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Posted on May 1st, 2014, by

PESTEL analysis usually includes the review of economic, demographic,  legal, political, and social environmental forces; technological changes; and also natural forces. Besides it, in certain cases this analysis may include competitors (especially the competition on the global market), changes in financial climate, changes in consumption or consumer tastes and force majeure.  Needless to say, external forces have a substantial influence on the entertainment industry. The global economic situation influences the expenditures on the food and entertainment purposes. Under the negative economic conditions consumers tend to spend less on entertainment.

  • Political factors

There is no doubt that regulations are considered an important factor for the company that operates restaurants, casinos, hotels, theme parks, music festival offering, and the online souvenir shops The regulations that are related to labor (employment) and taxation are considered as of the major importance in the case of discussed company.

  • Economic factors

The economic situation has the substantial influence over restaurant, hospitality and the entertainment industries. On the on hand, the development of these industries has a great influence on the economy and development of many other industries that supply the resources or materials for them.

On the other hand, the economy trends influence the demand and consumption of services/products. Therefore it critically important to take into account the negative impact of the crisis that happened in 2008-2009 and the current crisis in the EU countries on the global restaurant, hospitality and the entertainment industries.

  • Socio-cultural factors including consumer behaviour

This group of factors is vital for the restaurant, hospitality and the entertainment industries Socio-cultural influence the consumer behavior and consequently it forms the consumption trends. The company’s services are designed for tourists, for citizens of the big cities, for trendsetters, who value the music and looking for a new experience.

  • Technology

Technologies are extremely influential and they tend to affect the majority of the modern industries; the restaurant, hospitality and the entertainment industries aren’t exceptions. Technologies create an impact in two major aspects. Firstly, technologies influence the innovations in these industries. Secondly, they influence the customers’ choices via internet. The clients often use the internet when making the initial decision regarding visiting the café. They also choose their hotel by the internet and book their staying online. Therefore internet influence may be considered as threat and also as a great opportunity for Hard Rock Café.

It is known that Hard Rock Café have online merchandise sales, but they require more sales and promotions to keep buyers interested. That is why online sales are focuses on the items that have been already introduced to the guests of Hard Rock Cafés in the real life.

  • Demographic factors

The demographics is also an important factor that defines the target audience of the car segments. Hard Rock Café businesses are targeted at all generations of men and women. The negative influence of the demographic factor is that the population is aging in the Western countries but at the same time the target audience of the Hard Rock Café in the emerging economies is mostly young.

  • Global factors

The global factors include the influence and the role of the associations created by the largest players of the restaurant, hospitality and the entertainment industries. These organizations may influence the industries via introduction of the global regulatory standards.

1.1.  The selection of appropriate country markets for Hard Rock Café

The analysis of existing Hard Rock Café international presence shows that the company’s management has already paid enough attention to the launch of their business projects in the majority of Western countries and now is focused in emerging economies and especially on Asian market. The most recent opening demonstrates that company is also interested in the Latin America’s market. Rio De Janeiro (Brazil) is one of the best locations to consider for the opening of Hard Rock Café hotel. Company has already launched the café in Rio De Janeiro which is now under construction/repair.

As an alternative option, the country that represents Asia Pacific region, New Zealand, may be suggested for Hard Rock Café international expansion.

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