that the market has been explored fully and the needs of the target audience have been assessed and event is arranged in line with their expectations, having food, music, internet, games, DJ’s….etc. We have developed a network of vendors and liaisons that can help in providing a better customer service.

Weaknesses

One weakness that we face is lack of long term relationships with vendors, as that would enable us to have more discounts. Cost is high and also since we haven’t worked with any of these vendors before. We are facing a challenge in the form of availability of professionals and specialists to help us conduct the business. So, obtaining reliable and professional service providers for services like decoration, lighting, food and beverages etc. is very difficult. Lack of professionalism and good business ethics are therefore a challenge.

Opportunities

Australia has large young adult population which means customer base is quite large. Generation Y is looking for a balance between their work and social life. They have money, time and energy to spend and this event is the best opportunity to have fun.

Threat

One threat is from the only other beach party which is Milk Way New Year’s Day. We face competition from them and as they have been in the market for quite some time, they are known better and have some long term customers.

Revenue Strategy and Business model: