Pestel Analysis for Ulta
Autor: Adnan • September 10, 2018 • 1,069 Words (5 Pages) • 622 Views
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Monitoring the social media is also an important risk of technology. If someone does not like the product or service they received at Ulta, they can post a negative comment on social media. These types of comments tend to ruin the reputation of the company and/or product as well. Hence why focusing on customers experience and the social media is very important in today’s age.
Ecological Factors
Global economic issues impact Ulta. If there is a recession, customers are not able to get credit and that lowers the revenue. This not only affects Ulta from a customer perspective but from their suppliers as well. If they cannot get an extension of their credit line, they will not be able to purchase and that will affect Ulta’s distribution channel.
Ulta faces ecological factors in the ingredients that are used in their products and the packing they come in. Ulta offers natural/organic products that their customers can trust. Since focus of customers shopping habits are shifting to healthy and natural, this allows Ulta to stay competitive in the cosmetics field. Since Ulta ships products directly from their fulfillment centers, they also face the risk of catastrophic events such as fires, earthquakes, tornadoes and loss of power. These catastrophic events would prevent their product from being delivered to their stores.
Legal Factors
Ulta is very vulnerable to lawsuits due to the business they are in. If the customer is not happy with the service or the product, they can file a lawsuit against the company. Lawsuits can ruin the reputation of the company and cost the company significant amount of money. Ulta is also affected by regulations that the government passes as well that might affect their products. Especially with the new regulation forcing companies to include all the ingredients on their labels. Therefore, if Ulta puts natural/organic ingredients in their products they have to be listed. Otherwise, they cannot advertise the item that it contains natural ingredients.
References
Ulta.com website
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