PEST Analysis

POLITICAL

  • Company pays taxes at the rate of 18%.
  • KnockKnock searched for a support from government, since founders of the company are two women, government has regulations to support such situations.
  • They are legally continuing their work without facing any problem with the government, because they are using suitable products and have the necessary permissions.

 

ECONOMIC

  • Most of the people in Turkey do not have habitual behavior to pay for an organization too much. Therefore number of customers is not as much as forecasted.
  • Competitors are vital elements of the economy. KnockKnocks competitiors cause the company to have lower market share.
  • Rent of the building is very high, and it affects the economical growth of the company badly.
  • Turkey’s economical position and income levels of people is a major constraint for the company. Parent’s reserved amount of money for their children’s party is relatively low because of that.
  • Since products used for the organization of the party are high quality and uniquely designed, their cost is high, and expenses are also high consequently.

 

SOCIAL

  • KnockKnock aims medium and upper class levels, and prices are relatively high. Therefore, customers of the company are generally educated people.
  • According to Markov’s triangle, these types of organizations are not considered as basic needs of people. However, people started to focus more on their social status, so they are willing to pay for such organization firms.
  • Health is another important issue for both KnockKnock and the parents. Therefore, the company uses only healthy foods, candies, and natural products.
  • In terms of segmentation, KnockKnock targets parents who have children between ages 0-1, 1-6, and 6-10. They reach different age groups in a different way.
  • Parents like spending time with their friends while their children enjoys. So, entertaining parents is also included in the scope.

 

TECHNOLOGICAL

  • KnockKnock uses advanced technology for the entertainment. For example, new technology projector used in the cinema part, or sound system is high quality and latest technology.
  • Company adapts and improves their technology as technological developments occur.
  • Since KnockKnock established just 1 year ago, they decorated the company with latest technology products.

by Eren Kırımlı

 

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