M
S
Sabena Ahmad
Iveta Smincakova
Dawn Bradbury

PESTLE analysis
M INISTRY OF S OUND
SWOT analysis
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Political
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Economic
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Social
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Technological
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Legal
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Environmental
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Strengths
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Weaknesses
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Opportunities
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Threats

P ESTLE ANALYSIS
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Political :
Rule of Conservative Government
International relationships enabled UK businesses to spread worldwide
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Economic:
Growing market for dance music beginning 20 th century (34% in 1991)
Downfall of UK singles markets to 15.4% in 2002
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Technological:
Rapidly changing music environment requires investment in new up to date equipment.
Social:
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Expansion of the business worldwide/increase in number of clubs and visitors
Festival weekends
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By 2001 the Ministry’s touring hosting 300 events worldwide e.g. China and India
Security dealing drugs to clients in the clubs
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Environmental:
Campaigns against drug use
Noise barriers
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Under age drinking law
Legal:
No strict legal restrictions for drug use
Local laws restricting late night attractions in overseas venues

S WOT A NALYSIS
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Strengths:
Innovative idea of CEO (Dance Club)
Convenient location
Good educational background/experiences of the founder
Investment in sound equipment
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Internationalization
Expansion into broadcasting and traditional advertising
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Weaknesses:
Drug dealing part of the dance culture
Inability to keep up with the competition (same music style)
Closure of parts of the business as a result of losses
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Opportunities:
Growth of business into different niche market
Change of marketing strategy (Logo)
Joint venture with 3i
Change of corporate strategy after downfall of the company (branding)
Three separate division (international brand and marketing)
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Threats:
Competition (Live music, festivals e.g. commercialisation of Glastonbury)
New entrants to the market
Change in music style
Political and economic issues in different countries
Loss of credibility – become too mainstream

C RITICAL SUCCESS FACTORS
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Innovative ideas
Long term corporate strategy
Clearly defined strategy objectives
Globalisation
Business environment and resources
Management at all organisational levels
Market positioning
Shared vision and goals (top-down hierarchy)

M AJOR I SSUES
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Short-term strategic planning
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Brand positioning
Inability to maintain change
Narrow market and target audience