Week 6
EFE-online class
3-2
KEY FACTORS- Online Food Delivery Services
Opportunities:
[Link] smartphone penetration and
internet access.
[Link] urban population with busy
lifestyles.
[Link] trend of online payment systems and
wallets.
[Link] opportunities with local Threats:
restaurants and cloud kitchens. [Link] competition among existing players.
[Link] to untapped smaller cities and [Link] fuel prices affecting delivery costs.
rural areas. [Link] safety concerns and customer trust issues.
[Link] challenges related to taxes and
compliance.
[Link] dissatisfaction due to delivery delays
or quality issues.
Online Cab Companies
Opportunities:
[Link] urbanization and demand for
public transportation alternatives.
[Link] public transport available.
[Link] for introducing eco-friendly vehicles
(e.g., electric cabs).
[Link] partnerships with businesses for
employee transportation services. Threats:
[Link] AI and data analytics for route [Link] hurdles and government-imposed
optimization and cost efficiency. restrictions.
[Link] fuel costs impacting profitability.
[Link] concerns for both drivers and
passengers.
[Link] on fluctuating economic
conditions affecting rider demand.
[Link] competition from new entrants and
traditional transport.
Online Stores
Opportunities:
[Link] adoption of e-commerce due to increased
internet penetration.
[Link] trust in digital payment gateways.
[Link] opportunities in rural markets.
[Link] with logistics and courier services for
quick deliveries. Big brands collaboration
[Link] sales and cultural festivals boosting Threats:
online shopping trends. For instance 11.11, etc
[Link] and supply chain challenges in remote
areas.
[Link] competition from both local and
international platforms.
[Link] trust issues related to fraud and
product quality.
[Link] dependency on promotional discounts
impacting profit margins.
5. GOVT Regulatory changes affecting operational
costs.
3-6
3-7
3-8
3-9
3-10
EFE Matrix. The ratings in the external matrix refer to how effectively the company’s
current strategy responds to the opportunities and threats.
The numbers range from 4 to 1, where 4 means a superior response, 3 – above
average response, 2 – average response and 1 – poor response. Ratings, as well as
weights, are assigned subjectively to each factor.
In above example, we can see that the company’s response to the opportunities is rather poor because only one
opportunity has received a rating of 3, while the rest have received a rating of 1. The company is better prepared to
meet the threats, especially the first threat.
Query-1 company focus?
Query 2- Overall
performance ok/good/ ?
Query 3- Any possible
change (based on
assumption )? Why so
CASE study -Analysis
Opportunities
1. High demand for UPS batteries: Due to energy crises and prolonged power outages, the UPS battery
market is growing significantly in Pakistan.
2. Expansion into international markets: The CEO has shown interest in exploring markets outside
Pakistan, providing growth potential.
3. Telecom sector demand : The introduction of tubular and VRLA batteries specifically targeting the
telecom sector represents a lucrative segment.
4. Growth of solar energy: PAL’s alignment with solar energy trends by offering compatible batteries
positions it to capture emerging solar market opportunities.
5. Government interest in energy solutions: The focus on resolving energy issues through solar and other
renewable energy sources could indirectly boost battery demand.
6. Seasonal sales peaks: The distinct sales cycle of batteries (car and UPS seasons) provides regular
revenue spikes.
7. Brand awareness initiatives: PAL’s investment in marketing and brand awareness campaigns, including
TV advertisements, could capture new market segments.
8. CORPORATE CUSTOMERS
Threats
1. Cheap imported generators: Influx of affordable Chinese generators is reducing UPS demand.
2. Competition from established brands: Competitors like Osaka and Volta have strongholds in specific regions.
3. Government regulations: Relaxed import duties on foreign batteries could undermine PAL’s local market
dominance.
4. Economic instability: Inflation and economic challenges in Pakistan could impact customer purchasing power.
5. Dependence on illiterate customers: Customers’ lack of product knowledge allows intermediaries to manipulate
perceptions, affecting brand loyalty.
6. Energy policy changes: Government strategies to curb gas generator usage or alternative energy solutions may
impact the battery market.
7. Limited internal resources: PAL's dependence on indirect selling and dealer networks limits its control over pricing
and market outreach
8. ENERGY SOLUTION THROUGH NEW ELECTRIC POWER SYSTEM
Class Activity in Group next week
Choose a company for PSX website
OR
you know yourself. Prepare an EFE
(using Annual data report
Or from the expert
and discuss in class
CPM
Next class
